|Public Act 094-0485
||LRB094 06353 MKM 36429 b
AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
The Build Illinois Act is amended by adding
Section 9-4.7 as follows:
(30 ILCS 750/9-4.7 new)
Military Reservist Business Assistance Loan
(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
"Small business" means a business with 50 or fewer
"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
(3) Shall have repayment terms determined by the
Department and that do not exceed 30 years.
(4) Shall be protected by security. Financial
assistance may be secured by first, second, or subordinate
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
repayment. Security valuation requirements, as determined
by the Department, for the purposes of this Section, may be
less than required for similar loans not covered by this
Section, provided the applicant demonstrates adequate
business experience, entrepreneurial training, or a
combination thereof, as determined by the Department.
(5) Shall be in the principal amount and form and
contain the 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
consistent with the purposes of this Section.
(f) The Department shall not award any loan under this