Wisconsin Statutes
Wis. Stat. § 85.25 (2026)
Disadvantaged business mobilization assistance program
✓ current as of July 2026
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85.25(1)(1) Findings and purpose. The legislature finds that the lack of working capital is a major barrier to the participation of certain businesses in construction contracts with the department. This problem is most acute for newer, less experienced businesses, and, in particular, for disadvantaged businesses, many of which lack the assets necessary to obtain financing under normal business lending standards. The disadvantaged business mobilization assistance program is created to assist disadvantaged businesses in obtaining working capital in order to participate in construction contracts with the department and to increase the representation of disadvantaged businesses among contractors performing on construction projects for the department.
85.25(2)(a)(a) “Business development organization” means the Wisconsin Housing and Economic Development Authority under s. 234.02 or any private organization that prepares business and loan plans for and provides other financial, management, and technical assistance to disadvantaged businesses.
85.25(2)(b)(b) “Deficiency” means the unpaid principal amount of a defaulted mobilization loan guaranteed under sub. (4). “Deficiency” does not include any interest, any origination fees or other charges relating to the guaranteed loan or any expenses incurred by the lender in enforcing the security interest taken in the capital equipment or other asset resulting from the proceeds of the guaranteed loan.
85.25(2)(c)1m.1m. A sole proprietorship, partnership, limited liability company, joint venture or corporation that fulfills all of the following requirements:
85.25(2)(c)1m.a.a. It is at least 51 percent owned, controlled and actively managed by a disadvantaged individual, as defined in s. 84.076 (1) (a).
85.25(2)(c)1m.b.b. It is currently performing a useful business function as defined in s. 16.287 (1) (h).
85.25(2)(d)(d) “Guaranteed loan” means a mobilization loan which is guaranteed by a business development organization under a grant under sub. (3).
85.25(2)(e)(e) “Mobilization loan” means a short-term loan, as specified by the department by rule, to a disadvantaged business to provide working capital in order to finance the purchase of capital equipment, insurance or any other service or consumable good necessary to enable the disadvantaged business to participate in transportation-related construction contracts with the department.
85.25(2)(f)(f) “Participating lender” means a bank, credit union, savings bank, savings and loan association or other person who makes mobilization loans.
85.25(3)(3) Administration. The department shall administer the disadvantaged business mobilization assistance program. Subject to sub. (4), the department may make grants for the purpose specified in sub. (1) to a business development organization in order to provide funding for the guarantee by the business development organization of a mobilization loan made by a participating lender to a disadvantaged business certified by the department.
85.25(4)(4) Rule making. The department shall promulgate rules to implement the disadvantaged business mobilization assistance program. The rules shall specify all of the following:
85.25(4)(a)(a) Conditions for eligibility of a business development organization for a grant under sub. (3).
85.25(4)(b)(b) Conditions for eligibility of a disadvantaged business for a guaranteed loan. The conditions may include requirements relating to certification of a disadvantaged business by the department.
85.25(4)(c)(c) Conditions for the guarantee of a mobilization loan by a business development organization applying for a grant under sub. (3). The conditions shall include requirements relating to the term of a mobilization loan. The conditions may include a requirement for execution of a guarantee agreement between the business development organization and the participating lender and review of such an agreement by the department. The conditions may specify a percentage of principal of any mobilization loan which must be guaranteed by a business development organization applying for a grant under sub. (3). The conditions may include requirements relating to the rate of a mobilization loan. The conditions may include requirements relating to defaulted mobilization loans and deficiencies.
85.25(4)(d)(d) Conditions relating to the total principal amounts of all mobilization loans which may be guaranteed by business development organizations at one time, not to exceed $1,500,000.
85.25(4)(e)(e) Conditions under which a business development organization may not guarantee additional mobilization loans. The conditions shall include a prohibition on the guarantee of additional mobilization loans by a business development organization if the amount of the grant to the business development organization not yet expended under the disadvantaged business mobilization assistance program is equal to or less than $100,000.
85.25(4)(f)(f) Conditions under which a grant made under sub. (3) to a business development organization may be required to be repaid.
