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Public Act 094-0485
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| SB0323 Enrolled |
LRB094 06353 MKM 36429 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,
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represented in the General Assembly:
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Section 5. The Build Illinois Act is amended by adding |
Section 9-4.7 as follows:
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(30 ILCS 750/9-4.7 new)
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Sec. 9-4.7. Military Reservist Business Assistance Loan |
Program. |
(a) As used in this Section: |
"Period of military conflict" means (i) a period of war |
declared by Congress; (ii) a period of national emergency |
declared by Congress or by the President; or (iii) a period in |
which a member of a reserve component of the armed forces of |
the United States is ordered to active duty pursuant to Section |
12304 of Title 10 of the United States Code. |
"Owner" means a person with at least a 20% ownership |
interest in a small business.
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"Key employee" means an individual who is employed by a |
small business and whose managerial or technical expertise is |
critical to the successful day-to-day operation of the |
business.
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"Small business" means a business with 50 or fewer |
employees. |
"Substantial economic injury" means an economic harm to a |
small business that results in the inability of the small |
business to (i) meet its obligations as they mature; (ii) pay |
its ordinary and necessary operating expenses; or (iii) market, |
produce, or provide a product or service.
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(b) In the making of military reservist business assistance |
loans, 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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(c) From funds appropriated for that purpose, the |
Department shall administer a Military Reservist Business |
Assistance Loan Program. The Director shall make loans to small |
businesses (i) that lose an owner or a key employee due to a |
period of military conflict and (ii) that will experience |
substantial economic injury as a result of the loss of that |
owner or key employee. |
(d) The Department may accept grants, loans, or |
appropriations from the federal government or from any private |
entity to be used for the purposes of this program and may |
enter into contracts and agreements in connection with those |
grants, loans, or appropriations. |
(e) Loans made pursuant to this Section:
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(1) Shall not exceed $150,000. |
(2) Shall have an interest rate below the market rate |
loan percent. |
(3) Shall have repayment terms determined by the |
Department and that do not exceed 30 years. |
(4) Shall be protected by security. Financial
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assistance may be secured by first, second, or subordinate |
mortgage positions on real or personal property, by royalty |
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 applicant demonstrates adequate |
business experience, entrepreneurial training, or a |
combination thereof, as determined by the Department. |
(5) Shall be in the principal amount and form and
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contain the terms and provisions with respect to security, |
insurance, reporting, delinquency charges, default |
remedies, and other matters that the Department determines |
are appropriate to protect the public interest and |
consistent with the purposes of this Section.
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(f) The Department shall not award any loan under this |