234.84(1) (1) Definition. In this section, "corporation" means the Wisconsin Economic Development Corporation.
234.84(2) (2)Guarantee requirements. The authority may use money from the Wisconsin job training reserve fund to guarantee a loan under this section if, at the time application is made for the loan, all of the following apply:
234.84(2)(a) (a) The borrower is an employer in this state, regardless of the number of employees.
234.84(2)(b) (b) The loan qualifies as an eligible loan under sub. (3).
234.84(2)(c) (c) The lender is a financial institution that enters into an agreement under s. 234.932 (3) (a).
234.84(3) (3)Eligible loans. A loan is eligible for guarantee of collection from the Wisconsin job training reserve fund under s. 234.932 if all of the following apply:
234.84(3)(a) (a) The borrower certifies that it will use the loan proceeds for expenses related to employee training or retraining or for purchasing equipment or upgrading facilities for purposes related to employee training or retraining.
234.84(3)(b) (b) The borrower certifies that loan proceeds will not be used to refinance existing debt or for operating or entertainment expenses.
234.84(3)(c) (c) The interest rate on the loan, including any origination fees or other charges, is approved by the corporation.
234.84(3)(d) (d) The original loan term does not extend beyond 3 years if the loan proceeds are used exclusively for expenses related to instruction or training, or beyond 5 years if the loan proceeds are used for purchasing equipment or upgrading facilities that will be used for instructing or training employees.
234.84(3)(e) (e) The total outstanding principal amount of all loans to the borrower that are guaranteed under this section does not exceed $250,000.
234.84(3)(f) (f) The lender obtains a security interest in the physical plant, equipment or other assets if the loan proceeds are to be used for purchasing equipment or upgrading facilities that will be used for instructing or training employees.
234.84(3)(g) (g) The lender confirms that the borrower satisfies all applicable loan underwriting criteria.
234.84(4) (4)Guarantee of collection.
234.84(4)(a)(a) Subject to par. (b), the authority shall guarantee collection of a percentage of the principal of, and all interest and any other amounts outstanding on, any loan eligible for a guarantee under sub. (2). The corporation shall establish the percentage of the principal of an eligible loan that will be guaranteed, using the procedures described in the agreement under s. 234.932 (3) (a). The corporation may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.
234.84(4)(b) (b) Except as provided in s. 234.932 (4), the total outstanding guaranteed principal amount of all loans that the authority may guarantee under par. (a) may not exceed $8,000,000.
234.84(5) (5)Administration.
234.84(5)(a)(a) The program under this section shall be administered by the corporation with the cooperation of the authority. The corporation shall enter into a memorandum of understanding with the authority setting forth the respective responsibilities of the corporation and the authority with regard to the administration of the program, including the functions and responsibilities specified in s. 234.932. The memorandum of understanding shall provide for reimbursement to the corporation by the authority for costs incurred by the corporation in the administration of the program.
234.84(5)(b) (b) The corporation may charge a premium, fee, or other charge to a borrower of a guaranteed loan under this section for the administration of the loan guarantee.
234.84 History History: 1995 a. 27 s. 9116 (5); 1995 a. 116; 2011 a. 32.
234.86 234.86 Drinking water loan guarantee program.
234.86(1)(1) Definitions. In this section:
234.86(1)(a) (a) "Community water system" means a public water system that serves at least 15 service connections used by year-round residents or that regularly serves at least 25 year-round residents.
234.86(1)(b) (b) "Department" means the department of natural resources.
234.86(1)(c) (c) "Local governmental unit" has the meaning given in s. 281.61 (1) (a), except that the term does not include a joint local water authority created under s. 66.0823.
234.86(1)(d) (d) "Noncommunity water system" means a public water system that is not a community water system.
234.86(1)(e) (e) "Public water system" has the meaning given in s. 281.61 (1) (c).
234.86(2) (2)Guarantee requirements. The authority may use money from the Wisconsin drinking water reserve fund under s. 234.933 to guarantee a loan under this section if all of the following apply:
234.86(2)(a) (a) The borrower is not a local governmental unit and is one of the following:
234.86(2)(a)1. 1. The owner of a community water system.
234.86(2)(a)2. 2. The owner of a noncommunity water system and is not operated for profit.
234.86(2)(b) (b) The loan qualifies as an eligible loan under sub. (3).
234.86(2)(c) (c) The lender is a financial institution that enters into an agreement under s. 234.933 (3) (a).
234.86(3) (3)Eligible loans. A loan is an eligible loan if all of the following apply:
234.86(3)(a) (a) The department determines that the loan will facilitate compliance with national primary drinking water regulations under 42 USC 300g-1 or otherwise significantly further the health protection objectives of the Safe Drinking Water Act, 42 USC 300f to 300j-26.
