Sen. Linda Holmes

Filed: 3/1/2010





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2     AMENDMENT NO. ______. Amend Senate Bill 3817 by replacing
3 everything after the enacting clause with the following:
4     "Section 5. The Department of Commerce and Economic
5 Opportunity Law of the Civil Administrative Code of Illinois is
6 amended by adding Section 605-530 as follows:
7     (20 ILCS 605/605-530 new)
8     Sec. 605-530. Veteran-owned small business loans.
9     (a) In this Section:
10     "Small business" means any for-profit business in
11 Illinois, including, but not limited to, any sole
12 proprietorship, partnership, corporation, joint venture,
13 association, or cooperative, which is expected to have fewer
14 than 500 full-time employees.
15     "Veteran" means an Illinois resident who has served as a
16 member of the United States Armed Forces on active duty or



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1 State active duty, a member of the Illinois National Guard, or
2 a member of the United States Reserve Forces and who has
3 received an honorable discharge.
4     "Veteran-owned small business" means a small business that
5 is, in the Department's judgment, at least 51% owned and
6 managed by one or more persons who are veterans.
7     (b) The Department may make participation loans to
8 veteran-owned small businesses for the purposes of promoting
9 the creation of veteran-owned small businesses and promoting
10 the creation of jobs within small businesses. A loan made under
11 this Section must meet the following requirements:
12         (1) The loan may not exceed $100,000 or 50% of the
13     business project costs unless the Director determines that
14     a waiver of these limits is required to meet the purposes
15     of this Section.
16         (2) The loan may be made only if, in the Department's
17     judgment, the number of jobs to be created is reasonable in
18     relation to the loan funds requested.
19         (3) The loan must be protected by security. Financial
20     assistance may be secured by first, second, or subordinate
21     mortgage positions on real or personal property, by royalty
22     payments, by personal notes or guarantees, or by any other
23     security satisfactory to the Department to secure
24     repayment.
25         (4) The loan shall be in a principal amount and form
26     and contain terms and provisions with respect to security,



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1     insurance, reporting, delinquency charges, default
2     remedies, and other matters that the Department determines
3     are appropriate to protect the public interest and
4     consistent with the purposes of this Section.
5     Section 99. Effective date. This Act takes effect upon
6 becoming law.".