Governor Scott Walker (R-Wisconsin) is recommending the Wisconsin Economic Development Corporation (WEDC) get back into the loan business, but on a smaller scale than before.
In 2015, the legislature shut down WEDC's $55 million loan program at the suggestion of Gov. Walker after a scathing audit showed several loans had gone unpaid and others were not tracked properly.
Gov. Walker said his budget proposal would only call for loans to be initiated if they can be paid for with existing money WEDC is bringing in, so taxpayers will not be on the hook for any new dollars.
"There can only be assistance for those who meet specific criteria - whether its adding jobs, retaining jobs or making specific capital investments," said Gov. Walker. "If they fail to meet those requirements, they'll ultimately have those dollars clawed back as they've done in the past year or so."
The Governor's proposal also recommends WEDC be prohibited from offering forgivable loans companies wouldn't have to pay back.
For more information go to WKOW: http://www.wkow.com/story/34505322/2017/02/14/gov-walker-calls-for-reinstatement-of-wedc-loan-program