(io) Grant and loan repayments; forward innovation fund.
moneys received in repayment of grants or loans under subch. II of ch. 560, grants
8or loans under s. 560.82 (1m) (b) and (c), 2007 stats., and loans under 1997 Wisconsin
9Act 9, section 3,
to be used for grants and loans under subch. II of ch. 560.
SB393, s. 6
25.17 (59) of the statutes is created to read:
Invest or deposit money from the appropriation under s. 20.143 (1) 12
(fm) in a public depository located in this state that is at least 51 percent owned by 13
a minority group member or minority group members, as defined in s. 560.036 (1) (f).
SB393, s. 7
34.045 (1m) of the statutes is created to read:
Subsection (1) (a) and (e) does not apply to the funds appropriated 16
under s. 20.143 (1) (fm) that are deposited as provided in s. 34.05.
34.05 (1) The Except as provided in sub. (4), the
governing board of each public 20
depositor shall, by resolution, designate one or more public depositories, organized 21
and doing business under the laws of this state or federal law and located in this 22
state, in which the treasurer of the governing board shall deposit all public moneys 23
received by him or her and specify whether the moneys shall be maintained in time 24
deposits subject to the limitations of s. 66.0603 (1m), demand deposits, or savings 25
deposits and whether a surety bond or other security shall be required to be
furnished under s. 34.07 by the public depository to secure the repayment of such 2
deposits. A designation of a public depository by the governing board shall be a 3
designation of the public depository for all treasurers of the governing board and for 4
all public depositors for which each treasurer shall act.
SB393, s. 9
34.05 (4) of the statutes is created to read:
Money from the appropriation under s. 20.143 (1) (fm) shall be 7
deposited in a public depository located in this state that is at least 51 percent owned 8
by a minority group member or minority group members, as defined in s. 560.036 (1) 9
(b) 1. The contribution required under par. (a) 3. may be in cash or 13
in-kind. Cash contributions may be of private or public funds, excluding funds 14
obtained under the program under s. 560.17 or under any program under subch. II 15
or V or VII
of this chapter. In-kind contributions shall be limited to actual 16
The department may award a grant from the appropriations under 20
s. 20.143 (1) (ie), (ig), (im),
and (ir) to a business for innovation and research 21
SB393, s. 12
Subchapter VII of chapter 560 [precedes 560.80] of the statutes 23
is created to read:
MInority business grants and Loans
In this subchapter:
"Board" means the minority business development board.
"Development project" means the start-up of a business, or the expansion 5
or acquisition of an existing business, that is or will be a minority business or the 6
promotion of economic development and employment opportunities for minority 7
group members or minority businesses.
"Early planning project" means the preliminary stages of considering and 9
planning the start-up or expansion of a business that will be a minority business.
"Education and training project" means a business education and 11
training program for minority group members and minority businesses that have 12
received loans for working capital from an eligible recipient under s. 560.82 (1m) (e).
"Eligible development project costs" means costs that, in accordance with 14
sound business and financial practices, are appropriately incurred in connection 15
with a development project, but does not include entertainment expenses or 16
expenses incurred more than 6 months before the board approves a grant or loan 17
under s. 560.82 (1m) (b).
"Eligible recipient" means any of the following:
(a) An individual who is a minority group member and a resident of this state.
(b) A minority business.
(c) A person who is eligible to receive a grant under s. 560.82 (1m) (d) or (e).
"Finance project" means financial assistance to a minority group member 23
or a minority business described in s. 560.82 (1m) (d) and (e).
"Job" means a regular, nonseasonal full-time position in which an 25
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 2
an employment position begins.
"Local development corporation" means any of the following:
(a) The elected governing body of a federally recognized American Indian tribe 5
or band in this state or any business created by the elected governing body.
(b) A corporation organized under ch. 181 that is a nonprofit corporation as 7
defined in s. 181.0103 (17), that is at least 51 percent controlled and actively 8
managed by minority group members and that does all of the following:
1. Operates primarily within specific geographic boundaries.
2. Promotes economic development and employment opportunities for minority 11
group members or minority businesses within the specific geographic area.
3. Demonstrates a commitment to or experience in promoting economic 13
development and employment opportunities for minority group members or 14
"Minority business" means a minority business, as defined in s. 560.036 (1) 16
(e), that has its principal place of business in this state.
"Minority group member" has the meaning given in s. 560.036 (1) (f).
"New minority business" means a minority business started as a result of 19
an early planning project.
"Project" means a development project, an early planning project, a 21
finance project, an education and training project or a revolving fund project.
22560.82 Minority business grants and loans. (1g)
The department shall 23
make a grant or loan to an eligible recipient or local development corporation under 24
this section if the board awards a grant or loan to the eligible recipient or local 25
development corporation under sub. (1m).
