HB3942 103RD GENERAL ASSEMBLY

LRB103 25447 HLH 51796 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3942

Introduced 2/17/2023, by Rep. Dave Vella

SYNOPSIS AS INTRODUCED:

20 ILCS 605/605-1097 new
30 ILCS 750/9-4.8

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 the Small Business Emergency Loan Program. Provides that, from funds made available to the Department from the State Small Business Credit Initiative Fund, the Department shall offer low-interest loans of up to $50,000 to eligible small businesses for working capital, with at least 50% of loan proceeds to be applied for specified purposes. Provides that borrower eligibility and loan terms under the Program shall be as prescribed by the Department. Provides for the adoption of rules. Amends the Build Illinois Act to make conforming changes.

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 605-1097 as follows:

(20 ILCS 605/605-1097 new)

Sec. 605-1097. Small Business Emergency Loan Program. The Department of Commerce and Economic Opportunity shall establish and maintain the Small Business Emergency Loan Program. From funds made available to the Department from the State Small Business Credit Initiative Fund, the Department shall offer low-interest loans of up to $50,000 to eligible small businesses for working capital, with at least 50% of loan proceeds to be applied toward payroll or other eligible compensation, including, but not limited to, salaries, wages, paid leave, and group healthcare benefits. Borrower eligibility and loan terms under the Program shall be as prescribed by the Department. The Department shall adopt rules necessary for the implementation of this Section.

Section 10. The Build Illinois Act is amended by changing Section 9-4.8 as follows:

(30 ILCS 750/9-4.8)

Sec. 9-4.8. State Small Business Credit Initiative Fund.

(a) There is hereby created the State Small Business Credit Initiative Fund, also referred to in this Article as the "SSBCI Fund", as a special fund in the State treasury.

The purpose of the SSBCI Fund is to finance intermediary agreements, administration, technical assistance agreements, loans, grants, or investments in Illinois. Investments, administration grants, and financial aid shall be used for the purposes set forth in this Article and for the purposes set forth in Section 605-1097 of the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Loan financing shall be in the form of loan agreements pursuant to the terms and conditions set forth in this Article, except that loan agreements entered into under Section 605-1097 of the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois shall be pursuant to the terms and conditions of that Section and rules adopted under the authority of that Section. All loans for the purposes of this Article shall be conditioned on the project receiving financing from participating lenders or other investors.

(b) The following amounts shall be deposited into the SSBCI Fund:

(1) all receipts, including dividends, principal and interest payments, and royalties, from any applicable loan, intermediary, or technical assistance agreement made from the SSBCI Fund or from direct appropriations from the Build Illinois Bond Fund or the General Revenue Fund by the General Assembly entered into by the Department;

(2) all proceeds of assets of whatever nature received by the Department as a result of default or delinquency with respect to a loan agreement made from the SSBCI Fund or from direct appropriations by the General Assembly, including proceeds from the sale, disposal, lease, or rental of real or personal property that the Department may receive as a result thereof;

(3) any appropriations, grants, or gifts made to the SSBCI Fund;

(4) any income received from interest on investments of moneys in the SSBCI Fund;

(5) all moneys resulting from the collection of premiums, fees charges, costs, and expenses described in subsection (e) of Section 9-3.

(c) The Treasurer may invest moneys in the SSBCI Fund in securities constituting obligations of the United States Government, or in obligations the principal of and interest on which are guaranteed by the United States Government, or in certificates of deposit of any State or national bank which are fully-secured by obligations guaranteed as to principal and interest by the United States Government.

(Source: P.A. 100-377, eff. 8-25-17.)