(30 ILCS 750/Art. 1 heading) Article 1
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(30 ILCS 750/1-1) (from Ch. 127, par. 2701-1)
Sec. 1-1.
This Act may be cited as the
Build Illinois Act.
(Source: P.A. 86-1475.)
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(30 ILCS 750/1-2) (from Ch. 127, par. 2701-2)
Sec. 1-2.
Findings and declaration of policy.
The General Assembly hereby finds, determines and declares:
(a) That Illinois is a State of diversified
economic strength;
(b) That the economic strength and climate of
Illinois derives from and depends upon a sound and modernized
infrastructure, strong and effective educational programs and
facilities and a clean and well cared for environment;
(c) That Illinois' economy is, however, in a state
of transition, which transition in turn presents a unique
opportunity for the State to act on its growth and development;
(d) That full and continued growth and development
of Illinois' economy is vital for Illinois if this State is
to move forward aggressively and to build on State and
national recovery thereby ensuring the continued growth and
development of Illinois' advantages and opportunities to its
citizens and its business community;
(e) That in order to cultivate this strong economic
growth and development in Illinois it is necessary to proceed
with a plan which improves the Illinois business climate so
as to encourage Illinois business to expand as well as
attract new businesses, which creates and expands job and job
training opportunities, which offers managerial, technical
and financial assistance to small businesses; and which works
in a cooperative venture and spirit with Illinois' business,
labor, local government and educational communities;
(f) That the State has a responsibility to create
a beneficial climate for new and improved job opportunities
for its citizens by encouraging the development of commercial
businesses and industrial and manufacturing plants in Illinois,
particularly within labor surplus areas;
(g) That the State has a responsibility to its
citizens to ensure that Illinois captures the advantages and
opportunities made possible by scientific and technological
innovation;
(h) That vigorous economic growth in the State
requires responsible and balanced stewardship of the State's
environmental and natural resources and protection of the
public health, with particular emphasis on management of
hazardous waste and wastewater discharges as well as chemical
safety by industrial and municipal facilities, for in a clean
and safe Illinois economic growth can be encouraged and sustained in a manner
which guarantees a healthy and prosperous
future for Illinois citizens;
(i) That a sound and comprehensive system of State
and local parks, recreational and nature areas is important
to the overall quality of life in Illinois, thereby facilitating the attraction
of new businesses and the retention of
existing businesses within the State of Illinois;
(j) That the colleges and universities of Illinois
are an important resource and partner to government and
industry in fostering economic development in Illinois and
that the research strengths of the State's colleges and
universities should be utilized to assist in the continued
development of Illinois' economy, particularly in view of the
growing role of innovative and rapidly changing science and
technology, which science and technology is becoming an ever
increasing part of the future economic base of this State and
the nation;
(k) That additional revenues must be made available to the General Revenue
Fund in order for the State to
establish the financing necessary to achieve the purposes of
this Act through an economical, balanced pay-as-you-go and limited
obligation bond program, without diminishing the State's ability to meet its
other responsibilities.
(Source: P.A. 84-109.)
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(30 ILCS 750/1-3) (from Ch. 127, par. 2701-3)
Sec. 1-3.
The following agencies, boards and entities of State government
may expend appropriations for the purposes contained in this Act: Department
of Natural Resources; Department of Agriculture; Illinois Finance
Authority; Capital Development Board; Department of Transportation; Department
of Central Management Services; Illinois Arts Council; Environmental Protection
Agency; State Board of Higher Education; the
Metropolitan Pier and
Exposition Authority; State Board of Education; Illinois Community College
Board; Board of Trustees of the University of Illinois; Board of
Trustees of Chicago State University; Board of Trustees of Eastern Illinois
University; Board of Trustees of Governors State University; Board of Trustees
of Illinois State University; Board of Trustees of Northeastern Illinois
University; Board of Trustees of Northern Illinois University; Board of
Trustees of Western Illinois University; and Board of Trustees of Southern
Illinois University.
(Source: P.A. 100-695, eff. 8-3-18.)
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(30 ILCS 750/Art. 2 heading) Article 2 (Repealed)(Repealed by P.A. 103-616.) |
(30 ILCS 750/Art. 3 heading) Article 3
(Repealed)(Source: Repealed by P.A. 102-1071, eff. 6-10-22)
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(30 ILCS 750/Art. 8 heading) Article 8
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(30 ILCS 750/8-1) (from Ch. 127, par. 2708-1)
Sec. 8-1.
Short Title.
This Article shall be
known and may be cited as the "Public Infrastructure Loan and
Grant Programs Act".
(Source: P.A. 88-453.)
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(30 ILCS 750/8-2) (from Ch. 127, par. 2708-2)
Sec. 8-2. Definitions. As used in this Article:
(a) "Department" means the Illinois Department of Commerce and
Economic Opportunity.
(b) "Local government" means any unit of local government as defined in
Article VII, Section 1 of the 1970 Illinois Constitution.
(c) "Business retention, development or expansion project"
means the expansion of an existing, for-profit commercial,
industrial, manufacturing, scientific, agricultural or
service business within Illinois, or the establishment of a
new such business on a site within Illinois, so long as the
business to be established is not relocating from another
site within the State, unless the relocation of such a business
will result in a substantial increase in employment or retention of an
existing such business.
(d) "Public infrastructure" means local roads and streets, access roads,
bridges, and sidewalks; waste disposal systems; water and sewer line extensions
and water distribution and purification facilities, and sewage treatment
facilities; rail or air or water port improvements; gas and electric utility
facilities; transit capital facilities; development
and improvement of publicly owned industrial and commercial
sites, or other public capital improvements which are an
essential precondition to a business retention, development or expansion
project for the purposes of the Business Development Public Infrastructure
Loan and Grant Program. "Public Infrastructure" also means capital
acquisitions, construction, and improvements to other local facilities and
sites, and associated permanent furnishings and equipment that are a necessary
precondition to local health, safety and economic development for purposes of
the Affordable Financing of Public Infrastructure Loan and Grant Program.
(e) "Local public entity" means any entity as defined by Section 1-206 of
the Local Governmental and Governmental Employees Tort Immunity Act.
(f) "Medical facility" and "public health clinic" mean any entity as defined
by subsections (a) and (c), respectively, of Section 6-101 of the Local
Governmental and Governmental Employees Tort Immunity Act.
(Source: P.A. 94-793, eff. 5-19-06.)
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(30 ILCS 750/8-3) (from Ch. 127, par. 2708-3)
Sec. 8-3. Powers of the Department. The Department has the power to:
(a) provide business development public infrastructure loans or grants
from appropriations from the Build Illinois Bond Fund, the Fund for Illinois' Future, and the Public Infrastructure
Construction Loan Fund to local governments to provide or improve a community's
public infrastructure so as to create or retain private sector jobs pursuant to
the provisions of this
Article;
(b) provide affordable financing of public infrastructure loans and grants
to, or on behalf of, local governments, local public entities, medical
facilities, and public health clinics from appropriations from the Public
Infrastructure Construction Loan Fund for the purpose of assisting with the
financing, or application and access to financing, of a community's public
infrastructure necessary to health, safety, and economic development;
(c) enter into agreements, accept funds or grants,
and engage in cooperation with agencies of the federal
government, or state or local governments to carry out the
purposes of this Article, and to use funds appropriated pursuant
to this Article to participate in federal infrastructure loan and
grant programs upon such terms and conditions as may be
established by the federal government;
(d) establish application, notification, contract,
and other procedures, rules, or regulations deemed necessary
and appropriate to carry out the provisions of this Article;
(e) coordinate assistance under this program with
activities of the Illinois Finance Authority in
order to maximize the effectiveness and efficiency of State
development programs;
(f) coordinate assistance under the Affordable Financing of Public
Infrastructure Loan and Grant Program with the activities of the
Illinois Finance Authority, Illinois Housing Development Authority, Illinois
Environmental Protection Agency, and other federal and State programs and
entities providing financing assistance to communities for public health,
safety, and economic development infrastructure;
(f-5) provide staff, administration, and related support required to
manage the programs authorized under this Article and pay for the staffing,
administration, and related support from the Public Infrastructure Construction
Loan Revolving Fund;
(g) exercise such other powers as are necessary or incidental to the
foregoing.
(Source: P.A. 93-205 (Sections 890-10, 890-34, and 890-43), eff. 1-1-04; 94-91, eff. 7-1-05.)
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(30 ILCS 750/8-4) (from Ch. 127, par. 2708-4)
Sec. 8-4.
Business Development Public Infrastructure Loans and Grants.
(a) The Department is authorized to provide loans,
on an interest-free or below market rate basis, or grants to
local governments in the State for the purpose of assisting
in financing the cost of acquisition, construction, reconstruction,
replacement, repair, rehabilitation, alteration, expansion, extension
or improvement of public infrastructure.
