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How do you determine that a local governmental unit’s loan rate is below the commercial rate and therefore constitutes direct financial assistance?

April 26, 2017Commercial constitutes determine financial governmental loan local rate

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How do you determine that a local governmental unit’s loan rate is below the commercial rate and therefore constitutes direct financial assistance?

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If lending institutions in Wisconsin would offer a similar loan at a higher rate at the time the local governmental unit makes the loan to the public entity, then the difference in lending rates applied to the principal over the term of the loan amounts to the direct financial assistance.