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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB0015
Introduced 1/26/2005, by Sen. John M. Sullivan SYNOPSIS AS INTRODUCED:
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20 ILCS 605/605-412 new |
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30 ILCS 105/5.640 new |
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Amends the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois. Creates the Rural Microbusiness Loan Program to provide $250,000 per fiscal year in loans for the establishment or support of businesses that: (i) employ 5 or fewer employees; (ii) are located in rural counties with a population of 100,000 or less; and (iii) are based on the production, processing, or marketing of agricultural products, forest products, cottage and craft products, or tourism. Limits the total amount of loans made to any borrower to $25,000 per fiscal year. Requires the Department to adopt rules concerning the administration of the program and to create a competitive application procedure. Requires a borrower to provide a certain portion of the financing for the project. Limits the term of the loan to no more than 5 years. Contains provisions concerning the interest rate, security required for the loan, and other terms. Provides that all interest generated by the loans shall be deposited into the Rural Microbusiness Loan Program Administrative Fund, a special fund in the State treasury, for the purpose of paying expenses related to the administration of the Rural Microbusiness Loan Program. Amends the State Finance Act to create the Rural Microbusiness Loan Program Administrative Fund. Effective immediately.
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| FISCAL NOTE ACT MAY APPLY | |
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A BILL FOR
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SB0015 |
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LRB094 06888 MKM 36997 b |
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| AN ACT concerning State government.
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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 Department of Commerce and Economic |
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| Opportunity Law of the
Civil Administrative Code of Illinois is |
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| amended by adding Section 605-412 as follows:
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| (20 ILCS 605/605-412 new) |
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| Sec. 605-412. Rural Microbusiness Loan Program. |
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| (a) From funds appropriated for that purpose, the |
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| Department shall administer a Rural Microbusiness Loan |
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| Program. The Director shall make loans for the establishment or |
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| support of businesses that: (i) employ 5 or fewer full-time |
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| employees, including the owner if the owner is an employee; |
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| (ii) are located in counties with a population of 100,000 or |
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| less; and (iii) are based on the production, processing, or |
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| marketing of agricultural products, forest products, cottage |
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| and craft products, or tourism. |
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| (b) The Department shall adopt rules for the administration |
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| of the Rural Microbusiness Loan Program and shall create a |
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| competitive application procedure. In applying for a loan under |
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| this Section, a borrower shall provide to the Department a |
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| written statement of the funds required to establish or support |
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| the business. The borrower must also provide: |
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| (1) equity capital in an amount equal to 10% of the |
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| first $10,000 of the required funds; and |
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| (2) equity capital, other loans, or leveraged capital, |
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| or any combination thereof, in an amount equal to 50% of |
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| any additional required funds. |
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| The total amount of all loans awarded under this Section |
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| shall not exceed $250,000 per fiscal year. The total amount of |
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| loans awarded to any borrower shall not exceed $25,000 per |
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| fiscal year. |