Seemingly, all Wisconsin is discussing a $500,000 Wisconsin Economic Development Corporation loan to a failing company of a Walker political contributor.
Here’s a summary of what’s known so far.
1. The loan was to Building Committee Inc. (BCI), a business owned by William Minahan, a Walker political contributor (and Minahan made contributions to other campaigns, of both major parties). It was meant to allow BCI to renovate bank or credit union buildings for “energy efficiency.”
2. The 2011 loan to BCI created no jobs.
3. It’s uncertain where the money went.
4. It’s not been repaid, and the state is suing BCI.
5. Then-Secretary of Administration Mike Huebsch wanted the WEDC to extend a forgivable loan over eight times as large ($4,300,000).
6. The WEDC lent BCI the half-million, aware that even that large-but-reduced amount was “fairly risky.”
7. No other state or federal programs were willing to lend BCI anything.
8. The original underwriting documents (different from a loan application) for the BCI loan cannot be found.
9. State officials never conducted a loan review.
10. BCI failed to disclose lawsuits pending against it, although a loan application required that they be disclosed.
11. BCI listed business partners on the energy efficiency project who received no funds and did almost no work.
See, Top Scott Walker aides pushed for questionable $500,000 WEDC loan @ State Journal.
12. Some of Minahan’s employees contend he asked them to submit political contributions to candidates (in other states) that he designated, and that Minahan promised to reimburse them.
See, Company obtained loan from WEDC, unsuccessful elsewhere @ State Journal.
Below is a selection from FREE WHITEWATER on the WEDC. There’s also a category link useful for following updates: WEDC.
- At WEDC-Sponsored Tech Festival, Local Company Announces a Move to Ohio
- WEDC Update (subsidizing the outsourcing of jobs to other countries)
- Local Crony Capitalism via the WEDC (and similar schemes)
- The Truth About the Wisconsin Economic Development Corporation
- WEDC Board Offers Millions to Subsidize Job Cuts
- WEDC Afflicted with Internal Strife
- WEDC Claims Success by Writing Off Bad Loans
- Another WEDC Audit Failure
- WEDC Slowly Crumbles