(b) Grants and loans are authorized for purposes
designated in this Section, but only when the applicant local
government demonstrates to the Department that it is unable
to finance the public infrastructure improvement solely from
local public or private revenue sources or funds.
(c) Public infrastructure financing under this Section
shall be used only where it can be shown that a business
development, retention or expansion project on account of which such
financing is being sought will substantially increase employment or retain
a substantial number of jobs. The Department shall not make a loan or grant
unless the application includes convincing evidence that a specific private
business development, retention or expansion project is ready to occur and will
only occur if the loan or grant is made.
(d) In addition to establishing the essential need
for financing of infrastructure to support a business development, retention
or expansion project, the applicant shall be required to
clearly document the employment that will occur or be retained as a result
of the project, the additional non-state financial resources
that will be used, and the overall financing need that exists
within the locality.
(e) The Department shall make the determination to
provide public infrastructure financing to local governments
on the basis of criteria established by the Department.
(Source: P.A. 88-453.)
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(30 ILCS 750/8-5) (from Ch. 127, par. 2708-5)
Sec. 8-5.
Application Procedures for Business Development Public
Infrastructure Loans and Grants. Application for funds shall be made in the
form and manner as the Department shall prescribe. Each application shall
address, at a minimum, the following criteria:
(a) The essential need, which must be clearly documented, for the public
infrastructure financing in order to secure a business development, retention
or expansion project within the community.
(b) The applicant's financing capability and its ability to pay for, or
secure the payment of, part or all of the proposed public infrastructure
improvements, and the local government's tax effort, as shown by local tax
rates relative to other local governments of the same type in the State.
(c) Local financing mechanisms available to help
pay for the costs of the public infrastructure project,
including, but not limited to, local revenue bonds, special
service area tax proceeds, local user charges, or applicable
federal loans or grants.
(d) Clear documentation that there will be a significant increase in
employment or a significant number of jobs retained as a result of the business
development, retention or expansion project, including assurances from the firm
undertaking the project relating to the number and type of jobs to be created
or retained.
(e) The proposed public infrastructure improvements,
which shall be described in detail and which shall
include a showing of their relationship to existing public
property and capital improvement plans, as well as the
pending business development or expansion project.
(f) Documentation that the public infrastructure financing will provide a
reasonable return, either through repayment of funds loaned through the program
or new or retained personnel or business income.
(g) Details regarding the firm undertaking the
business development, retention or expansion project, including the
company's history, future market prospects, actual and pro
forma income statements, employment projections, and related
details. Documentary materials or data regarding the firm or
its commercial or financial information shall be deemed confidential
and shall not be deemed public records; provided,
however, that information pertaining to the ownership of the
firm shall not be exempt under this Section from public
disclosure.
(h) Certification that the project is a business
development, retention or expansion project as defined herein.
(i) Certification that the community has a multi-year capital
improvement program, updated annually, which includes listings of specific
capital projects and specifies all sources of funds for each project, and
which is based on economic analysis of the costs and benefits of each
project and an analysis of the implications of each project for operating,
maintenance and repair costs, and shows each year what past projects have
been completed, which are pending, and which have been dropped from the capital
plan.
(Source: P.A. 88-453.)
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(30 ILCS 750/8-6) (from Ch. 127, par. 2708-6)
Sec. 8-6.
Business Development Public Infrastructure Loan and Grant
Conditions. Business Development Public Infrastructure loans and grants
awarded by the Department are subject to the following conditions:
(a) Financial assistance through the loans or grants must be used for public
infrastructure capital improvement projects.
(b) On Business Development Public Infrastructure loans, the Department
shall determine the interest rate, if any, which the loans shall bear. The
Department shall set the terms and conditions for repayment of the loans. The
repayment period of loans shall not exceed 20 years.
(c) Repayments of principal and interest on loans
made and any funds collected because of a default or failure
to comply with the terms or conditions of a loan under this
program shall be paid into the Public Infrastructure Construction
Loan Revolving Fund.
(d) The Department may take whatever actions are
necessary or appropriate to protect the State's interest in
the event of default, foreclosure or noncompliance with the
terms and conditions of the loans or grants provided under
this Article, including the power to sell, dispose, lease or rent,
upon terms and conditions deemed to be appropriate by the
Department, real or personal property which the Department
may receive as a result thereof.
(Source: P.A. 88-453.)
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(30 ILCS 750/8-7) (from Ch. 127, par. 2708-7)
Sec. 8-7.
Public Infrastructure Construction
Loan Revolving Fund. (a) There is hereby created within the
State Treasury the Public Infrastructure Construction Loan
Revolving Fund ("Fund"). The Department shall have the
authority to make expenditures from the Fund, pursuant to
appropriations in furtherance of the purposes of this Article.
The State Treasurer shall be custodian of the Fund and may
invest such funds in securities constituting direct obligations
of the United States Government, or in obligations the
principal of and interest on which are guaranteed by the
United States Government, or in certificates of deposit of
any State or national bank which are fully secured by obligations
guaranteed as to principal and interest by the United
States Government.
(b) There shall be deposited in the Fund such
amounts, including but not limited to:
(i) All receipts, including principal and interest
payments and royalties, from any loan agreement made from the
Fund or pursuant to this Article entered into by the Department;
(ii) All proceeds of assets of whatever nature
received by the Department as a result of default or delinquency
with respect to loan agreements made from the Fund or
from direct appropriations by the General Assembly, including
proceeds from the sale, disposal, lease or rental of real or
personal property which the Department may receive as a
result thereof;
(iii) Any appropriations, grants or gifts made to
the Fund;
(iv) Any income received from interest on investments
of moneys in the Fund.
(Source: P.A. 84-109.)
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(30 ILCS 750/8-8) (from Ch. 127, par. 2708-8)
Sec. 8-8.
Confidentiality.
Any documentary
materials or data made or received by any member, agent, or
employee of the Department, to the extent that such material
or data consist of trade secrets, or commercial or financial
information regarding the operation of any business conducted
by a beneficiary or recipient of any form of assistance which
the Department is empowered to render under this Article, or
regarding the competitive position of such business in a
particular field of endeavor, shall be deemed to be confidential
and shall not be deemed public records; provided that
information relating to the ownership of such recipient or
beneficiary shall not be exempt under this Section from
public disclosure requirements.
(Source: P.A. 84-109.)
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(30 ILCS 750/8-9) (from Ch. 127, par. 2708-9)
Sec. 8-9.
Federal Programs.
The Department is
authorized to accept and expend federal monies pursuant to this Article
except that the terms and conditions hereunder which are
inconsistent with or prohibited by the federal authorization
under which such monies are made available shall not apply
with respect to the expenditures of such monies.
(Source: P.A. 84-109.)
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(30 ILCS 750/8-10)
Sec. 8-10.
Affordable Financing of Public Infrastructure Loans and Grants.
(a) The Department is authorized to provide loans or grants to or on behalf
of local governments, local public entities, local medical facilities, and
local public health clinics for the purpose of making affordable the financing
of local public infrastructure improvements under the following conditions:
(1) Where the Department has determined that no other | ||
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(2) Where the Department has determined that other | ||
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(b) The Department is authorized to provide small project Affordable
Financing of Public Infrastructure loans. The Department shall determine the
interest rate, if any, which the loans shall bear. The repayment period for
small project loans shall not exceed 10 years. No small project loan shall
exceed $100,000 in principal amount. The Department shall not exceed
$5,000,000 in total small project loan balances outstanding at any time. The
Department is authorized to enter into cooperative agreements with other State
government public infrastructure financing entities for the purpose of reliance
upon their application, credit review, security, and loan closing procedures
for individual small project loans. Small project Affordable Financing of
Public Infrastructure loans may be provided under the following conditions:
(1) As the sole financing source when the Department | ||
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(2) As partial project financing in satisfaction of | ||
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(c) The Department is authorized to provide Affordable Financing of Public
Infrastructure interest subsidy grants to local governments, local public
entities, local medical facilities, and public health clinics having
successfully applied for public infrastructure project loan financing from
other State and federal financing programs and intermediaries. The Department
shall only provide public infrastructure interest subsidy grants to or on
behalf of projects where it has been determined that the interest subsidy is
warranted to make the total project's financing affordable.
(d) The Department is authorized to provide small project Affordable
Financing of Public Infrastructure grants to local governments, local public
entities, local medical facilities, and public health clinics of up to 25%
of the project costs where the Department has determined that affordable
financing is available for the balance of the project cost, but not for the
amount to be subject to the small project Affordable Financing of Public
Infrastructure grant. No small project grant shall exceed $100,000. The
Department shall not award more than $500,000 per fiscal year in small project
grants.
(e) The Department is authorized to provide Affordable Financing of Public
Infrastructure Credit Enhancement loans and grants to State public
infrastructure financing intermediaries on behalf of local governments, local
public entities, local medical facilities, and local public health clinics.
