(20 ILCS 605/605-355)
(was 20 ILCS 605/46.19a in part)
Grants for research and development in high technology and
(a) The Department is authorized to establish a program of
colleges, research institutions, research consortiums, other not-for-profit
entities, and Illinois businesses for the purpose of fostering research and
development in the high technology and the service sector leading to the
development of new products and services that can be marketed by Illinois
businesses. All grant awards shall include a contract that may
payment of negotiated royalties to the Department if the product or service
to be developed by the grantee is subsequently licensed for production.
(b) Grants may be awarded to universities and research
assist them in making their faculties and facilities available to Illinois
businesses. The grants may be used by a university or research
for purposes including but not limited to the following:
(i) to establish
or enhance computerized cataloging of all research labs and university
staff and make those catalogues available to Illinois businesses;
market products developed by the university to Illinois businesses; (iii)
to review publications in order to identify, catalog, and inform Illinois
businesses of new practices in areas such as robotics and
to build an on-line, information and technology system that relies on other
computerized networks in the United States; and (v) to assist in securing
temporary replacement for faculty who are granted a leave of absence from
their teaching duties for the purpose of working full-time for an Illinois
business to assist that business with technology transfer.
(c) Grants may be awarded to universities and research
research consortiums, and other not-for-profit entities for the purpose of
identifying and supporting Illinois businesses engaged in high technology
and service sector enterprises. The Illinois businesses identified
funded shall include recipients of Small Business Innovation Research
Program funds under subsections (e) through (k) of Section 9 of the Small
Business Act (15 U.S.C. 638, subsections (e) through (k)).
Entities receiving grants under this subsection (c) shall
be known as
commercialization centers and shall engage in one or more of the following
(1) Directing research assistance for new venture
A commercialization center may charge a nominal fee or accept royalty
agreements for conducting feasibility studies and other services.
(d) Grants may be awarded by the Department to Illinois
fund research and consultation arrangements between businesses and
universities, community colleges, research institutions, research
consortiums, and other not-for-profit entities within this State.
The Department shall give priority to Illinois small businesses in
awarding grants. Each grant awarded under this subsection (d) shall provide
funding for up to 50% of the cost of the research or consultation arrangements,
not to exceed $100,000; provided that the grant recipient utilizes Illinois
not for profit research and academic institutions to perform the research
and development function for which grant funds were requested.
(e) Grants may be awarded to research consortiums and other qualified
applicants, in conjunction with private sector or federal funding, for
other creative systems that bridge university resources and business,
technological, production, and development concerns.
(f) For the purposes of this Section:
technology" means any area of research or development designed to
foster greater knowledge or understanding in fields such as computer science,
electronics, physics, chemistry, or biology for the purpose of producing
designing, developing, or improving prototypes and new processes.
"Illinois business" means a "small business concern" as defined in 15
U.S.C. 632 that conducts its business primarily in Illinois.
"Illinois research institutions" refers to not-for-profit entities, which
include federally funded research laboratories, that conduct research and
development activities for the purpose of producing, designing, developing,
or improving prototypes and new processes.
"Other not-for-profit entities" means nonprofit organizations based in
Illinois that are primarily devoted to new enterprise or product
"Private sector" has the meaning ascribed to it in
29 U.S.C. 1503.
"University" means either a degree
granting institution located in Illinois as defined in Section 2 of the
Academic Degree Act, or a State-supported institution of higher learning
administered by the Board of Trustees of the University of Illinois, the Board
of Trustees of Southern Illinois University, the Board of Trustees of Chicago
University, the Board of Trustees of Eastern Illinois University, the Board of
Trustees of Governors State University, the Board of Trustees of Illinois State
University, the Board of Trustees of Northeastern Illinois University, the
Board of Trustees of Northern Illinois University, the Board of Trustees of
Western Illinois University,
or the Illinois Community College Board.
"Venture" means any Illinois
business engaged in research and development to create new products or
services with high growth potential.
(g) The Department may establish a program of grant assistance
matching basis to universities, community colleges, small business
development centers, community action agencies and other not-for-profit
economic development agencies to encourage new enterprise development and
new business formation and to encourage enterprises in this State. The
Department may provide grants, which shall be exempt from the provisions of Section 35-360, to universities, community
business development centers, community action agencies, and other
not-for-profit economic development entities for the purpose of making
loans to small businesses. All grant applications shall contain
information as required by the Department, including the following: a
program operation plan; a certification and assurance that the small
business applicants have received business development training or
education, have a business and finance plan, and have experience in the
proposed business area; and a description of the support services that the
grant recipient will provide to the small business. No more than 10% of
the grant may be used by the grant recipient for administrative costs
associated with the grant. Grant recipients may use grant funds under this
program to make loans on terms and conditions favorable to the small
business and shall give priority to those businesses located in high poverty
areas, enterprise zones, or both.
(Source: P.A. 90-454, eff. 8-16-97;
91-239, eff. 1-1-00.)