93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB6705

 

Introduced 02/09/04, by Patricia R. Bellock - Angelo Saviano

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 750/9-4.3   from Ch. 127, par. 2709-4.3

    Amends the Build Illinois Act. Increases the limit on loans to minority, female, or disabled small businesses from $50,000 or 50% of project costs to $750,000 or 50% of project costs.


LRB093 18690 SJM 44417 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB6705 LRB093 18690 SJM 44417 b

1     AN ACT concerning small business loans.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Build Illinois Act is amended by changing
5 Section 9-4.3 as follows:
 
6     (30 ILCS 750/9-4.3)  (from Ch. 127, par. 2709-4.3)
7     Sec. 9-4.3. Minority, female and disability loans.
8     (a) In the making of loans for minority, female or
9 disability small businesses, as defined below, the Department
10 is authorized to employ different criteria in lieu of the
11 general provisions of subsections (b), (d), (e), (f), (h), and
12 (i) of Section 9-4.
13     Minority, female or disability small businesses, for the
14 purpose of this Section, shall be defined as small businesses
15 that are, in the Department's judgment, at least 51% owned and
16 managed by one or more persons who are minority, female or
17 disabled.
18     (b) Loans made pursuant to this Section:
19         (1) Shall not exceed $750,000 $50,000 or 50% of the
20     business project costs unless the Director of the
21     Department determines that a waiver of these limits is
22     required to meet the purposes of this Act.
23         (2) Shall only be made if, in the Department's
24     judgment, the number of jobs to be created or retained is
25     reasonable in relation to the loan funds requested.
26         (3) Shall be protected by security. Financial
27     assistance may be secured by first, second or subordinate
28     mortgage positions on real or personal property, by royalty
29     payments, by personal notes or guarantees, or by any other
30     security satisfactory to the Department to secure
31     repayment. Security valuation requirements, as determined
32     by the Department, for the purposes of this Section, may be

 

 

HB6705 - 2 - LRB093 18690 SJM 44417 b

1     less than required for similar loans not covered by this
2     Section, provided the applicants demonstrate adequate
3     business experience, entrepreneurial training or
4     combination thereof, as determined by the Department.
5         (4) Shall be in such principal amount and form and
6     contain such terms and provisions with respect to security,
7     insurance, reporting, delinquency charges, default
8     remedies, and other matters as the Department shall
9     determine appropriate to protect the public interest and
10     consistent with the purposes of this Section. The terms and
11     provisions may be less than required for similar loans not
12     covered by this Section.
13 (Source: P.A. 87-1177; 88-422.)