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.

AB270,32,25 (L) The participating lender agrees to the percentage of guarantee established for the loan by the authority.

AB270,33,10 (m) If the eligible business that is financed by the loan is owned by an individual, or if the eligible project that is financed by the loan is for a plant, equipment, property, or facilities owned by an individual, the individual's name does not appear, and if the person is a corporation, no shareholder's name appears, and, if the person is a partnership, no partner's name appears, on the statewide support lien docket under s. 49.854 (2) (b) or, if the name of the individual, a shareholder, or a partner appears on that docket, the individual, shareholder, or partner provides to the authority a payment agreement that has been approved by the county child support agency under s. 59.53 (5) and that is consistent with rules promulgated under s. 49.858 (2) (a).

AB270,33,13 (3) Extension. A participating lender may extend the term of a guaranteed loan until no later than June 30 of the calendar year following the calendar year in which the participating lender granted the loan.

AB270,33,15 (4) Refinancing. (a) Except as provided in par. (b), proceeds of a guaranteed loan may be used to refinance a guaranteed loan no more than one time.

AB270,33,18 (b) The proceeds of a guaranteed loan may be used to refinance a guaranteed loan that has been refinanced one time if at least 60 percent of the principal amount of the refinanced guaranteed loan has been repaid.

AB270,33,24 (5) Guarantee. The authority may guarantee repayment of no more than 90 percent of the principal of a guaranteed loan. The authority shall establish the percentage of the unpaid principal of a guaranteed loan that will be guaranteed, using the procedures described in the guarantee agreement under s. 235.16 (2) (a). The authority may establish a single percentage for all guaranteed loans or establish different percentages for guaranteed loans on an individual basis.

AB270,34,6 (6) Origination fees. The authority shall charge a guarantee origination fee on every guaranteed loan. The amount of the fee shall be a percentage, determined by the authority, of each loan's guaranteed principal. The participating lender shall collect the fee and remit it to the authority. The authority shall deposit all fees received under this subsection in the Wisconsin clean and renewable energy reserve fund to be used to guarantee loans under this section.

AB270,34,11 235.16 Wisconsin clean and renewable energy reserve fund. (1) Establishment of fund. There is established under the jurisdiction and control of the authority, for the purpose of providing funds for guaranteeing loans under programs established under sub. (2) (a), a Wisconsin clean and renewable energy reserve fund, consisting of all of the following: