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Legislature's budget committee restores WEDC capital lending program

Wednesday, May 10, 2017   (0 Comments)
Posted by: Michael Welsh
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WEDA Legislative Update                                               May 9, 2017                                                                                                            

 Legislature's budget committee restores WEDC capital lending program

The Legislature's budget-writing committee - the Joint Finance Committee (JFC) - took action today to reestablish WEDC’s capital lending program to provide needed capital to new and expanding businesses in Wisconsin. Restoration of the lending program is a top state budget priority for WEDA and was an issue WEDA members discussed with state lawmakers at the Association's 2017 Legislative Day on March 29.

Under current law, WEDC’s existing capital lending authority is schedule to be phased out at the end of the state's current fiscal year (June 30, 2017). The budget proposal approved today by the Finance Committee not only restores WEDC’s lending authority, but eliminates the provision included in the initial budget proposal that would have required new WEDC loans to be funded solely with repayments from exiting loans. The JFC did retain the governor’s proposal restricting the agency from issuing forgivable loans.

Via a 
WEDA press release, WEDA President Ed White issued the following quote on JFC's action:

  • “On behalf of the Wisconsin Economic Development Association, I would like to express our gratitude to the Joint Finance Committee for retaining Governor Walker’s proposal to restore WEDC’s capital lending authority,” said WEDA President Ed White. “The program is a key component of WEDC’s economic development toolbox and provides a critical financing option for growing businesses.”  

The Joint Finance Committee also voted today to approve Gov. Walker's budget proposal to restore WEDC's base funding, which was cut in the current 2015-17 budget cycle.

The Committee plans to take-up another WEDA budget priority relating to the
Historic Tax Credit later in the budget process. The Finance Committee is charged with reshaping Gov. Scott Walker's proposed $76 billion state budget bill before sending it to the full Legislature for final consideration - most likely next month.

If you have any questions on today's budget action by the Joint Finance Committee, please contact WEDA at
mwelsh@weda.org.


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