SUBTITLE C: ECONOMIC DEVELOPMENT
CHAPTER I: DEPARTMENT OF COMMERCE AND ECONOMIC OPPORTUNITY
PART 651 CANNABIS BUSINESS INCUBATOR AND SPONSORSHIP PROGRAMS
SECTION 651.15 DEFINITIONS
Section 651.15 Definitions
The following definitions are applicable to the Cannabis Business Incubator and Sponsorship Programs:
"Act" means the Cannabis Regulation and Tax Act [410 ILCS 705]. Article 15 of the Act authorizes these programs.
"Department" means the Illinois Department of Commerce and Economic Opportunity.
"Host" means:
an Early Approval Adult Use Dispensing or Cultivation Organization License holder that provides a loan of at least $100,000 and provides mentorship to one or more licensees that qualify as Social Equity Applicants; or
a Social Equity Applicant intending to seek a license as part of a Social Equity Inclusion Plan.
"Incubate" means providing direct financial assistance and training necessary to engage in licensed cannabis industry activity similar to that of the host licensee. [410 ILCS 705/15-15(b)(8)(d) and 15-20(d)(4)]
"Loan" means a traditional financial arrangement governed by a written document establishing the terms of repayment and term of that document. Loan, as used in the Cannabis Business Incubator Program, does not include instruments of convertible debt or other forms of financial arrangements differing from that of a traditional loan. Transfers of these loans are prohibited.
"Mentor" means an Early Approval Adult Use Dispensing or Cultivation Organization license holder that participates in the Cannabis Business Sponsorship Program.
"Mentorship" means a mentor providing business guidance in the start-up and operation of a successful cannabis business. Mentorship can include, but is not limited to, offering advice on developing a business plan, cultivating cannabis products, securing real estate, developing a cannabis product supply chain, soliciting investment in cannabis businesses, navigating legal compliance for cannabis businesses, and networking with other participants in the cannabis industry.
"Ownership Interest" means a substantial economic benefit gained by the Early Approval Adult Use Dispensing or Cultivation Organization Licensee from a Social Equity Applicant being incubated or sponsored by the licensee, but not to include the payment of fair market value consideration for goods provided by the host.
"Sponsor" means an Early Approval Adult Use Dispensing Organization License holder that enters into a no interest loan agreement with a value of at least $200,000 to a Social Equity Applicant that intends to seek a license.