Full Text of HB5264

LRB104 19654 HLH 33103 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5264

Introduced 2/10/2026, by Rep. Elizabeth "Lisa" Hernandez

SYNOPSIS AS INTRODUCED:

20 ILCS 605/605-1119 new
30 ILCS 105/5.1038 new

Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department of Commerce and Economic Opportunity shall establish a loan program to provide low interest loans to small businesses that have been negatively impacted by federal immigration enforcement. Provides that the Department may make those loans from the Federal Immigration Recovery Fund and may administer the program directly through the Fund or enter into agreements with banks, credit unions, nonprofit loan administrations, or community development financial institutions. Amends the State Finance Act to create the Federal Immigration Recovery Fund. Effective immediately.

A BILL FOR

AN ACT concerning State government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois is amended by adding Section 605-1119 as follows:

(20 ILCS 605/605-1119 new)

Sec. 605-1119. Loans to small businesses impacted by immigration enforcement activities.

(a) The Department shall establish a loan program, subject to appropriation, to provide low interest loans to small businesses that have been negatively impacted by federal immigration enforcement. The Department may make loans under this Section from the Federal Immigration Recovery Fund, a special fund created in the State treasury.

(b) If the Governor declares that an economic emergency exists due to federal immigration enforcement activity disrupting local or regional businesses and markets, the Department of Commerce and Economic Opportunity shall provide loans to eligible small businesses. The Governor shall make any determination under this Section based on objective indicators such as:

(1) reduced foot traffic;

(2) declining sales in certain corridors;

(3) workforce disruptions, such as increased absenteeism or job abandonment; and

(4) business closures.

(c) Upon a declaration of an economic emergency as provided in subsection (b), a business shall be eligible for a loan under this Section if:

(1) the business employed 50 or fewer persons at any one time in the prior year;

(2) the business's gross receipts in the prior year were $3,000,000 or less;

(3) the business has been materially impacted or is located in an area that has been determined by the Department to be materially impacted by federal immigration enforcement.

(d) The loans shall be in an amount determined by the Department but shall not exceed $50,000 per business. The loans shall be repaid by the business at a fixed interest rate of 2%, and the term of repayment shall not exceed 5 years. No repayments shall be required for the first 6 months following disbursement, and no early repayment penalty shall be charged. The loan proceeds shall be used for recovery related operating expenses including:

(1) rent and mortgage payments;

(2) employee wages and benefits;

(3) inventory restocking;

(4) equipment repair and replacement;

(5) debt repayments incurred to maintain operations;

(6) marketing or customer re-engagement expenses; and

(7) any other cost that the Department may approve by rule.

(e) The Department may adopt rules to administer and enforce this Section and may administer the program directly through the Federal Immigration Recovery Fund or enter into agreements with banks, credit unions, nonprofit loan administrations, or community development financial institutions.

(f) All interest and principal collected by the Department shall be deposited into the Fund to replace lending capacity.

(g) Upon a declaration by the Governor that the economic emergency has ended, no new loans may be made.

Section 10. The State Finance Act is amended by adding Section 5.1038 as follows:

(30 ILCS 105/5.1038 new)

Sec. 5.1038. The Federal Immigration Recovery Fund.

Section 99. Effective date. This Act takes effect upon becoming law.