104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5264
 
Introduced 2/10/2026, by Rep. Elizabeth "Lisa" Hernandez
 
SYNOPSIS AS INTRODUCED:
 
20 ILCS 605/605-1119 new
30 ILCS 105/5.1038 new
    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 a loan program to provide low interest loans to small businesses that have been negatively impacted by federal immigration enforcement. Provides that the Department may make those loans from the Federal Immigration Recovery Fund and may administer the program directly through the Fund or enter into agreements with banks, credit unions, nonprofit loan administrations, or community development financial institutions. Amends the State Finance Act to create the Federal Immigration Recovery Fund. Effective immediately.


LRB104 19654 HLH 33103 b

 
 
A BILL FOR
 
HB5264LRB104 19654 HLH 33103 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly:
 
4    Section 5. The Department of Commerce and Economic 
5Opportunity Law of the Civil Administrative Code of Illinois 
6is amended by adding Section 605-1119 as follows:
 
7    (20 ILCS 605/605-1119 new)
8    Sec. 605-1119. Loans to small businesses impacted by 
9immigration enforcement activities.
10    (a) The Department shall establish a loan program, subject 
11to appropriation, to provide low interest loans to small 
12businesses that have been negatively impacted by federal 
13immigration enforcement. The Department may make loans under 
14this Section from the Federal Immigration Recovery Fund, a 
15special fund created in the State treasury. 
16    (b) If the Governor declares that an economic emergency 
17exists due to federal immigration enforcement activity 
18disrupting local or regional businesses and markets, the 
19Department of Commerce and Economic Opportunity shall provide 
20loans to eligible small businesses. The Governor shall make 
21any determination under this Section based on objective 
22indicators such as: 
23        (1) reduced foot traffic; 
 
 
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1        (2) declining sales in certain corridors; 
2        (3) workforce disruptions, such as increased 
3    absenteeism or job abandonment; and 
4        (4) business closures. 
5    (c) Upon a declaration of an economic emergency as 
6provided in subsection (b), a business shall be eligible for a 
7loan under this Section if: 
8        (1) the business employed 50 or fewer persons at any 
9    one time in the prior year; 
10        (2) the business's gross receipts in the prior year 
11    were $3,000,000 or less; 
12        (3) the business has been materially impacted or is 
13    located in an area that has been determined by the 
14    Department to be materially impacted by federal 
15    immigration enforcement. 
16    (d) The loans shall be in an amount determined by the 
17Department but shall not exceed $50,000 per business. The 
18loans shall be repaid by the business at a fixed interest rate 
19of 2%, and the term of repayment shall not exceed 5 years. No 
20repayments shall be required for the first 6 months following 
21disbursement, and no early repayment penalty shall be charged. 
22The loan proceeds shall be used for recovery related operating 
23expenses including: 
24        (1) rent and mortgage payments; 
25        (2) employee wages and benefits; 
26        (3) inventory restocking; 
 
 
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1        (4) equipment repair and replacement; 
2        (5) debt repayments incurred to maintain operations; 
3        (6) marketing or customer re-engagement expenses; and 
4        (7) any other cost that the Department may approve by 
5    rule. 
6    (e) The Department may adopt rules to administer and 
7enforce this Section and may administer the program directly 
8through the Federal Immigration Recovery Fund or enter into 
9agreements with banks, credit unions, nonprofit loan 
10administrations, or community development financial 
11institutions. 
12    (f) All interest and principal collected by the Department 
13shall be deposited into the Fund to replace lending capacity. 
14    (g) Upon a declaration by the Governor that the economic 
15emergency has ended, no new loans may be made. 
 
16    Section 10. The State Finance Act is amended by adding 
17Section 5.1038 as follows:
 
18    (30 ILCS 105/5.1038 new)
19    Sec. 5.1038. The Federal Immigration Recovery Fund.
 
20    Section 99. Effective date. This Act takes effect upon 
21becoming law.