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3234.83 (title)
Targeted Small business development loan guarantee
4program.
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234.83
(1) (c) The lender
is a financial institution that enters into an agreement
7under s. 234.93 (2) (a).
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8Section
3365. 234.83 (2) (a) of the statutes is renumbered 234.83 (2) (a) (intro.)
9and amended to read:
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234.83
(2) (a) (intro.) A business, as defined in s. 560.60 (2)
., to which all of the
11following apply:
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234.83
(2) (a) 1. The owner of the business is actively engaged in the business.
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2. The business employs 50 or fewer employes on a full-time basis.
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3. The authority has not received a certification under s. 49.855 (7) that the
16owner of the business is delinquent in making child support or maintenance
17payments.
AB100-engrossed, s. 3368
20Section
3368. 234.83 (3) (a) 1. of the statutes is renumbered 234.83 (3) (a)
21(intro.) and amended to read:
AB100-engrossed,1657,2422
234.83
(3) (a) (intro.) The borrower uses the loan proceeds for a business
23development project
in a targeted area. Loan proceeds may be used for direct or
24related expenses associated with
any of the following:
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11. The expansion or acquisition of a business, including the purchase or
2improvement of land, buildings, machinery, equipment or inventory.
AB100-engrossed, s. 3369
3Section
3369. 234.83 (3) (a) 2. to 9. of the statutes are renumbered 234.83 (3)
4(b) to (i), and 234.83 (3) (b), (d), (e), (f), (g), (h) and (i), as renumbered, are amended
5to read:
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234.83
(3) (b) Loan proceeds are not used to refinance existing debt or for
7operating or entertainment expenses
, expenses related to the production of an
8agricultural commodity, as defined in s. 94.67 (2), or expenses related to a
9community-based residential facility.
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(d) The loan term does not extend beyond 15 years after the date on which the
11financial institution lender disburses the loan unless
the loan is extended by the
12authority
agrees to an extension of the loan term.
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(e) The total principal amount of all loans to the borrower that are guaranteed
14under this section does not exceed
$250,000 $750,000.
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(f) The
financial institution lender obtains a security interest in the physical
16plant, equipment, machinery or other assets.
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(g) The
financial institution lender believes that it is reasonably likely that the
18borrower will be able to repay the loan in full with interest.
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(h) The
financial institution lender agrees to the percentage of guarantee
20established for the loan by the authority.
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(i) The authority believes that the loan will have a positive
economic impact
on
22the targeted area in terms of job creation
and
or retention.
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1234.83
(3) (a) 2. The start-up, expansion or acquisition of a day care business,
2including the purchase or improvement of land, buildings, machinery, equipment or
3inventory.
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234.83
(4) (title)
Guarantee of collection repayment. (a) Subject to par. (b),
7the authority
shall may guarantee
collection repayment of a
percentage, not
8exceeding 90%, portion of the principal of any loan eligible for a guarantee under sub.
9(1).
That portion may not exceed 80% of the principal of the loan or $200,000,
10whichever is less. The authority shall establish the
percentage portion of the
11principal of an eligible loan that will be guaranteed, using the procedures described
12in the agreement under s. 234.93 (2) (a). The authority may establish a single
13percentage portion for all guaranteed loans
that do not exceed $250,000 and a single
14portion for all guaranteed loans that exceed $250,000 or establish
on an individual
15basis different
percentages portions for eligible loans
on an individual basis that do
16not exceed $250,000 and different portions for eligible loans that exceed $250,000.
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234.83
(4) (b) Except as provided in s. 234.93 (3), the total outstanding
19guaranteed principal amount of all loans that the authority may guarantee under
20par. (a) may not exceed
$10,000,000 $9,900,000.
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23234.86 Drinking water loan guarantee program. (1) Definitions. In this
24section:
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1(a) "Community water system" means a public water system that serves at
2least 15 service connections used by year-round residents or that regularly serves
3at least 25 year-round residents.
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(b) "Department" means the department of natural resources.
