234.765(1)(e)
(e) The borrower previously applied for a loan on equivalent terms without a guarantee and the application was denied.
234.765(3)
(3) The authority shall establish the terms and conditions of guarantees under this section.
234.765(4)(a)(a) Subject to
par. (b), the authority shall guarantee collection of a percentage, not exceeding 90%, of the principal of any loan eligible for a guarantee under
sub. (1). The authority shall establish the percentage of the principal of an eligible loan that will be guaranteed, using the procedures described in the agreement under
s. 234.93 (2) (a). The authority may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.
234.765(4)(b)
(b) Except as provided in
s. 234.93 (3), the total outstanding guaranteed principal amount of all loans that the authority may guarantee under
par. (a) may not exceed $2,000,000.
234.80
234.80
Applications for small business financial assistance. 234.80(1)(1) A person seeking financial assistance under
s. 234.765 shall submit an application in a form established by the authority. The authority may require the person to provide any information that the authority considers necessary in the application.
234.80(5)
(5) Before acting on an application submitted under this section, the authority may require a balance sheet or other financial statement audited by a certified public accountant.
234.80 History
History: 1989 a. 31.
234.802
234.802
Financial assistance; fees. The authority may establish premiums, fees or other charges for providing financial assistance under programs guaranteed by the Wisconsin development reserve fund.
234.802 History
History: 1989 a. 31,
359;
1993 a. 394.
234.82
234.82
Business improvement or start-up loan guarantee program. 234.82(1)(a)
(a) "Eligible business" means any of the following:
234.82(1)(a)1.
1. A business that is primarily engaged in or derives a substantial percentage of its annual gross revenue from furnishing goods, services, lodging, recreation facilities or amusement facilities to tourists or from furnishing goods or services to such businesses.
234.82(1)(a)2.
2. A business that derives more than 50% of its annual gross revenue from furnishing lodging.
234.82(1)(b)
(b) "Tourist" means a person who resides away from his or her permanent residence for a continuous period of less than 31 days or on a seasonal basis.
234.82(2)
(2) Guarantee requirements. The authority may use money from the Wisconsin development reserve fund to guarantee a business improvement or start-up loan if all of the following apply:
234.82(2)(a)
(a) The borrower qualifies as an eligible borrower under
sub. (3).
234.82(3)
(3) Eligible borrower. A person qualifies as an eligible borrower if all of the following apply:
234.82(3)(b)
(b) The annual gross revenue of the person, together with any parent, subsidiary or affiliate corporation, does not exceed $2,500,000 or, if the person intends to engage in an eligible business under
sub. (1) (a) 2., the annual gross revenue of the person, together with any parent, subsidiary or affiliate corporation, will not exceed $2,500,000.
234.82(3)(c)
(c) The person, together with any parent, subsidiary or affiliate corporation, employs fewer than 25 employes on a full-time basis or, if the person intends to engage in an eligible business under
sub. (1) (a) 2., the person, together with any parent, subsidiary or affiliate corporation, will employ fewer than 25 employes on a full-time basis.
234.82(3)(d)
(d) The person is unable to obtain adequate business financing on reasonable terms.
234.82(4)
(4) Eligible loan. A loan may be eligible for guarantee of collection from the Wisconsin development reserve fund under
s. 234.93 if all of the following requirements are met:
234.82(4)(a)
(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 proceeds may not be used to refinance existing debt or for operating or entertainment expenses.
234.82(4)(b)
(b) The interest rate on the loan, including any origination fees or other charges, is approved by the authority.
234.82(4)(c)
(c) 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.
234.82(4)(d)
(d) The total principal amount of all loans to the borrower that are guaranteed under this section may not exceed $100,000.
234.82(4)(e)
(e) The financial institution obtains a security interest in physical plant, equipment, machinery or other assets.
234.82(4)(f)
(f) The financial institution believes that it is reasonably likely that the borrower will be able to repay the loan in full with interest.
234.82(4)(g)
(g) The financial institution agrees to the percentage of guarantee established for the loan by the authority.
234.82(6)
(6) Interest subsidy. Annually, from the Wisconsin development reserve fund, the authority may pay a financial institution that makes a loan to a borrower that is guaranteed under this section an amount equal to up to 3.5% of the outstanding balance of the loan.
234.82(7)(a)(a) Subject to
par. (b), the authority shall guarantee collection of a percentage, not exceeding 90%, of the principal of any loan eligible for a guarantee under
sub. (2). The authority shall establish the percentage of the principal of an eligible loan that will be guaranteed, using the procedures described in the agreement under
s. 234.93 (2) (a). The authority may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.
234.82(7)(b)
(b) Except as provided in
s. 234.93 (3), the total outstanding guaranteed principal amount of all loans that the authority may guarantee under
par. (a) may not exceed $8,000,000.
234.83
234.83
Targeted development loan guarantee program. 234.83(1)(1)
Guarantee requirements. The authority may use money from the Wisconsin development reserve fund to guarantee a loan under this section if all of the following apply:
234.83(1)(a)
(a) The borrower qualifies as an eligible borrower under
sub. (2).
234.83(2)
(2) Eligible borrower. Any of the following qualifies as an eligible borrower if unable to obtain adequate business financing on reasonable terms:
234.83(2)(b)
(b) The elected governing body of a federally recognized American Indian tribe or band in this state.
234.83(3)(a)(a) A loan is eligible for guarantee of collection from the Wisconsin development reserve fund under
s. 234.93 if all of the following apply:
234.83(3)(a)1.