Affordable Financing of Public Infrastructure Credit Enhancement loans and
grants may be awarded to State public infrastructure financing intermediaries
for the purpose of purchasing letters of credit and other forms of credit
enhancements to allow the State public infrastructure financing intermediary
to expand the pool of financing, or reduce the cost of financing available to
local governments, local public entities, local medical facilities, and local
public health clinics to finance public infrastructure projects necessary to
local health, safety, and economic development. The Department shall not
award an amount of Affordable Financing of Public Infrastructure Credit
Enhancement grants which combined with the total of outstanding Affordable
Financing of Public Infrastructure Credit Enhancement loans exceeds $1,000,000
at any time.
(f) The Department is authorized to provide Affordable Financing of Public
Infrastructure Funding Reserve grants for the purpose of leveraging access to,
and financing costs of, funding available through other State public
infrastructure financing intermediaries. Affordable Financing of Public
Infrastructure Funding Reserve grants may only be awarded to State public
infrastructure financing intermediaries authorized to provide financing to
local governments, local public entities, local medical facilities, or local
public health clinics for the purposes of public infrastructure projects
necessary to community health, safety, and economic development. The proceeds
of Affordable Financing of Public Infrastructure Funding Reserve grants may
only be used by State public infrastructure financing intermediaries to
establish loss reserve funds intended to leverage access and financing costs of
the public infrastructure financing available for community public
infrastructure projects. Loss reserve funds shall be established pursuant to a
trust indenture executed for that purpose by the grantee financing intermediary
with a bank or trust company in the State of Illinois
designated by the Treasurer having trust powers and possessing capital and
surplus of not less than $25,000,000. The trust indenture shall limit the uses
of the reserve fund to the payment of realized losses experienced in the State
public infrastructure financing intermediary's community public infrastructure
financing program as shall be specified in the grant award and for the fees
and other costs of administering the loss reserve fund trust. Loss reserve
fund trusts funded from Affordable Financing of Public Infrastructure Funding
Reserve grants awarded by the Department shall not exceed 25% of the
total public infrastructure financing made available by the State public
infrastructure financing intermediary intended to be subject to the loss
reserve fund. The Department shall not in total award Affordable Financing of
Public Infrastructure Funding Reserve grants in excess of $1,000,000.
(Source: P.A. 88-453; 89-262, eff. 8-10-95.)
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(30 ILCS 750/8-11)
Sec. 8-11.
Application Procedures for Affordable Financing of Public
Infrastructure Loans and Grants. Application
for funds shall be made in the form and manner as the Department
shall prescribe. Each application shall address, at a
minimum, the following criteria:
(a) The essential need, which must be clearly documented, for the public
infrastructure financing in order to secure a health, safety or economic
development project within the community.
(b) The applicant's financing capability and its ability to pay for, or
secure the payment of, part or all of the proposed public infrastructure
improvements, and the local government's tax effort, as shown by local tax
rates relative to other local governments of the same type in the State.
(c) Local financing mechanisms available to help
pay for the costs of the public infrastructure project,
including, but not limited to, local revenue bonds, special
service area tax proceeds, local user charges, or applicable
federal loans or grants.
(d) The proposed public infrastructure improvements,
which shall be described in detail and which shall
include a showing of their relationship to existing public
property and capital improvement plans, as well as the
pending health, safety or economic development project.
(e) Certification that the project is a health, safety or economic
development project as defined in this Article.
(f) (Blank).
(Source: P.A. 88-453; 89-262, eff. 8-10-95.)
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(30 ILCS 750/8-12)
Sec. 8-12.
Affordable Financing of Public Infrastructure Loan and Grant
Conditions. Affordable Financing of Public
Infrastructure loans and grants awarded by the Department are
subject to the following conditions:
(a) Financial assistance through the loans or
grants must be used for the purposes specified in Section 8-10.
(b) On Affordable Financing of Public Infrastructure loans, the Department
shall determine the interest rate, if any, that the loans
shall bear. The Department shall set the terms and conditions
for repayment of the loans. The repayment period of loans
shall not exceed 20 years.
(c) Repayments of principal and interest on loans
made and any funds collected because of a default or failure
to comply with the terms or conditions of a loan under this
program shall be paid into the Public Infrastructure Construction
Loan Revolving Fund.
(d) The Department may take whatever actions are
necessary or appropriate to protect the State's interest in
the event of default, foreclosure or noncompliance with the
terms and conditions of the loans or grants provided under
this Article, including the power to sell, dispose, lease or rent,
upon terms and conditions deemed to be appropriate by the
Department, real or personal property that the Department
may receive as a result thereof.
(Source: P.A. 88-453.)
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(30 ILCS 750/Art. 9 heading) Article 9
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(30 ILCS 750/9-1) (from Ch. 127, par. 2709-1)
Sec. 9-1.
This Article shall be known and may
be cited as the "Small Business Development Act".
(Source: P.A. 84-109.)
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(30 ILCS 750/9-2) (from Ch. 127, par. 2709-2)
Sec. 9-2. Definitions. The following terms,
whenever used or referred to in this Article, shall have the
following meanings ascribed to them, except where the context
clearly requires otherwise:
(a) "Financial intermediary" means
a community development corporation, a state
development credit corporation, a development authority authorized to do
business by an act of this State, or other public or
private financing
institution
approved by the Department whose purpose includes financing, promoting, or
encouraging economic development.
(b) "Participating lender" means any trust company,
bank, savings bank, credit union, merchant bank, investment bank, broker,
investment trust, pension fund, building and loan association,
savings and loan association, insurance company, venture capital company or
other
institution approved by the Department which assumes a
portion of the financing for a business project.
(c) "Department" means the Illinois Department of Commerce
and
Economic Opportunity.
(d) "Small business" means any for-profit business
in Illinois including, but not limited to, any sole proprietorship,
partnership, corporation, joint venture, association or
cooperative, which has, including its affiliates, less than
500 full time employees, or is determined by the Department
to be not dominant in its field.
Business concerns are affiliates of one another
when either directly or indirectly (i) one concern controls
or has the power to control the other, or (ii) a third party
or parties controls or has the power to control both.
Control can be exercised through common ownership, common
management and contractual relationships.
(e) "Qualified security" means any note, stock,
convertible security, treasury stock, bond, debenture,
evidence of indebtedness, limited partnership interest,
certificate of interest or participation in any profit-sharing
agreement, preorganization certificate or subscription,
transferable share, investment contract, certificate of
deposit for a security, certificate of interest or participation
in a patent or application therefor, or in royalty or
other payments under such a patent or application, or, in
general, any interest or instrument commonly known as a
"security" or any certificate for, receipt for, guarantee of,
or option, warrant or right to subscribe to or purchase any
of the foregoing, but not including any instrument which
contains voting rights or can be converted to contain voting
rights in the possession of the Department.
(f) "Loan agreement" means an agreement
or contract to provide a loan or accept a mortgage or to
purchase qualified securities or other means whereby financial
aid is made available to a start-up, expanding, or mature, moderate risk
small business.
(g) "Loan" means a loan or acceptance
of a mortgage or the purchase of qualified securities or
other means whereby financial aid is made to a start-up, expanding, or
mature,
moderate risk small business.
(h) "Equity investment agreement" means an agreement
or contract to provide a loan or accept a mortgage or to
purchase qualified securities or other means whereby financial
aid is made available to or on behalf of a young, high risk,
technology based small business.
(i) "Equity investment" means a loan or acceptance
of a mortgage or the purchase of qualified securities
or other means whereby financial aid is made to or on behalf of a young,
high
risk, technology based small business.
(j) "Project" means any specific economic development
activity of a commercial, industrial, manufacturing,
agricultural, scientific, service or other business, the
result of which is expected to yield an increase in or retention of jobs
or
the modernization or improvement of competitiveness of firms and may include
working capital financing, the purchase or lease of machinery
and equipment, or the lease or purchase of real property but
does not include refinancing current debt.
(k) "Technical assistance agreement" means an agreement or contract or
other means whereby financial aid is made available to not-for-profit
organizations for the purposes outlined in Section 9-6 of this Article.
(l) "Financial intermediary agreement" means an agreement or contract
to provide a loan, investment, or other financial aid to a financial
intermediary for the purposes outlined in Section 9-4.4 of this Article.
(m) "Equity intermediary agreement" means an agreement or contract to
provide a loan, investment, or other financial aid to a financial intermediary
for the purposes outlined in Section 9-5.3 of this Article.
(n) "Other investor" means a venture capital
organization or association; an investment partnership, trust
or bank; an individual, accounting partnership or corporation
that invests funds, or any other entity which provides debt
or equity financing for a business project.
(o) "Veteran" means an Illinois resident who has served as a member of the United States Armed Forces on active duty or State active duty, a member of the Illinois National Guard, or a member of the United States Reserve Forces and who has received an honorable discharge. (Source: P.A. 96-1106, eff. 7-19-10.)
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(30 ILCS 750/9-3) (from Ch. 127, par. 2709-3)
Sec. 9-3. Powers and duties. The Department
has the power:
(a) To make loans or equity investments to small | ||
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(b) To make loans to or investments in businesses | ||
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(c) To enter into interagency agreements, accept | ||
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(d) To enter into contracts, financial intermediary | ||
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(e) To fix, determine, charge and collect any | ||
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(f) To establish application, notification, contract, | ||
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(g) To consent, subject to the provisions of any | ||
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(h) To take whatever actions are necessary or | ||
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(i) To deposit any "Qualified Securities" which have | ||
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(j) To assist small businesses that seek to apply for | ||
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(k) To provide for staff, administration, and related | ||
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(l) To exercise such other powers as are necessary or | ||
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(Source: P.A. 99-933, eff. 1-27-17; 100-377, eff. 8-25-17; 100-863, eff. 8-14-18.)
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(30 ILCS 750/9-4) (from Ch. 127, par. 2709-4)
Sec. 9-4. Intermediary agreements and loans. Any loan made pursuant to this
Article shall:
(a) Be made only if a participating lender or other | ||
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(b) Finance no more than the lesser of 25% of the | ||
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(c) Be made only if the Department determines, on the | ||
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(d) Be protected by security which may include, as | ||
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(e) Be in such amount and form and contain such terms | ||
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(f) Be made to a business approved by the Department | ||
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(g) Be reviewed by the credit review committee | ||
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(h) Be made only after the Department has made a | ||
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(i) Be made with businesses that have certified the | ||
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(Source: P.A. 100-377, eff. 8-25-17.)
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(30 ILCS 750/9-4.1) (from Ch. 127, par. 2709-4.1)
Sec. 9-4.1. Applications for
loans. All applications for loans to small
businesses shall be submitted to the Department on forms and
subject to filing fees prescribed by the Department. The
Department shall conduct such investigation and obtain such
information concerning the application as it considers
necessary and diligent. Complete applications received by
the Department shall be forwarded to a credit review committee
consisting of persons experienced in business financing, and
the Director of the
Governor's Office of Management and Budget or his designee, for
a review and report concerning the advisability of approving
the proposed loan. The review and report shall include facts
about the company's history, job opportunities, stability of
employment, past and present condition and structure, actual
and pro-forma income statements, present and future market
prospects and management qualifications, and any other facts
deemed material to the financing request. The report shall include
a reasoned opinion as to whether providing the financing
would tend to fulfill the purposes of the Article. The report
shall be advisory in nature only. The credit review committee
shall be of such composition, act for such time, and
have such powers as shall be specified by the Department.
After consideration of such report and after such
other action as is deemed appropriate, the Department shall
approve or deny the application. If the Department approves
the application, its approval shall specify the amount of
funds to be provided by the Department loan agreement provisions.
The business applicant shall be promptly notified of
such action by the Department.
(Source: P.A. 94-793, eff. 5-19-06.)
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(30 ILCS 750/9-4.2) (from Ch. 127, par. 2709-4.2)
Sec. 9-4.2. Illinois Capital Revolving Loan Fund.
(a) There is hereby created the Illinois Capital
Revolving Loan Fund, hereafter referred to in this Article as the
"Capital Fund" to be held as a separate fund within the State
Treasury.
The purpose of the Capital Fund is to finance intermediary agreements,
administration, technical assistance agreements,
loans, grants, or investments in Illinois. In addition, funds may be
used
for a one time transfer in fiscal year 1994, not to exceed the amounts
appropriated, to the Public Infrastructure Construction Loan Revolving Fund for
grants and loans pursuant to the Public Infrastructure Loan and Grant Program
Act. Investments, administration,
grants, and financial aid shall be used for the purposes set for in this
Article. Loan financing will be in the
form of
loan agreements pursuant to the terms and conditions set
forth in this Article. All loans shall be conditioned on the
project receiving financing from participating lenders or other investors.
Loan
proceeds shall be available for project costs, except for
debt refinancing.
(b) There shall be deposited in the Capital Fund
such amounts, including but not limited to:
(i) All receipts, including dividends, principal and | ||
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(ii) All proceeds of assets of whatever nature | ||
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(iii) Any appropriations, grants or gifts made to the | ||
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(iv) Any income received from interest on investments | ||
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(v) All moneys resulting from the collection of | ||
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(c) The Treasurer may invest moneys in the Capital
Fund in securities constituting obligations of the United
States Government, or in obligations the principal of and
interest on which are guaranteed by the United States Government,
in obligations the principal of and interest on which
are guaranteed by the United States Government, or in certificates
of deposit of any State or national bank which are
fully secured by obligations guaranteed as to principal and
interest by the United States Government.
(Source: P.A. 102-1071, eff. 6-10-22.)
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(30 ILCS 750/9-4.2a) Sec. 9-4.2a. Rural micro-business loans.
(a) In order to increase the growth of small rural businesses, the rural micro-business loan program is created and shall be administered by the Department of Commerce and Economic Opportunity, subject to appropriation. This program shall help small businesses that lack sufficient collateral or equity access funds at competitive terms to help create or retain jobs, modernize equipment or facilities, and maintain their competitiveness. (b) In the making of loans for rural micro-businesses, as defined below, the Department is authorized to employ different criteria in lieu of the general provisions of subsections (b), (d), (e), (f), (h), and (i) of Section 9-4. The Department shall adopt rules for the administration of this program. For purposes of this Section, "rural micro-business" means a business that: (i) employs 5 or fewer full-time employees, including the owner if the owner is an employee, and (ii) is based on the production, processing, or marketing of agricultural products, forest products, cottage and craft products, or tourism. (c) The Department may determine by rule the amount, term, interest rate, and allowable uses of loans awarded under this program, except that: (1) The loan shall not exceed $25,000 or 50% of the | ||
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(2) The loan shall only be made if the Department | ||
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(3) The borrower shall provide a written statement of | ||
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(4) The loan shall be in a principal amount and form | ||
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(5) The Department shall award no less than 80% of | ||
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(Source: P.A. 103-363, eff. 7-28-23.) |
(30 ILCS 750/9-4.3) (from Ch. 127, par. 2709-4.3) (Text of Section before amendment by P.A. 103-1051) Sec. 9-4.3. Minority, veteran, female and disability loans. (a) In the making of loans for minority, veteran, female or disability
small businesses, as defined below, the Department is authorized to employ
different criteria in lieu of the general provisions of subsections (b),
(d), (e), (f), (h), and (i) of Section 9-4. Minority, veteran, female or disability small businesses, for the purpose of this
Section, shall be defined as small businesses that are, in the Department's
judgment, at least 51% owned and managed by one or more persons who are
minority or female or who have a disability or who are veterans. (b) Loans made pursuant to this Section: (1) Shall not exceed $400,000 or 50% of the business | ||
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(2) Shall only be made if, in the Department's | ||
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(3) Shall be protected by security. Financial | ||
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(4) Shall be in such principal amount and form and | ||
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(Source: P.A. 99-143, eff. 7-27-15; 100-377, eff. 8-25-17.) (Text of Section after amendment by P.A. 103-1051) Sec. 9-4.3. Minority, veteran, female and disability loans. (a) In the making of loans for minority, veteran, female or disability small businesses, as defined below, the Department is authorized to employ different criteria in lieu of the general provisions of subsections (b), (d), (e), (f), (h), and (i) of Section 9-4. Minority, veteran, female or disability small businesses, for the purpose of this Section, shall be defined as small businesses that are, in the Department's judgment, at least 51% owned and managed by one or more persons who are minority or female or who have a disability or who are veterans. (b) Loans made pursuant to this Section: (1) Shall not exceed $2,000,000 or 50% of the | ||
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(2) Shall only be made if, in the Department's | ||
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(3) Shall be protected by security. Financial | ||
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(4) Shall be in such principal amount and form and | ||
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(5) Notwithstanding anything in this Act to the | ||
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(Source: P.A. 103-1051, eff. 1-1-25.) |
(30 ILCS 750/9-4.4)
Sec. 9-4.4.
Financial intermediary agreements.
(a) The Department is authorized to exercise its powers and duties set forth
in this Article through various financial intermediary agreements to assist
young firms, including business start-ups and micro-enterprises; mature
firms,
including industrial expansions, modernizations, or environmental upgrades; and
other targeted credit disadvantaged firms identified by the Department.
(b) A financial intermediary agreement may include, but is not limited to,
participation agreements in which the Department purchases an undivided
interest in an otherwise qualifying loan made by a participating lender; seed
financing or capitalization of revolving pools of money for lending or
investing in
third parties; financial aid for one or more credit enhancement pools of
political subdivisions of the State; or financial aid for loan loss reserve
accounts or certificates, provided the loss reserve accounts or certificates
are established pursuant to a trust indenture executed for that purpose by a
financial intermediary with a bank or trust company in the State of Illinois
designated by the State Treasurer having trust powers.
(Source: P.A. 88-422.)
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(30 ILCS 750/9-4.5)
Sec. 9-4.5. (Repealed).
(Source: P.A. 88-670, eff. 12-2-94. Repealed by P.A. 100-621, eff. 7-20-18.)
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(30 ILCS 750/9-4.6)
Sec. 9-4.6.
Financial intermediary applications.
(a) Before implementing any financial intermediary program component, the
Department may establish rules including, but not limited to, application,
review, and approval procedures; form of documentation, servicing, and default
conditions; the disposition of any assets remaining, subsequent to or resulting
from an intermediary agreement; and procedures, forms, and manner or approval
of third party applications.
(b) Applications for funds for financial intermediary agreements may
include, but shall not be limited to, history and mission of the applicant;
needs to be served, which shall be consistent with the purpose of this Article;
products, services, and results expected from the effort; staffing, management,
and operational procedures; and budget request and capitalization of the
effort.
(c) The Department shall review the intermediary applications to determine
the viability of the applicant, the consistency of the proposed project with
the purposes of this Article, the economy benefits expected to be derived
therefrom, the prospects for continuation of the project after Departmental
assistance has been provided, and other issues that may be considered
necessary.
(d) As a part of an intermediary agreement, the Department may provide for,
and the Department is authorized to rely upon, the financial intermediary to
undertake on behalf of the State the review and approval of the credit,
collateral security, and documentation; determination of eligibility; the
collection and use of fees, premiums, or charges; the organization, servicing,
and disbursement of financial assistance; and any other purposes and
activities that the Department determines to be reasonable, appropriate, and
consistent with the purposes of this Article.
(e) The Department shall require as a condition of an intermediary agreement
that the financial intermediary cause to be prepared at least annual
transaction reports detailing the activities of the program including, the
number and type of firms and amount of financing provided.
(Source: P.A. 88-422; 88-670, eff. 12-2-94.)
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(30 ILCS 750/9-4.7)
Sec. 9-4.7. Military Reservist Business Assistance Loan Program. (a) As used in this Section: "Period of military conflict" means (i) a period of war declared by Congress; (ii) a period of national emergency declared by Congress or by the President; or (iii) a period in which a member of a reserve component of the armed forces of the United States is ordered to active duty pursuant to Section 12304 of Title 10 of the United States Code. "Owner" means a person with at least a 20% ownership interest in a small business.
"Key employee" means an individual who is employed by a small business and whose managerial or technical expertise is critical to the successful day-to-day operation of the business.
"Small business" means a business with 50 or fewer employees. "Substantial economic injury" means an economic harm to a small business that results in the inability of the small business to (i) meet its obligations as they mature; (ii) pay its ordinary and necessary operating expenses; or (iii) market, produce, or provide a product or service.
(b) In the making of military reservist business assistance loans, the Department is authorized to employ different criteria in lieu of the general provisions of subsections (b), (d), (e), (f), (h), and (i) of Section 9-4. (c) From funds appropriated for that purpose, the Department shall administer a Military Reservist Business Assistance Loan Program. The Director shall make loans to small businesses (i) that lose an owner or a key employee due to a period of military conflict and (ii) that will experience substantial economic injury as a result of the loss of that owner or key employee. (d) The Department may accept grants, loans, or appropriations from the federal government or from any private entity to be used for the purposes of this program and may enter into contracts and agreements in connection with those grants, loans, or appropriations. (e) Loans made pursuant to this Section:
(1) Shall not exceed $150,000. (2) Shall have an interest rate below the market rate | ||
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(3) Shall have repayment terms determined by the | ||
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(4) Shall be protected by security. Financial | ||
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(5) Shall be in the principal amount and form and | ||
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(f) The Department shall not award any loan under this Section to: (i) a small business or subsidiary of that business that has already been awarded a loan under this Section within the same fiscal year; or (ii) a small business that was awarded a loan under this Section on which the balance remains unpaid.
(g) Within 30 days after the owner or key employee returns to non-active duty status, arrangements shall be made for the repayment of the loan.
(Source: P.A. 94-485, eff. 8-8-05.) |
(30 ILCS 750/9-4.8) Sec. 9-4.8. State Small Business Credit Initiative Fund. (a) There is hereby created the State Small Business Credit Initiative Fund, also referred to in this Article as the "SSBCI Fund", as a special fund in the State treasury. The purpose of the SSBCI Fund is to finance intermediary agreements, administration, technical assistance agreements, loans, grants, or investments in Illinois. Investments, administration grants, and financial aid shall be used for the purposes set forth in this Article. Loan financing shall be in the form of loan agreements pursuant to the terms and conditions set forth in this Article. All loans shall be conditioned on the project receiving financing from participating lenders or other investors. (b) The following amounts shall be deposited into the SSBCI Fund: (1) all receipts, including dividends, principal and | ||
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(2) all proceeds of assets of whatever nature | ||
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(3) any appropriations, grants, or gifts made to the | ||
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(4) any income received from interest on investments | ||
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(5) all moneys resulting from the collection of | ||
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(c) The Treasurer may invest moneys in the SSBCI Fund in securities constituting obligations of the United States Government, or in obligations the principal of and interest on which are guaranteed by the United States Government, or in certificates of deposit of any State or national bank which are fully-secured by obligations guaranteed as to principal and interest by the United States Government.
(Source: P.A. 100-377, eff. 8-25-17.) |
(30 ILCS 750/9-5) (from Ch. 127, par. 2709-5)
Sec. 9-5.
Equity Investments.
Any equity investment shall:
(a) Be made only if a participating lender or
other investor also provides a portion of the financing with
respect to the project. The participating lender's or other
investor's financing may be in the form of an equity position,
convertible debt, convertible preferred stock, loan, letter
of credit, guarantee, bond purchase or any other form approved
by the Department;
(b) Finance no more than the lesser of 33 1/3%
of the total amount of any single
project or $250,000 for any single project unless such
limitations are waived by the Director upon a finding that
such waiver is appropriate to accomplish the purposes of this Article;
(c) Be made only if the Department determines,
on the basis of all the information available to it, that the
project would not be undertaken unless the equity investment is provided;
(d) Be protected by adequate security on equity investment
agreements issued by the Department. Equity investment agreements may be
secured by first or second mortgage positions on real or
personal property, by royalty payments, by personal notes or
guarantees, or by any other security satisfactory to the
Department to secure payment of the equity investment;
(e) Be in such principal amount and form, and
contain such terms and provisions with respect to the property
insurance, repairs, alterations, payment of taxes and assessments,
delinquency charges, default remedies, additional
security and other matters as the Department shall determine
adequate to protect the public interest;
(f) Be made to an eligible small business approved
by the Department as responsible and creditworthy;
(g) Be reviewed by the credit review committee
established by the Department pursuant to this Article;
(h) Be made only after the Department has made a
determination that the loan or investment agreement will
cause a project to be undertaken which has the potential to
create substantial employment in relation to the principal
amount of the loan or investment;
(i) Be made for a small business that has certified
the project is a new plant start-up or expansion or a new
venture opportunity and is not an area relocation of an
existing business from another site within Illinois unless
that relocation provides substantial employment growth;
(j) Be made for a small business which agrees: to at all times keep
proper books of record and account in accordance with generally accepted
accounting principles consistently applied, and agree that the Department
is authorized to make or cause to be made, in such manner and at such times
as the Department may reasonably require but subject to Section 9-8 of this
Act, (i) inspection and audits of any books, records and papers in the
custody or control of the small business or others, relating to the small
business's financial or business conditions, including without limitation
the making of copies thereof and extracts therefrom, and (ii) inspection
and appraisals of any of the small business's assets, authorizations to all
federal, State and municipal authorities and officials to furnish reports
of examinations, records and other information relating to the conditions
and affairs of the small business and any information from reports,
returns, files and records of such authorities upon written request to the
small business by the Department;
(k) Be made only to a small business which agrees that if at any time
after the Department has made an equity investment, whatever the reason for
such event and whether it shall be voluntary or involuntary or be effected
by operation of law or pursuant to any court or any order, rule or
regulation of any governmental or non-governmental body the small business
shall (a) commence a voluntary case under the federal bankruptcy laws (as
now or hereafter in effect), (b) file a petition seeking to take advantage
of any other laws, domestic or foreign, relating to bankruptcy, insolvency,
reorganization, composition, winding up or adjustment of debts, (c) consent
to or fail to contest in a timely and appropriate manner any petition filed
against it in an involuntary case under such bankruptcy or similar laws,
(d) apply for or consent to, or fail to contest in a timely and appropriate
manner, the appointment of, or the taking of possession by, a receiver,
custodian, trustee or liquidator of itself or of a substantial part of its
property, (e) admit in writing its inability to pay, or generally not be
paying, its debts as they become due, (f) make a general assignment for the
benefit of creditors; then, and in every such event, in the case of any of
the events specified in clauses (a) through (f) above, without any notice
to the small business or any other act by the Department, the small
business (or an entity acting on its behalf) shall immediately become
obligated to purchase or redeem, and the Department shall immediately
become obligated to sell or surrender for redemption,
all such shares from the Department.
(Source: P.A. 84-1124.)
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(30 ILCS 750/9-5.1) (from Ch. 127, par. 2709-5.1)
Sec. 9-5.1. Applications for Illinois Equity
Investments.
(a) All applications for the Illinois Equity
Investments to or on behalf of
small businesses shall be submitted to the Department on
forms and subject to filing fees prescribed by the Department.
For business project applications, the Department shall conduct such
investigation and obtain
such information concerning the application as it deems necessary and
diligent. Complete applications
received by the Department shall be forwarded to an outside
credit review committee consisting of persons experienced in
new venture equity financing and the Director of the
Governor's Office of Management and Budget, or his or her
designee, for small business for a
review and report concerning the advisability of approving
the proposed investment. The review and report shall include facts
about the company's history, job opportunities, stability of
employment, past and present condition and structure, actual
and pro-forma income statements, present and future market
prospects and management qualifications, and any other facts
deemed material to the financing request. The report shall be
advisory in nature only and shall include a reasoned opinion
as to whether providing the financing would tend to fulfill
this purpose of the Act. Except for the Director of the
Governor's Office of Management and Budget or his or her designee, the Department may
utilize the services of existing outside organizations as the
credit review committee.
(b) For equity intermediary agreements, applications may include, but
shall not be limited to, history and mission of the applicant; needs to be
served, which shall be consistent with the purpose of this subsection;
products,
services, and results expected from the effort; staffing, management, and
operational procedures; and budget request and capitalization of the effort.
The Department shall review the intermediary applications to determine the
viability of the applicant, the consistency of the proposed project with the
purposes of this Article, the economic benefits expected to be derived
therefrom, the prospects for continuation of the project after Departmental
assistance has been provided, and other issues that may be considered
necessary.
(c) The Department shall, on the basis of the application,
the report of the credit review committee, and any
other appropriate information, prepare a report concerning the
credit-worthiness of the proposed borrower or intermediary, the financial
commitment of the participating lender or other investor, the
manner in which the proposed small business or intermediary project will
advance the economy of the State, and the soundness of the
proposed equity investment or intermediary agreement.
After consideration of such report and after such
other action as it deems appropriate, the Department shall
approve or deny the application. If the Department approves
the application, its approval shall specify the amount of
funds to be provided and the Department equity investment
agreement provisions.
The small business or intermediary applicant shall be promptly
notified of such action by the Department.
(Source: P.A. 94-793, eff. 5-19-06.)
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(30 ILCS 750/9-5.2) (from Ch. 127, par. 2709-5.2)
Sec. 9-5.2. Illinois Equity
Fund. (a) There is created the Illinois Equity
Fund, to be held as a separate fund within the State Treasury.
The purpose of the Illinois Equity Fund is to make equity investments in
Illinois. All financing will be done in conjunction with
participating lenders or other investors. Investment proceeds
may be directed to working capital expenses associated with
the introduction of new technical products or services of individual business
projects or may be used for equity finance pools operated by intermediaries.
(b) There shall be deposited in the Illinois Equity Fund
such amounts, including but not limited to:
(i) All receipts including dividends, principal and | ||
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(ii) All proceeds of assets of whatever nature | ||
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(iii) any appropriations, grants or gifts made to the | ||
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(iv) any income received from interest on investments | ||
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(c) The Treasurer may invest moneys in the Illinois Equity
Fund in securities constituting direct obligations of the
United States Government, or in obligations the principal of
and interest on which are guaranteed by the United States
Government, or in certificates of deposit of any State or
national bank which are fully secured by obligations guaranteed
as to principal and interest by the United States Government.
(Source: P.A. 102-1071, eff. 6-10-22.)
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(30 ILCS 750/9-5.3)
Sec. 9-5.3.
Equity intermediary agreements.
(a) The Department is authorized to exercise its powers and
duties set forth
in this Article through equity intermediary agreements to assist young, high
risk, technology based firms, including business start-ups.
(b) An equity intermediary agreement may include seed financing or
capitalization of one or more equity investment pools managed by a financial
intermediary, provided that the assistance is used for investing in third
parties.
(c) The Department is authorized to rely upon the financial intermediary to
determine the portion of the equity investment requirements of the third party
recipient to be financed and upon the documentation and analysis standards of
the
intermediary instead of the requirements of subsection (b) of Section 9-5.1,
provided
that other organizations have contributed substantially to the capitalization
of the equity pool.
(Source: P.A. 88-422.)
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(30 ILCS 750/9-6) (from Ch. 127, par. 2709-6)
Sec. 9-6.
Technical Assistance Grants.
Any grant made pursuant to this
Article shall:
(a) Be made only if a recipient not-for-profit organization also provides a
portion of the financing with respect to the technical assistance project. The
participating not-for-profit organization's financing may be in the form of
cash or in-kind services or any other form approved by the Department;
(b) Be made only if the Department determines, on the basis of all
information available to it, that the technical assistance project would not be
undertaken unless the grant is provided;
(c) Be made only after the Department has made a determination that the
grant will cause a technical assistance project to be undertaken which has the
potential to improve the capital marketplace structure or to reduce information
barriers that are impediments to the flow of capital.
(Source: P.A. 88-422.)
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(30 ILCS 750/9-6.1) (from Ch. 127, par. 2709-6.1)
Sec. 9-6.1.
Applications for grants.
(a) All applications for grants to not-for-profit organizations shall be submitted to the Department on forms prescribed by the Department. The
Department shall conduct such investigation and obtain such
information concerning the application as it deems
necessary and diligent.
(b) Each application shall at minimum address the proposed work plans,
timelines, objectives, and results of the project, the persons responsible for
administering the effort, the costs of completing the proposed effort, and
other documentation that may be necessary.
(c) After conducting the investigation and after such
other action as is deemed appropriate, including determination that a
not-for-profit organization's proposed project is in compliance with the
provisions of this Article and subsection, the Department shall
approve or deny the application. If the Department approves
the application, its approval shall specify the amount of
grants to be provided by the Department.
The applicant shall be promptly notified of
such action by the Department.
(d) The Department shall establish reporting mechanisms and other
informational requirements of the participants to track performance of eligible
grant
activities, report actual operating expenses, and provide a narrative report of
eligible grant activities and accomplishments.
(Source: P.A. 88-422.)
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(30 ILCS 750/9-7) (from Ch. 127, par. 2709-7)
Sec. 9-7.
Hold Harmless.
Nothing in this Article
shall be construed as creating any rights of a competitor of
an approved borrower or any applicant whose application is
denied by the Department to challenge any application which
is accepted by the Department and any loan or other agreement
executed in connection therewith.
(Source: P.A. 84-109.)
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(30 ILCS 750/9-8) (from Ch. 127, par. 2709-8)
Sec. 9-8.
Confidentiality.
Any documentary
materials or data made or received by any member, agent or
employee of the Department, to the extent that such material
or data consists of trade secrets, commercial, or financial
information regarding the operation of any enterprise
conducted by an applicant for, or a recipient of, any form
of assistance which the Department is empowered to render
under this Article, or regarding the competitive position of
such enterprise in a particular field of endeavor, shall be
deemed to be confidential and shall not be deemed public
records; provided, however, that if the Department purchases
a qualified security from such enterprise, the commercial
and financial information, excluding trade secrets, shall be
deemed to become a public record of the Department after the
expiration of three years from the later of the date of purchase of such
qualified security or the date of receipt of such information by the
Department to the extent that such information is available to
the holder of such qualified security.
(Source: P.A. 88-422.)
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(30 ILCS 750/9-9) (from Ch. 127, par. 2709-9)
Sec. 9-9.
Annual Report.
On January 1 of
each year, the Department shall report on its operations of
the Illinois Capital Revolving Loan Fund and the Illinois
Equity Fund for the preceding fiscal year to the Governor
and the General Assembly.
(Source: P.A. 84-109.)
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(30 ILCS 750/9-10) (from Ch. 127, par. 2709-10)
Sec. 9-10. Federal Programs. (a) The Department is
authorized to accept and expend federal moneys pursuant to
this Article except that the terms and conditions hereunder
which are inconsistent with, prohibited by, or more restrictive than the federal
authorization under which such moneys are made available
shall not apply with respect to the expenditure of such
moneys. (b) The Department is authorized to receive and expend federal funds made available pursuant to the federal State Small Business Credit Initiative Act of 2010 as amended by Section 3301 of the federal American Rescue Plan Act of 2021, enacted in response to the COVID-19 public health emergency. (1) Such funds may be deposited into the State Small | ||
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(2) Permitted purposes include to provide support to | ||
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(3) Terms such as "business enterprise owned and | ||
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(4) The Department may use such funds to enter into | ||
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(Source: P.A. 102-16, eff. 6-17-21.)
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(30 ILCS 750/9-11)
Sec. 9-11. Port Development Revolving Loan Program.
