234.626(2)
(2) The authority may create a system of funds and accounts, separate and distinct from all other funds and accounts of the authority, consisting of moneys received from notes and bonds, all revenues received in the repayment of loans made under ss.
234.621 to
234.626, except as provided in sub.
(2m), and any other revenues dedicated to it by the authority. The authority may pledge moneys and revenues received or to be received by this system of funds and accounts to secure bonds or notes issued for the program. The authority shall have all other powers necessary and convenient to distribute the proceeds of the bonds, notes and loan repayments in accordance with its powers under this chapter.
234.626(2m)
(2m) Revenues received in the repayment of loans made under s.
234.165 shall be paid into the fund under s.
234.165.
234.626(3)
(3) The authority may enter into agreements with the federal government, its agencies, agencies or political subdivisions of this state or private individuals or entities to insure or in other manner provide additional security for the loans or bonds or notes issued under this section.
234.626(4)
(4) The authority may adopt rules that restrict eligibility in addition to the requirements of s.
234.623 or require the provision of additional security if, in the executive director's judgment, the rules or security are required for the satisfactory issuance of bonds or notes.
234.626(5)
(5) Bonds or notes issued for loans under this section shall not exceed $10,000,000 in principal amount, excluding obligations issued to refund outstanding bonds or notes.
234.626(6)
(6) Unless otherwise expressly provided in resolutions authorizing the issuance of bonds or notes or in other agreements with the holders of bonds or notes, each bond or note issued shall be on a parity with every other bond or note issued for the funding of loans under ss.
234.621 to
234.626.
234.626(7)
(7) Recognizing its moral obligation to do so, the legislature expresses its expectation and aspiration that, if ever called to do so, it shall make an appropriation to make the authority whole for defaults on loans issued under ss.
234.621 to
234.626.
234.626 History
History: 1981 c. 20;
1983 a. 36 s.
96 (3);
1985 a. 29;
1991 a. 269 ss.
510ui to
510up; Stats. 1991 s. 16.997;
1993 a. 16 ss.
130z,
3051p; Stats. 1993 s. 234.626;
1993 a. 490.
234.65
234.65
Economic development. 234.65(1)(a)
(a) The authority may issue its negotiable bonds and notes to finance its economic development activities authorized or required under this chapter, including financing economic development loans.
234.65(1)(c)1.1. The authority may issue not more than $150,000,000 in aggregate principal amount of bonds and notes under this section, excluding bonds and notes issued to refund outstanding bonds or notes issued under this section, in each of the 3 consecutive fiscal years beginning after April 20, 2012, and, except as provided in subd.
2., may not issue bonds and notes under this section after the last day of the 3rd fiscal year that begins after April 20, 2012.
234.65(1)(c)2.
2. If, before July 1, 2018, and before every 4th July 1 thereafter, the authority determines that a continuation of the program under this section will promote significant economic development in this state, the authority may seek approval from the joint committee on finance to issue additional bonds and notes under this section by submitting to the committee a written request that specifies an aggregate principal amount of requested issuance authority and states the reasons supporting the authority's determination that the issuance of additional bonds and notes will promote significant economic development in this state. The written request may be made up to 60 days in advance of the applicable July 1. If, within 14 working days after the date of that written request, the cochairpersons of the committee do not notify the authority that the committee has scheduled a meeting to review the authority's proposal to issue additional bonds and notes under this section, the authority may proceed to issue bonds and notes under this section as proposed in the authority's written request, excluding bonds and notes issued to refund outstanding bonds or notes issued under this section. If, within 14 working days after the date of that written request, the cochairpersons of the committee notify the authority that the committee has scheduled a meeting to review the authority's proposal to issue additional bonds and notes under this section, the authority may issue bonds and notes under this section only upon approval of the committee.
234.65(1)(d)
(d) Section
234.15 does not apply to bonds or notes issued under this section, and any bond or note issued under this section shall contain on its face a statement to that effect.
234.65(1)(dm)
(dm) The authority has no moral or legal obligation or liability to any borrower under this section except as expressly provided by written contract.
234.65(1)(g)
(g) In granting loans under this section the authority shall give preference to businesses which are more than 50 percent owned or controlled by women or minorities, to businesses that, together with all of their affiliates, subsidiaries and parent companies, have current gross annual sales of $5,000,000 or less or that employ 250 or fewer persons and to new businesses that have less than 50 percent of their ownership held or controlled by another business and have their principal business operations in this state.
234.65(1m)
(1m) The authority shall adopt procedures to implement sub.
(3).
234.65(2)(a)(a) The authority may finance an economic development loan only after considering all of the following:
234.65(2)(a)1.
1. The extent to which an economic development project will maintain or increase employment in this state.
234.65(2)(a)3.
3. Whether an economic development project will be located in an area of high unemployment or low average income.
234.65(2)(a)4.
4. The number of financial institutions participating in the economic development project.
234.65(2)(a)5.
5. The extent to which the activities constituting the economic development project otherwise would not occur.
234.65(2)(b)
(b) Paragraph
(a) does not apply to an economic development loan to finance an economic development project described under s.
234.01 (4n) (c).
234.65(3)
(3) The authority may finance an economic development loan only if all of the following conditions are met:
234.65(3)(am)
(am) The authority has estimated whether the project that the authority would finance under the loan is expected to eliminate, create, or maintain jobs on the project site and elsewhere in this state and the net number of jobs expected to be eliminated, created, or maintained as a result of the project.
