Full Text of SB0323 94th General Assembly
SB0323enr 94TH GENERAL ASSEMBLY
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| AN ACT concerning State government.
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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 adding | 5 |
| Section 9-4.7 as follows: | 6 |
| (30 ILCS 750/9-4.7 new)
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| Sec. 9-4.7. Military Reservist Business Assistance Loan | 8 |
| Program. | 9 |
| (a) As used in this Section: | 10 |
| "Period of military conflict" means (i) a period of war | 11 |
| declared by Congress; (ii) a period of national emergency | 12 |
| declared by Congress or by the President; or (iii) a period in | 13 |
| which a member of a reserve component of the armed forces of | 14 |
| the United States is ordered to active duty pursuant to Section | 15 |
| 12304 of Title 10 of the United States Code. | 16 |
| "Owner" means a person with at least a 20% ownership | 17 |
| interest in a small business.
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| "Key employee" means an individual who is employed by a | 19 |
| small business and whose managerial or technical expertise is | 20 |
| critical to the successful day-to-day operation of the | 21 |
| business.
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| "Small business" means a business with 50 or fewer | 23 |
| employees. | 24 |
| "Substantial economic injury" means an economic harm to a | 25 |
| small business that results in the inability of the small | 26 |
| business to (i) meet its obligations as they mature; (ii) pay | 27 |
| its ordinary and necessary operating expenses; or (iii) market, | 28 |
| produce, or provide a product or service.
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| (b) In the making of military reservist business assistance | 30 |
| loans, the Department is authorized to employ different | 31 |
| criteria in lieu of the general provisions of subsections (b), | 32 |
| (d), (e), (f), (h), and (i) of Section 9-4. |
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| (c) From funds appropriated for that purpose, the | 2 |
| Department shall administer a Military Reservist Business | 3 |
| Assistance Loan Program. The Director shall make loans to small | 4 |
| businesses (i) that lose an owner or a key employee due to a | 5 |
| period of military conflict and (ii) that will experience | 6 |
| substantial economic injury as a result of the loss of that | 7 |
| owner or key employee. | 8 |
| (d) The Department may accept grants, loans, or | 9 |
| appropriations from the federal government or from any private | 10 |
| entity to be used for the purposes of this program and may | 11 |
| enter into contracts and agreements in connection with those | 12 |
| grants, loans, or appropriations. | 13 |
| (e) Loans made pursuant to this Section:
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| (1) Shall not exceed $150,000. | 15 |
| (2) Shall have an interest rate below the market rate | 16 |
| loan percent. | 17 |
| (3) Shall have repayment terms determined by the | 18 |
| Department and that do not exceed 30 years. | 19 |
| (4) Shall be protected by security. Financial
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| assistance may be secured by first, second, or subordinate | 21 |
| mortgage positions on real or personal property, by royalty | 22 |
| payments, by personal notes or guarantees, or by any other | 23 |
| security satisfactory to the Department to secure | 24 |
| repayment. Security valuation requirements, as determined | 25 |
| by the Department, for the purposes of this Section, may be | 26 |
| less than required for similar loans not covered by this | 27 |
| Section, provided the applicant demonstrates adequate | 28 |
| business experience, entrepreneurial training, or a | 29 |
| combination thereof, as determined by the Department. | 30 |
| (5) Shall be in the principal amount and form and
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| contain the 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 | 35 |
| consistent with the purposes of this Section.
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| (f) The Department shall not award any loan under this |
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| Section to: (i) a small business or subsidiary of that business | 2 |
| that has already been awarded a loan under this Section within | 3 |
| the same fiscal year; or (ii) a small business that was awarded | 4 |
| a loan under this Section on which the balance remains unpaid.
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| (g) Within 30 days after the owner or key employee returns | 6 |
| to non-active duty status, arrangements shall be made for the | 7 |
| repayment of the loan.
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| Section 99. Effective date. This Act takes effect upon | 9 |
| becoming law. |
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