SB 800

This bill establishes a loan program for small business grocery stores located

in, or proposing to be located in, low-income areas with low access to supermarkets

and grocery stores. The loans are available to small business grocery stores located

in food desert zones, as designated by the Wisconsin Housing and Economic

Development Authority in accord with the federal Department of Agriculture's Food

Desert Research Atlas. The program requires WHEDA to provide loans between

$5,000 and $50,000 to eligible applicants and for the loans to be repaid in no more

than four years. The interest rate for a loan under the program corresponds to the

state and local bond rate reported by the Federal Reserve Board, plus a 1 percent

origination fee. Under the bill, WHEDA may not concurrently provide more than one

loan to the same small business grocery store.

To qualify for a loan under the program, the owner of the small business grocery

store must have two years of business ownership or business management

experience. The owner may substitute 16 credit hours of postsecondary course work

or a bachelor's degree for one year of business experience. WHEDA must also

evaluate the store's ability to repay the loan within the loan period and may base this

evaluation on the applicant's credit score, repayment history, educational

attainment, and the availability of collateral to secure the loan. An applicant may

not be denied a loan solely due to having no or limited credit history or a low credit

score due to circumstances beyond the applicant's control.