AB100: Bill Text

AB100, s. 3354 Section 3354. 234.69 of the statutes is repealed.

AB100, s. 3355 Section 3355. 234.70 of the statutes is renumbered 234.61.

AB100, s. 3356 Section 3356. 234.75 of the statutes is repealed.

AB100, s. 3357 Section 3357. 234.76 of the statutes is repealed.

AB100, s. 3358 Section 3358. 234.765 of the statutes is repealed.

AB100, s. 3359 Section 3359. 234.80 of the statutes is repealed.

AB100, s. 3360 Section 3360. 234.802 of the statutes is renumbered 234.92.

AB100, s. 3361 Section 3361. 234.82 of the statutes is repealed.

AB100, s. 3362 Section 3362. 234.83 (title) of the statutes is amended to read:

AB100,1365,10 234.83 (title) Targeted Small business development loan guarantee program.

AB100, s. 3363 Section 3363. Subchapter II (title) of chapter 234 [precedes 234.83] of the statutes is created to read:

AB100,1365,13 Chapter 234

AB100,1365,15 Subchapter II Loan guarantee programs

AB100, s. 3364 Section 3364. 234.83 (1) (c) of the statutes is amended to read:

AB100,1365,18 234.83 (1) (c) The lender is a financial institution that enters into an agreement under s. 234.93 (2) (a).

AB100, s. 3365 Section 3365. 234.83 (2) (a) of the statutes is renumbered 234.83 (2) (a) (intro.) and amended to read:

AB100,1365,22 234.83 (2) (a) (intro.) A business, as defined in s. 560.60 (2)., to which all of the following apply:

AB100, s. 3366 Section 3366. 234.83 (2) (a) 1. to 3. of the statutes are created to read:

AB100,1365,24 234.83 (2) (a) 1. The owner of the business is actively engaged in the business.

AB100,1365,25 2. The business employs 50 or fewer employes on a full-time basis.

AB100,1366,3 3. The authority has not received a certification under s. 49.855 (7) that the owner of the business is delinquent in making child support or maintenance payments.

AB100, s. 3367 Section 3367. 234.83 (3) (a) (intro.) of the statutes is renumbered 234.83 (3) (intro.).

AB100, s. 3368 Section 3368. 234.83 (3) (a) 1. of the statutes is renumbered 234.83 (3) (a) (intro.) and amended to read:

AB100,1366,10 234.83 (3) (a) (intro.) The borrower uses the loan proceeds for a business development project in a targeted area. Loan proceeds may be used for direct or related expenses associated with any of the following:

AB100,1366,12 1. The expansion or acquisition of a business, including the purchase or improvement of land, buildings, machinery, equipment or inventory.

AB100, s. 3369 Section 3369. 234.83 (3) (a) 2. to 9. of the statutes are renumbered 234.83 (3) (b) to (i), and 234.83 (3) (b), (d), (e), (f), (g), (h) and (i), as renumbered, are amended to read:

AB100,1366,19 234.83 (3) (b) Loan proceeds are not used to refinance existing debt or for operating or entertainment expenses, expenses related to the production of an agricultural commodity, as defined in s. 94.67 (2), or expenses related to a community-based residential facility.

AB100,1366,22 (d) The loan term does not extend beyond 15 years after the date on which the financial institution lender disburses the loan unless the loan is extended by the authority agrees to an extension of the loan term.

AB100,1366,24 (e) The total principal amount of all loans to the borrower that are guaranteed under this section does not exceed $250,000 $750,000.

AB100,1367,2 (f) The financial institution lender obtains a security interest in the physical plant, equipment, machinery or other assets.

AB100,1367,4 (g) The financial institution lender believes that it is reasonably likely that the borrower will be able to repay the loan in full with interest.

AB100,1367,6 (h) The financial institution lender agrees to the percentage of guarantee established for the loan by the authority.

AB100,1367,8 (i) The authority believes that the loan will have a positive economic impact on the targeted area in terms of job creation and or retention.

AB100, s. 3370 Section 3370. 234.83 (3) (a) 2. of the statutes is created to read:

AB100,1367,12 234.83 (3) (a) 2. The start-up, expansion or acquisition of a day care business, including the purchase or improvement of land, buildings, machinery, equipment or inventory.

AB100, s. 3371 Section 3371. 234.83 (3) (b) of the statutes is repealed.

AB100, s. 3372 Section 3372. 234.83 (4) (title) and (a) of the statutes are amended to read:

AB100,1367,25 234.83 (4) (title) Guarantee of collection repayment. (a) Subject to par. (b), the authority shall may guarantee collection repayment of a percentage, not exceeding 90%, portion of the principal of any loan eligible for a guarantee under sub. (1). That portion may not exceed 80% of the principal of the loan or $200,000, whichever is less. The authority shall establish the percentage portion of the principal of an eligible loan that will be guaranteed, using the procedures described in the agreement under s. 234.93 (2) (a). The authority may establish a single percentage portion for all guaranteed loans that do not exceed $250,000 and a single portion for all guaranteed loans that exceed $250,000 or establish on an individual basis different percentages portions for eligible loans on an individual basis that do not exceed $250,000 and different portions for eligible loans that exceed $250,000.

AB100, s. 3373 Section 3373. 234.83 (4) (b) of the statutes is amended to read:

AB100,1368,4 234.83 (4) (b) Except as provided in s. 234.93 (3), the total outstanding guaranteed principal amount of all loans that the authority may guarantee under par. (a) may not exceed $10,000,000 $28,750,000.

