TITLE 14: COMMERCE
SUBTITLE C: ECONOMIC DEVELOPMENT
CHAPTER I: DEPARTMENT OF COMMERCE AND COMMUNITY AFFAIRS
PART 560 ILLINOIS SMALL BUSINESS INCUBATOR PROGRAM
SECTION 560.35 CONTENT OF APPLICATION


 

Section 560.35  Content of Application

 

The following identified information to be included in the application:  

 

a)         Need and Impact of the Project

 

1)         Feasibility Study/Needs Analysis – a summary of the results of the Community Advisory Board Analysis and information which demonstrates adequate local interest to generate tenants.

 

2)         Potential Tenants – identification of the number and type of firms expected to become tenants within the incubator (light manufacturing, professional services, research and development, etc.) and listing of at least five firms which have been interviewed and are potentially prepared to become tenants.

 

3)         Projected Employment – given the program's purpose of creating permanent jobs for the Illinois economy, an estimate of the number and types of jobs to be created by the incubator in 12 months, in 24 months and the hourly wage.

 

b)         Proposed Site and Building

 

1)         Location and Building information – a discussion of the general building conditions, existing amenities, zoning classifications, leases/purchase arrangements, past history of the structure, etc.

 

2)         Description of Equipment and Furnishings (If Applicable) – an identification of major classes of equipment and furnishings to be acquired with proceeds of the Department's loan or grant.  For each equipment item, whether it is new (N) or used (U); the useful life of the equipment, and the lower of actual cost of fair market value must be indicated.

 

3)         Documentation – copies of appraisals, deeds, leases, floor plans, photographs, and a site map, as exhibits.  The site map should illustrate the location of any floodplain areas.  For all purchases of equipment and furnishings, the contractor, engineer, or architect's cost estimates must be provided.

 

c)         Incubator Management Information

 

1)         Implementation Schedule – a listing of the primary project activities and an outline of the implementation schedule of the project.

 

2)         Organizational History – a short organizational history of the incubator sponsor which demonstrates the capability to successfully manage the facility.

 

3)         Incubator Management – a detailed resume for the individual responsible for day-to-day management of the incubator facility which includes past employment, educational background, and general accomplishments.

 

4)         Marketing Plan – information on the marketing plan for the incubator and the methods to be used to recruit businesses.

 

5)         Information Exchange – description of the process to facilitate the exchange of information/resources among tenants.

 

6)         Tenant Entry/Exit Procedures – a description of procedures that will be followed when considering tenant selection.  As a supplement, the actual tenant application form and tenant selection procedures must be submitted.

 

7)         Reporting Requirements – a description of applicants understanding of periodic progress reports required to be submitted to the Department.

 

8)         Business Management and Professional Services – a listing, as appropriate, of the types of assistance to be provided to the small business tenants, the amount of the fee collected, and the organization providing services.

 

9)         Facility Services – an identification of all facility services to be offered to incubator tenants (e.g., duplicating services, conference rooms, clerical services, etc.).

 

d)         Budget

 

1)         Source and Use of Funds – an identification of financing resources available and how they will be used, and a brief description of the type of collateral and guarantee to be offered for the Department's loan.  The Department will pay up to 50% of the cost of a local incubator project. The remaining cost must be met by local revenues.

 

A)        Acquisition costs include land/site costs and building acquisition costs.  Renovation costs include plumbing, heating/cooling, plastering/painting, electrical, water/septic, fire protection, architectural engineering, insulation/weatherization, legal, appraisal, and construction interest costs.

 

B)        Equipment and furnishings include those items of equipment required to provide facility services such as typing, reception, shipping and receiving, etc., for incubator tenants.

 

C)        Operational costs include utilities, telephone, repair and maintenance, taxes, if any, insurance, equipment and rental and accounting, legal and advertising expenses.

 

D)        Incubator management costs include salaries, fringe benefits, payroll taxes, supplies and travel costs.

 

E)        Business management assistance costs include costs of counseling and training necessary to provide business and management assistance and professional services to incubator tenants.

 

2)         Collateral and Guarantees

 

3)         Requests for Loan Deferral or Waiver

 

4)         Incubator Facility Expenses and Earnings for Three Years – statement which includes total income (rental income, other income, grants (list)) less total expenses (acct/legal/adv., utilities, telephone, repair/maintenance, taxes, insurance, equipment rental, salaries, fringes, payroll taxes, office supplies, travel, other (specify)) which equals net profit.

 

5)         Tenant Financing Pool – a description of arrangements made to provide a source of financing for the incubator tenants and, where possible, a listing of sources and dollar amounts.

 

6)         Letters of Commitment – as an exhibit, any firm letters of commitment, grant award notices, etc. for financial commitment to the incubator project.

 

7)         Cash Needs Plan – a list of estimated dates and fund amounts needed to meet the cash needs of proposed project; State funds used to fund this incubator program will be distributed by the Department in monthly allotments.

 

e)         Application Certifications

 

1)         Farmland Preservation – certification that the incubator project is compatible with established state policy regarding farmland preservation pursuant to the Farmland Preservation Act (Ill. Rev. Stat. 1983, ch. 5, pars. 1301 et seq.).

 

2)         Floodplain – certification that the project will comply with the Flood Disaster Protection Act of 1973 (42 U.SC. 4001 et seq. (1984)) and Executive Order 79-4, effective June 1, 1979 which requires special environmental procedures if any activities will be carried out in a flood hazard area.

 

3)         Prevailing Wage – certification that the provisions of the wages of Employees on Public Works (Ill. Rev. Stat. 1979, ch. 48, Sec. 39s-1 et seq.) and the Preference to Citizens in Public Works Project (Ill. Rev. Stat. 1979, Ch. 48, Sec. 269 et seq.) will apply to the proposed project and that construction cost estimates have taken into account the effect of those Acts.

 

4)         Non-Discrimination – certification that the applicant shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin.