560.275(3)(a)3. 3. The level of need demonstrated by the applicant.
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)1. 1. The viability of the applicant's business.
560.275(3)(b)2. 2. The likelihood that the applicant will successfully commercialize technology.
560.275(3)(b)3. 3. The applicant's management plan and management team.
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) (a) The applicant:
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(5)(f) (f) All grant moneys will be spent 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) (7)Administration.
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(9) (9)Distressed Areas. The department shall award not less than 35 percent of the total amount of grants and loans made under this section to businesses in distressed areas, as defined in s. 560.605 (7) (b).
560.275 History History: 2003 a. 255; 2005 a. 25, 97.
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.
560.285 560.285 Manufactured housing rehabilitation and recycling.
560.285(1)(1)Definition. In this section, "manufactured home" has the meaning given in s. 101.91 (2).
560.285(2) (2)Grant program.
560.285(2)(a)(a) The department may make grants under this section to provide financial assistance to persons engaged in the disposal of abandoned manufactured homes and to municipalities, for the purpose of supporting environmentally sound disposal practices.
560.285(2)(b) (b) The department may make grants under this section to provide financial assistance to individuals who reside in manufactured homes that are in need of critical repairs. An individual is eligible for a grant under this paragraph only if the individual is otherwise unable to finance the critical repairs.
560.285(3) (3)Administration. The department shall contract with one or more entities that are exempt from taxation under section 501 (a) of the Internal Revenue Code and that employ individuals with technical expertise concerning manufactured housing for the administration of the grant program under this section. The department shall promulgate rules to establish the grant program under this section. To the extent feasible, the department shall coordinate the program under this section with the state housing strategy plan under s. 560.9802.
560.285 History History: 2005 a. 45.
subch. II of ch. 560 SUBCHAPTER II
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.
560.31(2)(d) (d) At least 2 officers, directors, general partners, trustees, managers or members each have at least 2 years of experience in the venture capital industry.
560.31(2)(e) (e) The person has included, in any offering material involving the sale of securities, the statement required under s. 560.32 (1).
560.31(2)(f) (f) The person has paid a nonrefundable application fee of $7,500.
560.31 History History: 1997 a. 215.
560.32 560.32 Investments in certified capital companies.
560.32(1)(1)Required disclosures in securities offerings. Any offering material involving the sale of securities of a certified capital company shall include all of the following statements:
560.32(1)(a) (a) "By authorizing the formation of a certified capital company, the state does not necessarily endorse the quality of management or the potential for earnings of the company and is not liable for damages or losses to a certified investor in the company. Use of the word "certified" in an offering is not a recommendation or endorsement of the investment by the State of Wisconsin Department of Commerce."
560.32(1)(b) (b) "Investments in a prospective certified capital company prior to the time the company is certified are not eligible for a certified capital company investment credit under section 76.635 of the Wisconsin Statutes. Investments in a certified capital company are not eligible for a certified capital company investment credit under section 76.635 of the Wisconsin Statutes unless the proposed investment is certified under section 560.32 (2) of the Wisconsin Statutes before the investment is made. In the event that certain statutory provisions are violated, the state may require forfeiture of unused certified capital company investment credits and repayment of used certified capital company investment credits."
560.32(2) (2)Certification of certified capital investments.
560.32(2)(a)(a) A person may apply to make a certified capital investment in a certified capital company by providing notice under this paragraph to the department on a form specified by the department. The notice shall include the name of the person, the name of the certified capital company, the amount of the investment and any other information specified by the department. The notice shall also include an undertaking by the person to make the investment within 5 days after the department notifies the person that the investment has been certified.
560.32(2)(b) (b) The department may certify an investment under this subsection only if, after the certification, the department will not have certified a total of more than $50,000,000 in investments under this subsection.
560.32(2)(c) (c) Prior to August 1, 2000, the department may not certify an investment under this subsection if, after the certification, the investor, together with all affiliates of the investor, would have more than $10,000,000 in certified capital investments.
560.32(2)(d) (d) If, as a result of the limitations under par. (b) or (c), the department may not certify the full amount requested in applications for certified capital investments submitted under par. (a), the department shall allocate the amounts available for certification in order of priority based on the date on which the application was filed. If the amounts available for certification are insufficient to certify the full amount of all applications for certified capital investments that are submitted on the same day, the department shall prorate the available amount on the basis of the amount that the investor has committed to invest in the certified capital company under par. (a).
560.32(3) (3)Limitation on certified investor investment. A certified investor may not, individually, or with or through one or more affiliates, own 10% or more of the equity securities in, be a general partner or manager of, or otherwise control the investments of the certified capital company. This subsection does not preclude a certified investor from exercising its legal rights and remedies, including interim management of a certified capital company, in the event that a certified capital company is in default of its statutory or contractual obligations to the certified investor.
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This is an archival version of the Wis. Stats. database for 2005. See Are the Statutes on this Website Official?