(1) There is created in the State Treasury the Port Development Revolving
Loan Fund, referred to in this Section as the Fund. Moneys in the Fund may
be appropriated for the purposes of the
Port Development Revolving Loan Program created by this Section to be
administered by the Department of Commerce and Economic Opportunity in order to
facilitate and enhance the
utilization of Illinois' navigable waterways or the development of inland
intermodal freight facilities or both. The Department may adopt rules
for the administration of the Program.
The General Assembly may make appropriations for the purposes
of the Program.
Repayment of loans made to individual
port districts shall be paid back into the Fund to establish an ongoing
revolving loan fund to facilitate continuing port development activities in the
State.
(2) Loan funds from the Program shall be made available to Illinois port
districts on a competitive basis. In order to obtain assistance under the
Program, a port district must submit a comprehensive application to the
Department for consideration.
Projects eligible for funding under the Program must be intermodal
facilities and within the scope of powers and responsibilities as granted in
each
port district's enabling legislation. Loan funds shall not be used for working
capital or administrative purposes by the port district.
(3) The maximum amount which may be loaned from the Program to fund
any one project is $3,000,000. Program funds may be used for up to 50% of an
individual project financing. The balance of financing for an individual
project must be secured by the respective district.
The maximum loan term shall be for 20 years with an interest rate of 5%
per annum. Principal and interest payments shall be made on a semi-annual
basis.
(4) In order to receive a loan from the Program, a port district must:
(a) demonstrate that the proposed project shall | ||
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(b) demonstrate that the port district can | ||
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In order to achieve the requirement of paragraph (a) of this subsection (4),
the port
district may use guarantees provided under facility operating agreements or
guaranteed facility use agreements from private concerns to demonstrate loan
repayment ability.
Certain infrastructure facilities developed under the Program may be
general use public facilities where there is not a definitive and guaranteed
revenue stream to support the project, nevertheless the facilities are
important to facilitate overall long term port development objectives. In such
cases, the full
faith and credit of the port district may be used as loan collateral.
(5) A loan agreement shall be executed between the port district and the
State stipulating all of the terms and conditions of the loan. The Department
shall release funds on a reimbursement basis for eligible costs of the project
as incurred. The port district shall certify to the Department that expenses
incurred during construction are in accordance with plans and specifications as
approved by the Department. Funds may be drawn once per month during
construction of the project.
(6) The loan agreement shall contain customary and usual loan default
provisions in the event the port district fails to make the required payments.
The loan agreement shall stipulate the State's recourse in curing any default.
In the event a port district becomes delinquent in payments to the State,
that port district shall not be eligible for any future loans until the
delinquency is remedied.
(7) Individual port district project applications shall include the
following:
(a) Statement of purpose. A description of the | ||
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(b) Project impact. The anticipated net effects of | ||
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(c) Cost estimates and preliminary project layout. | ||
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(d) Proposed loan amount. A statement as to the | ||
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(e) Business Proforma. A detailed business proforma | ||
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(f) Loan collateral and guarantees. The port | ||
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(8) The Department shall annually invite Illinois port districts to submit
projects for consideration under the Program. The Department shall perform a
cost/benefit
analysis of each project to determine if a project meets minimum requirements
for eligibility. Those applications which meet minimum criteria shall then be
ranked by the overall net positive impact on the State.
(a) Minimum criteria shall include:
(i) positive cost/benefit ratio;
(ii) demonstrated economic feasibility of the | ||
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(iii) the ability of the port district to repay | ||
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(b) Ranking criteria may include:
(i) a cost/benefit ratio of project in relation | ||
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(ii) product tonnage to be handled;
(iii) product value to be handled;
(iv) soundness of business proposition;
(v) positive intermodal impacts of Illinois | ||
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(vi) meets overall State transportation | ||
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(vii) economic impact to the State; or
(viii) environmental benefits of the project.
Projects shall be selected according to their ranking up to the limit of
available funds. Selected projects shall be invited to submit detailed plans,
specifications, operating agreements, environmental clearances, evidence of
property title, and other documentation as necessitated by the project. When
the
Department determines all necessary requirements are met and the remainder of
the project financing is available, a loan agreement shall be executed and
project development may commence.
(Source: P.A. 94-793, eff. 5-19-06.)
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(30 ILCS 750/Art. 10 heading) Article 10
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(30 ILCS 750/10-1) (from Ch. 127, par. 2710-1)
Sec. 10-1.
This Article shall be known and may
be cited as the "Large Business Development Act".
(Source: P.A. 84-109.)
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(30 ILCS 750/10-2) (from Ch. 127, par. 2710-2)
Sec. 10-2. Definitions. Unless the context
clearly requires otherwise:
(a) "Financial institution" means a trust company,
a bank, a savings bank, a credit union, an investment bank, a
broker, an investment trust, a pension fund, a building and
loan association, a savings and loan association, an insurance
company or any venture capital company which is authorized to
do business in the State.
(b) "Participating lender" means any trust company,
bank, savings bank, credit union, investment bank, broker,
investment trust, pension fund, building and loan association,
savings and loan association, insurance company or venture
capital company approved by the Department which assumes a
portion of the financing for a business project.
(c) "Department" means the Illinois Department of Commerce
and
Economic Opportunity.
(d) "Business" means a for-profit, legal entity in
Illinois including, but not limited to, any sole proprietorship,
partnership, corporation, joint venture, association or
cooperative.
(e) "Loan" means an agreement or contract to provide a loan or other
financial aid to a business.
(f) "Project" means any specific economic development
activity of a commercial, industrial, manufacturing,
agricultural, scientific, service or other business, the
result of which yields an increase in jobs and may include
the purchase or lease of machinery and equipment, the lease
or purchase of real property or funds for infrastructure
necessitated by site preparation, building construction or
related purposes but does not include refinancing current
debt.
(g) "Fund" means the Large Business Attraction
Fund created in Section 10-4.
(Source: P.A. 94-793, eff. 5-19-06.)
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(30 ILCS 750/10-3) (from Ch. 127, par. 2710-3)
Sec. 10-3. Powers and Duties. The Department has the power to:
(a) Provide loans from the Build Illinois Bond Fund, the Fund for Illinois' Future, or the Large Business
Attraction Fund to a business undertaking a project and accept mortgages or
other evidences of indebtedness or security of such business.
(b) Provide grants from the Build Illinois Bond Fund, the Fund for Illinois' Future, or the Large Business
Attraction Fund to or for the direct
benefit of a business undertaking a project. Any such grant shall (i) be
made and used only for the purpose of assisting the financing of the
business for the project in order to reduce the cost of financing to the
business, (ii) be made only if a participating lender, or other funding
source including the applicant, also provides a portion of the financing
with respect to the project, and only if the Department determines, on the
basis of all the information available to it, that the project would not be
undertaken in Illinois unless the grant is provided, (iii) provide no more
than 25% of the total dollar amount of any single project cost and be
approved for amounts from the Fund not to exceed $500,000 for any single
project, unless waived by the Director upon a finding that such waiver is
appropriate to accomplish the purpose of this Article, (iv) be made only
after the Department has determined that the grant will cause a project to
be undertaken which has the potential to create substantial employment in
relation to the amount of the grant, and (v) be made with a business that
has certified the project is a new plant start-up or expansion and is not a
relocation of an existing business from another site in Illinois unless
that relocation results in substantial employment growth.
(c) Enter into agreements, accept funds or grants and cooperate with
agencies of the federal government, local units of government and local
regional economic development corporations or organizations for the purposes of
carrying out this Article.
(d) Enter into contracts, letters of credit or any other agreements or
contracts with financial institutions necessary or desirable to carry out the
purposes of this Article. Any such agreement or contract may include, without
limitation, terms and provisions relating to a specific project such as loan
documentation, review and approval procedures, organization and servicing
rights, default conditions and other program aspects.
(e) Fix, determine, charge and collect any premiums, fees, charges, costs
and expenses, including application fees, commitment fees, program fees,
financing charges or publication fees in connection with its activities under
this Article.
(f) Establish application, notification, contract and other procedures,
rules or regulations deemed necessary and appropriate.
(g) Subject to the provisions of any contract with another person and
consent to the modification or restructuring of any loan agreement to which the
Department is a party.
(h) Take any actions which are necessary or appropriate to protect the
State's interest in the event of bankruptcy, default, foreclosure or
noncompliance with the terms and conditions of financial assistance or
participation provided under this Article, including the power to sell,
dispose, lease or rent, upon terms and conditions determined by the Director to
be appropriate, real or personal property which the Department may receive as a
result thereof.
(i) Acquire and accept by gift, grant, purchase or otherwise, but not by
condemnation, fee simple title, or such lesser interest as may be desired, in
land, and to improve or arrange for the improvement of such land for industrial
or commercial site development purposes, and to lease or convey such land, or
interest in land, so acquired and so improved, including sale and conveyance
subject to a mortgage, for such price, upon such terms and at such time as the
Department may determine, provided that prior to exercising its authority under
this subsection, the Director shall find that other means of financing and
developing any such project are not reasonably available and that such action
is consistent with the purposes and policies of this Article.
(j) Provide grants from the Build Illinois Bond Fund to municipalities and counties to demolish abandoned buildings
pursuant to Section 11-31-1 of the Illinois Municipal Code or Section 5-1080 of
the Counties Code, for the purpose of making unimproved land available for
purchase by businesses for economic development. Such grants shall be provided
only when: (1) the owner of property on which the abandoned building is
situated has entered into a contract to sell such property; (2) the Department
has determined that the grant will be used to cause a project to be undertaken
which will result in the creation of employment; (3) the business which has
entered into a contract to purchase the property has certified that it will use
the property for a project which is a new plant start-up or expansion or a new
venture opportunity and is not a relocation of an existing business from
another site within the State unless that relocation results in substantial
employment growth. If a municipality or county receives grants under this
paragraph, it shall file a notice of lien against the owner or owners of such
demolished buildings to recover the costs and expenses incurred in the
demolition of such buildings pursuant to Section 11-31-1 of the Illinois
Municipal Code or Section 5-1080 of the Counties Code. All such costs and
expenses recovered by the county or municipality shall be paid to the
Department for deposit in the Build Illinois Purposes Account. Priority shall
be given to enterprise zones or those areas with high unemployment whose tax
base is adversely impacted by the closing of existing factories.
(j-5) A business accepting a grant or loan under this Article shall provide the Department with quarterly reports detailing financial and performance information as requested by the Department during the grant or loan period. (k) Exercise such other powers as are necessary or incidental to the
foregoing.
(Source: P.A. 96-1429, eff. 1-1-11.)
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(30 ILCS 750/10-4) (from Ch. 127, par. 2710-4)
Sec. 10-4.
Loans.
Any loan made under this Article
shall:
(a) Be made only if a participating lender or
other funding source, including the applicant, also provides
a portion of the financing with respect to the project and
only if the Department determines, on the basis of all the
information available to it, that the project would not be
undertaken in Illinois unless the loan is provided. The
other risk assumption may be in the form of a loan, letter of
credit, guarantee, loan participation, bond purchase, direct
cash payment, or other form approved by the Department.
(b) Finance no more than 25% of the total
amount of any single project and be approved for amounts from
the Fund not to exceed $2,000,000 for any single project,
unless waived by the Director upon a finding that a waiver
is appropriate to accomplish the purposes of this Article.
(c) Be protected by adequate security satisfactory
to the Department to secure payment of the loan agreement.
(d) Be in a principal amount and form and contain terms
and provisions with respect to property insurance,
repairs, alterations, payment of taxes and assessments,
delinquency charges, default remedies, additional security,
and other matters as the Department shall determine adequate
to protect the public interest.
(e) Include provisions to call the loan agreement
as due and payable if the project is not completed, if the
project fails to generate anticipated employment opportunities,
or if the business ceases to operate the project.
(f) Be made only after the Department has determined
that the loan will cause a project to be undertaken
that has the potential to create substantial employment in
relation to the principal amount of the loan.
(g) Be made with a business that has certified the
project is a new plant start-up or expansion and is not a
relocation of an existing business from another site in
Illinois unless that relocation results in substantial employment
growth.
(h) All receipts, including principal and interest payments, royalties,
or other payments, paid to the Department because of any loan made under
this Article and all proceeds of assets of whatever nature received by the
Department as a result of default and delinquency with respect to loans
made under this Article, including proceeds from the sale, disposal, lease,
or rental of real or personal property that the Department may receive as a
result of a default or delinquency, shall be deposited into the Large
Business Attraction Fund.
(Source: P.A. 91-34, eff. 7-1-99.)
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(30 ILCS 750/10-5) (from Ch. 127, par. 2710-5)
Sec. 10-5.
Loan Applications.
Applications for
loans shall be submitted to the Department on forms and
subject to filing fees prescribed by the Department. The
Department shall not be prohibited from soliciting such
applications. The Department shall conduct such investigation
and obtain such information concerning the business as
is necessary and diligent to complete a loan agreement.
The Department's investigation shall include facts about the
company's history, job opportunities, stability of employment,
past and present condition and structure, actual and pro-forma
income statements, present and future market prospects and
management qualifications and any other aspects material to
the financing request.
After consideration of such data and after such
other action as is deemed appropriate, the Department shall
approve or deny the application. If the Department approves
the application, its approval shall specify the amount of
funds to be provided and the loan agreement provisions. The
business shall be promptly notified of such action by the
Department.
(Source: P.A. 84-109.)
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(30 ILCS 750/10-6) (from Ch. 127, par. 2710-6) Sec. 10-6. Large Business Attraction Fund. (a) There is created the Large Business Attraction Fund to be held as part of the State Treasury. The Department is authorized to make loans from the Fund for the purposes established under this Article. The State Treasurer shall have custody of the Fund and may invest in securities constituting direct obligations of the United States Government, in obligations the principal of and interest on which are guaranteed by the United States Government, or in certificates of deposit of any State or national bank that are fully secured by obligations guaranteed as to principal and interest by the United States Government. The purpose of the Fund is to offer loans to finance large firms considering the location of a proposed plant in the State and to provide financing to carry out the purposes and provisions of paragraph (h) of Section 10-3. Financing shall be in the form of a loan, mortgage, or other debt instrument. All loans shall be conditioned on the project receiving financing from participating lenders or other sources. Loan proceeds shall be available for project costs associated with an expansion of business capacity and employment, except for debt refinancing. Targeted companies for the program shall primarily consist of established industrial and service companies with proven records of earnings that will sell their product to markets beyond Illinois and have proven multistate location options. New ventures shall be considered only if the entity is protected with adequate security with regard to its financing and operation. The limitations and conditions with respect to the use of this Fund shall not apply in carrying out the purposes and provisions of paragraph (h) of Section 10-3. (b) Deposits into the Fund shall include, but are not limited to: (1) Any appropriations, grants, or gifts made to the | ||
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(2) Any income received from interest on investments | ||
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(c) The State Comptroller and the State Treasurer shall from time to time, upon the written direction of the Governor, transfer from the Fund to the General Revenue Fund or the Budget Stabilization Fund, those amounts that the Governor determines are in excess of the amounts required to meet the obligations of the Fund. Any amounts transferred to the Budget Stabilization Fund may be transferred back to the Large Business Attraction Fund by the State Comptroller and the State Treasurer, upon the written direction of the Governor. (d) Notwithstanding subsection (a) of this Section, the Large Business Attraction Fund may be used for the purposes established under the Invest in Illinois Act, including for awards, grants, loans, contracts, and administrative expenses. (Source: P.A. 102-1115, eff. 1-9-23; 102-1125, eff. 2-3-23; 103-605, eff. 7-1-24.) |
(30 ILCS 750/10-7) (from Ch. 127, par. 2710-7)
Sec. 10-7.
Construction.
Nothing in this Article
shall be construed as creating any rights of a competitor
of an approved borrower or any applicant whose application
is denied by the Department to challenge any application
which is accepted by the Department and any loan or other
agreement executed in connection therewith.
(Source: P.A. 84-109.)
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(30 ILCS 750/10-8) (from Ch. 127, par. 2710-8)
Sec. 10-8.
Confidentiality.
Any documentary
materials or data made or received by any member, agent or
employee of the Department shall be deemed to be confidential
and shall not be deemed public records to the extent that
such materials or data consist of trade secrets, commercial
or financial information regarding the operation of any
business conducted by an applicant for or recipient of any
form of assistance under this Article or information regarding
the competitive position of such business in a particular
field of endeavor.
(Source: P.A. 84-109.)
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(30 ILCS 750/10-9) (from Ch. 127, par. 2710-9)
Sec. 10-9.
Report.
On January 1 of each year,
the Department shall report on its operation of the Fund for
the preceding fiscal year to the Governor and the General
Assembly.
(Source: P.A. 84-109.)
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(30 ILCS 750/10-10) (from Ch. 127, par. 2710-10)
Sec. 10-10.
Federal Programs.
The Department
is authorized to accept and expend federal monies pursuant to
this Article except that terms and conditions hereunder which
are inconsistent with or prohibited by the federal authorization
under which such monies are made available shall not
apply with respect to the expenditure of such monies.
(Source: P.A. 84-109.)
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(30 ILCS 750/Art. 11 heading) Article 11
(Repealed by P.A. 102-330, eff. 1-1-22)
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(30 ILCS 750/Art. 23 heading) Article 23
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(30 ILCS 750/23-1) (from Ch. 127, par. 2723-1)
Sec. 23-1.
Wages of laborers, mechanics and other workers employed on
all "public works" projects undertaken pursuant to contracts financed with
appropriations from the Build Illinois Bond Fund shall be subject to the provisions of
the Prevailing Wage Act.
(Source: P.A. 102-1071, eff. 6-10-22.)
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