TITLE 14: COMMERCE
SUBTITLE C: ECONOMIC DEVELOPMENT
CHAPTER I: DEPARTMENT OF COMMERCE AND COMMUNITY AFFAIRS
PART 600 ILLINOIS EQUITY INVESTMENT FUND
SECTION 600.30 EVALUATION PROCESS


 

Section 600.30 Evaluation Process

 

Applications will be evaluated on the technical, market, and financial feasibility of the proposal to assure compliance with the requirements and the purpose of the Small Business Development Act (Sections 9-1, 9-2, 9-3, 9-5 et seq. of P.A. 84-109, effective July 25, 1985) (Act). Complete applications will be reviewed and evaluated by Department staff. Applicants will be notified of deficiencies in applications and given an opportunity to correct such deficiencies through resubmission (see Section 600.25). This review and evaluation process will be completed within 30 days. The evaluation will address the following criteria:

 

a) Technical evaluation component The Department will require applicants to show: evidence of need for program funds in accordance with Section 9-5(c) of the Act, including identification of alternative funding sources pursued and leverage of other funds to cover 66⅔ percent of total project costs in accordance with Section 9-5(a) of the Act; project implementation readiness, including commitments from all lenders and investors; written cost estimates which support project costs; and evidence of job creation, including written assurances from the company which identify the number and types of jobs to be created at generally a ratio of at least one job to each $5,000 of project funds. A project with a lower ratio will be considered for funding if the application demonstrates severe need (e.g., distressed community with an unemployment rate which is considerably higher than the State's average; area with limited economic development projects as evidenced by prior and current development activities; funding would support business with potential to generate additional growth in area and creation of jobs as a result of spinoff businesses; funding needed to avert loss of the area's major source of employment, etc.).

 

b) Financial Evaluation Component The applicant's financial statements, including the annual balance sheet, profit and loss statement, forecast of expenses and earnings, and related information, will be reviewed through a standard credit analysis which will determine the: liquidity and debt coverage for the project; ability of the company to manage debt; business trends; and projected earnings. This data will be compared to similar data for companies in the same industry using "Robert Morris Associates Annual Statement Studies" (1985), if such industry is evaluated by this source. This standard credit analysis will determine the financial stability of the company in accordance with Section 9-5(f) of the Act.

 

c) Market Evaluation Component The Department will require applicants to show the market feasibility of each application received and shall require applicants to undergo a technical feasibility analysis conducted under the auspices of a designated university technology commercialization center if the Department lacks the expertise to evaluate the market feasibility of an application (See Section 46.19a of the Civil Administrative Code of Illinois (Ill. Rev. Stat. 1984, Supp., ch. 127, par. 46.19a).