234.65(3)(a)1.1. The business which will receive the loan, at least 30 days prior to signing of the loan contract, has given notice of intent to sign the contract, on a form prescribed under
s. 560.034 (1), to the department of commerce and to any collective bargaining agent in this state with whom the person has a collective bargaining agreement; and
234.65(3)(a)2.
2. The authority has received an estimate issued under
s. 560.034 (5) (b), and the department of commerce has estimated whether the project which the authority would finance under the loan is expected to eliminate, create or maintain jobs on the project site and elsewhere in this state and the net number of jobs expected to be eliminated, created or maintained as a result of the project.
234.65(3)(a)3.
3. Nothing in this paragraph may be deemed to require a business signing a loan contract to satisfy an estimate under
subd. 2.
234.65(3)(a)4.
4. Subdivisions 1. to
3. do not apply to a person engaged in the business of operating a railroad or to an economic development loan to finance an economic development project described under
s. 234.01 (4n) (c).
234.65(3)(b)
(b) Conventional financing is unavailable for the economic development project on reasonably equivalent terms and conditions.
234.65(3)(c)
(c) The economic development project is or will be located in this state.
234.65(3)(d)
(d) The business receiving the benefits of the loan proceeds, together with all of its affiliates and subsidiaries and its parent company, has current gross annual sales of $35,000,000 or less.
234.65(3)(dg)
(dg) The authority shall not assume primary risk for any economic development loan.
234.65(3)(e)
(e) The economic development loan will not be used to refinance existing debt, unless it is in conjunction with an expansion of the business or job creation. This paragraph does not apply to an economic development loan to finance an economic development project described under
s. 234.01 (4n) (c).
234.65(3)(f)
(f) The authority has not received a certification under
s. 49.855 (7) that the person receiving the loan is delinquent in child support or maintenance payments or owes past support, medical expenses or birth expenses.
234.65(3)(g)
(g) The business that will receive the loan certifies that it will not begin or expand operations that will increase emissions of any ozone-depleting substance that is listed as a class I substance under
42 USC 7671a.
234.65(3m)
(3m) An economic development loan may not be made unless the department of commerce complies with
sub. (1m) and certifies that each loan complies with
sub. (3).
234.65(3r)
(3r) Any economic development loan which a business receives from the authority under this section to finance a project shall require the business to submit to the department of commerce within 12 months after the project is completed or 2 years after a loan is issued to finance the project, whichever is sooner, on a form prescribed under
s. 560.034 (1), the net number of jobs eliminated, created or maintained on the project site and elsewhere in this state as a result of the project. This subsection does not apply to an economic development loan to finance an economic development project described under
s. 234.01 (4n) (c).
234.65(4)
(4) In respect to the loans issued under this section, the authority shall submit to the governor, the joint committee on finance and the chief clerk of each house of the legislature, for distribution to the appropriate standing committees under
s. 13.172 (3), within 6 months after the close of its fiscal year an annual report including all of the following for the fiscal year:
234.65(4)(a)
(a) A statement of the authority's operations, accomplishments, goals and objectives.
234.65(4)(b)
(b) A financial statement showing income and expenses, assets and liabilities and a schedule of its bonds and notes outstanding and the amounts redeemed and issued.
234.65(5)
(5) On or before July 1, 1985, and every July 1 thereafter, the department of commerce shall submit to the chief clerk of each house of the legislature, for distribution to the appropriate standing committees under
s. 13.172 (3), a report which shall address the effects of lending under this section in the following areas:
234.65(5)(a)
(a) Maintaining or increasing employment in this state.
234.65(5)(b)
(b) Contributing to this state's economic growth and the well-being of its residents.
234.65(5)(c)
(c) Locating economic development projects in areas of high unemployment or low average income.
234.65(5)(d)
(d) Obtaining the participation of a large number of financial institutions in the lending.
234.65(5)(e)
(e) The geographical distribution of lending in this state.
234.65 Note
NOTE:
This section was created by
1983 Wisconsin Act 83. Section 1 of that act is entitled "Legislative Declaration."
234.66
234.66
Beginning farmer program. 234.66(1)
(1) In this section, "beginning farmer" means a person who engages in farming or wishes to engage in farming and who qualifies as a first-time farmer under
26 USC 147 (c) (2).
234.66(2)
(2) The authority may establish and administer a beginning farmer program to assist beginning farmers to purchase agricultural land, agricultural improvements and depreciable agricultural property, as defined in
26 USC 144 (a) (11) (B).
234.66(3)(a)(a) The authority may issue its bonds and notes to finance the beginning farmer program, including funding loans to beginning farmers.
234.66(3)(c)
(c) The authority may not issue more than $17,500,000 in aggregate principal amount of bonds and notes under this section, excluding bonds and notes issued to refund outstanding bonds and notes issued under this section.
234.66(3)(d)
(d) Section 234.15 does not apply to bonds or notes issued under this section.
