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| Public Act 094-0392 |
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AN ACT concerning State government.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Build Illinois Act is amended by changing | ||||
Section 9-4.2 and by adding Section 9-4.2a as follows:
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(30 ILCS 750/9-4.2) (from Ch. 127, par. 2709-4.2)
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Sec. 9-4.2. Illinois Capital Revolving Loan Fund.
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(a) There is hereby created the Illinois Capital
Revolving | ||||
Loan Fund, hereafter referred to in this Article as the
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"Capital Fund" to be held as a separate fund within the State
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Treasury.
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The purpose of the Capital Fund is to finance intermediary | ||||
agreements,
administration, technical assistance agreements,
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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.
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(b) There shall be deposited in the Capital Fund
such | ||||
amounts, including but not limited to:
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(i) All receipts, including dividends, principal and | ||||
interest
payments and royalties, from any applicable loan, | ||||
intermediary, or technical
assistance agreement
made from | ||||
the Capital Fund or from direct appropriations from the | ||||
Build
Illinois Bond Fund or the Build Illinois Purposes | ||||
Fund or the General Revenue Fund by
the General Assembly | ||
entered into by the Department;
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(ii) All proceeds of assets of whatever nature
received | ||
by the Department as a result of default or delinquency
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with respect to loan agreements made from the Capital
Fund | ||
or from direct appropriations by the General Assembly,
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including proceeds from the sale, disposal, lease or rental
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of real or personal property which the Department may | ||
receive
as a result thereof;
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(iii) Any appropriations, grants or gifts made to
the | ||
Capital Fund;
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(iv) Any income received from interest on investments
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of moneys in the Capital Fund;
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(v) All moneys resulting from the collection of | ||
premiums, fees, charges,
costs, and expenses described in | ||
subsection (e) of Section 9-3.
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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
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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.
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(Source: P.A. 88-422.)
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(30 ILCS 750/9-4.2a new) | ||
Sec. 9-4.2a. Rural micro-business loans.
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(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. 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 shall 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 | ||
business
project costs, unless the Director of the | ||
Department determines that a waiver of these limits is | ||
required to meet the purposes of this Act. | ||
(2) The loan shall only be made if the Department | ||
determines that the number of jobs to be created or | ||
retained by the business is reasonable in relation to the | ||
loan funds requested. | ||
(3) The borrower shall provide a written statement of | ||
the funds required to establish or support the business and | ||
shall provide equity capital in an amount equal to 10% of | ||
the first $10,000 of the required funds and equity capital, | ||
other loans, or leveraged capital, or any combination | ||
thereof, in an amount equal to 50% of any additional | ||
required funds. | ||
(4) The loan shall be in a principal amount and form | ||
and
contain terms and provisions with respect to security, | ||
insurance, reporting, delinquency charges, default | ||
remedies, and other matters that the Department determines | ||
are appropriate to protect the public interest and are | ||
consistent with the purposes of this Section. The terms and | ||
provisions may be less than required for similar loans not | ||
covered by this Section. | ||
(5) The Department shall award no less than 80% of the | ||
amount available for this program for loans to businesses | ||
that are located in counties with a population of 100,000 | ||
or less.
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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