AB532,2,1111 1. The borrower qualifies as an eligible borrower under sub. (3).
AB532,2,1212 2. The loan qualifies as an eligible loan under sub. (4).
AB532,2,1313 3. The lender enters into an agreement under s. 234.93 (2) (a).
AB532,2,1614 (b) The authority shall give priority to an eligible borrower seeking guarantee
15of an eligible loan under this section if the project proposed by the borrower is located
16within either of the following:
AB532,2,1717 1. A business area selected for revitalization under s. 238.127.
AB532,3,1
12. A business improvement district created under s. 66.1109.
AB532,3,3 2(3) Eligible borrower. Any of the following qualifies as an eligible borrower
3if unable to obtain adequate business financing on reasonable terms:
AB532,3,54 (a) A small business owner or person proposing to acquire a small business to
5which all of the following apply:
AB532,3,76 1. The owner of the business or the person proposing to acquire the business
7is or will be actively engaged in the business.
AB532,3,108 2. The project proposed by the owner of the business or the person proposing
9to acquire the business is an eligible project under sub. (4) (a) that involves
10expanding the size or scope of the business.
AB532,3,1811 3. The name of any individual who owns or controls any portion of the business
12or of any individual proposing to acquire the business does not appear on the
13statewide support lien docket under s. 49.854 (2) (b) or, if the name of the owner of
14the business or of the person proposing to acquire the business appears on that
15docket, the owner of the business or the person proposing to acquire the business
16provides to the authority a payment agreement that has been approved by the county
17child support agency under s. 59.53 (5) and that is consistent with rules promulgated
18under s. 49.858 (2) (a).
AB532,3,1919 (b) A developer to which all of the following apply:
AB532,3,2320 1. The project proposed by the developer is an eligible project under sub. (4) (a)
21that involves developing or rehabilitating commercial real estate, including
22mixed-use properties, where a business occupies a portion of the commercial real
23estate.
AB532,4,3
12. The developer is actively engaged in the project described in subd. 1. This
2subdivision does not require the developer to locate its business in the commercial
3real estate described in subd. 1.
AB532,4,94 3. The name of any individual who owns or controls any portion of the developer
5does not appear on the statewide support lien docket under s. 49.854 (2) (b) or, if the
6name of the developer appears on that docket, the developer provides to the authority
7a payment agreement that has been approved by the county child support agency
8under s. 59.53 (5) and that is consistent with rules promulgated under s. 49.858 (2)
9(a).
AB532,4,11 10(4) Eligible loans. A loan is eligible for guarantee of collection from the
11Wisconsin development reserve fund under s. 234.93 if all of the following apply:
AB532,4,1312 (a) The borrower uses the loan proceeds for direct or related expenses
13associated with any of the following eligible projects:
AB532,4,1514 1. The purchase or improvement of real property, including mixed-use
15property, by an eligible borrower under sub. (3).
AB532,4,1816 2. The expansion or acquisition of a small business, including the purchase or
17improvement of land, buildings, machinery, equipment, or inventory, by an eligible
18borrower under sub. (3) (a).
AB532,4,2019 3. The funding of leasehold improvements by an eligible borrower under sub.
20(3) (a).
AB532,4,2221 4. The funding of permanent or revolving working capital by an eligible
22borrower under sub. (3) (a).
AB532,4,2423 5. The financing of soft costs not to exceed 5 percent of eligible project costs by
24an eligible borrower under sub. (3).
AB532,5,4
1(b) The interest rate on the loan, including any origination fees or other
2charges, is approved by the authority and the interest rate on the loan does not
3exceed the prime lending rate at the time the rate is set, as reported by the federal
4reserve board in federal reserve statistical release H. 15, plus 2.75 percent.
AB532,5,75 (c) The lender secures the loan by the assets being financed and believes that
6it is reasonably likely that the borrower will be able to repay the loan in full with
7interest.
AB532,5,98 (d) The lender agrees to the percentage of guarantee established for the loan
9by the authority.
AB532,5,1110 (e) The authority believes that the eligible project will have a positive impact
11on the creation or retention of jobs in this state.
AB532,5,1712 (f) The borrower does not use loan proceeds to refinance existing debt or for
13entertainment expenses, expenses related to the production of an agricultural
14commodity, as defined in s. 94.67 (2), or expenses related to a community-based
15residential facility, except that the borrower may use loan proceeds to refinance
16existing debt if the borrower is an eligible borrower under sub. (3) (a) and if the
17borrower also expands an existing business.
AB532,6,2 18(5) Guarantee of repayment. (a) The authority may guarantee repayment of
19a portion of the principal of any loan eligible for a guarantee under sub. (2). Subject
20to pars. (b) and (c), the authority shall establish the portion of the principal of an
21eligible loan that will be guaranteed, using the procedures described in the
22agreement under s. 234.93 (2) (a). The authority may establish a single portion for
23all guaranteed loans that do not exceed $250,000 and a single portion for all
24guaranteed loans that exceed $250,000 or establish on an individual basis different

1portions for eligible loans that do not exceed $250,000 and different portions for
2eligible loans that exceed $250,000.
AB532,6,73 (b) For an eligible project under sub. (4) (a) that involves the acquisition of fixed
4assets or inventory or permanent working capital, the portion of the principal of a
5loan eligible for a guarantee under sub. (2) may not exceed 75 percent of the principal
6of the loan or $750,000, whichever is less. The guarantee under this paragraph may
7not extend 5 years beyond the date on which the lender disburses the loan.
AB532,6,128 (c) For an eligible project under sub. (4) (a) that involves revolving working
9capital, the portion of the principal of a loan eligible for a guarantee under sub. (2)
10may not exceed 75 percent of the principal of the loan or $200,000, whichever is less.
11The guarantee under this paragraph may not extend 2 years beyond the date on
12which the lender disburses the loan.
AB532,6,1313 (End)
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