AB875: Bill Text

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.

AB875,11,16 (im) If a development project, that the project has the potential to promote economic development and employment opportunities for minority group members or minority businesses.

AB875,11,18 (j) If a development project, finance project, or education and training project, that funds from the grant or loan will not be used to refinance existing debt.

AB875,11,20 (k) That the project meets any other criteria established by the department by rule.

AB875,11,22 (2) The board or department shall consider all of the following before awarding a grant or loan to an eligible recipient or local development corporation for a project:

AB875,11,24 (a) 1. If an early planning project, the extent to which the project will increase employment in this state.

AB875,12,2 2. If a development project, the extent to which the project will retain or increase employment in this state.

AB875,12,4 (b) The extent to which the project will benefit minority group members who are residents of this state.

AB875,12,6 (c) If a development project, whether the project will be located in any or all of the following:

AB875,12,7 1. An area of high unemployment or low average income.

AB875,12,8 2. A development opportunity zone designated under s. 560.795.

AB875,12,11 (d) The extent to which the project will attract capital into locations where unemployment exceeds the state average and per capita income is below the state average.

AB875,12,12 (e) The likelihood that the project will be successful.

AB875,12,15 (f) If a development project, the financial soundness of the minority business involved in the project and the commitment of the eligible recipient to repay the loan or grant.

AB875,12,18 560.85 Administration. (1) The department shall promulgate rules for the administration of this subchapter. The department may not promulgate a rule under this subsection unless the proposed rule has been reviewed by the board.

AB875,12,22 (2) The board shall develop a policy governing the repayment of grants and loans made under s. 560.82 (1m) (b) and (c). Moneys received in repayment of grants and loans under s. 560.82 (1m) (b) and (c) shall be credited to the appropriation account under s. 20.143 (1) (im).

AB875,12,23 (3) The department shall do all of the following:

AB875,13,3 (a) Develop procedures to evaluate applications and monitor project performance for grants awarded for early planning projects under s. 560.835 (6), 2001 stats., or s. 560.82 (1m) (a).

AB875,13,8 (b) Develop procedures, with the approval of the board, to evaluate applications, monitor project performance, and audit grants and loans awarded for development projects under s. 560.82 (1m) (b), projects under s. 560.835, 2001 stats., and finance projects and education and training projects under s. 560.82 (1m) (d) and (e).

AB875,13,9 (End)