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Public Act 100-0377
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| HB2698 Enrolled | LRB100 08759 HLH 18897 b |
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AN ACT concerning finance.
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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 |
Sections 9-3, 9-4, 9-4.2, and 9-4.3 and by adding Section 9-4.8 |
as follows:
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(30 ILCS 750/9-3) (from Ch. 127, par. 2709-3)
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Sec. 9-3. Powers and duties. The Department
has the power:
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(a) To make loans or equity investments to small
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businesses, and to make loans or grants or investments to or |
through
financial intermediaries. The loans and investments |
shall be made from
appropriations from the
Build Illinois Bond |
Fund,
Illinois Capital Revolving Loan Fund, State Small |
Business Credit Initiative Fund, or
Illinois Equity Revolving |
Fund for the purpose of promoting the creation
or retention of |
jobs within small businesses or to modernize or maintain
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competitiveness of firms in Illinois. The grants shall be made |
from
appropriations from the Build Illinois Bond Fund or |
Illinois Capital Revolving Loan Fund
for the purpose of |
technical assistance.
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(b) To make loans to or investments in businesses that
have
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received federal Phase I
Small Business Innovation Research |
grants as a bridge while awaiting
federal Phase II Small |
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Business Innovation Research grant funds.
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(c) To enter into interagency agreements, accept funds or
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grants, and engage in cooperation with agencies of the
federal |
government, local units of government, universities, research
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foundations, political subdivisions of the State, financial |
intermediaries,
and regional
economic development corporations |
or organizations for the
purposes of carrying out this Article.
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(d) To enter into contracts, financial intermediary
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agreements, or
any other agreements or contracts with financial |
intermediaries
necessary or desirable to further the purposes |
of this Article.
Any such agreement or contract may include, |
without limitation,
terms and provisions including, but not |
limited to loan
documentation, review and approval procedures, |
organization
and servicing rights, and default conditions.
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(e) To fix, determine, charge and collect any
premiums, |
fees, charges, costs and expenses, including
without |
limitation, any application fees, commitment fees,
program |
fees, financing charges, collection fees, training fees, or
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publication fees in
connection with its activities under this |
Article and to accept from any
source any gifts,
donations, or |
contributions of money, property, labor, or other
things of |
value to be held, used, and applied to carry out the purposes |
of this
Article. All fees, charges, collections, gifts, |
donations, or other
contributions shall be deposited into the |
Illinois Capital Revolving Loan
Fund, or the State Small |
Business Credit Initiative Fund.
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(f) To establish application, notification,
contract, and |
other forms, procedures, rules or regulations
deemed necessary |
and appropriate.
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(g) To consent, subject to the provisions of
any contract |
with another person, whenever it deems it
necessary or |
desirable in the fulfillment of the purposes of
this Article, |
to the modification or restructuring of any
financial |
intermediary agreement, loan
agreement or any equity |
investment agreement to which the Department is a
party.
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(h) To take whatever actions 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 |
hereunder or to otherwise protect or affect the State's |
interest,
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.
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(i) To deposit any "Qualified Securities" which have been |
received by
the Department as the result of any financial |
intermediary agreement,
loan, or
equity investment
agreement |
executed in the carrying out of this Act, with the Office of |
the
State Treasurer and held by that office until agreement to |
transfer such
qualified security shall be certified by the |
Director of
Commerce and Economic Opportunity.
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(j) To assist small businesses that seek to
apply for |
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public or private capital in
preparing the application and to |
supply them with grant information, plans,
reports, |
assistance, or advice on development finance and to assist |
financial
intermediaries and participating lenders to build |
capacity to make debt or
equity investments through |
conferences, workshops, seminars, publications,
or
any other |
media.
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(k) To provide for staff, administration, and related |
support required to
manage the programs authorized under this |
Article and pay for staffing and
administration from the |
Illinois Capital Revolving Loan Fund, or the State Small |
Business Credit Initiative Fund, as appropriated
by
the General |
Assembly. Administration responsibilities may include, but are |
not
limited to, research and identification of credit |
disadvantaged groups; design
of comprehensive statewide |
capital access plans and programs addressing capital
gap and |
capital marketplace structure and information barriers; |
direction,
management, and control of specific projects; and |
communicate and cooperation
with public development finance |
organizations and private debt and equity
sources.