234.86(3)(b) (b) The department determines that the loan satisfies the requirements under s. 281.625 (2).
234.86(4) (4)Guarantee of collection.
234.86(4)(a)(a) Subject to par. (b), the authority may guarantee collection of a percentage, not exceeding 80%, of the principal of any loan eligible for a guarantee under this section. The authority shall establish the percentage of the unpaid principal of an eligible loan that will be guaranteed using the procedures described in the guarantee agreement under s. 234.933 (3) (a). The authority may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.
234.86(4)(b) (b) Except as provided in s. 234.933 (4), the total outstanding principal amount of all guaranteed loans under par. (a) may not exceed $3,000,000.
234.86 History History: 1997 a. 27; 2013 a. 12.
234.88 234.88 Emergency heating assistance loan guarantees.
234.88(1)(1) Definitions. In this section:
234.88(1)(a) (a) "Emergency heating assistance loan" means a loan to an individual to finance extraordinary costs related to heating during a state of emergency declared by the governor under s. 323.10.
234.88(1)(b) (b) "Guaranteed loan" means an emergency heating assistance loan on which the authority guarantees collection under sub. (5).
234.88(1)(c) (c) "Participating lender" means a bank, production credit association, credit union, savings bank, savings and loan association, or other person who makes emergency heating assistance loans and who has entered into an agreement with the authority under s. 234.93 (2) (a).
234.88(2) (2)Eligible loans. An emergency heating assistance loan made by a participating lender is eligible for guarantee of collection under sub. (5) from the Wisconsin development reserve fund under s. 234.93 if all of the following apply:
234.88(2)(a) (a) The total of the principal amounts of all guaranteed loans extended to the individual under this section will not exceed $2,500, unless a different maximum amount is approved under sub. (5).
234.88(2)(b) (b) The rate of interest on the emergency heating assistance loan, including any origination fees or other charges relating to the emergency heating assistance loan, does not exceed a rate determined by the authority after considering the conditions of the financial market.
234.88(2)(c) (c) If the individual obtains the emergency heating assistance loan to pay a supplier, the participating lender pays the supplier directly.
234.88(2)(d) (d) The participating lender follows procedures required by the authority to secure repayment of the emergency heating assistance loan.
234.88(2)(e) (e) The initial term of the emergency heating assistance loan is not longer than 2 years.
234.88(2)(f) (f) In the judgment of the participating lender, the emergency heating assistance loan is necessary for the individual to pay heating costs related to the declared state of emergency.
234.88(2)(g) (g) The proceeds of the emergency heating assistance loan may not be used to refinance a loan made under this section.
234.88(3) (3)Eligible individuals. An individual is eligible for a guaranteed loan if all of the following apply:
234.88(3)(a) (a) The individual's household annual income does not exceed 200 percent of the median family income for the county in which the individual resides.
234.88(3)(b) (b) In the judgment of the participating lender, all of the following are true:
234.88(3)(b)1. 1. It is reasonably likely that the individual will be able to repay the emergency heating assistance loan in full with interest.
234.88(3)(b)2. 2. The individual is not eligible for conventional financing on reasonably equivalent terms and conditions.
234.88(3)(b)3. 3. Under normal market conditions affecting the cost of heating, the individual's income and assets would be sufficient for the individual to pay his or her heating costs.
234.88(3)(c) (c) The individual's name does not appear on the statewide support lien docket under s. 49.854 (2) (b). The condition under this paragraph is met for an individual whose name does appear if the individual provides to the authority a payment agreement that has been approved by the county child support agency under s. 59.53 (5) and that is consistent with rules promulgated under s. 49.858 (2) (a).
234.88(4) (4)Extension. A participating lender may extend the term of an emergency heating assistance loan until no later than 3 years after the lender made the loan.
234.88(5) (5)Guarantee of collection.
234.88(5)(a)(a) Subject to par. (c), if the governor issues an executive order under s. 323.10 declaring a state of emergency related to heating costs or the availability of heating fuels and the joint committee on finance approves the authority's plan under par. (b), the authority shall guarantee collection of not less than 50 percent or more than 80 percent of the principal of any emergency heating assistance loan eligible for guarantee under sub. (2) made to an individual eligible for a guaranteed loan under sub. (3).
234.88(5)(b) (b) If the governor declares a state of emergency related to heating costs or the availability of heating fuels, no later than 14 days after the governor's declaration the authority shall submit the authority's plan for guaranteeing collection of emergency heating loans under this section related to the declared state of emergency to the joint committee on finance for approval. The authority may include in its plan a request to modify the maximum total principal amount under sub. (2) (a).
