234.905(2)(g) (g) The proceeds of the agricultural production disaster assistance loan may not be used to refinance a loan made under this section.
234.905(3) (3) Eligible farmers. A farmer is eligible for a guaranteed loan if all of the following apply:
234.905(3)(a) (a) The farmer does not meet the participating lender's minimum standards of creditworthiness to receive an agricultural production disaster assistance loan in the normal course of the participating lender's business.
234.905(3)(b) (b) The participating lender projects the amount of the farmer's debts related to the agricultural production that is the subject of the loan totals at least 40 percent of the amount of the farmer's assets related to the agricultural production that is the subject of the loan.
234.905(3)(c) (c) In the judgment of the participating lender, it is reasonably likely that if the farmer receives a guaranteed loan the farmer's assets, cash flow and managerial ability are sufficient to preclude voluntary or involuntary liquidation before the end of the loan term.
234.905(3)(d) (d) The farmer'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 a farmer whose name does appear if the farmer 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).
234.905(3)(e) (e) The participating lender projects that the farmer will lose approximately 40 percent or more of the farmer's agricultural commodities because of a disaster.
234.905(4) (4) Guarantee of collection.
234.905(4)(a)(a) The authority may guarantee collection of up to 90 percent of the principal of any agricultural production disaster assistance loan eligible for guarantee under sub. (2) made to a farmer eligible for a guaranteed loan under sub. (3).
234.905(4)(bn) (bn) The term of the authority's loan guarantee under this section may not exceed 3 years, unless the guaranteed loan is included in a loan workout agreement.
234.905(5) (5) Interest reduction. The authority may pay, from the moneys in the Wisconsin development reserve fund, to each participating lender an amount that is no more than 3.5 percent of the principal amount of any guaranteed loan to reduce interest payments on the guaranteed loan paid by a farmer.
234.907 234.907 Agricultural development loan guarantee program.
234.907(1)(1)Definitions. In this section:
234.907(1)(d) (d) “Guaranteed loan" means a loan on which the authority guarantees collection under sub. (3) or (4).
234.907(1)(e) (e) “Participating lender" means a bank, credit union, savings bank, savings and loan association or other person, who makes loans for working capital or to finance physical plant needs, equipment or machinery and who has entered into an agreement with the authority under s. 234.93 (2) (a).
234.907(1)(f) (f) “Percentage of guarantee" means the percentage established by the authority under sub. (3) or (4).
234.907(1)(g) (g) “Raw agricultural commodity" means any agricultural, aquacultural, horticultural, viticultural, vegetable, poultry, and livestock products produced in this state, including milk and milk products, bees and honey products, timber and wood products, or any class, variety or utilization of the products, in their natural state.
234.907(1)(h) (h) “Security interest" means an interest in property or other assets which secures payment or other performance of a guaranteed loan.
234.907(2) (2) Eligible loans. A 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:
234.907(2)(a) (a) The loan is made for working capital or to finance any of the following items, if the working capital or item is necessary to, or used to, process or market a product from a raw agricultural commodity produced in this state or to commercially harvest whitefish from Lake Superior:
234.907(2)(a)1. 1. Physical plant.
234.907(2)(a)2. 2. Machinery or equipment.
234.907(2)(a)3. 3. Marketing expenses.
234.907(2)(b) (b) The rate of interest on the loan, including any origination fees or other charges, is fixed at a rate determined by the participating lender and approved by the authority.
234.907(2)(c) (c) Subject to par. (cm), the total guarantee amount of all loans to the borrower that are guaranteed under this section will not exceed $750,000.
234.907(2)(cm) (cm) The total guarantee amount of all loans to the borrower that are guaranteed under this section and that are made for working capital or an item necessary to, or used to, commercially harvest whitefish from Lake Superior will not exceed $100,000. This subsection [paragraph] does not apply to a loan guaranteed under sub. (4).
234.907 Note NOTE: The correct cross-reference is shown in brackets. Corrective legislation is pending.
234.907(2)(d) (d) The borrower's principal place of operations for processing or marketing a product from a raw agricultural commodity is located in a town, village or city in this state with a population of less than 50,000. This paragraph does not apply to a borrower that harvests whitefish from Lake Superior.
234.907(2)(e) (e) The participating lender obtains a security interest in physical plant, equipment, machinery or other assets.
234.907(2)(f) (f) The term of the authority's guarantee under this section is not longer than 10 years for land and buildings, 5 years for inventory, equipment, and machinery, and 2 years for working capital and marketing expenses. This paragraph does not apply to a loan that is part of a loan workout agreement.
234.907(2)(g) (g) The proceeds of the loan are not applied to the outstanding balance of any other loan.
