Date of enactment:
2023 Assembly Bill 388 Date of publication*:
2023 WISCONSIN ACT
AN ACT to create 238.145 of the statutes; relating to: creating a child care center renovations loan program.
The people of the state of Wisconsin, represented in
senate and assembly, do enact as follows:
SECTION 1. 238.145 of the statutes is created to read:
238.145 Child care center renovations revolving
loan fund and program. (1) DEFINITION. In this section,
“nonrelative children” means children who are not the
child care provider’s natural or adopted children, foster
children, stepchildren, grandchildren, brothers, sisters,
first cousins, nephews, nieces, uncles, or aunts.
(2) ESTABLISHMENT OF FUND. (a) The corporation
shall establish a child care center renovations revolving
loan fund, for the purpose of awarding loans under sub.
(5).
(b) All moneys appropriated to the corporation for
child care providers in the 2023−25 fiscal biennium shall
be credited to the fund.
(c) All moneys received as repayments of loans
awarded under sub. (5) shall be credited to the fund.
(3) ESTABLISHMENT OF CHILD CARE CENTER RENOVA-
TIONS REVOLVING LOAN PROGRAM. (a) The corporation
shall establish and administer a child care center renova-
tions revolving loan program for the purpose of awarding
loans to child care providers under sub. (5).
(b) The program established under this subsection
shall not be subject to the restrictions under s. 238.124
(2).
(4) ELIGIBILITY. A child care provider is eligible for
a loan under sub. (5) if all of the following conditions are
met:
(a) The child care provider is licensed under s. 48.65
or certified under s. 48.651 or demonstrates to the corpo-
ration that the child care provider will be licensed under
s. 48.65 or certified under s. 48.651 within one year after
receiving a loan under sub. (5).
(b) The child care provider submits to the corporation
a business plan and 3−year financial forecast that demon-
strates that the child care provider is capable of repaying
a loan under sub. (5), as determined by the corporation.
(5) LOAN REQUIREMENTS. (a) From the child care
center renovations revolving loan fund, the corporation
shall award loans to child care providers for renovations
of child care facilities.
(b) Of the loan funding awarded to child care
providers under this subsection, the corporation shall
award 60 percent to in−home child care providers and 40
percent to child care providers that are not in−home.
(c) No loan awarded under this subsection to an in−
home child care provider may exceed $30,000. No loan
awarded under this subsection to a child care provider
that is not in−home may exceed $95,000.
(d) The corporation shall charge no interest on a loan
awarded under this subsection.
* Section 991.11, WISCONSIN STATUTES: Effective date of acts. “Every act and every portion of an act enacted by the legislature over the governor’s
partial veto which does not expressly prescribe the time when it takes effect shall take effect on the day after its date of publication.” − 2 −2023 Wisconsin Act 2023 Assembly Bill 388
(dm) The corporation shall determine the repayment
terms of a loan awarded under this subsection and shall
secure the loan with collateral or a personal guaranty.
(e) 1. A child care provider who is licensed under s.
48.65 or certified under s. 48.651 at the time that the child
care provider receives a loan under this subsection shall,
within one year of receiving the loan, establish or main-
tain enrollment of nonrelative children in the child care
provider’s child care facility. If enrollment is not estab-
lished or maintained, the corporation shall terminate the
loan agreement and the child care provider shall immedi-
ately repay the outstanding balance of the loan.
2. A child care provider who is not licensed under s.
48.65 or certified under s. 48.651 at the time that the child
care provider receives a loan under this subsection shall,
within 2 years of receiving the loan, establish and main-
tain enrollment of nonrelative children in the child care
provider’s child care facility. If enrollment is not estab-
lished or maintained, the corporation shall terminate the
loan agreement and the child care provider shall immedi-
ately repay the outstanding balance of the loan.
(f) The corporation may, in consultation with the
department of children and families, conduct an inquiry
into a child care provider’s financial health 3 years after
the child care provider is awarded a loan under this sub-
section. If the corporation, in consultation with the
department of children and families, determines that the
child care provider is no longer capable of repaying the
loan, as determined by the corporation, the corporation
may terminate the loan agreement and may require that
the child care provider immediately repay the outstand-
ing balance of the loan.