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(c) "Local governmental unit" has the meaning given in s. 281.61 (1) (a).
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(d) "Noncommunity water system" means a public water system that is not a
7community water system.
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(e) "Public water system" has the meaning given in s. 281.61 (1) (c).
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9(2) Guarantee requirements. The authority may use money from the
10Wisconsin drinking water reserve fund under s. 234.933 to guarantee a loan under
11this section if all of the following apply:
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(a) The borrower is not a local governmental unit and is one of the following:
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1. The owner of a community water system.
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2. The owner of a noncommunity water system and is not operated for profit.
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(b) The loan qualifies as an eligible loan under sub. (3).
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(c) The lender is a financial institution that enters into an agreement under s.
17234.933 (3) (a).
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18(3) Eligible loans. A loan is an eligible loan if all of the following apply:
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(a) The department determines that the loan will facilitate compliance with
20national primary drinking water regulations under
42 USC 300g-1 or otherwise
21significantly further the health protection objectives of the Safe Drinking Water Act,
2242 USC 300f to
300j-26.
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(b) The department determines that the loan satisfies the requirements under
24s. 281.625 (2).
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1(4) Guarantee of collection. (a) Subject to par. (b), the authority may
2guarantee collection of a percentage, not exceeding 80%, of the principal of any loan
3eligible for a guarantee under this section. The authority shall establish the
4percentage of the unpaid principal of an eligible loan that will be guaranteed using
5the procedures described in the guarantee agreement under s. 234.933 (3) (a). The
6authority may establish a single percentage for all guaranteed loans or establish
7different percentages for eligible loans on an individual basis.
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(b) Except as provided in s. 234.933 (4), the total outstanding principal amount
9of all guaranteed loans under par. (a) may not exceed $3,000,000.
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12234.88 Brownfields remediation loan guarantee program. (1)
13Definitions. In this section:
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(a) "Brownfields" means abandoned, idle or underused industrial or
15commercial facilities or sites, the expansion or redevelopment of which is adversely
16affected by actual or perceived environmental contamination.
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(b) "Guaranteed loan" means a loan for which the authority guarantees
18repayment under sub. (3).
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(c) "Participating lender" means a bank, savings bank, credit union, credit
20association, savings and loan association or other person that makes loans and that
21has entered into an agreement with the authority under s. 234.93 (2) (a).
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(d) "Security interest" means an interest in property or other assets that
23secures payment or other performance of a guaranteed loan.
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1(2) Eligible loans. A loan made by a participating lender is eligible for
2guarantee of repayment from the Wisconsin development reserve fund under s.
3234.93 if all of the following apply:
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(a) The borrower is a business in this state.
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(b) The borrower uses the loan proceeds for direct or related expenses, as
6determined by the authority, that are associated with remediation of contamination
7at a brownfields site.
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(c) The loan proceeds are not applied to the outstanding balance of any other
9loan.
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(d) The authority approves the interest rate on the loan, including any
11origination fees or other charges.
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(e) The participating lender obtains a security interest in any equipment,
13machinery, physical plant or other assets to secure repayment of the loan.
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(f) The loan term does not extend beyond 15 years after the date on which the
15participating lender disburses the loan unless the authority agrees to an extension
16of the loan term.
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(g) The participating lender considers the borrower's assets, cash flow and
18managerial ability sufficient to preclude voluntary or involuntary liquidation for the
19loan term granted by the participating lender.
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(h) The participating lender agrees to the percentage of guarantee established
21for the loan by the authority.
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(i) The principal amount of the loan does not exceed $500,000.
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23(3) Guarantee of repayment. (a) Subject to par. (b), beginning on July 1, 1998,
24the authority may guarantee repayment of a percentage, not exceeding 80%, of the
25principal of any loan eligible for a guarantee under sub. (2). The authority shall
1establish the percentage of the unpaid principal of an eligible loan that will be
2guaranteed by using the procedures described in the guarantee agreement under s.