234.907(2)(h) (h) The loan results in new or more viable methods for the processing or marketing of a product from a raw agricultural commodity or enables the borrower to comply with the rules promulgated by the department of natural resources for the commercial fishing of whitefish in Lake Superior.
234.907(2)(i) (i) The borrower does not meet the participating lender's minimum standards of creditworthiness to receive a loan for the purposes described in par. (a) in the normal course of the participating lender's business.
234.907(2)(j) (j) The participating lender considers the borrower's assets, cash flow and managerial ability sufficient to preclude voluntary or involuntary liquidation for the loan term granted by the participating lender.
234.907(2)(k) (k) The participating lender agrees to the percentage of guarantee established for the loan by the authority.
234.907(2m) (2m) Origination fees. The authority may charge a guarantee origination fee on every loan guaranteed under this section. The amount of the fee may not exceed 1.5 percent of a loan's guaranteed principal. The participating lender shall collect the fee and remit it to the authority. The authority shall deposit all fees received under this subsection in the Wisconsin development reserve fund.
234.907(3) (3) Guarantee of collection. The authority may guarantee collection of up to 90 percent of the disbursed principal of any loan eligible for a guarantee under sub. (2). 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. 234.93 (2) (a). The authority may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.
234.907(4) (4) Alternative guarantee of collection pilot program.
234.907(4)(a)(a) Notwithstanding sub. (3), the authority shall implement a pilot program under which it may guarantee collection of 25 percent of the disbursed principal of any loan eligible for a guarantee under sub. (2) or $750,000, whichever is less.
234.907(4)(b) (b) In the event of default, the amount guaranteed under par. (a) shall be payable in full to the authorized lender regardless of the amount due after all available collateral securing the loan has been liquidated and applied to the loan, except that if that amount due is less than the amount guaranteed under par. (a), the amount due shall be payable to the authorized lender.
234.907(4)(c) (c) The authority shall allocate at least $3,000,000 for loan guarantees under par. (a).
234.907(4)(d) (d) The authority may not guarantee a loan under par. (a) after June 30, 2024.
234.91 234.91 Farm assets reinvestment management loan guarantee program.
234.91(1)(1)Definitions. In this section:
234.91(1)(a) (a) “Agricultural assets" means machinery, equipment, facilities, land or livestock used in agriculture or aquaculture.
234.91(1)(b) (b) “Farm credit service" includes a production credit association, federal land credit association and agricultural credit association.
234.91(1)(c) (c) “Farmer" means a person engaged in, or who intends to engage in, farming, as defined in s. 102.04 (3).
234.91(1)(d) (d) “Farm premises" has the meaning given in s. 102.04 (3).
234.91(1)(e) (e) “Participating lender" means a bank, farm credit service, credit union, savings bank, savings and loan association or other person who makes loans for the acquisition or improvement of agricultural assets and who has entered into an agreement with the authority under s. 234.93 (2) (a). The term does not include a seller under a land contract.
234.91(2) (2) Eligible loans. A 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:
234.91(2)(a) (a) The borrower is a farmer who is eligible for a guarantee under sub. (3).
234.91(2)(b) (b) The loan is made to finance the acquisition of agricultural assets or the cost of improvements to facilities or land. The agricultural assets must be acquired, and the improvements must be made, for agricultural or aquacultural purposes.
234.91(2)(c) (c) The total guarantee amount of all loans made to the borrower that are guaranteed under this section will not exceed $200,000, or $100,000 if any of the loans is affected by any other state or federal credit assistance program.
234.91(2)(d) (d) The rate of interest and the loan terms, including any associated fees or charges, are approved by the authority.
234.91(2)(e) (e) The participating lender obtains a security interest in assets of the borrower sufficient to secure repayment of the loan.
234.91(2)(g) (g) Loan proceeds are not used to refinance existing debt, for entertainment expenses, or for expenses related to a community-based residential facility, except that loan proceeds may be used to refinance existing debt if the borrower also expands an existing business.
234.91(3) (3) Eligible farmers. A farmer is eligible for a guarantee of a loan under this section if all of the following apply at the time the loan is made:
234.91(3)(a) (a) The farmer is any of the following:
234.91(3)(a)1. 1. A person who currently operates farm premises.
234.91(3)(a)2. 2. A person who intends to operate farm premises and who has not less than 3 years of farming experience including managing the day to day operations of a farm.
234.91(3)(a)3. 3. A person who intends to operate farm premises and maintain the family farmstead on the farm premises and who has previous experience with the operation of the specific farm premises.
234.91(3)(b) (b) The amount of the farmer's debts related to the agricultural assets, including the loan, is at least 40 percent and does not exceed 85 percent of the farmer's assets, including the value of the agricultural assets to be acquired, or the improvements to be made, with the proceeds of the loan. The authority shall consider only the farmer's debts and assets that are related to the agricultural assets that are the subject of the loan.
