560.27(4)
(4) Annually, the high-technology business development corporation shall provide a report on its activities to the appropriate standing committees of each house of the legislature in the manner provided under
s. 13.172 (3) and to the governor.
560.27(5)
(5) The assets transferred to, and the assets and liabilities of, the high-technology business development corporation shall be separate from all other assets and liabilities of the state, of all political subdivisions of the state and of the department. Neither the state, any political subdivision of the state nor the department guarantees any obligation of or has any obligation to the high-technology business development corporation. Neither the state, any political subdivision of the state nor the department is liable for any debt or liability of the high-technology business development corporation.
560.27 History
History: 1999 a. 106.
560.275
560.275
Technology commercialization grant and loan program. 560.275(1)(1)
Definition. In this section, "Project costs" means the total cost of a project financed, at least in part, by a grant or loan under
sub. (2), calculated as provided by rule of the department.
560.275(2)(a)(a)
Early stage planning grants and loans. The department may make a grant or loan from the appropriation under
s. 20.143 (1) (dk) or
(ik) for the purpose of funding professional services related to completing an application to be submitted to the federal government for the purpose of obtaining early stage research and development funding or for the purpose of funding professional services that are required to accomplish specific tasks established as a condition of receiving early stage financing from 3rd parties that is necessary for business development.
560.275(2)(b)1.1. The department may make a grant or loan from the appropriation under
s. 20.143 (1) (dk) or
(ik) for the purpose of funding professional services related to developing a proposed technologically innovative product, process, or service, if the applicant has received a grant from the federal government for a substantially similar purpose.
560.275(2)(b)2.
2. The department may make a grant or loan from the appropriation under
s. 20.143 (1) (dk) or
(ik) for the purpose of funding professional services related to the accelerated commercialization of a technologically innovative product, process, or service, if the federal government has notified the applicant that the applicant will receive a grant from the federal government for a substantially similar purpose.
560.275(2)(c)
(c)
Bridge grants and loans. The department may make a grant or loan from the appropriation under
s. 20.143 (1) (dk) or
(ik) to a person who has received early stage financing from 3rd parties or a grant from the federal government to fund early stage research and development and who has sought additional early stage financing from 3rd parties or applied for an additional grant from the federal government to fund early stage research and development. A grant or loan under this paragraph shall be for the purpose of funding professional services necessary to maintain the project research and management team and funding basic operations until the applicant's additional 3rd party financing request or federal grant application is approved or denied.
560.275(2)(d)
(d)
Venture capital grants and loans. The department may make a grant or loan from the appropriation under
s. 20.143 (1) (dk) or
(ik) for the purpose of enhancing the applicant's ability to obtain early stage financing from 3rd parties.
560.275(2)(e)
(e)
Entrepreneurial and technology transfer center grants. The department may make a grant from the appropriation under
s. 20.143 (1) (dk) or
(ik) for the purpose of supporting any entrepreneurial and technology transfer center that satisfies all of the following criteria:
560.275(2)(e)2.
2. The center provides assistance, other than financial assistance, to entrepreneurs to facilitate business development.
560.275(2)(e)3.
3. The center reviews and analyzes entrepreneurial business plans and offers advice concerning the improvement of the plans.
560.275(2)(e)4.
4. The center provides advice to entrepreneurs concerning patent, trademark, and copyright issues.
560.275(2)(e)5.
5. The center provides appropriate referral services to entrepreneurs.
560.275(3)(a)(a)
Early stage planning grants and loans. In determining the amount of a grant or loan under
sub. (2) (a), the department shall consider all of the following, in addition to any other information the department considers relevant:
560.275(3)(a)1.
1. The amount of economic impact the applicant, if successful, will have in this state.
560.275(3)(a)4.
4. The applicant's record of obtaining early stage financing in the past.
560.275(3)(b)
(b)
Matching grants and loans. In determining the amount of a grant or loan under
sub. (2) (b), the department shall consider all of the following criteria, in addition to any other information the department considers relevant:
560.275(3)(b)2.
2. The likelihood that the applicant will successfully commercialize technology.
560.275(3)(b)4.
