AB270,30,14 2. The loan does not exceed 80 percent of the appraised value of the collateral for the loan.

AB270,30,16 3. The term of the loan does not exceed 10 years or, for the acquisition of land or facilities, does not exceed 20 years.

AB270,30,18 (c) Maximum amount. The authority may not finance more than 50 percent or $25,000,000, whichever is less, of the principal of any loan under par. (a).

AB270,30,20 (4) Fees. The authority shall charge a fee for assistance provided under this section to cover the costs of administering this section, including legal fees.

AB270,30,23 (5) Guidelines and procedures. The authority shall adopt guidelines and establish procedures for administering this section, including guidelines or procedures related to all of the following:

AB270,30,25 (a) Application procedures for eligible borrowers and for lenders seeking to make loans in which the authority participates under this section.

AB270,31,2 (b) Approval requirements for lenders and additional eligibility requirements for eligible borrowers.

AB270,31,3 (c) The terms of participation agreements under sub. (2).

AB270,31,4 (d) Repayment and security interest requirements.

AB270,31,5 (e) Procedural requirements for the authority's participation in loans.

AB270,31,6 (f) Auditing, inspection, and reporting requirements.

AB270,31,7 (g) Any other relevant matters.

AB270,31,8 235.15 Loan guarantees. (1) Definitions. In this section:

AB270,31,10 (a) “Guaranteed loan" means a loan that is guaranteed by the authority under this section.

AB270,31,12 (b) “Participating lender" means a lender that has entered into a guarantee agreement with the authority under s. 235.16 (2) (a).

AB270,31,16 (2) Eligible loans. If the authority establishes a loan guarantee program under s. 235.16 (2) (a) with a participating lender, the authority may guarantee collection from the Wisconsin clean and renewable energy reserve fund for a loan to a borrower under the program if all of the following apply:

AB270,31,17 (a) The loan is for financing one of the following:

AB270,31,18 1. The capital, operating expenses, or both of an eligible business.

AB270,31,19 2. Any expenses of an eligible project.

AB270,31,22 (b) The total outstanding principal amounts of all loans to the borrower that are guaranteed under this section do not exceed an amount set annually by the authority that may not exceed $25,000,000.

AB270,31,25 (c) The rate of interest on the loan, including any origination fees or other charges relating to the loan, does not exceed a rate determined by the authority after considering the conditions of the financial market.

AB270,32,2 (d) The participating lender obtains a security interest in physical plant, equipment, machinery, or other assets.

AB270,32,5 (e) Unless waived by the authority, the borrower procures a business insurance policy that is approved by the authority and the proceeds of that policy are payable to the participating lender.

AB270,32,9 (f) Unless extended by the authority, the loan term does not extend beyond 10 years after the date that the participating lender disburses the loan or, if the loan is for the acquisition of land or facilities, the loan term does not extend beyond 20 years after the date that the participating lender disburses the loan.

AB270,32,12 (g) The proceeds of the loan are not applied to the outstanding balance of any other loan, except that, subject to sub. (4), the proceeds may be used to refinance a loan under this section.

AB270,32,15 (h) If the loan is for an eligible business, the loan results in a new eligible business, an expansion of an eligible business, or a new process, product, or service by an eligible business.

AB270,32,17 (i) If the loan is for an eligible project of a commercial entity, the loan results in the creation or expansion of business for the commercial entity.

AB270,32,20 (j) The borrower does not meet the participating lender's minimum standards of creditworthiness to receive the loan in the normal course of the participating lender's business.

AB270,32,23 (k) The participating lender considers the borrower's assets, cash flow, and managerial ability sufficient to preclude voluntary or involuntary liquidation for the loan term granted by the participating lender.