234.66(4)
(4) Bonds or notes issued under this section are special, limited obligations of the authority payable solely out of the revenue derived from the loan agreement, debt obligation or sales contract, collateral or other property received in connection with the beginning farmer program. All assets and liabilities created through the issuance of bonds or notes under this section shall be separate from all other assets and liabilities of the authority. The authority has no moral or legal obligation or liability to any person under this section, except as expressly provided by written contract. No funds of the beginning farmer program may be commingled with any other funds of the authority.
234.66(5)
(5) The authority may charge fees for assistance provided under this section to cover the administrative costs of the beginning farmer program, including legal fees.
234.66 History
History: 1993 a. 437;
1997 a. 27.
LOAN GUARANTEE PROGRAMS
234.67
234.67
Recycling loan guarantees. 234.67(1)(am)
(am) "Diaper service" means a business that supplies and launders cloth diapers.
234.67(1)(c)
(c) "Guaranteed loan" means a loan on which the authority guarantees collection under
sub. (3).
234.67(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).
234.67(1)(f)
(f) "Percentage of guarantee" means the percentage established by the authority under
sub. (3) (a).
234.67(1)(h)
(h) "Security interest" means an interest in property or other assets that secures payment or other performance of a guaranteed loan.
234.67(2)
(2) Eligible loans. A loan made by a participating lender before December 3, 1993, is eligible for guarantee of collection from the Wisconsin development reserve fund under
s. 234.93 if all of the following apply:
234.67(2)(a)
(a) The loan is made to do one of the following:
234.67(2)(a)1.
1. Expand or improve an existing diaper service or to start a new diaper service.
234.67(2)(a)2.
2. To provide working capital or to finance any of the following items, if the working capital or item is necessary to, or used to, produce in this state a product from products recovered from postconsumer waste:
234.67(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.
234.67(2)(c)
(c) The total principal amount of all loans to the borrower that are guaranteed under this section will not exceed $750,000.
234.67(2)(e)
(e) The participating lender obtains a security interest in physical plant, equipment, machinery or other assets.
234.67(2)(f)
(f) The loan term does not extend beyond 15 years after the date that the participating lender disburses the loan unless the loan is extended by the authority.
234.67(2)(g)
(g) The proceeds of the loan are not applied to the outstanding balance of any other loan.
234.67(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.
234.67(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.
234.67(2)(k)
(k) The participating lender agrees to the percentage of guarantee established for the loan by the authority.
234.67(3)(a)(a) Subject to
par. (b), the authority shall guarantee collection of a percentage, not exceeding 90%, 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, 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.
234.67(3)(b)
(b) Except as provided in
s. 234.93 (3), the total principal amounts of all loans which the authority may guarantee under
par. (a) may not exceed $10,000,000.
234.83
234.83
Small business development loan guarantee program. 234.83(1)(1)
Guarantee requirements. The authority may use money from the Wisconsin development reserve fund to guarantee a loan under this section if all of the following apply:
234.83(1)(a)
(a) The borrower qualifies as an eligible borrower under
sub. (2).
234.83(2)
(2) Eligible borrower. Any of the following qualifies as an eligible borrower if unable to obtain adequate business financing on reasonable terms:
234.83(2)(a)1.
1. The owner of the business is actively engaged in the business.
234.83(2)(a)2.
2. The business employs 50 or fewer employes on a full-time basis.
234.83(2)(a)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.
234.83(2)(b)
(b) The elected governing body of a federally recognized American Indian tribe or band in this state.
234.83(3)
(3) Eligible loans. A loan is eligible for guarantee of collection from the Wisconsin development reserve fund under
s. 234.93 if all of the following apply:
234.83(3)(a)
(a) The borrower uses the loan proceeds for a business development project. Loan proceeds may be used for direct or related expenses associated with any of the following:
234.83(3)(a)1.
1. The expansion or acquisition of a business, including the purchase or improvement of land, buildings, machinery, equipment or inventory.
234.83(3)(a)2.
2. The start-up, expansion or acquisition of a day care business, including the purchase or improvement of land, buildings, machinery, equipment or inventory.
234.83(3)(b)
(b) Loan proceeds are not used to refinance existing debt or for 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.
234.83(3)(c)
(c) The interest rate on the loan, including any origination fees or other charges, is approved by the authority.
234.83(3)(d)
(d) The loan term does not extend beyond 15 years after the date on which the lender disburses the loan unless the authority agrees to an extension of the loan term.
234.83(3)(e)
(e) The total principal amount of all loans to the borrower that are guaranteed under this section does not exceed $750,000.
234.83(3)(f)
(f) The lender obtains a security interest in the physical plant, equipment, machinery or other assets.
234.83(3)(g)
(g) The lender believes that it is reasonably likely that the borrower will be able to repay the loan in full with interest.
234.83(3)(h)
(h) The lender agrees to the percentage of guarantee established for the loan by the authority.
234.83(3)(i)
(i) The authority believes that the loan will have a positive impact in terms of job creation or retention.
234.83(4)(a)(a) Subject to
par. (b), the authority may guarantee repayment of a 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 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 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 portions for eligible loans that do not exceed $250,000 and different portions for eligible loans that exceed $250,000.
