Businesses may receive up to $50,000 for clean-up, restoration, and repair costs
MADISON — Gov. Tony Evers today, together with the Wisconsin Economic Development Corporation (WEDC), announced a total of $4 million in no-interest microloans to small businesses damaged during the recent civil unrest in Kenosha. Today’s announcement comes after Gov. Evers and WEDC Secretary and CEO Missy Hughes visited Kenosha September 10th and met with business owners who said they are facing unprecedented costs to rebuild.
“We know Kenoshans are working to reconstruct and repair in the wake of devastation, and we want to do everything we can to support the Kenosha Comeback,” said Gov. Evers. “I have seen firsthand the resilience of this community, and we are going to do everything we can to be there as they work to rebuild and move forward together. I am grateful for the good work of the WEDC and Kenosha-area legislators, especially Rep. Tod Ohnstad, for helping to make this happen.”
Earlier this month, Gov. Evers and the WEDC announced Kenosha small business owners who suffered losses would be eligible for $1 million in Disaster Relief Microloan (DRM) program funds from WEDC. Today’s announcement raises that figure by an additional $3 million for a total of $4 million and increases the maximum loan available to each business from $20,000 to $50,000.
“The DRM program is designed to help businesses impacted by unforeseen disasters. After visiting Kenosha, it was clear to us that additional steps are needed to help the community recover,” said Hughes. “WEDC is committed to making sure that businesses and communities in every part of this state have the resources they need to grow and thrive. We will continue to leverage our resources and partnerships in our efforts to assure economic well-being for all the citizens of Kenosha and Wisconsin.”
The WEDC is partnering with the Kenosha Area Business Alliance (KABA) to administer the loans. Affected businesses should contact KABA directly to access the loans and contact WEDC for information regarding other assistance.
Under the DRM program, WEDC awards grants to a regional group, such as KABA, which in turn provide loan applications and issue loans to damaged businesses seeking short-term assistance. Businesses that suffered measurable physical damage because of the unrest and intend to resume operations in the community as quickly as possible are eligible and encouraged to apply for the assistance.
Businesses in the affected areas will be eligible for microloans of up to $50,000 at 0% interest, which will provide them with a short-term source of funds for repair work and operating expenses. The loans can be used for procurement of cleanup and restoration services, operating expenses, temporary space, payroll, and repair and reconstruction work.
WEDC’s Disaster Recovery Microloan Program was introduced in 2018 and is available to businesses in all 72 counties impacted by man-made or natural disasters declared by state or federal authorities. For detailed information on the program, visit wedc.org/disasterrecovery.
Memberships
WEDC Hid Lost Loans from Audit Committee
Paul Jadin, the head of the Wisconsin Economic Development Corporation (WEDC), was surprisingly agreeable when he appeared before my colleagues and me at the recent hearing of the Joint Committee on Audit.
He was surprisingly agreeable; but less than forthcoming.
Mr. Jadin never mentioned that the state’s lead economic development agency had lost track of $8 million in delinquent loans. He never mentioned the problem even as he answered Legislators’ questions about the failures of WEDC’s own oversight processes.
Following the lengthy hearing, a reporter received a tip about the lost delinquent loans. The next day I learned the rest of the story.
State officials failed to track millions in loans that were delinquent by more than 30 days. These loans amounted to 16% of WEDC’s loan portfolio of $51 million. This failure to track loans extended over the past 16 months. The information was first reported by Milwaukee Journal Sentinel Capitol reporter Jason Stein who attended portions of the hearing.
As I chaired the hearing, I quizzed Mr. Jadin on problems with late reports and the skipping of key process management steps like underwriting loans. Committee members engaged in a lengthy discussion about recouping payments and overseeing businesses that failed to deliver promised jobs or meet contract terms.
Mr. Jadin agreed to improve transparency, to tighten reporting and subject all management staff to state ethics laws. He agreed to nearly every change requested. We concluded the hearing with directions to draft legislation codifying changes agreed to by Mr. Jadin. But he failed to make any mention of the lost delinquent loans.
In conversations with those close to WEDC, I learned the lost loans were likely ‘discovered’, in preparation for forthcoming audits: first, an independent firm recently hired by WEDC and second, the Legislative Audit Bureau.
Later, Ryan Murray, WEDC chief operating officer, told reporters Mr. Jadin didn’t discuss the issue because he wanted to notify the board first. But the board met twice in just the past few weeks. Board members could also be called at home or come into emergency session; none appeared to have happened.
Mr. Jadin had an obligation to inform the Legislature when he was asked to explain work to remedy serious problems of oversight and accountability.
Dishonesty is not only about what you say. It is about what you don’t say.
Hiding bad news is becoming a pattern for WEDC. Just a few weeks ago the Secretary of Administration apologized to Board members when, for over a year and a half, he failed to disclose a federal inquiry into the awarding of Housing and Urban Development (HUD) grants. WEDC apparently gave out more than $9 million without legal authority to do so.
The dishonesty began in the very creation of WEDC.
The Wisconsin Economic Development Corporation, despite its name, it is not a corporation. It is an arm of state government, run with taxpayer funds and revenue from loans made with taxpayer money.
Organized as an “authority”, WEDC is one of the most independent parts of state government. Despite its independence, the agency dispenses public money and is subject to Legislative oversight.
As Chair of the Audit Committee, at the conclusion of Mr. Jadin’s testimony I made very clear his obligation and our expectations.
“Because public dollars are at risk we need information at the program level of your operation to determine the effectiveness and the outcome of every program you administer,” I told Mr. Jadin.
I anticipate the Audit Bureau’s work will provide us with key information about WEDC’s structure, operations and program results. Auditors will examine the failure of “internal controls” - those systems that should be in place to catch errors of omission like lost delinquent loans.
But the error of omission that concerns me the most is the lack in honesty in official testimony before the Legislature.
I expect WEDC staff and board members to cooperate fully and ensure the Audit Bureau receives any information the State Auditor needs to complete its work.
Press releases and other content not written by a specific Eye On Dunn County author are listed as Eye On Dunn County Staff.
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