4. The amount of economic impact the applicant, if successful, will have in this state.
560.275(3)(b)5.
5. The applicant's record of obtaining early stage financing in the past.
560.275(4)
(4) Limitations on grant and loan amounts. 560.275(4)(a)(a)
Early stage planning grants and loans. A grant or loan under
sub. (2) (a) may not exceed $15,000.
560.275(4)(b)
(b)
Matching grants and loans. A grant or loan under
sub. (2) (b) may not exceed 20 percent of the project costs or $250,000, whichever is less.
560.275(4)(c)
(c)
Bridge grants and loans. A grant or loan under
sub. (2) (c) may not exceed 75 percent of the project costs or $100,000, whichever is less.
560.275(4)(d)
(d)
Venture capital grants and loans. A grant or loan under
sub. (2) (d) may not exceed 50 percent of the project costs or $250,000, whichever is less.
560.275(4)(e)
(e)
Entrepreneurial and technology transfer grants. The total amount of grants under
sub. (2) (e) may not exceed $500,000 in any fiscal year.
560.275(5)
(5) Eligibility. The department may make a grant or loan under
sub. (2) (a) to
(d) to an applicant only if all of the following apply:
560.275(5)(a)1.
1. Is a small business, or individual entrepreneur who intends to form a small business, that is completing a grant application to be submitted to the federal government for the purpose of obtaining early stage research and development funding, except that if the application is for a grant under
sub. (2) (b), the requirement that the applicant be completing a federal grant application does not apply; or
560.275(5)(a)2.
2. Is an individual who is starting or developing a business which has significant growth potential, as evidenced by the potential to attract and receive early stage financing from 3rd parties, but who needs assistance with a specific facet of starting or developing the business.
560.275(5)(b)
(b) If the applicant seeks a grant or loan under
sub. (2) (a), the applicant has sufficient funding from sources other than the state to finance at least 25% of the project costs.
560.275(5)(c)
(c) The applicant has or will have a business location in this state.
560.275(5)(d)
(d) If the application relates to a product, the product will be manufactured substantially in this state.
560.275(5)(e)
(e) If the application relates to a service, the principal place of business from which the service will be sold will be located in this state.
560.275(6)
(6) Grant and loan distribution plan. No later than December 1 of each even-numbered year, the department shall develop a biennial plan for awarding grants and loans under
sub. (2) and shall submit the plan to the governor and to the chief clerk of each house of the legislature, for distribution to the appropriate standing committees under
s. 13.172 (3).
560.275(7)(a)(a)
In-kind grants of services. The department may contract with, and pay the proceeds of any grant under
sub. (2) (a) to
(d) directly to, any person who provides services which the grant is intended to fund.
560.275(7)(b)
(b)
Rules. The department shall promulgate rules to administer this section. The rules shall establish application, reporting, auditing, and monitoring requirements.
560.275 History
History: 2003 a. 255.
560.28
560.28
Manufacturing investment credit. 560.28(1)
(1)
Definition. In this section, "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 35 hours in a week.
560.28(2)
(2) Certification. The department shall promulgate rules for the certification of businesses as eligible to claim tax credits under
s. 71.07 (3t),
71.28 (3t), or
71.47 (3t). The rules shall permit a business to obtain a certification only if the person satisfies one of the following conditions:
560.28(2)(a)
(a) The business has retained from December 23, 2003, 100 percent of the business's full-time jobs in this state.
560.28(2)(b)
(b) The business's average annual investment in this state since January 1, 2003, is equal to no less than 2 percent of the total book value of the business's depreciable assets in facilities that are based in this state.
560.28(2)(c)
(c) The business's average annual investment in this state since January 1, 2003, is no less than $5,000,000.
560.28(2)(d)
(d) Any other criteria that is specific to an industry, as promulgated by rule by the department of commerce, in consultation with the department of revenue.
560.28 History
History: 2003 a. 99.
CERTIFIED CAPITAL COMPANIES
Subch. II of ch. 560 Cross-reference
Cross Reference: See also s.
Comm 111.01, Wis. adm. code.
