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1 | AN ACT concerning finance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Build Illinois Act is amended by changing | ||||||||||||||||||||||||||
5 | Sections 9-2 and 9-4.3 as follows:
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6 | (30 ILCS 750/9-2) (from Ch. 127, par. 2709-2)
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7 | Sec. 9-2. Definitions. The following terms,
whenever used | ||||||||||||||||||||||||||
8 | or referred to in this Article, shall have the
following | ||||||||||||||||||||||||||
9 | meanings ascribed to them, except where the context
clearly | ||||||||||||||||||||||||||
10 | requires otherwise:
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11 | (a) "Financial intermediary" means
a community development | ||||||||||||||||||||||||||
12 | corporation, a state
development credit corporation, a | ||||||||||||||||||||||||||
13 | development authority authorized to do
business by an act of | ||||||||||||||||||||||||||
14 | this State, or other public or
private financing
institution
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15 | approved by the Department whose purpose includes financing, | ||||||||||||||||||||||||||
16 | promoting, or
encouraging economic development.
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17 | (b) "Participating lender" means any trust company,
bank, | ||||||||||||||||||||||||||
18 | savings bank, credit union, merchant bank, investment bank, | ||||||||||||||||||||||||||
19 | broker,
investment trust, pension fund, building and loan | ||||||||||||||||||||||||||
20 | association,
savings and loan association, insurance company, | ||||||||||||||||||||||||||
21 | venture capital company or
other
institution approved by the | ||||||||||||||||||||||||||
22 | Department which assumes a
portion of the financing for a | ||||||||||||||||||||||||||
23 | business project.
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1 | (c) "Department" means the Illinois Department of Commerce
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2 | and
Economic Opportunity.
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3 | (d) "Small business" means any for-profit business
in | ||||||
4 | Illinois including, but not limited to, any sole | ||||||
5 | proprietorship,
partnership, corporation, joint venture, | ||||||
6 | association or
cooperative, which has, including its | ||||||
7 | affiliates, less than
500 full time employees, or is determined | ||||||
8 | by the Department
to be not dominant in its field.
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9 | Business concerns are affiliates of one another
when either | ||||||
10 | directly or indirectly (i) one concern controls
or has the | ||||||
11 | power to control the other, or (ii) a third party
or parties | ||||||
12 | controls or has the power to control both.
Control can be | ||||||
13 | exercised through common ownership, common
management and | ||||||
14 | contractual relationships.
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15 | (e) "Qualified security" means any note, stock,
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16 | convertible security, treasury stock, bond, debenture,
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17 | evidence of indebtedness, limited partnership interest,
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18 | certificate of interest or participation in any profit-sharing
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19 | agreement, preorganization certificate or subscription,
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20 | transferable share, investment contract, certificate of
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21 | deposit for a security, certificate of interest or | ||||||
22 | participation
in a patent or application therefor, or in | ||||||
23 | royalty or
other payments under such a patent or application, | ||||||
24 | or, in
general, any interest or instrument commonly known as a
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25 | "security" or any certificate for, receipt for, guarantee of,
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26 | or option, warrant or right to subscribe to or purchase any
of |
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1 | the foregoing, but not including any instrument which
contains | ||||||
2 | voting rights or can be converted to contain voting
rights in | ||||||
3 | the possession of the Department.
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4 | (f) "Loan agreement" means an agreement
or contract to | ||||||
5 | provide a loan or accept a mortgage or to
purchase qualified | ||||||
6 | securities or other means whereby financial
aid is made | ||||||
7 | available to a start-up, expanding, or mature, moderate risk
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8 | small business.
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9 | (g) "Loan" means a loan or acceptance
of a mortgage or the | ||||||
10 | purchase of qualified securities or
other means whereby | ||||||
11 | financial aid is made to a start-up, expanding, or
mature,
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12 | moderate risk small business.
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13 | (h) "Equity investment agreement" means an agreement
or | ||||||
14 | contract to provide a loan or accept a mortgage or to
purchase | ||||||
15 | qualified securities or other means whereby financial
aid is | ||||||
16 | made available to or on behalf of a young, high risk,
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17 | technology based small business.
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18 | (i) "Equity investment" means a loan or acceptance
of a | ||||||
19 | mortgage or the purchase of qualified securities
or other means | ||||||
20 | whereby financial aid is made to or on behalf of a young,
high
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21 | risk, technology based small business.
