AB100,1364,52
234.65
(3) (e) The economic development loan will not be used to refinance
3existing debt, unless it is in conjunction with an expansion of the business or job
4creation. This paragraph does not apply to an economic development loan to finance
5an economic development project described under s. 234.01 (4n) (c)
or (d).
AB100, s. 3345
6Section
3345. 234.65 (5) (intro.) of the statutes is amended to read:
AB100,1364,117
234.65
(5) (intro.) On or before July 1,
1985 1998, and every July 1 thereafter,
8the
department of commerce authority shall submit to the chief clerk of each house
9of the legislature, for distribution to the appropriate standing committees under s.
1013.172 (3), a report which shall address the effects of lending under this section in
11the following areas:
AB100, s. 3346
12Section
3346. 234.65 (6) of the statutes is repealed.
AB100, s. 3347
13Section
3347. 234.65 (7) of the statutes is repealed.
AB100, s. 3348
14Section
3348. 234.65 (8) of the statutes is repealed.
AB100, s. 3349
15Section
3349. 234.65 (10) of the statutes is repealed.
AB100, s. 3350
16Section
3350. 234.66 (3) (b) of the statutes is amended to read:
AB100,1364,1817
234.66
(3) (b) The limits in ss. 234.18 (1) and (2), 234.40, 234.50, 234.60,
234.61
18and 234.65
and 234.70 do not apply to bonds or notes issued under this section.
AB100, s. 3351
19Section
3351. 234.66 (3) (c) of the statutes is amended to read:
AB100,1364,2220
234.66
(3) (c) The authority may not issue more than
$10,000,000 $17,500,000 21in aggregate principal amount of bonds and notes under this section, excluding bonds
22and notes issued to refund outstanding bonds and notes issued under this section.
AB100, s. 3355
1Section
3355. 234.70 of the statutes is renumbered 234.61.
AB100, s. 3360
6Section
3360. 234.802 of the statutes is renumbered 234.92.
AB100, s. 3362
8Section
3362. 234.83 (title) of the statutes is amended to read:
AB100,1365,10
9234.83 (title)
Targeted Small business development loan guarantee
10program.
AB100, s. 3363
11Section
3363. Subchapter II (title) of chapter 234 [precedes 234.83] of the
12statutes is created to read:
AB100,1365,1313
Chapter 234
AB100,1365,1514
Subchapter II
15
Loan guarantee programs
AB100, s. 3364
16Section
3364. 234.83 (1) (c) of the statutes is amended to read:
AB100,1365,1817
234.83
(1) (c) The lender
is a financial institution that enters into an agreement
18under s. 234.93 (2) (a).
AB100, s. 3365
19Section
3365. 234.83 (2) (a) of the statutes is renumbered 234.83 (2) (a) (intro.)
20and amended to read:
AB100,1365,2221
234.83
(2) (a) (intro.) A business, as defined in s. 560.60 (2)
., to which all of the
22following apply:
AB100, s. 3366
23Section
3366. 234.83 (2) (a) 1. to 3. of the statutes are created to read:
AB100,1365,2424
234.83
(2) (a) 1. The owner of the business is actively engaged in the business.
AB100,1365,2525
2. The business employs 50 or fewer employes on a full-time basis.
AB100,1366,3
13. The authority has not received a certification under s. 49.855 (7) that the
2owner of the business is delinquent in making child support or maintenance
3payments.
AB100, s. 3367
4Section
3367. 234.83 (3) (a) (intro.) of the statutes is renumbered 234.83 (3)
5(intro.).
AB100, s. 3368
6Section
3368. 234.83 (3) (a) 1. of the statutes is renumbered 234.83 (3) (a)
7(intro.) and amended to read:
AB100,1366,108
234.83
(3) (a) (intro.) The borrower uses the loan proceeds for a business
9development project
in a targeted area. Loan proceeds may be used for direct or
10related expenses associated with
any of the following:
AB100,1366,12
111. The expansion or acquisition of a business, including the purchase or
12improvement of land, buildings, machinery, equipment or inventory.
