234.66(4)
(4) Bonds or notes issued under this section are special, limited obligations of the authority payable solely out of the revenue derived from the loan agreement, debt obligation or sales contract, collateral or other property received in connection with the beginning farmer program. All assets and liabilities created through the issuance of bonds or notes under this section shall be separate from all other assets and liabilities of the authority. The authority has no moral or legal obligation or liability to any person under this section, except as expressly provided by written contract. No funds of the beginning farmer program may be commingled with any other funds of the authority.
234.66(5)
(5) The authority may charge fees for assistance provided under this section to cover the administrative costs of the beginning farmer program, including legal fees.
234.66 History
History: 1993 a. 437;
1997 a. 27.
LOAN GUARANTEE PROGRAMS
234.67
234.67
Recycling loan guarantees. 234.67(1)(am)
(am) "Diaper service" means a business that supplies and launders cloth diapers.
234.67(1)(c)
(c) "Guaranteed loan" means a loan on which the authority guarantees collection under
sub. (3).
234.67(1)(e)
(e) "Participating lender" means a bank, credit union, savings bank, savings and loan association or other person, who makes loans for working capital or to finance physical plant needs, equipment or machinery and who has entered into an agreement with the authority under
s. 234.93 (2) (a).
234.67(1)(f)
(f) "Percentage of guarantee" means the percentage established by the authority under
sub. (3).
234.67(1)(h)
(h) "Security interest" means an interest in property or other assets that secures payment or other performance of a guaranteed loan.
234.67(2)
(2) Eligible loans. A loan made by a participating lender before December 3, 1993, is eligible for guarantee of collection from the Wisconsin development reserve fund under
s. 234.93 if all of the following apply:
234.67(2)(a)
(a) The loan is made to do one of the following:
234.67(2)(a)1.
1. Expand or improve an existing diaper service or to start a new diaper service.
234.67(2)(a)2.
2. To provide working capital or to finance any of the following items, if the working capital or item is necessary to, or used to, produce in this state a product from products recovered from postconsumer waste:
234.67(2)(b)
(b) The rate of interest on the loan, including any origination fees or other charges, is fixed at a rate determined by the participating lender and approved by the authority.
234.67(2)(c)
(c) The total principal amount of all loans to the borrower that are guaranteed under this section will not exceed $750,000.
234.67(2)(e)
(e) The participating lender obtains a security interest in physical plant, equipment, machinery or other assets.
234.67(2)(f)
(f) The loan term does not extend beyond 15 years after the date that the participating lender disburses the loan unless the loan is extended by the authority.
234.67(2)(g)
(g) The proceeds of the loan are not applied to the outstanding balance of any other loan.
234.67(2)(i)
(i) The borrower does not meet the participating lender's minimum standards of creditworthiness to receive a loan for the purposes described in
par. (a) in the normal course of the participating lender's business.
234.67(2)(j)
(j) The participating lender considers the borrower's assets, cash flow and managerial ability sufficient to preclude voluntary or involuntary liquidation for the loan term granted by the participating lender.
234.67(2)(k)
(k) The participating lender agrees to the percentage of guarantee established for the loan by the authority.
234.67(3)
(3) Guarantee of collection. 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 unpaid principal of an eligible loan that will be guaranteed, using the procedures described in the guarantee 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
234.83
Small business development loan guarantee program. 234.83(1c)(a)1.
1. A city, town, or village in this state that is located in a county with a population density of less than 150 persons per square mile.
234.83(1c)(a)2.
2. A city, town, or village in this state with a population of 12,000 or less.
234.83(1c)(b)
(b) "Small business" means a business, as defined in
s. 560.60 (2), that employs 50 or fewer employees on a full-time basis.
234.83(1m)
(1m) 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(1m)(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)(a)
(a) A business to which all of the following apply:
234.83(2)(a)1.
1. The owner of the business is actively engaged in the business.
234.83(2)(a)3.
3. The name of the owner of the business does not appear on the statewide support lien docket under
s. 49.854 (2) (b) or, if the name of the owner of the business appears on that docket, the owner of the business provides to the authority a payment agreement that has been approved by the county child support agency under
s. 59.53 (5) and that is consistent with rules promulgated under
s. 49.858 (2) (a).
234.83(2)(b)
(b) The elected governing body of a federally recognized American Indian tribe or band in this state.
234.83(3)
(3) Eligible loans. 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)
(a) The borrower uses the loan proceeds for a business development project. Loan proceeds may be used for direct or related expenses associated with any of the following:
234.83(3)(a)1.
1. The expansion or acquisition of a business, including the purchase or improvement of land, buildings, machinery, equipment or inventory.
234.83(3)(a)2.
2. The start-up of a day care business, including the purchase or improvement of land, buildings, machinery, equipment, or inventory.
234.83(3)(a)3.
3. The start-up of a small business in a vacant storefront in the downtown area of a rural community, including the purchase or improvement of land, buildings, machinery, equipment, or inventory.
234.83(3)(b)
(b) Loan proceeds are not used to refinance existing debt or for entertainment expenses, expenses related to the production of an agricultural commodity, as defined in
s. 94.67 (2), or expenses related to a community-based residential facility.
234.83(3)(c)
(c) The interest rate on the loan, including any origination fees or other charges, is approved by the authority.
234.83(3)(d)
(d) The loan term does not extend beyond 15 years after the date on which the lender disburses the loan unless the authority agrees to an extension of the loan term.
234.83(3)(e)
(e) The total principal amount of all loans to the borrower that are guaranteed under this section does not exceed $750,000.
234.83(3)(f)
(f) The lender obtains a security interest in the physical plant, equipment, machinery or other assets.
234.83(3)(g)
(g) The lender believes that it is reasonably likely that the borrower will be able to repay the loan in full with interest.
234.83(3)(h)
(h) The lender agrees to the percentage of guarantee established for the loan by the authority.
234.83(3)(i)
(i) The authority believes that the loan will have a positive impact in terms of job creation or retention.
234.83(4)
(4) Guarantee of repayment. The authority may guarantee repayment of a portion of the principal of any loan eligible for a guarantee under
sub. (1m). That portion may not exceed 80% of the principal of the loan or $200,000, whichever is less. The authority shall establish the portion 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 portion for all guaranteed loans that do not exceed $250,000 and a single portion for all guaranteed loans that exceed $250,000 or establish on an individual basis different portions for eligible loans that do not exceed $250,000 and different portions for eligible loans that exceed $250,000.
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 employees.
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 employee training or retraining or for purchasing equipment or upgrading facilities for purposes related to employee 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 employees.
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 employees.
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.
234.86
234.86
Drinking water loan guarantee program. 234.86(1)(a)
(a) "Community water system" means a public water system that serves at least 15 service connections used by year-round residents or that regularly serves at least 25 year-round residents.
234.86(1)(b)
(b) "Department" means the department of natural resources.
234.86(1)(d)
(d) "Noncommunity water system" means a public water system that is not a community water system.
234.86(2)
(2) Guarantee requirements. The authority may use money from the Wisconsin drinking water reserve fund under
s. 234.933 to guarantee a loan under this section if all of the following apply:
