Full Text of HB5906 95th General Assembly
HB5906 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB5906
Introduced , by Rep. Ronald A. Wait - Elizabeth Coulson - Sidney H. Mathias - Ruth Munson - Brent Hassert, et al. SYNOPSIS AS INTRODUCED: |
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Amends the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois. Authorizes the Department of Commerce and Economic Opportunity to make participation loans to small businesses that are at least 51% owned and managed by one or more persons who are veterans for the purposes of promoting the creation of veteran-owned small businesses and promoting the creation of jobs within small businesses. Provides that a loan may not exceed $100,000 or 50% of the business project costs. Provides that a loan may be made only if, in the Department's judgment, the number of
jobs to be created is reasonable in relation to the loan funds
requested. Provides that a loan must be protected by security. Effective immediately.
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A BILL FOR
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HB5906 |
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LRB095 17868 DRJ 43948 b |
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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 Department of Commerce and Economic | 5 |
| Opportunity Law of the
Civil Administrative Code of Illinois is | 6 |
| amended by adding Section 605-530 as follows: | 7 |
| (20 ILCS 605/605-530 new) | 8 |
| Sec. 605-530. Veteran-owned small business loans. | 9 |
| (a) In this Section: | 10 |
| "Small business" means any for-profit business
in | 11 |
| Illinois, including, but not limited to, any sole | 12 |
| proprietorship,
partnership, corporation, joint venture, | 13 |
| association, or
cooperative, which is expected to have fewer | 14 |
| than
500 full-time employees. | 15 |
| "Veteran" means an Illinois resident who has served as a | 16 |
| member of the United States Armed Forces on active duty or | 17 |
| State active duty, a member of the Illinois National Guard, or | 18 |
| a member of the United States Reserve Forces and who has | 19 |
| received an honorable discharge. | 20 |
| "Veteran-owned small business" means a small business that | 21 |
| is, in the Department's
judgment, at least 51% owned and | 22 |
| managed by one or more persons who are veterans. | 23 |
| (b) The Department may make participation loans to |
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HB5906 |
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LRB095 17868 DRJ 43948 b |
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| veteran-owned small businesses for the purposes of promoting | 2 |
| the creation of veteran-owned small businesses and promoting | 3 |
| the creation of jobs within small businesses. A loan made under | 4 |
| this Section must meet the following requirements: | 5 |
| (1) The loan may not exceed $100,000 or 50% of the | 6 |
| business project costs
unless the Director determines that | 7 |
| a waiver of these
limits is required to meet the purposes | 8 |
| of this Section. | 9 |
| (2) The loan may be made only if, in the Department's | 10 |
| judgment, the number of
jobs to be created is reasonable in | 11 |
| relation to the loan funds
requested. | 12 |
| (3) The loan must be protected by security. Financial | 13 |
| assistance may be
secured by first, second, or subordinate | 14 |
| mortgage positions on real or
personal property, by royalty | 15 |
| payments, by personal notes or guarantees, or
by any other | 16 |
| security satisfactory to the Department to secure | 17 |
| repayment. | 18 |
| (4) The loan shall be in a principal amount and form | 19 |
| and contain terms
and provisions with respect to security, | 20 |
| insurance, reporting, delinquency
charges, default | 21 |
| remedies, and other matters that the Department determines | 22 |
| are appropriate to protect the public interest
and | 23 |
| consistent with the purposes of this Section. | 24 |
| (c) The Department shall adopt rules prescribing the form | 25 |
| and manner of applying for a loan under this Section and other | 26 |
| matters necessary for implementing this Section.
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HB5906 |
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LRB095 17868 DRJ 43948 b |
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| Section 99. Effective date. This Act takes effect upon | 2 |
| becoming law.
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