Full Text of HB6069 96th General Assembly
HB6069 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 HB6069
Introduced 2/11/2010, by Rep. Jerry L. Mitchell SYNOPSIS AS INTRODUCED: |
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30 ILCS 750/9-2 |
from Ch. 127, par. 2709-2 |
30 ILCS 750/9-4.3 |
from Ch. 127, par. 2709-4.3 |
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Amends the "Small Business Development Act" Article of the Build Illinois Act. Adds a definition of "veteran", and provides that small businesses that are at least 51% owned and managed by one or more persons who are veterans are eligible for loans from the Department of Commerce and Economic Opportunity on the same terms as minority, female, or disability small businesses. Effective immediately.
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A BILL FOR
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HB6069 |
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LRB096 20823 KTG 36590 b |
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| AN ACT concerning finance.
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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 | 5 |
| Sections 9-2 and 9-4.3 as follows:
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| (30 ILCS 750/9-2) (from Ch. 127, par. 2709-2)
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| 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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| (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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| approved by the Department whose purpose includes financing, | 16 |
| promoting, or
encouraging economic development.
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| (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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| (c) "Department" means the Illinois Department of Commerce
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| and
Economic Opportunity.
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| (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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| 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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| (e) "Qualified security" means any note, stock,
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| convertible security, treasury stock, bond, debenture,
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| evidence of indebtedness, limited partnership interest,
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| certificate of interest or participation in any profit-sharing
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| agreement, preorganization certificate or subscription,
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| transferable share, investment contract, certificate of
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| 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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| "security" or any certificate for, receipt for, guarantee of,
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| or option, warrant or right to subscribe to or purchase any
of |
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| 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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| (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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| small business.
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| (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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| moderate risk small business.
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| (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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| technology based small business.
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| (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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| risk, technology based small business.
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| (j) "Project" means any specific economic development
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| activity of a commercial, industrial, manufacturing,
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| agricultural, scientific, service or other business, the
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| 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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| 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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| (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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| (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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| (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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| (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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| (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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| (Source: P.A. 94-793, eff. 5-19-06.)
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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, veteran, female and disability | 4 |
| loans.
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| (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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| 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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| (b) Loans made pursuant to this Section:
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| (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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| (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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| (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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| 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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| business experience, entrepreneurial training or | 8 |
| combination thereof, as
determined by the Department.
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| (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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| 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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| (Source: P.A. 95-97, eff. 1-1-08.)
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| Section 99. Effective date. This Act takes effect upon | 19 |
| becoming law.
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