SB77-SSA1,1425,1916
234.65
(3) (d) The business receiving the benefits of the loan proceeds, together
17with all of its affiliates and subsidiaries and its parent company, has current gross
18annual sales of $35,000,000 or less.
This paragraph does not apply to an economic
19development loan to finance a project described in s. 234.01 (4n) (d).
SB77-SSA1,1425,2421
234.65
(3) (e) The economic development loan will not be used to refinance
22existing debt, unless it is in conjunction with an expansion of the business or job
23creation. This paragraph does not apply to an economic development loan to finance
24an economic development project described under s. 234.01 (4n) (c)
or (d).
SB77-SSA1,1426,65
234.66
(3) (b) The limits in ss. 234.18 (1)
and (2), 234.40, 234.50, 234.60,
234.61
6and 234.65
and 234.70 do not apply to bonds or notes issued under this section.
SB77-SSA1,1426,108
234.66
(3) (c) The authority may not issue more than
$10,000,000 $17,500,000 9in aggregate principal amount of bonds and notes under this section, excluding bonds
10and notes issued to refund outstanding bonds and notes issued under this section.
SB77-SSA1, s. 3351r
11Section 3351r. Subchapter II (title) of chapter 234 [precedes 234.67] of the
12statutes is created to read:
SB77-SSA1,1426,1514
Subchapter II
15
Loan Guarantee Programs
SB77-SSA1, s. 3355c
18Section 3355c. 234.70 of the statutes is renumbered 234.61, and 234.61 (1),
19as renumbered, is amended to read:
SB77-SSA1,1427,220
234.61
(1) Upon the authorization of the department of health and family
21services, the authority may issue bonds or notes and make loans for the financing of
22housing projects which are residential facilities as defined in s. 46.28 (1) (d) and the
23development costs of those housing projects, if the department of health and family
24services has approved the residential facilities for financing under s. 46.28 (2). The
25limitations in ss. 234.18 (1)
and (2), 234.40, 234.50, 234.60, 234.65 and 234.66 do not
1apply to bonds or notes issued under this section. The definition of "nonprofit
2corporation" in s. 234.01 (9) does not apply to this section.
SB77-SSA1,1427,11
10234.83 (title)
Targeted Small business development loan guarantee
11program.
SB77-SSA1,1427,1413
234.83
(1) (c) The lender
is a financial institution that enters into an agreement
14under s. 234.93 (2) (a).
SB77-SSA1, s. 3365
15Section
3365. 234.83 (2) (a) of the statutes is renumbered 234.83 (2) (a) (intro.)
16and amended to read:
SB77-SSA1,1427,1817
234.83
(2) (a) (intro.) A business, as defined in s. 560.60 (2)
., to which all of the
18following apply:
SB77-SSA1, s. 3366
19Section
3366. 234.83 (2) (a) 1. to 3. of the statutes are created to read:
SB77-SSA1,1427,2020
234.83
(2) (a) 1. The owner of the business is actively engaged in the business.
SB77-SSA1,1427,2121
2. The business employs 50 or fewer employes on a full-time basis.
SB77-SSA1,1427,2422
3. The authority has not received a certification under s. 49.855 (7) that the
23owner of the business is delinquent in making child support or maintenance
24payments.
SB77-SSA1, s. 3367
1Section
3367. 234.83 (3) (a) (intro.) of the statutes is renumbered 234.83 (3)
2(intro.).
SB77-SSA1, s. 3368
3Section
3368. 234.83 (3) (a) 1. of the statutes is renumbered 234.83 (3) (a)
4(intro.) and amended to read:
SB77-SSA1,1428,75
234.83
(3) (a) (intro.) The borrower uses the loan proceeds for a business
6development project
in a targeted area. Loan proceeds may be used for direct or
7related expenses associated with
any of the following:
SB77-SSA1,1428,9
81. The expansion or acquisition of a business, including the purchase or
9improvement of land, buildings, machinery, equipment or inventory.
