SB 564

Under current law, the Wisconsin Economic Development Corporation (WEDC)

administers various economic development programs in this state. This bill creates

a new grant program administered by WEDC. Under the bill, WEDC is required to

make grants that total at least $3,000,000 to certified seed incubator funds. WEDC

pays those grants from an existing appropriation for WEDC's economic development

programs.

WEDC may certify a person as a certified seed incubator fund if WEDC

determines that the person operates a business incubator program that provides

certain services to start-up businesses that are designed to encourage the growth of

those businesses, and the person demonstrates to WEDC's satisfaction that the

person owns cash or cash equivalents, or has obtained cash commitments from other

funding sources, sufficient to enable the person to invest at least $3,000,000 in

start-up businesses within five years after the person becomes a certified seed

incubator fund.

Under the bill, a certified seed incubator fund must agree to maintain its

headquarters in Wisconsin and at least 50 percent of its employees in Wisconsin. The

bill requires a certified seed incubator fund to invest 100 percent of the grant moneys

that it receives from WEDC in a business that the certified seed incubator fund itself

serves through its business incubator program. Also, the certified seed incubator

fund must at least match the amount of grant moneys it receives from WEDC with

an investment of capital in the business that the certified seed incubator fund has

raised from other sources.

Finally, the bill includes a requirement that a certified seed incubator fund that

receives a grant from WEDC under the bill submit an annual report to WEDC that

includes, for each business in which the certified seed incubator fund held an

investment of grant moneys from WEDC, a description of the business and a

description of the business's participation in the certified seed incubator fund's seed

incubator program. Likewise, WEDC is required to submit that information with its

annual report to the Joint Legislative Audit Committee and the legislature.