Amendment ASA1-AB601

LRBs0410/1

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1995 - 1996 LEGISLATURE

ASSEMBLY SUBSTITUTE AMENDMENT 1, To 1995 ASSEMBLY BILL 601

January 16, 1996 - Offered by Committee on Small Business and Economic Development.

AB601-ASA1,1,3 An Act to amend 234.82 (4) (a) and 234.82 (4) (c); and to create 234.82 (5) of the statutes; relating to: use of loan proceeds under the business improvement loan guarantee program.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB601-ASA1, s. 1 Section 1. 234.82 (4) (a) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB601-ASA1,1,12 234.82 (4) (a) The borrower uses the loan proceeds for upgrading, renovating or expanding an eligible business under sub. (1) (a) 1. or for start-up costs for an eligible business under sub. (1) (a) 2. Loan proceeds may be used for direct or related expenses associated with the purchase or improvement of land, buildings, machinery, equipment or inventory. Loan Except as provided in sub. (5), loan proceeds may not be used to refinance existing debt or for operating or entertainment expenses.

AB601-ASA1, s. 2 Section 2. 234.82 (4) (c) of the statutes is amended to read:

AB601-ASA1,2,3 234.82 (4) (c) The Subject to sub. (5) (d), the loan term does not extend beyond 10 years after the date on which the financial institution disburses the loan unless the loan is extended by the authority.

AB601-ASA1, s. 3 Section 3. 234.82 (5) of the statutes is created to read:

AB601-ASA1,2,7 234.82 (5) Snow drought emergency. A loan to an eligible borrower that would be an eligible loan under sub. (4) except that it is made for operating expenses of an eligible business may be guaranteed under this section if all of the following apply:

AB601-ASA1,2,9 (a) The eligible business is located in a county for which the governor has declared a state of emergency because of a lack of snow.

AB601-ASA1,2,11 (b) The loan is made within 45 days after the governor declares the state of emergency.

AB601-ASA1,2,14 (c) The eligible business is dependent upon a sufficient amount of snow for a large portion of its revenue at the time of year during which the state of emergency is in effect.

AB601-ASA1,2,16 (d) The loan term does not extend beyond 2 years after the date on which the financial institution disburses the loan unless the loan is extended by the authority.

AB601-ASA1,2,17 (End)