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State Government Administration Committee
Filed: 3/12/2008
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09500HB5755ham001 |
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LRB095 19964 JAM 47946 a |
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| AMENDMENT TO HOUSE BILL 5755
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| AMENDMENT NO. ______. Amend House Bill 5755 by replacing |
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| everything after the enacting clause with the following:
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| "Section 1. Short title. This Act may be cited as the |
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| Community Capital Development Act.
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| Section 5. Purpose. The intent of this Act is to facilitate |
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| the creation of partnerships among community organizations, |
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| local banks, and the communities they serve.
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| Section 10. Administration. This Act shall be administered |
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| by the State Treasurer of Illinois.
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| Section 15. Use of State deposits. The Treasurer of the |
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| State of Illinois shall make available for deposit, from the |
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| General Revenue Fund, the amount of one billion dollars for |
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| Illinois Banks with assets of less than five hundred million |
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09500HB5755ham001 |
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LRB095 19964 JAM 47946 a |
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| dollars. These funds shall be held in one-year certificates of |
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| deposit. |
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| The Treasurer shall deposit in each participating bank an |
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| amount equal to 10% of the bank's total assets.
The funds shall |
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| be used to secure or create revolving lines of credit for |
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| non-profit community-based organizations qualifying under |
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| Section 501(c)(3) of the Internal Revenue Code. |
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| Once approved as a participant in the program, each bank |
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| shall be eligible to participate for 5 years. At the end of 5 |
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| years, if the bank's assets remain under five hundred million |
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| dollars, the bank is then eligible to reapply to the Treasurer |
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| for continued participation.
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| Section 20. Credit line. Each eligible organization's |
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| credit line shall be limited to 50% of its previous year's |
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| revenues as reported on its IRS form 990, with a cap of five |
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| million dollars.
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| Section 25. Credit line interest rate. The interest rate on |
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| revolving lines of credit shall be capped at 300 basis points |
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| above the one-year rate paid on certificates of deposit.
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| Section 30. Use of credit line. Funds from the credit line |
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| may be used by organizations for, but need not be limited to, |
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| any of the following purposes:
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| (1) General operating funds. |
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LRB095 19964 JAM 47946 a |
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| (2) Special projects (i.e., capacity building, special |
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| purchases).
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| Section 35. Participation criteria. To participate, |
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| community-based organizations must meet the following |
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| guidelines: |
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| (1) Be legally eligible to conduct business in the |
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| State of Illinois for the previous 2 years. |
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| (2) Have 501(c)(3) Status with the IRS. |
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| (3) Be in good standing with the Illinois Attorney |
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| General and the Secretary of State at the time of the |
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| award. |
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| (4) Show reasonable ability to repay the loan with |
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| sufficient revenue sources to
support outstanding debt.
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| Section 40. Conflicting provisions. If this Act conflicts |
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| with any State law or rule that prohibits the use of State |
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| funding for the purpose of purchasing real property to allow |
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| community-based and faith-based organizations (at their |
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| discretion) to use any or all portions of any State contract or |
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| grant earmarked for rent for mortgage or installment payments, |
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| the provisions of this Act control.
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| Section 99. Effective date. This Act takes effect upon |
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| becoming law.".
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