560.68(2)(2) The department, in cooperation with the board, shall actively encourage small businesses to apply for grants and loans under this subchapter by ensuring that there are no undue impediments to their participation and by assisting small businesses in preparing grant and loan applications.
560.68(3)
(3) The department may charge a grant or loan recipient an origination fee of up to 1.5% of the grant or loan amount if the grant or loan exceeds $200,000 and is awarded under
s. 560.63 or
560.66. The department shall deposit all origination fees collected under this subsection in the appropriation account under
s. 20.143 (1) (gm).
560.68(4)
(4) The board shall develop a policy relating to obtaining reimbursement of grants and loans provided under this subchapter. The policy may provide that reimbursement shall be obtained through full repayment of the principal amount of the grant or loan plus interest, through receipt of a share of future profits from or an interest in a product or process, or through any other appropriate means.
560.68(5)
(5) The department, with the approval of the board, shall develop procedures to evaluate applications, monitor project performance and audit grants and loans awarded under this subchapter.
560.68(5m)
(5m) The department, with the approval of the board, shall establish and implement procedures for monitoring the use of grants and loans awarded under this subchapter, including procedures for verification of economic growth, job creation and the number and percentage of newly created jobs for which state residents are hired.
560.68(6)
(6) If appropriate, the board may require that more than 25% of the cost of any project or category of projects be paid from funds not provided by this state.
560.68(7)
(7) The department, in cooperation with the board, shall encourage small businesses to apply for grants and loans under this subchapter by ensuring that there are no undue impediments to their participation and by actively encouraging small businesses to apply for grants and loans. The department shall do all of the following:
560.68(7)(a)
(a) Publish and disseminate information about the projects under
ss. 560.62 to
560.66 and the procedures for applying for grants and loans.
560.68(7)(b)
(b) Simplify the application and review procedures for small businesses so that they will not impose unnecessary administrative burdens on small businesses.
560.68(7)(c)
(c) Assist small businesses in preparing applications for grants and loans.
560.685
560.685
Rules. The department may not promulgate a rule under this subchapter without first considering the recommendations of the board regarding the proposed rule.
560.685 History
History: 1987 a. 27.
DEVELOPMENT ZONE PROGRAM
560.70(1)
(1) "Business incubator" means a person who operates a facility designed to encourage the growth of new businesses, if at least 2 of the following apply:
560.70(1)(a)
(a) Space in the facility is rented at a rate lower than the market rate in the community.
560.70(1)(b)
(b) Shared business services are provided in the facility.
560.70(1)(c)
(c) Management and technical assistance are available at the facility.
560.70(1)(d)
(d) Businesses using the facility may obtain financial capital through a direct relationship with at least one financial institution.
560.70(2)
(2) "Development zone program" means the program administered under this subchapter.
560.70(2m)
(2m) "Full-time job" means a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays, and for which the individual receives pay that is equal to at least 150% of the federal minimum wage and benefits that are not required by federal or state law. "Full-time job" does not include initial training before an employment position begins.
560.70(4)
(4) "Local governing body" means the governing body of one or more cities, villages, towns or counties or the elected governing body of a federally recognized American Indian tribe or band in this state.
560.70(5)
(5) "Metropolitan statistical area" means a federal standard metropolitan statistical area but does not include areas located within Indian reservations.
560.71
560.71
Designation of development zone. 560.71(1)
(1) The department may designate an area as a development zone if all of the following apply:
560.71(1)(ac)
(ac) The department has invited a local governing body to nominate the area under
s. 560.715.
560.71(1)(b)
(b) The department has evaluated the local governing body's application as described in
s. 560.725.
560.71(1)(e)
(e) The department determines all of the following:
560.71(1)(e)1.
1. That designation of the area as a development zone will serve a public purpose.
560.71(1)(e)2.
2. That designation of the area as a development zone will likely retain or increase employment in the area.
560.71(1)(e)3.
3. That economic development in the area is not likely to occur or continue without the department's designation of the area as a development zone.
560.71(1)(e)4.
4. That the area meets at least 3 of the following criteria:
560.71(1)(e)4.a.
a. The unemployment rate in the area is higher than the state average for the 18 months immediately preceding the date on which the application under
s. 560.72 (2) or
(3) was submitted to the department.
