Illinois General Assembly - Full Text of SB0323
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Full Text of SB0323  94th General Assembly

SB0323sam002 94TH GENERAL ASSEMBLY

Sen. Arthur J. Wilhelmi

Filed: 4/6/2005

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 323

2     AMENDMENT NO. ______. Amend Senate Bill 323, AS AMENDED, by
3 replacing everything after the enacting clause with the
4 following:
 
5     Section 5. The Build Illinois Act is amended by adding
6 Section 9-4.7 as follows:
 
7     (30 ILCS 750/9-4.7 new)
8     Sec. 9-4.7. Military Reservist Business Assistance Loan
9 Program.
10     (a) As used in this Section:
11     "Period of military conflict" means (i) a period of war
12 declared by Congress; (ii) a period of national emergency
13 declared by Congress or by the President; or (iii) a period in
14 which a member of a reserve component of the armed forces of
15 the United States is ordered to active duty pursuant to Section
16 12304 of Title 10 of the United States Code.
17     "Owner" means a person with at least a 20% ownership
18 interest in a small business.
19     "Key employee" means an individual who is employed by a
20 small business and whose managerial or technical expertise is
21 critical to the successful day-to-day operation of the
22 business.
23     "Small business" means a business with 50 or fewer
24 employees.

 

 

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1     "Substantial economic injury" means an economic harm to a
2 small business that results in the inability of the small
3 business to (i) meet its obligations as they mature; (ii) pay
4 its ordinary and necessary operating expenses; or (iii) market,
5 produce, or provide a product or service.
6     (b) In the making of military reservist business assistance
7 loans, the Department is authorized to employ different
8 criteria in lieu of the general provisions of subsections (b),
9 (d), (e), (f), (h), and (i) of Section 9-4.
10     (c) From funds appropriated for that purpose, the
11 Department shall administer a Military Reservist Business
12 Assistance Loan Program. The Director shall make loans to small
13 businesses (i) that lose an owner or a key employee due to a
14 period of military conflict and (ii) that will experience
15 substantial economic injury as a result of the loss of that
16 owner or key employee.
17     (d) The Department may accept grants, loans, or
18 appropriations from the federal government or from any private
19 entity to be used for the purposes of this program and may
20 enter into contracts and agreements in connection with those
21 grants, loans, or appropriations.
22     (e) Loans made pursuant to this Section:
23         (1) Shall not exceed $150,000.
24         (2) Shall have an interest rate below the market rate
25     loan percent.
26         (3) Shall have repayment terms determined by the
27     Department and that do not exceed 30 years.
28         (4) Shall be protected by security. Financial
29     assistance may be secured by first, second, or subordinate
30     mortgage positions on real or personal property, by royalty
31     payments, by personal notes or guarantees, or by any other
32     security satisfactory to the Department to secure
33     repayment. Security valuation requirements, as determined
34     by the Department, for the purposes of this Section, may be

 

 

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1     less than required for similar loans not covered by this
2     Section, provided the applicant demonstrates adequate
3     business experience, entrepreneurial training, or a
4     combination thereof, as determined by the Department.
5         (5) Shall be in the principal amount and form and
6     contain the terms and provisions with respect to security,
7     insurance, reporting, delinquency charges, default
8     remedies, and other matters that the Department determines
9     are appropriate to protect the public interest and
10     consistent with the purposes of this Section.
11     (f) The Department shall not award any loan under this
12 Section to: (i) a small business or subsidiary of that business
13 that has already been awarded a loan under this Section within
14 the same fiscal year; or (ii) a small business that was awarded
15 a loan under this Section on which the balance remains unpaid.
16     (g) Within 30 days after the owner or key employee returns
17 to non-active duty status, arrangements shall be made for the
18 repayment of the loan.
 
19     Section 99. Effective date. This Act takes effect upon
20 becoming law.".