234.907(2)(c)(c) Subject to par. (cm), the total guarantee amount of all loans to the borrower that are guaranteed under this section will not exceed $750,000.

234.907(2)(cm)(cm) The total guarantee amount of all loans to the borrower that are guaranteed under this section and that are made for working capital or an item necessary to, or used to, commercially harvest whitefish from Lake Superior will not exceed $100,000. This paragraph does not apply to a loan guaranteed under sub. (4).

234.907(2)(d)(d) The borrower’s principal place of operations for processing or marketing a product from a raw agricultural commodity is located in a town, village or city in this state with a population of less than 50,000. This paragraph does not apply to a borrower that harvests whitefish from Lake Superior.

234.907(2)(e)(e) The participating lender obtains a security interest in physical plant, equipment, machinery or other assets.

234.907(2)(f)(f) The term of the authority’s guarantee under this section is not longer than 10 years for land and buildings, 5 years for inventory, equipment, and machinery, and 2 years for working capital and marketing expenses. This paragraph does not apply to a loan that is part of a loan workout agreement.

234.907(2)(h)(h) The loan results in new or more viable methods for the processing or marketing of a product from a raw agricultural commodity or enables the borrower to comply with the rules promulgated by the department of natural resources for the commercial fishing of whitefish in Lake Superior.

234.907(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.

234.907(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.

234.907(2)(k)(k) The participating lender agrees to the percentage of guarantee established for the loan by the authority.

234.907(2m)(2m) Origination fees. The authority may charge a guarantee origination fee on every loan guaranteed under this section. The amount of the fee may not exceed 1.5 percent of a loan’s guaranteed principal. The participating lender shall collect the fee and remit it to the authority. The authority shall deposit all fees received under this subsection in the Wisconsin development reserve fund.

234.907(3)(3) Guarantee of collection. The authority may guarantee collection of up to 90 percent of the disbursed 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.

234.907(4)(4) Alternative guarantee of collection pilot program.

234.907(4)(a)(a) Notwithstanding sub. (3), the authority shall implement a pilot program under which it may guarantee collection of 25 percent of the disbursed principal of any loan eligible for a guarantee under sub. (2) or $750,000, whichever is less.

234.907(4)(b)(b) In the event of default, the amount guaranteed under par. (a) shall be payable in full to the authorized lender regardless of the amount due after all available collateral securing the loan has been liquidated and applied to the loan, except that if that amount due is less than the amount guaranteed under par. (a), the amount due shall be payable to the authorized lender.

234.91(1)(1) Definitions. In this section:

234.91(1)(a)(a) “Agricultural assets” means machinery, equipment, facilities, land or livestock used in agriculture or aquaculture.

234.91(1)(b)(b) “Farm credit service” includes a production credit association, federal land credit association and agricultural credit association.

234.91(1)(c)(c) “Farmer” means a person engaged in, or who intends to engage in, farming, as defined in s. 102.04 (3).

234.91(1)(e)(e) “Participating lender” means a bank, farm credit service, credit union, savings bank, savings and loan association or other person who makes loans for the acquisition or improvement of agricultural assets and who has entered into an agreement with the authority under s. 234.93 (2) (a). The term does not include a seller under a land contract.

234.91(2)(2) Eligible loans. A 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:

234.91(2)(b)(b) The loan is made to finance the acquisition of agricultural assets or the cost of improvements to facilities or land. The agricultural assets must be acquired, and the improvements must be made, for agricultural or aquacultural purposes.

234.91(2)(c)(c) The total guarantee amount of all loans made to the borrower that are guaranteed under this section will not exceed $200,000, or $100,000 if any of the loans is affected by any other state or federal credit assistance program.