234.88(5)(c) (c) The authority may guarantee emergency heating assistance loans under par. (a) only for 120 days following the joint committee on finance's approval of the plan submitted under par. (b) unless the authority requests the joint committee on finance to permit the authority to guarantee emergency heating assistance loans for an additional 120 days.
234.88(6) (6)Interest reduction. The authority shall pay, from the moneys in the Wisconsin development reserve fund under s. 234.93, to each participating lender an amount equal to 3.5 percent of the principal amount of any guaranteed loan to reduce interest payments on the guaranteed loan paid by an individual.
234.88 History History: 2013 a. 175.
234.90 234.90 Agricultural production loan guarantees.
234.90(1)(1) Definitions. In this section:
234.90(1)(a) (a) "Agricultural commodity" has the meaning given under s. 94.67 (2).
234.90(1)(ad) (ad) "Agricultural production loan" means a loan to a farmer to finance the purchase of fertilizer, seed, fuel, pesticides, tillage services, crop insurance, animal feed or any other service or consumable good necessary to produce an agricultural commodity.
234.90(1)(ag) (ag) "Dairy plant" has the meaning given in s. 97.20 (1) (a).
234.90(1)(b) (b) "Farmer" has the meaning given under s. 102.04 (3).
234.90(1)(c) (c) "Guaranteed loan" means an agricultural production loan which is guaranteed by the authority.
234.90(1)(cp) (cp) "Milk" has the meaning given in s. 97.22 (1) (e).
234.90(1)(d) (d) "Participating lender" means a bank, production credit association, credit union, savings bank, savings and loan association or other person who makes agricultural production loans and who has entered into an agreement with the authority under s. 234.93 (2) (a).
234.90(2) (2)Eligible loans. Except as provided in sub. (3j), an agricultural production loan made by a participating lender is eligible for guarantee of collection from the Wisconsin development reserve fund under s. 234.93 if all of the following apply:
234.90(2)(a) (a) The loan is to finance production of an agricultural commodity.
234.90(2)(b) (b) In order to maximize the benefits of the program under this section, the total outstanding principal amount of all loans to the borrower that are guaranteed under this section will not exceed an amount set annually, no later than December 1, by the authority that is not less than $2,000 nor more than $150,000. For purposes of adjusting the total outstanding principal amount of all loans to a borrower under this paragraph, the authority shall consider changes in the index of prices paid by farmers published by the federal department of agriculture.
234.90(2)(bm) (bm) If the loan is one for which the borrower is eligible under sub. (3g), the amount of that loan does not exceed the amount of the payment, excluding interest or penalties if any, owed to the borrower by the insolvent or bankrupt dairy plant, subject to par. (b).
234.90(2)(c) (c) The rate of interest on the loan, including any origination fees or other charges relating to the loan, does not exceed a rate determined by the authority after considering the conditions of the financial market.
234.90(2)(d) (d) If the loan is one to which sub. (5) applies, the rate of interest on the loan for which the borrower is obligated, including any origination fees or other charges relating to the loan, does not exceed the rate determined under par. (c), minus 2%.
234.90(2)(e) (e) The participating lender shall pay directly any supplier of fertilizer, seed, fuel, pesticides, tillage services, crop insurance, animal feed or other service or consumable good necessary to produce an agricultural commodity, if the borrower obtains the loan to pay that supplier.
234.90(2)(f) (f) The participating lender obtains a security interest for repayment of the loan in the agricultural commodity resulting from use of the loan proceeds.
234.90(2)(g) (g) Unless waived by the authority, the borrower procures an insurance policy which protects the agricultural commodity to be financed with the proceeds of the loan against risk of loss, and the proceeds of which are payable to the participating lender.
234.90(2)(h) (h) The term of the loan does not extend beyond 12 months after the date on which the participating lender granted the loan.
234.90(2)(i) (i) The proceeds of the loan may not be applied to the outstanding balance of any other loan, except that the proceeds may be used to refinance a loan under this section, subject to sub. (3n).
234.90(2)(j) (j) If the loan is one for which the borrower is eligible under sub. (3g), the terms of the loan require the borrower to pay to the authorized lender, in repayment of the loan, money received from or on behalf of the bankrupt or insolvent dairy plant, immediately upon receipt of the money.
234.90(3) (3)Eligible farmers. Except as provided under subs. (3g) and (3j), a farmer is eligible for a guaranteed loan if all of the following apply:
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2011-12 Wisconsin Statutes updated through 2013 Wis. Act 380 and all Supreme Court Orders entered before Oct. 4, 2014. Published and certified under s. 35.18. Changes effective after Oct. 4, 2014 are designated by NOTES. (Published 10-4-14)