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Public Act 096-1106
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| SB3817 Enrolled | LRB096 20657 HLH 36372 b |
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AN ACT concerning State government.
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Be it enacted by the People of the State of Illinois, |
represented in the General Assembly:
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Section 5. The Build Illinois Act is amended by changing |
Sections 9-2 and 9-4.3 as follows:
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(30 ILCS 750/9-2) (from Ch. 127, par. 2709-2)
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Sec. 9-2. Definitions. The following terms,
whenever used |
or referred to in this Article, shall have the
following |
meanings ascribed to them, except where the context
clearly |
requires otherwise:
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(a) "Financial intermediary" means
a community development |
corporation, a state
development credit corporation, a |
development authority authorized to do
business by an act of |
this State, or other public or
private financing
institution
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approved by the Department whose purpose includes financing, |
promoting, or
encouraging economic development.
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(b) "Participating lender" means any trust company,
bank, |
savings bank, credit union, merchant bank, investment bank, |
broker,
investment trust, pension fund, building and loan |
association,
savings and loan association, insurance company, |
venture capital company or
other
institution approved by the |
Department which assumes a
portion of the financing for a |
business project.
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(c) "Department" means the Illinois Department of Commerce
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and
Economic Opportunity.
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(d) "Small business" means any for-profit business
in |
Illinois including, but not limited to, any sole |
proprietorship,
partnership, corporation, joint venture, |
association or
cooperative, which has, including its |
affiliates, less than
500 full time employees, or is determined |
by the Department
to be not dominant in its field.
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Business concerns are affiliates of one another
when either |
directly or indirectly (i) one concern controls
or has the |
power to control the other, or (ii) a third party
or parties |
controls or has the power to control both.
Control can be |
exercised through common ownership, common
management and |
contractual relationships.
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(e) "Qualified security" means any note, stock,
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convertible security, treasury stock, bond, debenture,
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evidence of indebtedness, limited partnership interest,
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certificate of interest or participation in any profit-sharing
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agreement, preorganization certificate or subscription,
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transferable share, investment contract, certificate of
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deposit for a security, certificate of interest or |
participation
in a patent or application therefor, or in |
royalty or
other payments under such a patent or application, |
or, in
general, any interest or instrument commonly known as a
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"security" or any certificate for, receipt for, guarantee of,
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or option, warrant or right to subscribe to or purchase any
of |
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the foregoing, but not including any instrument which
contains |
voting rights or can be converted to contain voting
rights in |
the possession of the Department.
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(f) "Loan agreement" means an agreement
or contract to |
provide a loan or accept a mortgage or to
purchase qualified |
securities or other means whereby financial
aid is made |
available to a start-up, expanding, or mature, moderate risk
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small business.
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(g) "Loan" means a loan or acceptance
of a mortgage or the |
purchase of qualified securities or
other means whereby |
financial aid is made to a start-up, expanding, or
mature,
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moderate risk small business.
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(h) "Equity investment agreement" means an agreement
or |
contract to provide a loan or accept a mortgage or to
purchase |
qualified securities or other means whereby financial
aid is |
made available to or on behalf of a young, high risk,
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technology based small business.
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(i) "Equity investment" means a loan or acceptance
of a |
mortgage or the purchase of qualified securities
or other means |
whereby financial aid is made to or on behalf of a young,
high
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risk, technology based small business.
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(j) "Project" means any specific economic development
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activity of a commercial, industrial, manufacturing,
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agricultural, scientific, service or other business, the
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result of which is expected to yield an increase in or |
retention of jobs
or
the modernization or improvement of |
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competitiveness of firms and may include
working capital |
financing, the purchase or lease of machinery
and equipment, or |
the lease or purchase of real property but
does not include |
refinancing current debt.
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(k) "Technical assistance agreement" means an agreement or |
contract or
other means whereby financial aid is made available |
to not-for-profit
organizations for the purposes outlined in |
Section 9-6 of this Article.
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(l) "Financial intermediary agreement" means an agreement |
or contract
to provide a loan, investment, or other financial |
aid to a financial
intermediary for the purposes outlined in |
Section 9-4.4 of this Article.
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(m) "Equity intermediary agreement" means an agreement or |
contract to
provide a loan, investment, or other financial aid |
to a financial intermediary
for the purposes outlined in |
Section 9-5.3 of this Article.
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(n) "Other investor" means a venture capital
organization |
or association; an investment partnership, trust
or bank; an |
individual, accounting partnership or corporation
that invests |
funds, or any other entity which provides debt
or equity |
financing for a business project.
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(o) "Veteran" means an Illinois resident who has served as |
a member of the United States Armed Forces on active duty or |
State active duty, a member of the Illinois National Guard, or |
a member of the United States Reserve Forces and who has |
received an honorable discharge. |
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(Source: P.A. 94-793, eff. 5-19-06.)
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(30 ILCS 750/9-4.3) (from Ch. 127, par. 2709-4.3)
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Sec. 9-4.3. Minority, veteran, female and disability |
loans.
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(a) In the making of loans for minority, veteran, female or |
disability
small businesses, as defined below, the Department |
is authorized to employ
different criteria in lieu of the |
general provisions of subsections (b),
(d), (e), (f), (h), and |
(i) of Section 9-4.
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Minority, veteran, female or disability small businesses, |
for the purpose of this
Section, shall be defined as small |
businesses that are, in the Department's
judgment, at least 51% |
owned and managed by one or more persons who are
minority, |
female or disabled or who are veterans.
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(b) Loans made pursuant to this Section:
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(1) Shall not exceed $100,000 or 50% of the business |
project costs
unless the Director of the Department |
determines that a waiver of these
limits is required to |
meet the purposes of this Act.
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(2) Shall only be made if, in the Department's |
judgment, the number of
jobs to be created or retained is |
reasonable in relation to the loan funds
requested.
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(3) Shall be protected by security. Financial |
assistance may be
secured by first, second or subordinate |
mortgage positions on real or
personal property, by royalty |
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payments, by personal notes or guarantees, or
by any other |
security satisfactory to the Department to secure |
repayment.
Security valuation requirements, as determined |
by the Department, for the
purposes of this Section, may be |
less than required for similar loans not
covered by this |
Section, provided the applicants demonstrate adequate
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business experience, entrepreneurial training or |
combination thereof, as
determined by the Department.
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(4) Shall be in such principal amount and form and |
contain such terms
and provisions with respect to security, |
insurance, reporting, delinquency
charges, default |
remedies, and other matters as the Department shall
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determine appropriate to protect the public interest
and |
consistent with the purposes of this Section. The terms and |
provisions
may be less than required for similar loans not |
covered by this Section.
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(Source: P.A. 95-97, eff. 1-1-08.)
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Section 99. Effective date. This Act takes effect upon |
becoming law.
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