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
    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
    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.
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/1/2005