560.30
560.30
Definitions. In this subchapter:
560.30(1)
(1) "Affiliate" means, with respect to a certified capital company or a certified investor, any of the following:
560.30(1)(a)
(a) A person who, directly or indirectly, owns, controls, or holds power to vote, 10% or more of the outstanding voting securities or other voting ownership interests of the certified capital company or certified investor.
560.30(1)(b)
(b) A person, 10% of whose outstanding voting securities or other voting ownership interests are directly or indirectly owned, controlled or held with power to vote by the certified capital company or certified investor.
560.30(1)(c)
(c) A person directly or indirectly controlling, controlled by, or under common control with, the certified capital company or certified investor.
560.30(1)(d)
(d) A partnership in which the certified capital company or certified investor is a general partner.
560.30(1)(e)
(e) A person who is an officer, director or agent of the certified capital company or certified investor, or is an immediate family member of such an officer, director or agent.
560.30(2)
(2) "Certified capital company" means a person that has been certified by the department under
s. 560.31 and that has not been decertified under
s. 560.37 (3) or
(3m).
560.30(3)
(3) "Certified capital company tax credit" means the tax credit under
s. 76.635.
560.30(4)
(4) "Certified capital investment" means an investment in a certified capital company that is certified under
s. 560.32 (2) and that fully funds either the investor's equity interest in a certified capital company, a qualified debt instrument that a certified capital company issues, or both.
560.30(5)
(5) "Certified investor" means a person who makes a certified capital investment.
560.30(6)
(6) "Investment date" means, with respect to each investment pool, the date on which the last certified capital that is part of that investment pool was invested in the certified capital company.
560.30(7)
(7) "Investment pool" means the aggregate of all investments of certified capital in a certified capital company that are made as part of the same transaction, except that investments received more than 30 days apart may not be considered part of the same investment pool.
560.30(8)
(8) "Qualified business" means a business which is a qualified business under
s. 560.33.
560.30(9)
(9) "Qualified debt instrument" means a debt instrument that a certified capital company issues at par value or at a premium; that has an original maturity date of at least 5 years from the date on which it was issued; that has a repayment schedule that is no faster than a level principal amortization and, until the certified capital company may make distributions other than qualified distributions, the interest, distribution or payment features of which are not related to the certified capital company's profitability or the performance of its investment portfolio.
560.30(10)
(10) "Qualified distribution" means a distribution or payment by a certified capital company to its equity holders for any of the following:
560.30(10)(a)
(a) The costs of forming, syndicating, managing or operating the certified capital company.
560.30(10)(b)
(b) An annual management fee that does not exceed 2.5% of the certified capital company's total certified capital.
560.30(10)(c)
(c) Reasonable and necessary fees paid for professional services related to the operation of the certified capital company.
560.30(10)(d)
(d) A projected increase in federal or state taxes, including penalties and interest on those taxes, of the equity owners of the certified capital company if those amounts are related to the certified capital company's ownership, management or operation.
560.30(11)
(11) "Qualified investment" means an investment in a qualified business by a certified capital company that meets the requirements under
s. 560.34 (1).
560.30 History
History: 1997 a. 215.
560.31
560.31
Certification of certified capital companies. 560.31(1)(1)
Application. The department shall promulgate rules establishing procedures under which a person may apply to become a certified capital company. The department shall grant or deny an application for certification under this section within 30 days of the date of application. If the department denies certification, the department shall include with the denial a detailed description of the grounds for the refusal, including suggestions for removal of those grounds.
560.31(2)
(2) Requirements for certification. The department shall certify a person as a certified capital company if the department determines that all of the following conditions have been met:
560.31(2)(a)
(a) The person is a partnership, corporation, trust or limited liability company, whether organized for profit or not for profit, that has as its primary business activity the investment of cash in qualified businesses.
560.31(2)(b)
(b) The person has a net worth, at the time of application, of at least $500,000 and has at least $500,000 in cash, cash equivalents and marketable securities.
560.31(2)(c)
(c) The directors, officers, general partners, trustees, managers or members or persons having a similar function are familiar with the requirements of this subchapter.