AB100, s. 3369
13Section
3369. 234.83 (3) (a) 2. to 9. of the statutes are renumbered 234.83 (3)
14(b) to (i), and 234.83 (3) (b), (d), (e), (f), (g), (h) and (i), as renumbered, are amended
15to read:
AB100,1366,1916
234.83
(3) (b) Loan proceeds are not used to refinance existing debt or for
17operating or entertainment expenses
, expenses related to the production of an
18agricultural commodity, as defined in s. 94.67 (2), or expenses related to a
19community-based residential facility.
AB100,1366,2220
(d) The loan term does not extend beyond 15 years after the date on which the
21financial institution lender disburses the loan unless
the loan is extended by the
22authority
agrees to an extension of the loan term.
AB100,1366,2423
(e) The total principal amount of all loans to the borrower that are guaranteed
24under this section does not exceed
$250,000 $750,000.
AB100,1367,2
1(f) The
financial institution lender obtains a security interest in the physical
2plant, equipment, machinery or other assets.
AB100,1367,43
(g) The
financial institution lender believes that it is reasonably likely that the
4borrower will be able to repay the loan in full with interest.
AB100,1367,65
(h) The
financial institution lender agrees to the percentage of guarantee
6established for the loan by the authority.
AB100,1367,87
(i) The authority believes that the loan will have a positive
economic impact
on
8the targeted area in terms of job creation
and
or retention.
AB100, s. 3370
9Section
3370. 234.83 (3) (a) 2. of the statutes is created to read:
AB100,1367,1210
234.83
(3) (a) 2. The start-up, expansion or acquisition of a day care business,
11including the purchase or improvement of land, buildings, machinery, equipment or
12inventory.
AB100, s. 3371
13Section
3371. 234.83 (3) (b) of the statutes is repealed.
AB100, s. 3372
14Section
3372. 234.83 (4) (title) and (a) of the statutes are amended to read:
AB100,1367,2515
234.83
(4) (title)
Guarantee of collection repayment. (a) Subject to par. (b),
16the authority
shall may guarantee
collection repayment of a
percentage, not
17exceeding 90%, portion of the principal of any loan eligible for a guarantee under sub.
18(1).
That portion may not exceed 80% of the principal of the loan or $200,000,
19whichever is less. The authority shall establish the
percentage portion of the
20principal of an eligible loan that will be guaranteed, using the procedures described
21in the agreement under s. 234.93 (2) (a). The authority may establish a single
22percentage portion for all guaranteed loans
that do not exceed $250,000 and a single
23portion for all guaranteed loans that exceed $250,000 or establish
on an individual
24basis different
percentages portions for eligible loans
on an individual basis that do
25not exceed $250,000 and different portions for eligible loans that exceed $250,000.
AB100, s. 3373
1Section
3373. 234.83 (4) (b) of the statutes is amended to read:
AB100,1368,42
234.83
(4) (b) Except as provided in s. 234.93 (3), the total outstanding
3guaranteed principal amount of all loans that the authority may guarantee under
4par. (a) may not exceed
$10,000,000 $28,750,000.
AB100, s. 3374
5Section
3374. 234.85 of the statutes is renumbered 234.35.
AB100, s. 3375
6Section
3375. 234.86 of the statutes is created to read:
AB100,1368,8
7234.86 Drinking water loan guarantee program. (1) Definitions. In this
8section:
AB100,1368,119
(a) "Community water system" means a public water system that serves at
10least 15 service connections used by year-round residents or that regularly serves
11at least 25 year-round residents.
AB100,1368,1212
(b) "Department" means the department of natural resources.
AB100,1368,1313
(c) "Local governmental unit" has the meaning given in s. 281.61 (1) (a).
AB100,1368,1514
(d) "Noncommunity water system" means a public water system that is not a
15community water system.
AB100,1368,1616
(e) "Public water system" has the meaning given in s. 281.61 (1) (c).
