|
|
Public Act 094-0392
|
| SB0015 Enrolled |
LRB094 06888 MKM 36997 b |
|
|
AN ACT concerning State government.
|
Be it enacted by the People of the State of Illinois,
|
represented in the General Assembly:
|
Section 5. The Build Illinois Act is amended by changing |
Section 9-4.2 and by adding Section 9-4.2a as follows:
|
(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 |
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;
|
(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 Capital
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 |
Capital Fund;
|
(iv) Any income received from interest on investments
|
of moneys in the Capital Fund;
|
(v) All moneys resulting from the collection of |
premiums, fees, charges,
costs, and expenses described in |
subsection (e) of Section 9-3.
|
(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. 88-422.)
|
(30 ILCS 750/9-4.2a new) |
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. 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 |