234.91(3)(c) (c) The participating lender considers the farmer's assets, cash flow and managerial ability sufficient to preclude voluntary or involuntary liquidation during the term of the loan.
234.91(4) (4) Origination fees. The authority may charge a guarantee origination fee on every loan guaranteed under this section. The amount of the fee may not exceed 1.5 percent of a loan's guaranteed principal. The participating lender shall collect the fee and remit it to the authority. The authority shall deposit all fees received under this subsection in the Wisconsin development reserve fund.
234.91(5) (5) Guarantee of collection.
234.91(5)(a)(a) The authority may guarantee collection of a percentage of the principal of a loan eligible for a guarantee under sub. (2). The total guarantee amount of all loans to the farmer that are guaranteed under this section may not exceed the borrower's net worth or 25 percent of the total loan amount, whichever is less, calculated at the time the loan is made.
234.91(5)(b) (b) The term of the authority's loan guarantee under this section is not longer than 10 years. This paragraph does not apply to a guarantee of a loan that is part of a loan workout agreement.
234.92 234.92 Financial assistance; fees. The authority may establish premiums, fees or other charges for providing financial assistance under programs guaranteed by the Wisconsin development reserve fund.
234.92 History History: 1989 a. 31, 359; 1993 a. 394; 1997 a. 27 s. 3360; Stats. 1997 s. 234.92.
234.93 234.93 Wisconsin development reserve fund.
234.93(1)(1)Establishment of fund. There is established under the jurisdiction and control of the authority, for the purpose of providing funds for guaranteeing loans, a Wisconsin development reserve fund, consisting of all of the following:
234.93(1)(a) (a) Moneys appropriated to the authority under s. 20.490 (5) (a), (q), (r) and (s) or received by the authority for the Wisconsin development reserve fund from any other source.
234.93(1)(b) (b) Any income from investment of money in the Wisconsin development reserve fund by the authority under s. 234.03 (18).
234.93(1)(c) (c) Any moneys transferred from the recycling loan fund, agricultural production loan fund or drought assistance and development loan fund.
234.93(1)(cm) (cm) Any moneys transferred under 1999 Wisconsin Act 9, section 9125 (1), or under s. 234.75 (5) (c), from the housing rehabilitation loan program administration fund.
234.93(1)(d) (d) Fees collected under s. 234.91 (4).
234.93(2) (2) Program administration.
234.93(2)(a) (a) The authority may enter into a guarantee agreement with any bank, production credit association, credit union, savings bank, savings and loan association or other person who wishes to participate in a loan program guaranteed by the Wisconsin development reserve fund. The authority may determine all of the following, consistent with the terms of the specific loan guarantee program:
234.93(2)(a)1. 1. The form of the agreement.
234.93(2)(a)2. 2. Any conditions upon which the authority may refuse to enter into such an agreement.
234.93(2)(a)3. 3. Any procedures required to carry out the agreement, including default procedures and procedures for determining the guaranteed percentage of each loan.
234.93(2)(b) (b) A guarantee agreement between the authority and a bank, production credit association, credit union, savings and loan association or other person under s. 234.67 (5), 1989 stats., s. 234.82 (5), 1989 stats., s. 234.90 (7), 1989 stats., s. 234.905 (7), 1989 stats., or s. 234.907 (5), 1989 stats., in effect immediately before August 15, 1991, shall continue in full force and effect, as if entered into under par. (a).
234.93(2)(bm) (bm) A guarantee agreement between the authority and a bank, production credit association, credit union, savings and loan association or other person under par. (a) with respect to a loan guaranteed under s. 234.68, 1995 stats., s. 234.69, 1995 stats., s. 234.765, 1995 stats., s. 234.82, 1995 stats., s. 234.83, 1995 stats., or s. 234.87, 1995 stats., that is in effect immediately before October 14, 1997, shall continue in full force and effect until the termination or expiration of the agreement according to its terms.
234.93(2)(c) (c) The authority may not use any moneys other than those in the Wisconsin development reserve fund for programs guaranteed by the Wisconsin development reserve fund.
234.93(2)(d) (d) The authority may establish an eligibility criteria review panel, consisting of experts in finance and in the subject area of the loan guarantee program, to advise the authority about lending requirements and issues related to a loan guarantee program.
234.93(3) (3) Loan guarantees; increases or decreases.
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2017-18 Wisconsin Statutes updated through 2019 Wis. Act 102 and through all Supreme Court and Controlled Substances Board Orders filed before and in effect on February 24, 2020. Published and certified under s. 35.18. Changes effective after February 24, 2020, are designated by NOTES. (Published 2-24-20)