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22 | (j) "Project" means any specific economic development
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23 | activity of a commercial, industrial, manufacturing,
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24 | agricultural, scientific, service or other business, the
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25 | result of which is expected to yield an increase in or | ||||||
26 | retention of jobs
or
the modernization or improvement of |
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1 | competitiveness of firms and may include
working capital | ||||||
2 | financing, the purchase or lease of machinery
and equipment, or | ||||||
3 | the lease or purchase of real property but
does not include | ||||||
4 | refinancing current debt.
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5 | (k) "Technical assistance agreement" means an agreement or | ||||||
6 | contract or
other means whereby financial aid is made available | ||||||
7 | to not-for-profit
organizations for the purposes outlined in | ||||||
8 | Section 9-6 of this Article.
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9 | (l) "Financial intermediary agreement" means an agreement | ||||||
10 | or contract
to provide a loan, investment, or other financial | ||||||
11 | aid to a financial
intermediary for the purposes outlined in | ||||||
12 | Section 9-4.4 of this Article.
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13 | (m) "Equity intermediary agreement" means an agreement or | ||||||
14 | contract to
provide a loan, investment, or other financial aid | ||||||
15 | to a financial intermediary
for the purposes outlined in | ||||||
16 | Section 9-5.3 of this Article.
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17 | (n) "Other investor" means a venture capital
organization | ||||||
18 | or association; an investment partnership, trust
or bank; an | ||||||
19 | individual, accounting partnership or corporation
that invests | ||||||
20 | funds, or any other entity which provides debt
or equity | ||||||
21 | financing for a business project.
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22 | (o) "Veteran" means an Illinois resident who has served as | ||||||
23 | a member of the United States Armed Forces on active duty or | ||||||
24 | State active duty, a member of the Illinois National Guard, or | ||||||
25 | a member of the United States Reserve Forces and who has | ||||||
26 | received an honorable discharge. |
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1 | (Source: P.A. 94-793, eff. 5-19-06.)
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2 | (30 ILCS 750/9-4.3) (from Ch. 127, par. 2709-4.3)
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3 | Sec. 9-4.3. Minority, veteran, female and disability | ||||||
4 | loans.
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5 | (a) In the making of loans for minority, veteran, female or | ||||||
6 | disability
small businesses, as defined below, the Department | ||||||
7 | is authorized to employ
different criteria in lieu of the | ||||||
8 | general provisions of subsections (b),
(d), (e), (f), (h), and | ||||||
9 | (i) of Section 9-4.
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10 | Minority, veteran, female or disability small businesses, | ||||||
11 | for the purpose of this
Section, shall be defined as small | ||||||
12 | businesses that are, in the Department's
judgment, at least 51% | ||||||
13 | owned and managed by one or more persons who are
minority, | ||||||
14 | female or disabled or who are veterans .
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15 | (b) Loans made pursuant to this Section:
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16 | (1) Shall not exceed $100,000 or 50% of the business | ||||||
17 | project costs
unless the Director of the Department | ||||||
18 | determines that a waiver of these
limits is required to | ||||||
19 | meet the purposes of this Act.
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20 | (2) Shall only be made if, in the Department's | ||||||
21 | judgment, the number of
jobs to be created or retained is | ||||||
22 | reasonable in relation to the loan funds
requested.
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23 | (3) Shall be protected by security. Financial | ||||||
24 | assistance may be
secured by first, second or subordinate | ||||||
25 | mortgage positions on real or
personal property, by royalty |
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1 | payments, by personal notes or guarantees, or
by any other | ||||||
2 | security satisfactory to the Department to secure | ||||||
3 | repayment.
Security valuation requirements, as determined | ||||||
4 | by the Department, for the
purposes of this Section, may be | ||||||
5 | less than required for similar loans not
covered by this | ||||||
6 | Section, provided the applicants demonstrate adequate
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7 | business experience, entrepreneurial training or | ||||||
8 | combination thereof, as
determined by the Department.
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9 | (4) Shall be in such principal amount and form and | ||||||
10 | contain such terms
and provisions with respect to security, | ||||||
11 | insurance, reporting, delinquency
charges, default | ||||||
12 | remedies, and other matters as the Department shall
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13 | determine appropriate to protect the public interest
and | ||||||
14 | consistent with the purposes of this Section. The terms and | ||||||
15 | provisions
may be less than required for similar loans not | ||||||
16 | covered by this Section.
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17 | (Source: P.A. 95-97, eff. 1-1-08.)
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18 | Section 99. Effective date. This Act takes effect upon | ||||||
19 | becoming law.
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