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).
234.87
234.87
Nonpoint source pollution abatement and agricultural chemical cleanup loan guarantee program. 234.87(2)
(2) Guarantee requirements. The authority may use money from the Wisconsin development reserve fund under
s. 234.93 to guarantee a loan under this section if all of the following apply:
234.87(2)(a)
(a) The borrower is a landowner or operator and has a debt to asset ratio of at least 40% but not more than 80%.
234.87(3)
(3) Eligible loan. A loan is an eligible loan if all of the following apply:
234.87(3)(a)
(a) The loan is made for the installation of best management practices, as certified by the department of natural resources or the department of agriculture, trade and consumer protection, or the loan is made to a responsible person for the taking of corrective action in response to the discharge of an agricultural chemical pursuant to an order under
s. 94.73 (2) or
(2m) or at the request of the department of agriculture, trade and consumer protection.
234.87(3)(b)
(b) If the loan is made for the installation of best management practices in a priority watershed or priority lake area, the loan is made for the installation of best management practices in one of the following:
234.87(3)(b)1.
1. A priority watershed or priority lake area in which the program under
s. 281.65 is implemented after May 16, 1992.
234.87(3)(b)2.
2. A priority watershed or priority lake area in the Milwaukee river basin, including the Kinnickinnic river watershed.
234.87(3)(c)
(c) The interest rate on the loan, including any origination fees or other charges, is approved by the authority.
234.87(3)(d)
(d) The loan term is not less than 3 years nor more than 10 years beginning on the date on which the financial institution disburses the loan.
234.87(3)(e)
(e) The financial institution believes that it is reasonably likely that the borrower will be able to repay the loan in full with interest.
234.87(3)(f)
(f) The financial institution agrees to the percentage of guarantee established for the loan by the authority.
234.87(4)(a)(a) In guaranteeing loans under this section for the installation of best management practices, the authority shall give highest priority for loan guarantees to loans for the installation of best management practices in a priority watershed or priority lake area.
234.87(4)(b)
(b) The authority shall establish the maximum amount of a loan that may be guaranteed under this section.
234.87(5)(a)(a) Subject to
pars. (b) and
(c) and
sub. (4) (a), the authority shall guarantee collection of a percentage, not exceeding 90%, of the principal of a loan eligible for a guarantee under
sub. (2). The authority shall establish the percentage of the principal of an eligible loan that it will guarantee. The authority may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.
234.87(5)(b)
(b) Except as provided in
s. 234.93 (3), the total guaranteed principal amount of all loans for the installation of best management practices that the authority may guarantee under
par. (a) may not exceed $850,000.
234.87(5)(c)
(c) Except as provided in
s. 234.93 (3), the total guaranteed principal amount of all loans for the taking of corrective action in response to the discharge of an agricultural chemical that the authority may guarantee under
par. (a) may not exceed $650,000.
234.90
234.90
Agricultural production loan guarantees. 234.90(1)(ad)
(ad) "Agricultural production loan" means a loan to a farmer to finance the purchase of fertilizer, seed, fuel, pesticides, tillage services, crop insurance, animal feed or any other service or consumable good necessary to produce an agricultural commodity.
234.90(1)(c)
(c) "Guaranteed loan" means an agricultural production loan which is guaranteed by the authority.
234.90(1)(d)
(d) "Participating lender" means a bank, production credit association, credit union, savings bank, savings and loan association or other person who makes agricultural production loans and who has entered into an agreement with the authority under
s. 234.93 (2) (a).
234.90(2)
(2) Eligible loans. Except as provided in
sub. (3j), an agricultural production loan made by a participating lender is eligible for guarantee of collection from the Wisconsin development reserve fund under
s. 234.93 if all of the following apply:
234.90(2)(a)
(a) The loan is to finance production of an agricultural commodity.
