AB875: Bill Text

AB875,4,9 34.05 (4) Money from the appropriation under s. 20.143 (1) (fm) shall be deposited in a public depository located in this state that is at least 51 percent owned by a minority group member or minority group members, as defined in s. 560.036 (1) (f).

AB875, s. 10 Section 10. 560.13 (2) (b) 1. of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

AB875,4,16 560.13 (2) (b) 1. The contribution required under par. (a) 3. may be in cash or in-kind. Cash contributions may be of private or public funds, excluding funds obtained under the program under s. 560.17 or under any program under subch. II or V or VII of this chapter. In-kind contributions shall be limited to actual remediation services.

AB875, s. 11 Section 11. 560.45 (1) of the statutes, as created by 2009 Wisconsin Act 28, is amended to read:

AB875,4,21 560.45 (1) The department may award a grant from the appropriations under s. 20.143 (1) (ie), (ig), (im), and (ir) to a business for innovation and research assistance.

AB875, s. 12 Section 12. Subchapter VII of chapter 560 [precedes 560.80] of the statutes is created to read:

AB875,4,24 CHAPTER 560

AB875,4,25 SUBCHAPTER VII

AB875,5,1 MInority business grants and Loans

AB875,5,2 560.80 Definitions. In this subchapter:

AB875,5,3 (1) "Board" means the minority business development board.

AB875,5,7 (2) "Development project" means the start-up of a business, or the expansion or acquisition of an existing business, that is or will be a minority business or the promotion of economic development and employment opportunities for minority group members or minority businesses.

AB875,5,9 (3) "Early planning project" means the preliminary stages of considering and planning the start-up or expansion of a business that will be a minority business.

AB875,5,12 (3m) "Education and training project" means a business education and training program for minority group members and minority businesses that have received loans for working capital from an eligible recipient under s. 560.82 (1m) (e).

AB875,5,17 (4) "Eligible development project costs" means costs that, in accordance with sound business and financial practices, are appropriately incurred in connection with a development project, but does not include entertainment expenses or expenses incurred more than 6 months before the board approves a grant or loan under s. 560.82 (1m) (b).

AB875,5,18 (5) "Eligible recipient" means any of the following:

AB875,5,19 (a) An individual who is a minority group member and a resident of this state.

AB875,5,20 (b) A minority business.

AB875,5,21 (c) A person who is eligible to receive a grant under s. 560.82 (1m) (d) or (e).

AB875,5,23 (5m) "Finance project" means financial assistance to a minority group member or a minority business described in s. 560.82 (1m) (d) and (e).

AB875,6,2 (6) "Job" means a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays. "Job" does not include initial training before an employment position begins.

AB875,6,3 (7) "Local development corporation" means any of the following:

AB875,6,5 (a) The elected governing body of a federally recognized American Indian tribe or band in this state or any business created by the elected governing body.

AB875,6,8 (b) A corporation organized under ch. 181 that is a nonprofit corporation as defined in s. 181.0103 (17), that is at least 51 percent controlled and actively managed by minority group members and that does all of the following:

AB875,6,9 1. Operates primarily within specific geographic boundaries.

AB875,6,11 2. Promotes economic development and employment opportunities for minority group members or minority businesses within the specific geographic area.

AB875,6,14 3. Demonstrates a commitment to or experience in promoting economic development and employment opportunities for minority group members or minority businesses.

AB875,6,16 (8) "Minority business" means a minority business, as defined in s. 560.036 (1) (e), that has its principal place of business in this state.

AB875,6,17 (9) "Minority group member" has the meaning given in s. 560.036 (1) (f).

AB875,6,19 (10) "New minority business" means a minority business started as a result of an early planning project.

AB875,6,21 (11) "Project" means a development project, an early planning project, a finance project, an education and training project or a revolving fund project.

AB875,6,25 560.82 Minority business grants and loans. (1g) The department shall make a grant or loan to an eligible recipient or local development corporation under this section if the board awards a grant or loan to the eligible recipient or local development corporation under sub. (1m).

AB875,7,2 (1m) The board may award a grant or loan under this section to any of the following:

AB875,7,4 (a) Subject to s. 560.84, an eligible recipient, as defined in s. 560.80 (5) (a), to fund an early planning project.

AB875,7,7 (b) Subject to s. 560.84, an eligible recipient or local development corporation that submits application materials in a form specified by the department by rule to fund eligible development project costs.

AB875,7,9 (c) A local development corporation to make grants or loans under sub. (2g) (a) 1. or to fund a revolving fund program under sub. (2g) (a) 2.

AB875,7,12 (d) Subject to s. 560.84, a nonprofit organization or private financial institution, as defined in s. 234.01 (5k), whether or not for profit, to fund a finance project if all of the following apply:

AB875,7,14 1. The financial institution or nonprofit organization uses the grant proceeds for any of the following purposes:

AB875,7,16 a. To make loans for working capital to minority group members and minority businesses.

AB875,7,18 b. To pay origination fees or other administrative costs associated with making loans for working capital to minority group members and minority businesses.

AB875,7,19 2. The loans for working capital under subd. 1. a. do not exceed $5,000.

AB875,7,22 (e) Subject to s. 560.84, the board may award a grant under this subsection to a nonprofit organization that is a minority business to fund an education and training project.