560.71(1)(e)4.b.
b. The percentage of persons residing in the area who are members of households with household income levels at or below 80% of the statewide median household income is higher than the state average.
560.71(1)(e)4.c.
c. The percentage of households in the area receiving unemployment insurance under
ch. 108, relief funded by a relief block grant under
ch. 49 or aid to families with dependent children under
s. 49.19 is higher than the state average.
560.71(1)(e)4.d.
d. In the 36 months immediately preceding the date on which the application under
s. 560.72 (2) or
(3) was submitted to the department, a number of workers in the area were permanently laid off by their employer or became unemployed as a result of a business action subject to
s. 109.07 (1m).
560.71(1)(e)4.e.
e. An employer in the vicinity of the area has given public notice under
s. 109.07 (1m) of either a business closing or a mass layoff of at least 25 employes, or 25% of the employes, of a business, whichever is greater, that will result in a number of workers in the area being laid off permanently.
560.71(1m)
(1m) In making a determination under
sub. (1) (e), the department shall consider all of the following:
560.71(1m)(a)
(a) The extent of poverty, unemployment or other factors contributing to general economic hardship in the area.
560.71(1m)(b)
(b) The prospects for new investment and economic development in the area.
560.71(1m)(c)
(c) The amount of investment that is likely to result from the designation of the area as a development zone.
560.71(1m)(d)
(d) The number of full-time jobs that are likely to be created or retained in the area as a result of its designation as a development zone.
560.71(1m)(e)
(e) The number of full-time jobs that are likely to be available to the target population as a result of the designation of the area as a development zone.
560.71(1m)(f)
(f) The competitive effect of designating the area as a development zone on other businesses in the vicinity of the area.
560.71(1m)(h)
(h) Any other factors that the department considers relevant.
560.71(2)
(2) In determining whether an area meets the requirements under
sub. (1) (e) or
s. 560.735, the department may rely on any data provided by the local governing body which the department determines is relevant.
560.71(3)
(3) The department shall do all of the following:
560.71(3)(a)
(a) Determine the number of development zones designated under
sub. (1) but may not designate more than 22 development zones over the life of the program.
560.71(3)(b)
(b) Divide the number of development zones as evenly as possible between metropolitan statistical areas and areas that are not metropolitan statistical areas.
560.71(3)(c)1.1. Designate at least one development zone that is entirely within a 1st class city.
560.71(3)(c)2.
2. Designate at least 2 development zones that are each at least partially within an Indian reservation.
560.71(3)(c)3.
3. Of the development zones that are designated after April 25, 1996, designate one that is in an urban area.
560.715
560.715
Invitation to nominate area. If the department determines that an area has experienced or is about to experience economic distress, the department may invite local governing bodies in the area to nominate the area as a development zone.
560.715 History
History: 1997 a. 103.
560.72
560.72
Application by local governing bodies. 560.72(1)
(1) A local governing body may nominate an area as a development zone, if the department has invited the governing body to nominate the area under
s. 560.715 and if the governing body does all of the following:
560.72(1)(a)
(a) Holds at least one public hearing on the issue of designating the area as a development zone.
560.72(1)(b)
(b) Adopts a resolution or ordinance authorizing it to nominate the area under this section.
560.72(2)
(2) A local governing body may nominate the area as a development zone by submitting an application to the department in a form prescribed by the department. The application shall include all of the following:
560.72(2)(a)
(a) A copy of the ordinance or resolution authorizing the local governing body to nominate the area as a development zone.
560.72(2)(e)
(e) A description of the land use patterns in the area including:
560.72(2)(e)2.
2. Information about vacant buildings or land available for development.
560.72(2)(f)
(f) A description of past and present economic development activities in the area under local, state or federal programs.
560.72(2)(g)
(g) A description of the local governing body's goals for the economic development of the area.
560.72(2)(h)
(h) An assessment of the effect of making the area a development zone on full-time jobs available to the targeted population.
560.72(2)(i)
(i) Any other information required by the department.
560.72(2)(j)
(j) Any other information the local governing body considers relevant.
560.72(3)
(3) Two or more local governing bodies may submit a joint application nominating an area as a development zone, subject to
s. 560.735 (2), if each local governing body complies with
subs. (1) and
(2).
560.72(5)
(5) The department may permit a local governing body to revise an application that the department determines is inadequate or incomplete.
