93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB6705


 
Introduced 02/09/04, by Patricia R. Bellock - Angelo Saviano
 
SYNOPSIS AS INTRODUCED:
 		













30 ILCS 750/9-4.3
  from Ch. 127, par. 2709-4.3







    Amends the Build Illinois Act.  Increases the limit on loans to minority,
female, or disabled small businesses from $50,000 or 50% of project costs to
$750,000 or 50% of project costs.
















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FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB6705

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    AN ACT concerning small business loans. 

 
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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 changing

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Section 9-4.3 as follows:


 
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    (30 ILCS 750/9-4.3)  (from Ch. 127, par. 2709-4.3)

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    Sec. 9-4.3. Minority, female and disability loans.


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    (a) In the making of loans for minority, female or 
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disability
small businesses, as defined below, the Department 
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is authorized to employ
different criteria in lieu of the 
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general provisions of subsections (b),
(d), (e), (f), (h), and 
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(i) of Section 9-4.


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    Minority, female or disability small businesses, for the 
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purpose of this
Section, shall be defined as small businesses 
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that are, in the Department's
judgment, at least 51% owned and 
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managed by one or more persons who are
minority, female or 
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disabled.


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    (b) Loans made pursuant to this Section:


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        (1) Shall not exceed $750,000
$50,000 or 50% of the 
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    business
project costs
unless the Director of the 
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    Department determines that a waiver of these
limits is 
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    required to meet the purposes of this Act.


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        (2) Shall only be made if, in the Department's 
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    judgment, the number of
jobs to be created or retained is 
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    reasonable in relation to the loan funds
requested.


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        (3) Shall be protected by security.  Financial 
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    assistance may be
secured by first, second or subordinate 
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    mortgage positions on real or
personal property, by royalty 
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    payments, by personal notes or guarantees, or
by any other 
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    security satisfactory to the Department to secure 
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    repayment.
Security valuation requirements, as determined 
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    by the Department, for the
purposes of this Section, may be 
 


 






HB6705
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    less than required for similar loans not
covered by this 
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    Section, provided the applicants demonstrate adequate

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    business experience, entrepreneurial training or 
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    combination thereof, as
determined by the Department.


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        (4) Shall be in such principal amount and form and 
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    contain such terms
and provisions with respect to security, 
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    insurance, reporting, delinquency
charges, default 
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    remedies, and other matters as the Department shall

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    determine appropriate to protect the public interest
and 
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    consistent with the purposes of this Section.  The terms and 
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    provisions
may be less than required for similar loans not 
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    covered by this Section.


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(Source: P.A. 87-1177; 88-422.)