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Public Act 094-0485 |
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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 Build Illinois Act is amended by adding | ||||
Section 9-4.7 as follows: | ||||
(30 ILCS 750/9-4.7 new)
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Sec. 9-4.7. Military Reservist Business Assistance Loan | ||||
Program. | ||||
(a) As used in this Section: | ||||
"Period of military conflict" means (i) a period of war | ||||
declared by Congress; (ii) a period of national emergency | ||||
declared by Congress or by the President; or (iii) a period in | ||||
which a member of a reserve component of the armed forces of | ||||
the United States is ordered to active duty pursuant to Section | ||||
12304 of Title 10 of the United States Code. | ||||
"Owner" means a person with at least a 20% ownership | ||||
interest in a small business.
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"Key employee" means an individual who is employed by a | ||||
small business and whose managerial or technical expertise is | ||||
critical to the successful day-to-day operation of the | ||||
business.
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"Small business" means a business with 50 or fewer | ||||
employees. | ||||
"Substantial economic injury" means an economic harm to a | ||||
small business that results in the inability of the small | ||||
business to (i) meet its obligations as they mature; (ii) pay | ||||
its ordinary and necessary operating expenses; or (iii) market, | ||||
produce, or provide a product or service.
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(b) In the making of military reservist business assistance | ||||
loans, the Department is authorized to employ different | ||||
criteria in lieu of the general provisions of subsections (b), | ||||
(d), (e), (f), (h), and (i) of Section 9-4. |
(c) From funds appropriated for that purpose, the | ||
Department shall administer a Military Reservist Business | ||
Assistance Loan Program. The Director shall make loans to small | ||
businesses (i) that lose an owner or a key employee due to a | ||
period of military conflict and (ii) that will experience | ||
substantial economic injury as a result of the loss of that | ||
owner or key employee. | ||
(d) The Department may accept grants, loans, or | ||
appropriations from the federal government or from any private | ||
entity to be used for the purposes of this program and may | ||
enter into contracts and agreements in connection with those | ||
grants, loans, or appropriations. | ||
(e) Loans made pursuant to this Section:
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(1) Shall not exceed $150,000. | ||
(2) Shall have an interest rate below the market rate | ||
loan percent. | ||
(3) Shall have repayment terms determined by the | ||
Department and that do not exceed 30 years. | ||
(4) Shall be protected by security. Financial
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assistance may be secured by first, second, or subordinate | ||
mortgage positions on real or personal property, by royalty | ||
payments, by personal notes or guarantees, or by any other | ||
security satisfactory to the Department to secure | ||
repayment. Security valuation requirements, as determined | ||
by the Department, for the purposes of this Section, may be | ||
less than required for similar loans not covered by this | ||
Section, provided the applicant demonstrates adequate | ||
business experience, entrepreneurial training, or a | ||
combination thereof, as determined by the Department. | ||
(5) Shall be in the principal amount and form and
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contain the terms and provisions with respect to security, | ||
insurance, reporting, delinquency charges, default | ||
remedies, and other matters that the Department determines | ||
are appropriate to protect the public interest and | ||
consistent with the purposes of this Section.
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(f) The Department shall not award any loan under this |
Section to: (i) a small business or subsidiary of that business | ||
that has already been awarded a loan under this Section within | ||
the same fiscal year; or (ii) a small business that was awarded | ||
a loan under this Section on which the balance remains unpaid.
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(g) Within 30 days after the owner or key employee returns | ||
to non-active duty status, arrangements shall be made for the | ||
repayment of the loan.
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Section 99. Effective date. This Act takes effect upon | ||
becoming law. |