AB875,7,25 (2) The board may not award a grant or loan under sub. (1m) (a) unless the eligible recipient, as defined in s. 560.80 (5) (a), submits an application, in a form required by the department, that contains or describes all of the following:

AB875,8,1 (a) Potential locations of the new minority business.

AB875,8,2 (b) The ownership structure of the new minority business.

AB875,8,3 (c) The product or service provided by the new minority business.

AB875,8,4 (d) The market for the product or service described in par. (c).

AB875,8,5 (e) Competition within the market described in par. (d).

AB875,8,6 (f) Any competitive advantages of the new minority business.

AB875,8,8 (g) The eligible recipient's estimate of the gross revenue of the new minority business over a period specified by the department.

AB875,8,10 (h) The process for manufacturing the product, or providing the services, of the new minority business.

AB875,8,12 (i) An estimate of the number of jobs that will be created by the new minority business.

AB875,8,13 (j) The eligible recipient's experience and training.

AB875,8,15 (k) The eligible recipient's estimate of the profit that will be generated by the new minority business over a period specified by the department.

AB875,8,17 (L) The eligible recipient's estimate of the capital required to complete the early planning project.

AB875,8,18 (m) Potential sources of financing for the early planning project.

AB875,8,19 (n) Any other information that the department requests.

AB875,8,21 (2g) The board may award a grant or loan under this subsection to a local development corporation if all of the following apply:

AB875,8,23 (a) The local development corporation agrees to use the proceeds of grants or loans under this section for any of the following:

AB875,8,25 1. To make grants or loans not exceeding $50,000 each to eligible recipients to fund eligible development project costs.

AB875,9,3 2. To create, expand or continue a revolving fund program that is operated by the local development corporation and that benefits or will benefit minority businesses or minority group members who are residents of this state.

AB875,9,6 (b) The local development corporation agrees to use factors similar to those described in s. 560.84 (1) (a) to (k) and (2) (a) to (f) when making grants or loans under par. (a) 1. or under a revolving fund program under par. (a) 2.

AB875,9,8 (c) The local development corporation submits an application, or other materials, in a form specified by the department by rule.

AB875,9,11 (3) An eligible recipient, as defined in s. 560.80 (5) (a), who receives a grant or loan under sub. (1m) (a) or s. 560.835 (6), 2001 stats., may only use the proceeds of the grant for the following purposes:

AB875,9,12 (a) To perform a business feasibility study.

AB875,9,13 (b) To prepare a detailed marketing plan.

AB875,9,14 (c) To prepare a detailed business plan.

AB875,9,15 (4) The board may not do any of the following:

AB875,9,17 (a) Award in a fiscal biennium, for grants or loans under sub. (1m) (a), more than 25 percent of the total of all of the following:

AB875,9,18 1. The funds appropriated for the fiscal biennium under s. 20.143 (1) (fm).

AB875,9,21 2. The lesser of the funds received in a fiscal biennium in repayment of grants or loans under s. 560.83, 2005 stats., and this section or the funds appropriated for the fiscal biennium under s. 20.143 (1) (im).

AB875,9,24 (b) Award in a fiscal biennium to any one eligible recipient, as defined in s. 560.80 (5) (a), or for any one early planning project, grants or loans under sub. (1m) (a) that total more than $15,000.

AB875,10,3 (c) Award in any fiscal biennium, to any one eligible recipient or local development corporation or for any one development project, grants or loans under sub. (1m) (b) that total more than $100,000 in a fiscal biennium.

AB875,10,5 (d) Award, in any fiscal year to any one local development corporation, grants or loans under sub. (1m) (c) that total more than $200,000.

AB875,10,8 (5) If the board awards a grant or loan under sub. (1m) (a), the department may contract directly with and pay grant or loan proceeds directly to any person providing technical or management assistance to the grant or loan recipient.

AB875,10,12 560.84 General criteria. (1) The board may not award a grant or loan for a project under this subchapter unless, after considering the application or other material submitted by the eligible recipient or local development corporation, the board determines all of the following:

AB875,10,13 (a) That the project serves a public purpose.

AB875,10,15 (b) 1. If an early planning project, that the project will increase employment in this state.

AB875,10,17 2. If a development project, that the project will retain or increase employment in this state.

AB875,10,18 (c) That the project is not likely to occur without the grant or loan.

AB875,10,20 (d) That financing is unavailable from any other source on reasonably equivalent terms.

AB875,10,23 (e) That the eligible recipient or local development corporation receiving the grant or loan will contribute, from a source or sources other than the state, whichever of the following applies:

AB875,11,4 1. For grants funding early planning projects under s. 560.82 (1m) (a), not less than 25 percent of the cost of the project. Up to 50 percent of the contribution under this subdivision may be in the form of the in-kind services of a qualified 3rd party or qualified 3rd parties. The department shall determine what services may be used as in-kind contributions and whether a 3rd party is qualified, for purposes of this subdivision.

AB875,11,6 2. For grants and loans funding development projects, a cash contribution of not less than 25 percent of the cost of the project.

AB875,11,8 3. For a grant or loan funding a revolving fund project, a cash contribution of not less than 50 percent of the cost of the project.

AB875,11,9 (f) That the project meets all applicable criteria set forth in s. 560.82.

AB875,11,11 (g) That funds from the grant or loan will not be used to replace funds from any other source.

AB875,11,12 (h) That the project will not displace workers in this state.

AB875,11,13 (i) That the project has sufficient potential to be profitable.