234.75 Public affairs network loan guarantee program.

(1) Definition. In this section, “public affairs network" means a nonprofit corporation organized under the laws of this state that has as its primary purpose the broadcast of proceedings of the legislature, including legislative committee meetings, and the reporting of events and activities related to politics in this state, through television, radio, the Internet, or similar communications media.

(2) Guarantee requirements. The authority may use money from the Wisconsin development reserve fund to guarantee the unpaid principal of a loan under sub. (5) if all of the following apply:

(a) The borrower applies for a loan guarantee on a form provided by the authority.

(b) The loan is eligible for a guarantee under sub. (3), and any applicable requirements under sub. (5) are met.

(c) The lender is the authority or a financial institution that enters into an agreement under s. 234.93 (2) (a).

(3) Eligible loans. A loan is eligible for guarantee of collection under sub. (5) from the Wisconsin development reserve fund if all of the following apply:

(a) The loan principal equals $5,000,000 or less.

(b) The authority determines that the borrower is a public affairs network.

(c) The borrower certifies that loan proceeds will be used for the borrower's operating expenses or expenses related to a capital project.

(d) The borrower certifies that loan proceeds will not be used to refinance existing debt or for entertainment expenses.

(e) The loan term is not less that 13 years, and the borrower is not required to pay any principal or interest on the loan within the first 3 years after the loan is made.

(f) The terms of the loan authorize the lender to obtain a security interest in the real or personal property of the borrower to secure repayment of the loan.

(4) Authority loan. The authority may make a loan to a public affairs network if the loan meets the eligibility requirements under sub. (3), except that the total principal amount of all loans that the authority makes under this subsection may not exceed $5,000,000. Recognizing its moral obligation to do so, the legislature expresses its expectation and aspiration that, if ever called upon to do so, it shall make an appropriation to make the authority whole for defaults on loans issued under this subsection.

(5) Guarantee of repayment.

(a) Subject to par. (b), the authority may guarantee collection of all or part of the unpaid principal of a loan eligible for guarantee under sub. (3). If the authority guarantees all or part of a loan under this subsection, the authority shall establish the amount of the unpaid principal of an eligible loan that will be guaranteed using the procedures described in the guarantee agreement under s. 234.93 (2) (a).

(b) A loan guarantee under this subsection is subject to all of the following:

1. The total principal amount of all loans guaranteed under this subsection may not exceed $5,000,000.

2. Before the authority guarantees a loan under this subsection, the authority shall demonstrate to the satisfaction of the secretary of administration that there are sufficient moneys in the Wisconsin development reserve fund to guarantee the loan, or that there are sufficient moneys in the housing rehabilitation loan program administration fund that may be transferred under par. (c) to guarantee the loan.

(c) Notwithstanding s. 234.51 (2), the authority may transfer moneys from the housing rehabilitation loan program administration fund to the Wisconsin development reserve fund for a loan guarantee under this subsection if all of the following conditions are met:

1. The authority determines that the transfer is necessary to secure the loan guarantee.

2. The transfer of moneys does not exceed $5,000,000.

3. Within 14 days after the transfer, the authority submits a report to the joint committee on finance that includes the amount of the transfer and a description of the circumstances surrounding the transfer.

History: 2011 a. 32; 2013 a. 173 s. 33.