AB100,1368,19
17(2) Guarantee requirements. The authority may use money from the
18Wisconsin drinking water reserve fund under s. 234.933 to guarantee a loan under
19this section if all of the following apply:
AB100,1368,2020
(a) The borrower is not a local governmental unit and is one of the following:
AB100,1368,2121
1. The owner of a community water system.
AB100,1368,2222
2. The owner of a noncommunity water system and is not operated for profit.
AB100,1368,2323
(b) The loan qualifies as an eligible loan under sub. (3).
AB100,1368,2524
(c) The lender is a financial institution that enters into an agreement under s.
25234.933 (3) (a).
AB100,1369,1
1(3) Eligible loans. A loan is an eligible loan if all of the following apply:
AB100,1369,52
(a) The department determines that the loan will facilitate compliance with
3national primary drinking water regulations under
42 USC 300g-1 or otherwise
4significantly further the health protection objectives of the Safe Drinking Water Act,
542 USC 300f to
300j-26.
AB100,1369,76
(b) The department determines that the loan satisfies the requirements under
7s. 281.62 (2).
AB100,1369,14
8(4) Guarantee of collection. (a) Subject to par. (b), the authority may
9guarantee collection of a percentage, not exceeding 80%, of the principal of any loan
10eligible for a guarantee under this section. The authority shall establish the
11percentage of the unpaid principal of an eligible loan that will be guaranteed using
12the procedures described in the guarantee agreement under s. 234.933 (3) (a). The
13authority may establish a single percentage for all guaranteed loans or establish
14different percentages for eligible loans on an individual basis.
AB100,1369,1615
(b) Except as provided in s. 234.933 (4), the total outstanding principal amount
16of all guaranteed loans under par. (a) may not exceed $3,000,000.
AB100, s. 3377
18Section
3377. 234.88 of the statutes is created to read:
AB100,1369,20
19234.88 Brownfields redevelopment loan guarantee program. (1)
20Definitions. In this section:
AB100,1369,2321
(a) "Brownfields" means abandoned, idle or underused industrial or
22commercial facilities or sites, the expansion or redevelopment of which is adversely
23affected by actual or perceived environmental contamination.
AB100,1369,2524
(b) "Guaranteed loan" means a loan for which the authority guarantees
25repayment under sub. (3).
AB100,1370,3
1(c) "Participating lender" means a bank, savings bank, credit union, credit
2association, savings and loan association or other person that makes loans and that
3has entered into an agreement with the authority under s. 234.93 (2) (a).
AB100,1370,54
(d) "Security interest" means an interest in property or other assets that
5secures payment or other performance of a guaranteed loan.
AB100,1370,8
6(2) Eligible loans. A loan made by a participating lender is eligible for
7guarantee of repayment from the Wisconsin development reserve fund under s.
8234.93 if all of the following apply:
AB100,1370,99
(a) The borrower is a business in this state.
AB100,1370,1210
(b) The borrower uses the loan proceeds for direct or related expenses, as
11determined by the authority, that are associated with the redevelopment of
12brownfields and related environmental remediation activities.
AB100,1370,1413
(c) The loan proceeds are not applied to the outstanding balance of any other
14loan.
AB100,1370,1615
(d) The authority approves the interest rate on the loan, including any
16origination fees or other charges.
AB100,1370,1817
(e) The participating lender obtains a security interest in any equipment,
18machinery, physical plant or other assets to secure repayment of the loan.
AB100,1370,2119
(f) The loan term does not extend beyond 15 years after the date on which the
20participating lender disburses the loan unless the authority agrees to an extension
21of the loan term.
AB100,1370,2422
(g) The participating lender considers the borrower's assets, cash flow and
23managerial ability sufficient to preclude voluntary or involuntary liquidation for the
24loan term granted by the participating lender.
AB100,1371,2
1(h) The participating lender agrees to the percentage of guarantee established
2for the loan by the authority.