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1     AN ACT concerning State government.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Build Illinois Act is amended by changing
5 Section 9-4.2 and by adding Section 9-4.2a as follows:
 
6     (30 ILCS 750/9-4.2)  (from Ch. 127, par. 2709-4.2)
7     Sec. 9-4.2. Illinois Capital Revolving Loan Fund.
8     (a) There is hereby created the Illinois Capital Revolving
9 Loan Fund, hereafter referred to in this Article as the
10 "Capital Fund" to be held as a separate fund within the State
11 Treasury.
12     The purpose of the Capital Fund is to finance intermediary
13 agreements, administration, technical assistance agreements,
14 loans, grants, or investments in Illinois. In addition, funds
15 may be used for a one time transfer in fiscal year 1994, not to
16 exceed the amounts appropriated, to the Public Infrastructure
17 Construction Loan Revolving Fund for grants and loans pursuant
18 to the Public Infrastructure Loan and Grant Program Act.
19 Investments, administration, grants, and financial aid shall
20 be used for the purposes set for in this Article. Loan
21 financing will be in the form of loan agreements pursuant to
22 the terms and conditions set forth in this Article. All loans
23 shall be conditioned on the project receiving financing from
24 participating lenders or other investors. Loan proceeds shall
25 be available for project costs, except for debt refinancing.
26     (b) There shall be deposited in the Capital Fund such
27 amounts, including but not limited to:
28         (i) All receipts, including dividends, principal and
29     interest payments and royalties, from any applicable loan,
30     intermediary, or technical assistance agreement made from
31     the Capital Fund or from direct appropriations from the
32     Build Illinois Bond Fund or the Build Illinois Purposes

 

 

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1     Fund or the General Revenue Fund by the General Assembly
2     entered into by the Department;
3         (ii) All proceeds of assets of whatever nature received
4     by the Department as a result of default or delinquency
5     with respect to loan agreements made from the Capital Fund
6     or from direct appropriations by the General Assembly,
7     including proceeds from the sale, disposal, lease or rental
8     of real or personal property which the Department may
9     receive as a result thereof;
10         (iii) Any appropriations, grants or gifts made to the
11     Capital Fund;
12         (iv) Any income received from interest on investments
13     of moneys in the Capital Fund;
14         (v) All moneys resulting from the collection of
15     premiums, fees, charges, costs, and expenses described in
16     subsection (e) of Section 9-3.
17     (c) The Treasurer may invest moneys in the Capital Fund in
18 securities constituting obligations of the United States
19 Government, or in obligations the principal of and interest on
20 which are guaranteed by the United States Government, in
21 obligations the principal of and interest on which are
22 guaranteed by the United States Government, or in certificates
23 of deposit of any State or national bank which are fully
24 secured by obligations guaranteed as to principal and interest
25 by the United States Government.
26 (Source: P.A. 88-422.)
 
27     (30 ILCS 750/9-4.2a new)
28     Sec. 9-4.2a. Rural micro-business loans.
29     (a) In order to increase the growth of small rural
30 businesses, the rural micro-business loan program is created
31 and shall be administered by the Department of Commerce and
32 Economic Opportunity. This program shall help small businesses
33 that lack sufficient collateral or equity access funds at
34 competitive terms to help create or retain jobs, modernize
35 equipment or facilities, and maintain their competitiveness.

 

 

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1     (b) In the making of loans for rural micro-businesses, as
2 defined below, the Department is authorized to employ different
3 criteria in lieu of the general provisions of subsections (b),
4 (d), (e), (f), (h), and (i) of Section 9-4. The Department
5 shall adopt rules for the administration of this program.
6     For purposes of this Section, "rural micro-business" means
7 a business that: (i) employs 5 or fewer full-time employees,
8 including the owner if the owner is an employee, and (ii) is
9 based on the production, processing, or marketing of
10 agricultural products, forest products, cottage and craft
11 products, or tourism.
12     (c) The Department shall determine by rule the amount,
13 term, interest rate, and allowable uses of loans awarded under
14 this program, except that:
15         (1) The loan shall not exceed $25,000 or 50% of the
16     business project costs, unless the Director of the
17     Department determines that a waiver of these limits is
18     required to meet the purposes of this Act.
19         (2) The loan shall only be made if the Department
20     determines that the number of jobs to be created or
21     retained by the business is reasonable in relation to the
22     loan funds requested.
23         (3) The borrower shall provide a written statement of
24     the funds required to establish or support the business and
25     shall provide equity capital in an amount equal to 10% of
26     the first $10,000 of the required funds and equity capital,
27     other loans, or leveraged capital, or any combination
28     thereof, in an amount equal to 50% of any additional
29     required funds.
30         (4) The loan shall be in a principal amount and form
31     and contain terms and provisions with respect to security,
32     insurance, reporting, delinquency charges, default
33     remedies, and other matters that the Department determines
34     are appropriate to protect the public interest and are
35     consistent with the purposes of this Section. The terms and
36     provisions may be less than required for similar loans not

 

 

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1     covered by this Section.
2         (5) The Department shall award no less than 80% of the
3     amount available for this program for loans to businesses
4     that are located in counties with a population of 100,000
5     or less.
 
6     Section 99. Effective date. This Act takes effect upon
7 becoming law.