November 21, 2011

 

             

Senator Leibham Small Business
Job Bill Signed into Law

Measure will help more small businesses access capital

SHEBOYGAN…Governor Scott Walker today signed a bill into law that was authored by State Senator Joe Leibham (R-Sheboygan) that will allow more small businesses from across the state to be eligible to participate in the Small Business Loan Guarantee program that is administered by the Wisconsin Housing and Economic Development Authority (WHEDA).  The bill was co-sponsored by Representatives Petryk, Bernier and Larson.

The measure, formally known as Special Session (SS) Senate Bill (SB) 2, will make the following four changes to the Small Business Loan Guarantee program:

  • Increases the amount of a loan that may be guaranteed under the program from $200,000 or 80% of the principal of the loan to $750,000 or 80% of the principal.
  • Expands the definition of a “small business” under the program from one that employs up to 50 full time employees to on that employs up to 250 full time employees. 
  • Removes the requirement that the owner of a business involved in the program be actively involved in said small business.
    • Background: The program services a number of family businesses.  Under current law, if a grandparent has the title to the business but is retired and the grandson operates the business, it would not be eligible.
  • Allows the program to be used by all start up small businesses in vacant downtown storefronts instead of just rural downtown storefronts.

Senator Leibham authored the bill as a part of Governor Walker’s Special Session on Jobs.  “Small businesses are the foundation of our state’s economy and many want to expand and create jobs but are unable to do so because of lending restrictions recently adopted by our federal government.  This bill will allow more small businesses to access necessary capital so they can grow and create jobs,” Senator Leibham said.  “We add greater flexibility to an already successful and creditable program.  The WHEDA program, which has been in place since 1991, does not rely on state dollars and has a loan repayment rate of almost 99%.”

Senator Leibham said the proposal received strong bipartisan support in both houses of the legislature.

For more information on the bill please click on the following links: 

WHEDA Small Business Loan Guarantee program - http://www.wheda.com/root/BusinessPartners/SmallBusinessLenders/Dynamic.aspx?id=688

SS SB 2 - https://docs.legis.wisconsin.gov/2011/proposals/se1/sb2