LRB-1875/1
FFK:sbb&kjf:rs
September 2011 Special Session
2011 - 2012 LEGISLATURE
October 11, 2011 - Introduced by Committee on Senate Organization, by request
of Governor Scott Walker, Senator Leibham, and Representatives Petryk,
Bernier, and Larson. Referred to Committee on Economic Development and
Veterans and Military Affairs.
SB2,1,5 1An Act to repeal 234.83 (1c) (a) and 234.83 (2) (a) 1. and 2.; to consolidate,
2renumber and amend
234.83 (1c) (intro.) and (b) and 234.83 (2) (a) (intro.)
3and 3.; and to amend 234.83 (3) (a) 3. and 234.83 (4) of the statutes; relating
4to:
small business loan guarantees by the Wisconsin Housing and Economic
5Development Authority.
Analysis by the Legislative Reference Bureau
Under current law, the Wisconsin Housing and Economic Development
Authority (WHEDA) administers the small business development loan guarantee
program (program). Under the program, WHEDA may guarantee repayment of up
to the lesser of $200,000 or 80 percent of the principal of a loan made by a private
lender to a small business or the elected governing body of a federally recognized
American Indian tribe in this state. A small business development loan that is
guaranteed by WHEDA may be used for expenses associated with the expansion or
acquisition of a business, with the start-up of a day care business, or the start-up
of a small business in a vacant storefront in the downtown area of a rural community.
Under current law, a "small business" means a business that employs fewer than 50
full-time employees.
This bill makes the following changes to the program:
1. The cap on the amount of a loan that may be guaranteed under the program
is raised from $200,000 or 80 percent of the principal of the loan to $500,000 or 80
percent of the principal of the loan.

2. The definition of "small business" is expanded from businesses that employ
up to 50 full-time employees to businesses that employ up to 250 full-time
employees.
3. The requirement that the owner of a small business be actively engaged in
the small business in order to qualify for the program is deleted.
4. The permitted use of proceeds of a loan for the start-up of a small business
in a vacant storefront in a downtown area is expanded to apply to a community of any
size by removing the limitation to rural communities.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB2, s. 1 1Section 1. 234.83 (1c) (intro.) and (b) of the statutes are consolidated,
2renumbered 234.83 (1c) and amended to read:
SB2,2,53 234.83 (1c) Definitions Definition. In this section: (b) "Small section, "small
4business" means a business, as defined in s. 560.60 (2), that employs 50 250 or fewer
5employees on a full-time basis.
SB2, s. 2 6Section 2. 234.83 (1c) (a) of the statutes is repealed.
SB2, s. 3 7Section 3. 234.83 (2) (a) (intro.) and 3. of the statutes are consolidated,
8renumbered 234.83 (2) (a) and amended to read:
SB2,2,159 234.83 (2) (a) A small business to which all of the following apply: 3. The,
10provided that the
name of the owner of the small business does not appear on the
11statewide support lien docket under s. 49.854 (2) (b) or, if the name of the owner of
12the small business appears on that docket, the owner of the small business provides
13to the authority a payment agreement that has been approved by the county child
14support agency under s. 59.53 (5) and that is consistent with rules promulgated
15under s. 49.858 (2) (a).
SB2, s. 4 16Section 4. 234.83 (2) (a) 1. and 2. of the statutes are repealed.
SB2, s. 5 17Section 5. 234.83 (3) (a) 3. of the statutes is amended to read:
SB2,3,3
1234.83 (3) (a) 3. The start-up of a small business in a vacant storefront in the
2downtown area of a rural community city, town, or village in this state, including the
3purchase or improvement of land, buildings, machinery, equipment, or inventory.
SB2, s. 6 4Section 6. 234.83 (4) of the statutes is amended to read:
SB2,3,145 234.83 (4) Guarantee of repayment. The authority may guarantee repayment
6of a portion of the principal of any loan eligible for a guarantee under sub. (1m). That
7portion may not exceed 80% of the principal of the loan or $200,000 $500,000,
8whichever is less. The authority shall establish the portion of the principal of an
9eligible loan that will be guaranteed, using the procedures described in the
10agreement under s. 234.93 (2) (a). The authority may establish a single portion for
11all guaranteed loans that do not exceed $250,000 $625,000 and a single portion for
12all guaranteed loans that exceed $250,000 $625,000 or establish on an individual
13basis different portions for eligible loans that do not exceed $250,000 $625,000 and
14different portions for eligible loans that exceed $250,000 $625,000.
SB2,3,1515 (End)
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