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90_SB1238
20 ILCS 605/46.70 new
30 ILCS 105/5.480 new
Amends the Civil Administrative Code of Illinois and the
State Finance Act to create the Small Business Incubator
Fund. Provides that the Director of Commerce and Community
Affairs may make grants to small business incubators
dedicated to the successful development of entrepreneurial
companies. Provides that the grants shall not exceed 50% of
the State income taxes paid in the previous calendar year by
qualified businesses leasing space from eligible small
business incubators. Provides that an amount equal to 50% of
these taxes shall be annually appropriated to the fund.
Establishes an application process for grants and limitations
on the use of the grants. Provides that the small business
incubator grant process is repealed on December 31, 2003.
Provides that the evaluation of the grant process shall
recommend its continuation or its repeal and shall be
submitted to the Governor and the General Assembly before
December 31, 2002. Effective immediately.
LRB9008741PTsb
LRB9008741PTsb
1 AN ACT concerning small businesses.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Civil Administrative Code of Illinois is
5 amended by adding Section 46.70 as follows:
6 (20 ILCS 605/46.70 new)
7 (Section scheduled to be repealed on December 31, 2003)
8 Sec. 46.70. Small business incubator grants.
9 (a) Subject to availability of funds in the Small
10 Business Incubator Fund, the Director of Commerce and
11 Community Affairs may make grants to eligible small business
12 incubators in an amount not to exceed 50% of State income
13 taxes paid in the previous calendar year by qualified tenant
14 businesses subject to the restrictions of this Section.
15 (b) There is created a special fund in the State
16 Treasury known as the Small Business Incubator Fund. The
17 money in the Fund may be used only for making grants under
18 subsection (a). The Department of Revenue shall certify by
19 March 1 of each year to the General Assembly the amount of
20 State income taxes paid by qualified tenant businesses in the
21 previous year. The Department of Revenue may, by rule,
22 prescribe forms necessary to identify qualified tenant
23 businesses under this Section. An amount equal to 50% of the
24 amount certified by the Department of Revenue shall be
25 appropriated into the Fund annually.
26 (c) Eligible small business incubators that receive a
27 grant under this Section may use the grant only for capital
28 improvements on the building housing the eligible small
29 business incubator. Each small business incubator shall be
30 eligible for a grant equal to no more than 50% of the amount
31 of State income taxes paid in the previous year by qualified
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1 tenant businesses of the small business incubator, minus
2 administrative costs. The eligible small business incubator
3 must keep written records of the use of the grant money for a
4 period of 5 years from disbursement.
5 (d) By April 1 of each year, an eligible small business
6 incubator may apply for a grant under this Section on forms
7 developed by the Department. The Department may require
8 applicants to provide proof of eligibility. Upon review of
9 the applications, the Director of Commerce and Community
10 Affairs shall approve or disapprove the application. At the
11 start of each fiscal year or upon approval of the budget for
12 that fiscal year, whichever is later, the Director shall
13 determine the amount of funds available for grants under this
14 Section and shall then approve the grants.
15 (e) For purposes of this Section:
16 (1) "Eligible small business incubator" means an
17 entity that is dedicated to the successful development of
18 entrepreneurial companies, has a specific written policy
19 identifying requirements for a business to graduate from
20 the incubator, either owns or leases real estate in which
21 qualified tenant businesses operate, and provides all of
22 the following services: management guidance, rental
23 spaces, shared basic business equipment, technology
24 support services, and assistance in obtaining financing.
25 (2) "Qualified tenant business" means a business
26 that currently leases space from an eligible small
27 business incubator, is less than 5 years old, and either
28 has not fulfilled the eligible small business incubator's
29 graduation requirements or has fulfilled these
30 requirements within the last 5 years.
31 (f) Five percent of the amount that is appropriated
32 annually into the Small Business Incubator Fund shall be
33 allotted to the Department of Commerce and Community Affairs
34 for the purpose of administering, overseeing, and evaluating
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1 the grant process and outcome.
2 (g) This Section is repealed on December 31, 2003. The
3 Director of Commerce and Community Affairs shall evaluate the
4 effectiveness of the grant process and subsequent outcome of
5 job and business creation and shall submit a report to
6 recommend the continuation or the repeal of this Section to
7 the Governor and the General Assembly before December 31,
8 2002.
9 Section 10. The State Finance Act is amended by adding
10 Section 5.480 as follows:
11 (30 ILCS 105/5.480 new)
12 Sec. 5.480. The Small Business Incubator Fund.
13 Section 99. Effective date. This Act takes effect upon
14 becoming law.