AB 532

This bill creates a Neighborhood Business Revitalization Loan Guarantee

Program (program) to be administered by the Wisconsin Housing and Economic

Development Authority (WHEDA). Under the program, WHEDA may guarantee

repayment of a certain portion of a loan made by a private lender to an eligible

borrower. The bill defines an eligible borrower as both of the following: 1) a small

business with its principal place of business in this state and an annual gross

revenue of less than $1,000,000 if the owner of the business or a person proposing

to acquire the business is or will be actively engaged in the business and if the project

proposed by the owner or prospective owner involves expanding the business

(eligible business borrower); or 2) a developer if the project proposed by the developer

involves developing or rehabilitating commercial real estate or mixed-use properties

and the developer is actively engaged in the project.

Proceeds of a loan guaranteed under the program may be used on an eligible

project, including any of the following: a) the purchase or improvement of real

property by an eligible borrower; b) the expansion or acquisition of a small business

by an eligible business borrower; c) the funding of leasehold improvements by an

eligible business borrower; and d) the funding of permanent or revolving working

capital by an eligible business borrower. An eligible business borrower may also

refinance existing debt if the borrower also expands an existing business. The bill

requires WHEDA to give priority to projects located in an area designated as a

business area under the State Main Street Program or in an area designated as a

business improvement district.

WHEDA may guarantee up to the lesser of $750,000 or 75 percent of the

principal of a loan if the proceeds of the loan are used on an eligible project that

involves the acquisition of fixed assets or inventory or permanent working capital,

and up to the lesser of $200,000 or 75 percent of the principal of a loan if the proceeds

of the loan are used on an eligible project that involves revolving working capital.