The board may award a grant or loan under this section to any of the 2
(a) Subject to s. 560.84, an eligible recipient, as defined in s. 560.80 (5) (a), to 4
fund an early planning project.
(b) Subject to s. 560.84, an eligible recipient or local development corporation 6
that submits application materials in a form specified by the department by rule to 7
fund eligible development project costs.
(c) A local development corporation to make grants or loans under sub. (2g) (a) 9
1. or to fund a revolving fund program under sub. (2g) (a) 2.
(d) Subject to s. 560.84, a nonprofit organization or private financial 11
institution, as defined in s. 234.01 (5k), whether or not for profit, to fund a finance 12
project if all of the following apply:
1. The financial institution or nonprofit organization uses the grant proceeds 14
for any of the following purposes:
a. To make loans for working capital to minority group members and minority 16
b. To pay origination fees or other administrative costs associated with making 18
loans for working capital to minority group members and minority businesses.
2. The loans for working capital under subd. 1. a. do not exceed $5,000.
(e) Subject to s. 560.84, the board may award a grant under this subsection to 21
a nonprofit organization that is a minority business to fund an education and 22
The board may not award a grant or loan under sub. (1m) (a) unless the 24
eligible recipient, as defined in s. 560.80 (5) (a), submits an application, in a form 25
required by the department, that contains or describes all of the following:
(a) Potential locations of the new minority business.
(b) The ownership structure of the new minority business.
(c) The product or service provided by the new minority business.
(d) The market for the product or service described in par. (c).
(e) Competition within the market described in par. (d).
(f) Any competitive advantages of the new minority business.
(g) The eligible recipient's estimate of the gross revenue of the new minority 8
business over a period specified by the department.
(h) The process for manufacturing the product, or providing the services, of the 10
new minority business.
(i) An estimate of the number of jobs that will be created by the new minority 12
(j) The eligible recipient's experience and training.
(k) The eligible recipient's estimate of the profit that will be generated by the 15
new minority business over a period specified by the department.
(L) The eligible recipient's estimate of the capital required to complete the early 17
(m) Potential sources of financing for the early planning project.
(n) Any other information that the department requests.
The board may award a grant or loan under this subsection to a local 21
development corporation if all of the following apply:
(a) The local development corporation agrees to use the proceeds of grants or 23
loans under this section for any of the following:
1. To make grants or loans not exceeding $50,000 each to eligible25
recipients to fund eligible development project costs.
2. To create, expand or continue a revolving fund program that is operated by 2
the local development corporation and that benefits or will benefit minority 3
businesses or minority group members who are residents of this state.
(b) The local development corporation agrees to use factors similar to those 5
described in s. 560.84 (1) (a) to (k) and (2) (a) to (f) when making grants or loans under 6
par. (a) 1. or under a revolving fund program under par. (a) 2.
(c) The local development corporation submits an application, or other 8
materials, in a form specified by the department by rule.
An eligible recipient, as defined in s. 560.80 (5) (a), who receives a grant or 10
loan under sub. (1m) (a) or s. 560.835 (6), 2001 stats., may only use the proceeds of 11
the grant for the following purposes:
(a) To perform a business feasibility study.
(b) To prepare a detailed marketing plan.
(c) To prepare a detailed business plan.
The board may not do any of the following:
(a) Award in a fiscal biennium, for grants or loans under sub. (1m) (a), more 17
than 25 percent of the total of all of the following:
1. The funds appropriated for the fiscal biennium under s. 20.143 (1) (fm).
2. The lesser of the funds received in a fiscal biennium in repayment of grants 20
or loans under s. 560.83, 2005 stats., and this section or the funds appropriated for 21
the fiscal biennium under s. 20.143 (1) (im).
(b) Award in a fiscal biennium to any one eligible recipient, as defined in s. 23
560.80 (5) (a), or for any one early planning project, grants or loans under sub. (1m) 24
(a) that total more than $15,000.
(c) Award in any fiscal biennium, to any one eligible recipient or local 2
development corporation or for any one development project, grants or loans under 3
sub. (1m) (b) that total more than $100,000 in a fiscal biennium.
(d) Award, in any fiscal year to any one local development corporation, grants 5
or loans under sub. (1m) (c) that total more than $200,000.
If the board awards a grant or loan under sub. (1m) (a), the department may 7
contract directly with and pay grant or loan proceeds directly to any person providing 8
technical or management assistance to the grant or loan recipient.
9560.84 General criteria. (1)
The board may not award a grant or loan for 10
a project under this subchapter unless, after considering the application or other 11
material submitted by the eligible recipient or local development corporation, the 12
board determines all of the following:
(a) That the project serves a public purpose.
(b) 1. If an early planning project, that the project will increase employment in 15
2. If a development project, that the project will retain or increase employment 17
in this state.
(c) That the project is not likely to occur without the grant or loan.
(d) That financing is unavailable from any other source on reasonably 20