SB77-SSA1, s. 3369
10Section
3369. 234.83 (3) (a) 2. to 9. of the statutes are renumbered 234.83 (3)
11(b) to (i), and 234.83 (3) (b), (d), (e), (f), (g), (h) and (i), as renumbered, are amended
12to read:
SB77-SSA1,1428,1613
234.83
(3) (b) Loan proceeds are not used to refinance existing debt or for
14operating or entertainment expenses
, expenses related to the production of an
15agricultural commodity, as defined in s. 94.67 (2), or expenses related to a
16community-based residential facility.
SB77-SSA1,1428,1917
(d) The loan term does not extend beyond 15 years after the date on which the
18financial institution lender disburses the loan unless
the loan is extended by the
19authority
agrees to an extension of the loan term.
SB77-SSA1,1428,2120
(e) The total principal amount of all loans to the borrower that are guaranteed
21under this section does not exceed
$250,000 $750,000.
SB77-SSA1,1428,2322
(f) The
financial institution lender obtains a security interest in the physical
23plant, equipment, machinery or other assets.
SB77-SSA1,1428,2524
(g) The
financial institution lender believes that it is reasonably likely that the
25borrower will be able to repay the loan in full with interest.
SB77-SSA1,1429,2
1(h) The
financial institution lender agrees to the percentage of guarantee
2established for the loan by the authority.
SB77-SSA1,1429,43
(i) The authority believes that the loan will have a positive
economic impact
on
4the targeted area in terms of job creation
and
or retention.
SB77-SSA1,1429,86
234.83
(3) (a) 2. The start-up, expansion or acquisition of a day care business,
7including the purchase or improvement of land, buildings, machinery, equipment or
8inventory.
SB77-SSA1, s. 3372
10Section
3372. 234.83 (4) (title) and (a) of the statutes are amended to read:
SB77-SSA1,1429,2111
234.83
(4) (title)
Guarantee of collection repayment. (a) Subject to par. (b),
12the authority
shall may guarantee
collection repayment of a
percentage, not
13exceeding 90%, portion of the principal of any loan eligible for a guarantee under sub.
14(1).
That portion may not exceed 80% of the principal of the loan or $200,000,
15whichever is less. The authority shall establish the
percentage portion of the
16principal of an eligible loan that will be guaranteed, using the procedures described
17in the agreement under s. 234.93 (2) (a). The authority may establish a single
18percentage portion for all guaranteed loans
that do not exceed $250,000 and a single
19portion for all guaranteed loans that exceed $250,000 or establish
on an individual
20basis different
percentages portions for eligible loans
on an individual basis that do
21not exceed $250,000 and different portions for eligible loans that exceed $250,000.
SB77-SSA1,1429,2523
234.83
(4) (b) Except as provided in s. 234.93 (3), the total outstanding
24guaranteed principal amount of all loans that the authority may guarantee under
25par. (a) may not exceed
$10,000,000 $9,900,000.
SB77-SSA1,1430,4
3234.86 Drinking water loan guarantee program. (1) Definitions. In this
4section:
SB77-SSA1,1430,75
(a) "Community water system" means a public water system that serves at
6least 15 service connections used by year-round residents or that regularly serves
7at least 25 year-round residents.
SB77-SSA1,1430,88
(b) "Department" means the department of natural resources.
SB77-SSA1,1430,99
(c) "Local governmental unit" has the meaning given in s. 281.61 (1) (a).
SB77-SSA1,1430,1110
(d) "Noncommunity water system" means a public water system that is not a
11community water system.
SB77-SSA1,1430,1212
(e) "Public water system" has the meaning given in s. 281.61 (1) (c).
