State Government Administration Committee
Filed: 3/12/2008
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1 | AMENDMENT TO HOUSE BILL 5755
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2 | AMENDMENT NO. ______. Amend House Bill 5755 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 1. Short title. This Act may be cited as the | ||||||
5 | Community Capital Development Act. | ||||||
6 | Section 5. Purpose. The intent of this Act is to facilitate | ||||||
7 | the creation of partnerships among community organizations, | ||||||
8 | local banks, and the communities they serve. | ||||||
9 | Section 10. Administration. This Act shall be administered | ||||||
10 | by the State Treasurer of Illinois.
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11 | Section 15. Use of State deposits. The Treasurer of the | ||||||
12 | State of Illinois shall make available for deposit, from the | ||||||
13 | General Revenue Fund, the amount of one billion dollars for | ||||||
14 | Illinois Banks with assets of less than five hundred million |
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1 | dollars. These funds shall be held in one-year certificates of | ||||||
2 | deposit. | ||||||
3 | The Treasurer shall deposit in each participating bank an | ||||||
4 | amount equal to 10% of the bank's total assets.
The funds shall | ||||||
5 | be used to secure or create revolving lines of credit for | ||||||
6 | non-profit community-based organizations qualifying under | ||||||
7 | Section 501(c)(3) of the Internal Revenue Code. | ||||||
8 | Once approved as a participant in the program, each bank | ||||||
9 | shall be eligible to participate for 5 years. At the end of 5 | ||||||
10 | years, if the bank's assets remain under five hundred million | ||||||
11 | dollars, the bank is then eligible to reapply to the Treasurer | ||||||
12 | for continued participation. | ||||||
13 | Section 20. Credit line. Each eligible organization's | ||||||
14 | credit line shall be limited to 50% of its previous year's | ||||||
15 | revenues as reported on its IRS form 990, with a cap of five | ||||||
16 | million dollars. | ||||||
17 | Section 25. Credit line interest rate. The interest rate on | ||||||
18 | revolving lines of credit shall be capped at 300 basis points | ||||||
19 | above the one-year rate paid on certificates of deposit. | ||||||
20 | Section 30. Use of credit line. Funds from the credit line | ||||||
21 | may be used by organizations for, but need not be limited to, | ||||||
22 | any of the following purposes:
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23 | (1) General operating funds. |
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1 | (2) Special projects (i.e., capacity building, special | ||||||
2 | purchases). | ||||||
3 | Section 35. Participation criteria. To participate, | ||||||
4 | community-based organizations must meet the following | ||||||
5 | guidelines: | ||||||
6 | (1) Be legally eligible to conduct business in the | ||||||
7 | State of Illinois for the previous 2 years. | ||||||
8 | (2) Have 501(c)(3) Status with the IRS. | ||||||
9 | (3) Be in good standing with the Illinois Attorney | ||||||
10 | General and the Secretary of State at the time of the | ||||||
11 | award. | ||||||
12 | (4) Show reasonable ability to repay the loan with | ||||||
13 | sufficient revenue sources to
support outstanding debt. | ||||||
14 | Section 40. Conflicting provisions. If this Act conflicts | ||||||
15 | with any State law or rule that prohibits the use of State | ||||||
16 | funding for the purpose of purchasing real property to allow | ||||||
17 | community-based and faith-based organizations (at their | ||||||
18 | discretion) to use any or all portions of any State contract or | ||||||
19 | grant earmarked for rent for mortgage or installment payments, | ||||||
20 | the provisions of this Act control.
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21 | Section 99. Effective date. This Act takes effect upon | ||||||
22 | becoming law.".
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