AB100, s. 3374 Section 3374. 234.85 of the statutes is renumbered 234.35.

AB100, s. 3375 Section 3375. 234.86 of the statutes is created to read:

AB100,1368,8 234.86 Drinking water loan guarantee program. (1) Definitions. In this section:

AB100,1368,11 (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.

AB100,1368,12 (b) "Department" means the department of natural resources.

AB100,1368,13 (c) "Local governmental unit" has the meaning given in s. 281.61 (1) (a).

AB100,1368,15 (d) "Noncommunity water system" means a public water system that is not a community water system.

AB100,1368,16 (e) "Public water system" has the meaning given in s. 281.61 (1) (c).

AB100,1368,19 (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:

AB100,1368,20 (a) The borrower is not a local governmental unit and is one of the following:

AB100,1368,21 1. The owner of a community water system.

AB100,1368,22 2. The owner of a noncommunity water system and is not operated for profit.

AB100,1368,23 (b) The loan qualifies as an eligible loan under sub. (3).

AB100,1368,25 (c) The lender is a financial institution that enters into an agreement under s. 234.933 (3) (a).

AB100,1369,1 (3) Eligible loans. A loan is an eligible loan if all of the following apply:

AB100,1369,5 (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.

AB100,1369,7 (b) The department determines that the loan satisfies the requirements under s. 281.62 (2).

AB100,1369,14 (4) Guarantee of collection. (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.

AB100,1369,16 (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.

AB100, s. 3376 Section 3376. 234.87 of the statutes is repealed.

AB100, s. 3377 Section 3377. 234.88 of the statutes is created to read:

AB100,1369,20 234.88 Brownfields redevelopment loan guarantee program. (1) Definitions. In this section:

AB100,1369,23 (a) "Brownfields" means abandoned, idle or underused industrial or commercial facilities or sites, the expansion or redevelopment of which is adversely affected by actual or perceived environmental contamination.

AB100,1369,25 (b) "Guaranteed loan" means a loan for which the authority guarantees repayment under sub. (3).

AB100,1370,3 (c) "Participating lender" means a bank, savings bank, credit union, credit association, savings and loan association or other person that makes loans and that has entered into an agreement with the authority under s. 234.93 (2) (a).

AB100,1370,5 (d) "Security interest" means an interest in property or other assets that secures payment or other performance of a guaranteed loan.

AB100,1370,8 (2) Eligible loans. A loan made by a participating lender is eligible for guarantee of repayment from the Wisconsin development reserve fund under s. 234.93 if all of the following apply:

AB100,1370,9 (a) The borrower is a business in this state.

AB100,1370,12 (b) The borrower uses the loan proceeds for direct or related expenses, as determined by the authority, that are associated with the redevelopment of brownfields and related environmental remediation activities.

AB100,1370,14 (c) The loan proceeds are not applied to the outstanding balance of any other loan.

AB100,1370,16 (d) The authority approves the interest rate on the loan, including any origination fees or other charges.

AB100,1370,18 (e) The participating lender obtains a security interest in any equipment, machinery, physical plant or other assets to secure repayment of the loan.

AB100,1370,21 (f) The loan term does not extend beyond 15 years after the date on which the participating lender disburses the loan unless the authority agrees to an extension of the loan term.

AB100,1370,24 (g) 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.

AB100,1371,2 (h) The participating lender agrees to the percentage of guarantee established for the loan by the authority.

AB100,1371,9 (3) Guarantee of repayment. (a) Subject to par. (b), beginning on July 1, 1998, the authority may guarantee repayment of a percentage, not exceeding 80%, of the 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 by 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.

AB100,1371,11 (b) Except as provided in s. 234.93 (3), the total outstanding principal amount of all guaranteed loans under par. (a) may not exceed $500,000.

AB100, s. 3378 Section 3378. 234.905 of the statutes is repealed.

AB100, s. 3379 Section 3379. 234.93 (1) (e) of the statutes is created to read:

AB100,1371,15 234.93 (1) (e) To be used for guaranteeing loans under s. 234.88, moneys appropriated to the authority under s. 20.490 (5) (t).

AB100, s. 3380 Section 3380. 234.93 (2) (a) (intro.) of the statutes is amended to read:

AB100,1371,22 234.93 (2) (a) (intro.) The authority shall 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:

AB100, s. 3381 Section 3381. 234.93 (2) (bm) of the statutes is created to read:

AB100,1372,6 234.93 (2) (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. 234.67, 1995 stats., 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., s. 234.87, 1995 stats., or s. 234.935, 1995 stats., that is in effect immediately before the effective date of this paragraph .... [revisor inserts date], shall continue in full force and effect until the termination or expiration of the agreement according to its terms.

AB100, s. 3382 Section 3382. 234.93 (4) (a) 2. of the statutes is amended to read:

AB100,1372,12 234.93 (4) (a) 2. To fund guarantees under all of the programs guaranteed by funds from the Wisconsin development reserve fund, except for the program under s. 234.935, 1995 stats., at a ratio of $1 of reserve funding to $4 $4.50 of total outstanding principal and outstanding guaranteed principal that the authority may guarantee under all of those programs.

AB100, s. 3383 Section 3383. 234.93 (4) (a) 3. of the statutes is created to read:

AB100,1372,16 234.93 (4) (a) 3. To fund guarantees under the program under s. 234.935, 1995 stats., at a ratio of $1 of reserve funding to $4 of total principal and outstanding guaranteed principal that the authority may guarantee under that program.