SB77-SSA1,1430,15
13(2) Guarantee requirements. The authority may use money from the
14Wisconsin drinking water reserve fund under s. 234.933 to guarantee a loan under
15this section if all of the following apply:
SB77-SSA1,1430,1616
(a) The borrower is not a local governmental unit and is one of the following:
SB77-SSA1,1430,1717
1. The owner of a community water system.
SB77-SSA1,1430,1818
2. The owner of a noncommunity water system and is not operated for profit.
SB77-SSA1,1430,1919
(b) The loan qualifies as an eligible loan under sub. (3).
SB77-SSA1,1430,2120
(c) The lender is a financial institution that enters into an agreement under s.
21234.933 (3) (a).
SB77-SSA1,1430,22
22(3) Eligible loans. A loan is an eligible loan if all of the following apply:
SB77-SSA1,1431,223
(a) The department determines that the loan will facilitate compliance with
24national primary drinking water regulations under
42 USC 300g-1 or otherwise
1significantly further the health protection objectives of the Safe Drinking Water Act,
242 USC 300f to
300j-26.
SB77-SSA1,1431,43
(b) The department determines that the loan satisfies the requirements under
4s. 281.625 (2).
SB77-SSA1,1431,11
5(4) Guarantee of collection. (a) Subject to par. (b), the authority may
6guarantee collection of a percentage, not exceeding 80%, of the principal of any loan
7eligible for a guarantee under this section. The authority shall establish the
8percentage of the unpaid principal of an eligible loan that will be guaranteed using
9the procedures described in the guarantee agreement under s. 234.933 (3) (a). The
10authority may establish a single percentage for all guaranteed loans or establish
11different percentages for eligible loans on an individual basis.
SB77-SSA1,1431,1312
(b) Except as provided in s. 234.933 (4), the total outstanding principal amount
13of all guaranteed loans under par. (a) may not exceed $3,000,000.
SB77-SSA1,1431,17
16234.88 Brownfields remediation loan guarantee program. (1)
17Definitions. In this section:
SB77-SSA1,1431,2018
(a) "Brownfields" means abandoned, idle or underused industrial or
19commercial facilities or sites, the expansion or redevelopment of which is adversely
20affected by actual or perceived environmental contamination.
SB77-SSA1,1431,2221
(b) "Guaranteed loan" means a loan for which the authority guarantees
22repayment under sub. (3).
SB77-SSA1,1431,2523
(c) "Participating lender" means a bank, savings bank, credit union, credit
24association, savings and loan association or other person that makes loans and that
25has entered into an agreement with the authority under s. 234.93 (2) (a).
SB77-SSA1,1432,2
1(d) "Security interest" means an interest in property or other assets that
2secures payment or other performance of a guaranteed loan.
SB77-SSA1,1432,5
3(2) Eligible loans. A loan made by a participating lender is eligible for
4guarantee of repayment from the Wisconsin development reserve fund under s.
5234.93 if all of the following apply:
SB77-SSA1,1432,66
(a) The borrower is a business in this state.
SB77-SSA1,1432,97
(b) The borrower uses the loan proceeds for direct or related expenses, as
8determined by the authority, that are associated with remediation of contamination
9at a brownfields site.
SB77-SSA1,1432,1110
(c) The loan proceeds are not applied to the outstanding balance of any other
11loan.
SB77-SSA1,1432,1312
(d) The authority approves the interest rate on the loan, including any
13origination fees or other charges.
SB77-SSA1,1432,1514
(e) The participating lender obtains a security interest in any equipment,
15machinery, physical plant or other assets to secure repayment of the loan.
SB77-SSA1,1432,1816
(f) The loan term does not extend beyond 15 years after the date on which the
17participating lender disburses the loan unless the authority agrees to an extension
18of the loan term.
SB77-SSA1,1432,2119
(g) The participating lender considers the borrower's assets, cash flow and
20managerial ability sufficient to preclude voluntary or involuntary liquidation for the
21loan term granted by the participating lender.
SB77-SSA1,1432,2322
(h) The participating lender agrees to the percentage of guarantee established
23for the loan by the authority.
SB77-SSA1,1432,2424
(i) The principal amount of the loan does not exceed $500,000.
