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234.75(5)(b)2. 2. Before the authority guarantees a loan under this subsection, the authority shall demonstrate to the satisfaction of the secretary of administration that there are sufficient moneys in the Wisconsin development reserve fund to guarantee the loan, or that there are sufficient moneys in the housing rehabilitation loan program administration fund that may be transferred under par. (c) to guarantee the loan.
234.75(5)(c) (c) Notwithstanding s. 234.51 (2), the authority may transfer moneys from the housing rehabilitation loan program administration fund to the Wisconsin development reserve fund for a loan guarantee under this subsection if all of the following conditions are met:
234.75(5)(c)1. 1. The authority determines that the transfer is necessary to secure the loan guarantee.
234.75(5)(c)2. 2. The transfer of moneys does not exceed $5,000,000.
234.75(5)(c)3. 3. Within 14 days after the transfer, the authority submits a report to the joint committee on finance that includes the amount of the transfer and a description of the circumstances surrounding the transfer.
234.75 History History: 2011 a. 32; 2013 a. 173 s. 33.
234.83 234.83 Small business development loan guarantee program.
234.83(1c)(1c) Definition. In this section, "small business" means a business, as defined in s. 84.185 (1) (a), that employs 250 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(1m)(b) (b) The loan qualifies as an eligible loan under sub. (3).
234.83(1m)(c) (c) The lender enters into an agreement under s. 234.93 (2) (a).
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 small business, provided that the name of the owner of the small 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 small business appears on that docket, the owner of the small 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 child 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 city, town, or village in this state, 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, except that loan proceeds may be used to refinance existing debt if the borrower also expands an existing business.
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)(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 $750,000, 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 $937,500 and a single portion for all guaranteed loans that exceed $937,500 or establish on an individual basis different portions for eligible loans that do not exceed $937,500 and different portions for eligible loans that exceed $937,500.
234.84 234.84 Job training loan guarantee program.
234.84(1) (1) Definition. In this section, "corporation" means the Wisconsin Economic Development Corporation.
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(2)(b) (b) The loan qualifies as an eligible loan under sub. (3).
234.84(2)(c) (c) The lender is a financial institution that enters into an agreement under s. 234.932 (3) (a).
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 corporation.
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) (4)Guarantee of collection.
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 corporation 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 corporation 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) (5)Administration.
234.84(5)(a)(a) The program under this section shall be administered by the corporation with the cooperation of the authority. The corporation shall enter into a memorandum of understanding with the authority setting forth the respective responsibilities of the corporation 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 corporation by the authority for costs incurred by the corporation in the administration of the program.
234.84(5)(b) (b) The corporation 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; 2011 a. 32.
234.86 234.86 Drinking water loan guarantee program.
234.86(1)(1) Definitions. In this section:
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)(c) (c) "Local governmental unit" has the meaning given in s. 281.61 (1) (a), except that the term does not include a joint local water authority created under s. 66.0823.
234.86(1)(d) (d) "Noncommunity water system" means a public water system that is not a community water system.
234.86(1)(e) (e) "Public water system" has the meaning given in s. 281.61 (1) (c).
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:
234.86(2)(a) (a) The borrower is not a local governmental unit and is one of the following:
234.86(2)(a)1. 1. The owner of a community water system.
234.86(2)(a)2. 2. The owner of a noncommunity water system and is not operated for profit.
234.86(2)(b) (b) The loan qualifies as an eligible loan under sub. (3).
234.86(2)(c) (c) The lender is a financial institution that enters into an agreement under s. 234.933 (3) (a).
234.86(3) (3)Eligible loans. A loan is an eligible loan if all of the following apply:
234.86(3)(a) (a) The department determines that the loan will facilitate compliance with national primary drinking water regulations under 42 USC 300g-1 or otherwise significantly further the health protection objectives of the Safe Drinking Water Act, 42 USC 300f to 300j-26.
234.86(3)(b) (b) The department determines that the loan satisfies the requirements under s. 281.625 (2).
234.86(4) (4)Guarantee of collection.
234.86(4)(a)(a) Subject to par. (b), the authority may guarantee collection of a percentage, not exceeding 80%, of the principal of any loan eligible for a guarantee under this section. 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. 234.933 (3) (a). The authority may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.
234.86(4)(b) (b) Except as provided in s. 234.933 (4), the total outstanding principal amount of all guaranteed loans under par. (a) may not exceed $3,000,000.
234.86 History History: 1997 a. 27; 2013 a. 12.
234.88 234.88 Emergency heating assistance loan guarantees.
234.88(1)(1) Definitions. In this section:
234.88(1)(a) (a) "Emergency heating assistance loan" means a loan to an individual to finance extraordinary costs related to heating during a state of emergency declared by the governor under s. 323.10.
234.88(1)(b) (b) "Guaranteed loan" means an emergency heating assistance loan on which the authority guarantees collection under sub. (5).
234.88(1)(c) (c) "Participating lender" means a bank, production credit association, credit union, savings bank, savings and loan association, or other person who makes emergency heating assistance loans and who has entered into an agreement with the authority under s. 234.93 (2) (a).
234.88(2) (2)Eligible loans. An emergency heating assistance loan made by a participating lender is eligible for guarantee of collection under sub. (5) from the Wisconsin development reserve fund under s. 234.93 if all of the following apply:
234.88(2)(a) (a) The total of the principal amounts of all guaranteed loans extended to the individual under this section will not exceed $2,500, unless a different maximum amount is approved under sub. (5).
234.88(2)(b) (b) The rate of interest on the emergency heating assistance loan, including any origination fees or other charges relating to the emergency heating assistance loan, does not exceed a rate determined by the authority after considering the conditions of the financial market.
234.88(2)(c) (c) If the individual obtains the emergency heating assistance loan to pay a supplier, the participating lender pays the supplier directly.
234.88(2)(d) (d) The participating lender follows procedures required by the authority to secure repayment of the emergency heating assistance loan.
234.88(2)(e) (e) The initial term of the emergency heating assistance loan is not longer than 2 years.
234.88(2)(f) (f) In the judgment of the participating lender, the emergency heating assistance loan is necessary for the individual to pay heating costs related to the declared state of emergency.
234.88(2)(g) (g) The proceeds of the emergency heating assistance loan may not be used to refinance a loan made under this section.
234.88(3) (3)Eligible individuals. An individual is eligible for a guaranteed loan if all of the following apply:
234.88(3)(a) (a) The individual's household annual income does not exceed 200 percent of the median family income for the county in which the individual resides.
234.88(3)(b) (b) In the judgment of the participating lender, all of the following are true:
234.88(3)(b)1. 1. It is reasonably likely that the individual will be able to repay the emergency heating assistance loan in full with interest.
234.88(3)(b)2. 2. The individual is not eligible for conventional financing on reasonably equivalent terms and conditions.
234.88(3)(b)3. 3. Under normal market conditions affecting the cost of heating, the individual's income and assets would be sufficient for the individual to pay his or her heating costs.
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2011-12 Wisconsin Statutes updated though 2013 Wis. Act 200 and all Supreme Court Orders entered before April 18, 2014. Published and certified under s. 35.18. Changes effective after April 18, 2014 are designated by NOTES. (Published 4-18-14)