85.25(5)(5) Moral obligation. Recognizing its moral obligation to do so, the legislature expresses its expectation and aspiration that, if ever called upon to do so, it shall make an appropriation from the transportation fund to meet all demands for funds relating to defaulted mobilization loans and deficiencies under this section.
85.25 HistoryHistory: 1987 a. 399; 1989 a. 31; 1991 a. 221; 1993 a. 112; 2001 a. 104; 2009 a. 299; 2011 a. 32.
Notes of Decisions
Cited in 20
cases, 1927–2011 · leading case: Est. of Otto v. Physicians Ins. Co. of Wisconsin, Inc., 2008 WI 78 (Wis. 2008).
Est. of Otto v. Physicians Ins. Co. of Wisconsin, Inc., 2008 WI 78 (Wis. 2008). “¶ 138 A direct action statute providing injured parties with the right to directly sue insurance companies was first enacted in 1925 as Wis. Stat. § 85.25 (1925). At that time, direct action was part of the "Law of [the] Road" and applied only to motor vehicle accidents.”
Casper v. Am. Int'l South Ins., 2011 WI 81 (Wis. 2011). “Chapter 341 created Wis. Stat. § 85.25 (1925), which read: Any bond or policy of insurance covering liability to others by reason of the operation of a motor vehicle shall be deemed and construed to contain the following conditions: That the insurer shall be liable to the…”
Decade's Monthly Income & Appreciation Fund Ex Rel. Keierleber v. Whyte & Hirschboeck, S.C., 495 N.W.2d 335 (Wis. 1993). “24's statutory roots can be found in the chapter 341, Laws of 1925, creating sec. 85.25, Stats., which applied to "any bond or policy of insurance covering liability to others" but only as to injuries arising out of "the operation of a motor vehicle.”
Bachhuber v. Boosalis, 229 N.W. 117 (Wis. 1930). “The insurer of Boosalis was made a party on the theory of direct liability to plaintiff under sec. 85.25, Stats. Service was had upon the defendant Boosalis by service on the secretary of state, pursuant to sub.”
Stoppleworth v. Refuse Hideaway, Inc., 546 N.W.2d 870 (Wis. 1996). “341 (creating Wis. Stat. § 85.25 ). Because we conclude that identification of parties does not impact the right to jury trial, we need not further pursue this argument.”
Bergstein v. Popkin, 233 N.W. 572 (Wis. 1930). “) “Any bond or policy of insurance covering liability to others by reason of the operation of a motor vehicle shall be deemed and construed to contain the following condition: That the insurer shall be liable to the persons entitled to recover for the death of any person, or for…”
Kenison v. Wellington Ins., 582 N.W.2d 69 (Wis. Ct. App. 1998). “8 The cases deal with §§ 85.25, 85.93 and 204.30(4), Stats., the predecessor to § 632.”
Kujawa v. Am. Indem. Co., 14 N.W.2d 31 (Wis. 1944). “341, Laws of 1925 (sec. 85.25, Stats. 1927), this court has repeatedly held that sec.”
Bro v. Stand. Accident Ins. Co., 215 N.W. 431 (Wis. 1927). “Sec. 85.25, Stats., does not give the plaintiff a right of action against the insurance company.”
Est. of Otto, 2008 WI 78 (Wis. 2008). “¶ 138 A direct action statute providing injured parties with the right to directly sue insurance companies was first enacted in 1925 as Wis. Stat. § 85.25 (1925). At that time, direct action was part of the "Law of [the] Road" and applied only to motor vehicle accidents.”
Stransky v. Kousek, 225 N.W. 401 (Wis. 1929). “nce corporation liable if a judgment had been recovered against the son, but it is clear that they do not render the defendant corporation liable in this action against the father, because the action has been dismissed as to the father and the liability of the insurance carrier…”
Shipman v. Kenosha Unified Sch. Dist. No. 1, 205 N.W.2d 399 (Wis. 1973). “Although the history of these two statutes shows the legislature has attempted to keep these sections, like a team of horses, pulling the same load, it has not always been successful.”
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