1. The borrower uses the loan proceeds for a business development project in a targeted area. Loan proceeds may be used for direct or related expenses associated with the purchase or improvement of land, buildings, machinery, equipment or inventory.
234.83(3)(a)2.
2. Loan proceeds are not used to refinance existing debt or for operating or entertainment expenses.
234.83(3)(a)3.
3. The interest rate on the loan, including any origination fees or other charges, is approved by the authority.
234.83(3)(a)4.
4. The loan term does not extend beyond 15 years after the date on which the financial institution disburses the loan unless the loan is extended by the authority.
234.83(3)(a)5.
5. The total principal amount of all loans to the borrower that are guaranteed under this section does not exceed $250,000.
234.83(3)(a)6.
6. The financial institution obtains a security interest in the physical plant, equipment, machinery or other assets.
234.83(3)(a)7.
7. The financial institution believes that it is reasonably likely that the borrower will be able to repay the loan in full with interest.
234.83(3)(a)8.
8. The financial institution agrees to the percentage of guarantee established for the loan by the authority.
234.83(3)(a)9.
9. The authority believes that the loan will have a positive economic impact on the targeted area in terms of job creation and retention.
234.83(3)(b)
(b) When considering whether a business development project will be located in a targeted area under
par. (a) 1., the authority shall consider all of the factors set out in
s. 560.605 (2m) (a) to
(h).
234.83(4)(a)(a) Subject to
par. (b), the authority shall guarantee collection of a percentage, not exceeding 90%, of the principal of any loan eligible for a guarantee under
sub. (1). The authority shall establish the percentage of the principal of an eligible loan that will be guaranteed, using the procedures described in the agreement under
s. 234.93 (2) (a). The authority may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.
234.83(4)(b)
(b) Except as provided in
s. 234.93 (3), the total outstanding guaranteed principal amount of all loans that the authority may guarantee under
par. (a) may not exceed $10,000,000.
234.83 History
History: 1991 a. 39;
1993 a. 394.
234.84
234.84
Job training loan guarantee program. 234.84(1)
(1)
Definition. In this section, "department" means the department of commerce.
234.84(2)
(2) Guarantee requirements. The authority may use money from the Wisconsin job training reserve fund to guarantee a loan under this section if, at the time application is made for the loan, all of the following apply:
234.84(2)(a)
(a) The borrower is an employer in this state, regardless of the number of employes.
234.84(3)
(3) Eligible loans. A loan is eligible for guarantee of collection from the Wisconsin job training reserve fund under
s. 234.932 if all of the following apply:
234.84(3)(a)
(a) The borrower certifies that it will use the loan proceeds for expenses related to employe training or retraining or for purchasing equipment or upgrading facilities for purposes related to employe training or retraining.
234.84(3)(b)
(b) The borrower certifies that loan proceeds will not be used to refinance existing debt or for operating or entertainment expenses.
234.84(3)(c)
(c) The interest rate on the loan, including any origination fees or other charges, is approved by the department.
234.84(3)(d)
(d) The original loan term does not extend beyond 3 years if the loan proceeds are used exclusively for expenses related to instruction or training, or beyond 5 years if the loan proceeds are used for purchasing equipment or upgrading facilities that will be used for instructing or training employes.
234.84(3)(e)
(e) The total outstanding principal amount of all loans to the borrower that are guaranteed under this section does not exceed $250,000.
234.84(3)(f)
(f) The lender obtains a security interest in the physical plant, equipment or other assets if the loan proceeds are to be used for purchasing equipment or upgrading facilities that will be used for instructing or training employes.
234.84(3)(g)
(g) The lender confirms that the borrower satisfies all applicable loan underwriting criteria.
234.84(4)(a)(a) Subject to
par. (b), the authority shall guarantee collection of a percentage of the principal of, and all interest and any other amounts outstanding on, any loan eligible for a guarantee under
sub. (2). The department shall establish the percentage of the principal of an eligible loan that will be guaranteed, using the procedures described in the agreement under
s. 234.932 (3) (a). The department may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.
234.84(4)(b)
(b) Except as provided in
s. 234.932 (4), the total outstanding guaranteed principal amount of all loans that the authority may guarantee under
par. (a) may not exceed $8,000,000.
234.84(5)(a)(a) The program under this section shall be administered by the department with the cooperation of the authority. The department shall enter into a memorandum of understanding with the authority setting forth the respective responsibilities of the department and the authority with regard to the administration of the program, including the functions and responsibilities specified in
s. 234.932. The memorandum of understanding shall provide for reimbursement to the department by the authority for costs incurred by the department in the administration of the program.
234.84(5)(b)
(b) The department may charge a premium, fee or other charge to a borrower of a guaranteed loan under this section for the administration of the loan guarantee.
234.84 History
History: 1995 a. 27 s.
9116 (5);
1995 a. 116.
234.85
234.85
Minority financial interests. 234.85(1)
(1) In this section, "minority business", "minority financial adviser" and "minority investment firm" mean a business, financial adviser and investment firm, respectively, certified by the department of commerce under
s. 560.036 (2).
234.85(2)
(2) The authority shall annually report to the department of administration the total amount purchased from and contracted or subcontracted under contracts made by the authority to minority businesses, the total amount of bonds and notes issued by the authority with the underwriting services of minority investment firms and the total amount of moneys expended by the authority for the services of minority financial advisers during the preceding state fiscal year.
234.85 History
History: 1987 a. 27;
1995 a. 27 s.
9116 (5).