3234.93 (2) (a). The authority may establish a single percentage for all guaranteed
4loans or establish different percentages for eligible loans on an individual basis.
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(b) Except as provided in s. 234.93 (3), the total outstanding principal amount
6of all guaranteed loans under par. (a) may not exceed $22,500,000.
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234.93
(1) (e) To be used for guaranteeing loans under s. 234.88, moneys
9appropriated to the authority under s. 20.490 (5) (t).
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234.93
(2) (a) (intro.) The authority
shall may enter into a guarantee
12agreement with any bank, production credit association, credit union, savings bank,
13savings and loan association or other person who wishes to participate in a loan
14program guaranteed by the Wisconsin development reserve fund. The authority may
15determine all of the following, consistent with the terms of the specific loan
16guarantee program:
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234.93
(2) (bm) A guarantee agreement between the authority and a bank,
19production credit association, credit union, savings and loan association or other
20person under par. (a) with respect to a loan guaranteed under s. 234.68, 1995 stats.,
21s. 234.69, 1995 stats., s. 234.765, 1995 stats., s. 234.82, 1995 stats., s. 234.83, 1995
22stats., or s. 234.87, 1995 stats., that is in effect immediately before the effective date
23of this paragraph .... [revisor inserts date], shall continue in full force and effect until
24the termination or expiration of the agreement according to its terms.
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1234.93
(4) (a) 2. To fund guarantees under all of the programs guaranteed by
2funds from the Wisconsin development reserve fund
, except for the program under
3s. 234.935, at a ratio of $1 of reserve funding to
$4 $4.50 of total
outstanding principal
4and outstanding guaranteed principal that the authority may guarantee under all
5of those programs.
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234.93
(4) (a) 3. To fund guarantees under the program under s. 234.935 at a
8ratio of $1 of reserve funding to $4 of total principal and outstanding guaranteed
9principal that the authority may guarantee under that program.
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234.93
(4) (b) (intro.) Annually on
June 30 August 31, the executive director
12of the authority shall provide to the secretary of administration and to the joint
13committee on finance a signed statement that includes all of the following:
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234.932
(3) (d) The authority shall ensure that the cash balance in the
16Wisconsin job training reserve fund is sufficient
to fund guarantees under the job
17training loan guarantee program at a ratio of $1 of reserve funding to $4 of total
18outstanding guaranteed principal that the authority may guarantee under the
19program and to pay all outstanding claims under the
job training loan guarantee 20program. The authority shall regularly monitor the cash balance in the Wisconsin
21job training reserve fund to ensure that the cash balance is sufficient for the purposes
22specified in this paragraph.
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234.932
(4m) Balance transfer. On the effective date of this subsection ....
25[revisor inserts date], and annually thereafter on August 31, until no balance
1remains, the authority shall transfer to the general fund any balance remaining in
2the Wisconsin job training reserve fund on that date, after deducting an amount
3sufficient to pay all outstanding claims under the job training loan guarantee
4program.
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6234.933 Wisconsin drinking water reserve fund. (1) Definition. In this
7section, "drinking water loan guarantee program" means the program under s.
8234.86.
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9(2) Establishment of fund. There is established under the jurisdiction and
10control of the authority, for the purpose of providing funds for guaranteeing loans
11under s. 234.86, a Wisconsin drinking water reserve fund, consisting of all of the
12following:
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(a) Moneys transferred to the authority from the appropriation accounts under
14s. 20.320 (2) (s) and (x) or received by the authority for the Wisconsin drinking water
15reserve fund from any other source.
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(b) Any income from investment of money in the Wisconsin drinking water
17reserve fund by the authority under s. 234.03 (18).
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18(3) Program administration. (a) The authority shall enter into a guarantee
19agreement with any bank, production credit association, credit union, savings bank,
20savings and loan association or other person who wishes to participate in the
21drinking water loan guarantee program. The authority may determine all of the
22following, consistent with the terms of the loan guarantee program:
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1. The form of the agreement.