234.65(3)(bm)
(bm) One or more other financial institutions participate in the economic development project.
234.65(3)(c)
(c) The economic development project is or will be located in this state.
234.65(3)(dg)
(dg) The authority shall not assume unsecured or uncollateralized risk for any economic development loan.
234.65(3)(e)
(e) The economic development loan will not be used to refinance existing debt, unless it is in conjunction with an expansion of the business or job creation. This paragraph does not apply to an economic development loan to finance an economic development project described under s.
234.01 (4n) (c).
234.65(3)(f)
(f) The name of the person receiving the loan does not appear on the statewide support lien docket under s.
49.854 (2) (b) or, if the person's name appears on that docket, the person 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).
234.65(3g)(a)(a) Nothing in sub.
(3) (am) may be considered to require a business signing a loan contract to satisfy an estimate under sub.
(3) (am).
234.65(3g)(b)
(b) Paragraph
(a) and sub.
(3) (am) do not apply to a person engaged in the business of operating a railroad or to an economic development loan to finance an economic development project described under s.
234.01 (4n) (c).
234.65(3m)
(3m) An economic development loan may not be made unless the authority complies with sub.
(1m) and certifies that each loan complies with sub.
(3).
234.65(3r)
(3r) Any economic development loan that a business receives from the authority under this section to finance a project shall require the business to submit to the authority within 12 months after the project is completed or 2 years after a loan is issued to finance the project, whichever is sooner the net number of jobs eliminated, created, or maintained on the project site and elsewhere in this state as a result of the project. This subsection does not apply to an economic development loan to finance an economic development project described under s.
234.01 (4n) (c).
234.65(4)
(4) In respect to the loans issued under this section, the authority shall submit to the governor, the joint committee on finance and the chief clerk of each house of the legislature, for distribution to the appropriate standing committees under s.
13.172 (3), within 6 months after the close of its fiscal year an annual report including all of the following for the fiscal year:
234.65(4)(a)
(a) A statement of the authority's operations, accomplishments, goals and objectives.
234.65(4)(b)
(b) A financial statement showing income and expenses, assets and liabilities and a schedule of its bonds and notes outstanding and the amounts redeemed and issued.
234.65(4)(c)
(c) The effects of lending under this section in the following areas:
234.65(4)(c)2.
2. Locating economic development projects in areas of high unemployment or low average income.
234.65(4)(c)3.
3. Obtaining the participation of a large number of financial institutions in the lending.
234.65(4)(c)4.
4. The geographical distribution of lending in this state.
234.65 History
History: 1983 a. 83,
192;
1985 a. 29 s.
3202 (28);
1985 a. 299,
334;
1987 a. 27,
186;
1989 a. 31,
78,
281;
1991 a. 37;
1993 a. 112,
243,
437;
1995 a. 27 s.
9116 (5);
1995 a. 56,
404;
1997 a. 27;
1999 a. 9,
85;
2001 a. 16;
2005 a. 75;
2007 a. 125;
2011 a. 32,
214;
2017 a. 277.
234.65 Note
NOTE:
This section was created by
1983 Wisconsin Act 83. Section 1 of that act is entitled “Legislative Declaration."
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 percent, 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.
234.75
234.75
Public affairs network loan guarantee program. 234.75(1)(1)
Definition. In this section, “public affairs network" means a nonprofit corporation organized under the laws of this state that has as its primary purpose the broadcast of proceedings of the legislature, including legislative committee meetings, and the reporting of events and activities related to politics in this state, through television, radio, the Internet, or similar communications media.
234.75(2)
(2) Guarantee requirements. The authority may use money from the Wisconsin development reserve fund to guarantee the unpaid principal of a loan under sub.
(5) if all of the following apply:
234.75(2)(a)
(a) The borrower applies for a loan guarantee on a form provided by the authority.
234.75(2)(b)
(b) The loan is eligible for a guarantee under sub.
(3), and any applicable requirements under sub.
(5) are met.
234.75(3)
(3) Eligible loans. A loan is eligible for guarantee of collection under sub.
(5) from the Wisconsin development reserve fund if all of the following apply:
234.75(3)(a)
(a) The loan principal equals $5,000,000 or less.
234.75(3)(b)
(b) The authority determines that the borrower is a public affairs network.
234.75(3)(c)
(c) The borrower certifies that loan proceeds will be used for the borrower's operating expenses or expenses related to a capital project.
234.75(3)(d)
(d) The borrower certifies that loan proceeds will not be used to refinance existing debt or for entertainment expenses.
234.75(3)(e)
(e) The loan term is not less that 13 years, and the borrower is not required to pay any principal or interest on the loan within the first 3 years after the loan is made.
234.75(3)(f)
(f) The terms of the loan authorize the lender to obtain a security interest in the real or personal property of the borrower to secure repayment of the loan.
234.75(4)
(4) Authority loan. The authority may make a loan to a public affairs network if the loan meets the eligibility requirements under sub.
(3), except that the total principal amount of all loans that the authority makes under this subsection may not exceed $5,000,000. Recognizing its moral obligation to do so, the legislature expresses its expectation and aspiration that, if ever called upon to do so, it shall make an appropriation to make the authority whole for defaults on loans issued under this subsection.
