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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB0323
Introduced 2/15/2005, by Sen. Arthur J. Wilhelmi SYNOPSIS AS INTRODUCED:
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Amends the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois. Creates the Military Reservist Business Assistance Loan Program to make loans to small businesses (i) that lose an owner, a manager, or a key employee due to a period of military conflict and (ii) that will experience economic injury as a result of the loss of that owner, manager, or key employee. Authorizes the Department to accept grants, loans, or appropriations and associated contracts and agreements for purposes similar to this program. Limits the total amount of any loan awarded under the program to $150,000. Requires the Department to adopt rules concerning the administration of the program and to create a competitive application procedure. Effective immediately.
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| FISCAL NOTE ACT MAY APPLY | |
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A BILL FOR
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SB0323 |
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LRB094 06353 MKM 36429 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 605-413 as follows:
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| (20 ILCS 605/605-413 new)
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| Sec. 605-413. Military Reservist Business Assistance Loan |
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| Program. |
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| (a) As used in this Section: |
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| "Period of military conflict" means (i) a period of war |
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| declared by Congress; (ii) a period of national emergency |
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| declared by Congress or by the President; or (iii) a period in |
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| which a member of a reserve component of the armed forces of |
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| the United States is ordered to active duty pursuant to Section |
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| 12304 of Title 10 of the United States Code. |
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| "Owner" means a person with at least a 20% ownership |
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| interest in a small business.
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| "Manager" means a person responsible for the day-to-day |
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| operations of a small business.
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| "Key employee" means an employee of a small business whose |
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| significant responsibilities cannot be assumed by another |
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| employee without substantial financial hardship to the |
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| business.
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| "Small business" means a business with 50 or fewer |
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| employees.
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| (b) From funds appropriated for that purpose, the |
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| Department shall administer a Military Reservist Business |
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| Assistance Loan Program. The Director shall make loans to small |
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| businesses (i) that lose an owner, a manager, or a key employee |
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| due to a period of military conflict and (ii) that will |
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| experience economic hardship as a result of the loss of that |
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SB0323 |
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LRB094 06353 MKM 36429 b |
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| owner, manager, or key employee. The Department may accept |
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| grants, loans, or appropriations from the federal government or |
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| from any private entity to be used for the purposes of this |
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| program and may enter into contracts and agreements in |
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| connection with those grants, loans, or appropriations.
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| (c) The Department shall adopt rules necessary for the |
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| administration of the Military Reservist Business Assistance |
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| Loan Program and shall create a competitive application |
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| procedure. The Department shall determine by rule the amount, |
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| term, and interest rate of loans awarded under the program, |
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| except that: (i) no loan shall shall be awarded to any borrower |
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| for more than $150,000; (ii) the interest rate must be below |
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| the market rate loan percent; (iii) the term of repayment shall |
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| not exceed the number of years determined by the Department to |
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| be sufficient for the continuation of the business; and (iv) |
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| each loan shall be secured by a contract and any instrument |
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| necessary or convenient to secure the loan.
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| (d) The Department shall evaluate all applications for |
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| loans under this Section. Loans shall be awarded based on |
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| criteria established by the Department by rule, including, but |
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| not limited to, the following: (i) the size of the small |
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| business; (ii) the financial impact on the business of the loss |
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| of the owner, manager, or key employee who has been called to |
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| active duty; and (iii) the duration of the the owner's, |
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| manager's, or key employee's absence from the business.
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| (e) The Department shall not award any loan under this |
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| Section to: (i) a small business or subsidiary of that business |
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| that has already been awarded a loan under this Section within |
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| the same fiscal year; or (ii) a small business that was awarded |
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| a loan under this Section on which the balance remains unpaid.
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| (f) Within 30 days after the owner, manager, or key |
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| employee returns to non-active duty status, the Department and |
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| the borrower shall arrange for the repayment of the loan. The |
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| Department may, at it discretion, extend the repayment schedule |
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| for up to 3 years if the Department determines that the |
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| repayment schedule would substantially disrupt the operation |