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(l) To exercise such other powers as are necessary
or |
incidental to the foregoing.
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(Source: P.A. 94-91, eff. 7-1-05.)
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(30 ILCS 750/9-4) (from Ch. 127, par. 2709-4)
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Sec. 9-4. Intermediary agreements and loans. Any loan made |
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pursuant to this
Article shall:
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(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 |
risk assumption may be
in the form of a loan, letter of credit, |
guarantee, loan
participation, bond purchase, or any other form |
approved by
the Department;
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(b) Finance no more than the lesser of 25%
of the total |
amount of any single project, or $2,000,000 $750,000 for
any |
single project, unless such limitations are waived by the
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Director, upon a finding that such waiver is appropriate to
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accomplish the purposes of this Article;
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(c) Be made only if the Department determines,
on the basis |
of all information available to it, that the
project would not |
be undertaken unless the loan is provided;
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(d) Be protected by security which may include, as
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available, first or second mortgage positions on
real or |
personal property, royalty payments on sales of
products or |
services, or any other security satisfactory to
the Department |
to secure payment of the loan agreement.
Personal notes or |
guarantees may be required from persons
owning more than 20 |
percent of the small business;
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(e) Be in such amount and form and contain such
terms and |
provisions with respect to property insurance,
repairs, |
alterations, payment of taxes and assessments,
delinquency |
charges, default remedies, additional security,
and other |
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matters as the Department shall determine adequate
to protect |
the public interest;
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(f) Be made to a business approved by the Department
as |
responsible and creditworthy;
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(g) Be reviewed by the credit review committee
established |
by the Department pursuant to this Article;
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(h) Be made only after the Department has made a
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determination that the loan agreement will cause a project to
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be undertaken which has the potential to create or retain |
substantial
employment or to modernize or improve the |
competitiveness of the firm in
relation to the amount of the |
loan;
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(i) Be made with businesses that have certified
the project |
is a new plant start-up, modernization, or expansion or a new
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venture opportunity and is not relocation of an existing
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business from another site within the State unless that
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relocation results in substantial employment growth.
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(Source: P.A. 88-422.)
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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 |
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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 (now abolished) 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 in connection |
with the Capital Fund as 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. 94-91, eff. 7-1-05; 94-392, eff. 8-1-05; 95-331, |
eff. 8-21-07.)
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(30 ILCS 750/9-4.3) (from Ch. 127, par. 2709-4.3)
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Sec. 9-4.3. Minority, veteran, female and disability |
loans.
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(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.
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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.
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(b) Loans made pursuant to this Section:
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(1) Shall not exceed $400,000 $100,000 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.
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(2) Shall only be made if, in the Department's |
judgment, the number of
jobs to be created or retained is |
reasonable in relation to the loan funds
requested.
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(3) 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 |
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Section, provided the applicants demonstrate adequate
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business experience, entrepreneurial training or |
combination thereof, as
determined by the Department.
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(4) Shall be in such principal amount and form and |
contain such terms
and provisions with respect to security, |
insurance, reporting, delinquency
charges, default |
remedies, and other matters as the Department shall
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determine appropriate to protect the public interest
and |
consistent with the purposes of this Section. The terms and |
provisions
may be less than required for similar loans not |
covered by this Section.
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(Source: P.A. 99-143, eff. 7-27-15.)
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(30 ILCS 750/9-4.8 new) |
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 |
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participating lenders or other investors. |
(b) The following amounts shall be deposited into the SSBCI |
Fund: |
(1) all receipts, including dividends, principal and |
interest payments, and royalties, from any applicable |
loan, intermediary, or technical assistance agreement made |
from the SSBCI Fund or from direct appropriations from the |
Build Illinois Bond Fund or the General Revenue Fund by the |
General Assembly entered into by the Department; |
(2) all proceeds of assets of whatever nature received |
by the Department as a result of default or delinquency |
with respect to a loan agreement made from the SSBCI Fund |
or from direct appropriations by the General Assembly, |
including proceeds from the sale, disposal, lease, or |
rental of real or personal property that the Department may |
receive as a result thereof; |
(3) any appropriations, grants, or gifts made to the |
SSBCI Fund; |
(4) any income received from interest on investments of |
moneys in the SSBCI Fund; |
(5) 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 SSBCI Fund in |
securities constituting obligations of the United States |
Government, or in obligations the principal of and interest on |