SB 515

This bill requires the Wisconsin Economic Development Corporation (WEDC)

to establish a regional revolving loan fund grant program. Under the program,

provided certain conditions are satisfied, WEDC is required to make grants to one

or more of the following regional economic development organizations for the

purpose of creating regional revolving loan funds:

1. Prosperity Southwest Wisconsin.

2. Madison Region Economic Partnership.

3. Milwaukee 7 Regional Economic Development Partnership.

4. The 7 Rivers Alliance.

5. Centergy, Inc.

6. New North, Inc.

7. Momentum West, Inc.

8. Grow North Regional Economic Development Corporation.

9. Visions Northwest Regional Economic Development Group.

Among the conditions each of those regional economic development

organizations must satisfy in order to qualify for a grant under the program is that

the organization at least matches the amount of the grant with moneys the

organization has raised from other sources. A regional economic development

organization must use the grant and all matching moneys only for the operation of

a regional revolving loan fund. WEDC is required to approve policies and procedures

for loans made from each regional revolving loan fund. The bill provides that a

regional economic development organization receiving a grant under the bill may not

compete with another regional economic development organization identified in the

bill to make a loan to a business or other organization whose principal place of

business is located in the region covered by that other regional economic

development organization. A loan made from the grant funds by a regional economic

development organization may be made only if the recipient of the loan has secured

a primary source of funding and the loan funds will be used for working capital,

purchasing equipment, building construction and improvement, land acquisition,

private infrastructure improvement, or asset acquisition.

WEDC may award up to $1,000,000 in grants per state fiscal biennium to each

regional economic development organization, for a total potential of $9,000,000 in

grants per state fiscal biennium. The bill further authorizes WEDC to expend up to

$1,000,000 per state fiscal biennium for training regional economic development

organizations not qualifying for a grant in the operation of a regional revolving loan

fund and for WEDC to directly operate a regional revolving loan fund itself.

The bill requires that a regional economic development organization receiving

a grant under the bill must submit any information required by WEDC to measure

the regional revolving loan fund's performance and compliance with the program, in

addition to an annual schedule of grant expenditures required under current law.