(20 ILCS 690/5)
(from Ch. 5, par. 2255)
Agricultural and rural diversification financing.
(a) The Office's financing to or on behalf of rural businesses or
agribusinesses in the State shall be for the purpose of assisting in the cost
of agricultural and rural diversification projects including (i) acquisition,
construction, reconstruction, replacement, repair,
rehabilitation, alteration, expansion or extension of real property,
buildings or machinery and equipment but not the acquisition
of unimproved land for the production of crops or livestock; (ii) working
capital items including but not limited to, inventory, accounts receivable
and prepaid expenses; (iii) organizational expenses including, but not limited
to, architectural and engineering costs, legal services, marketing analyses,
production analyses, or other professional services; (iv) needed leasehold
improvements, easements, and other amenities required to prepare a site; (v)
information, technical support and technical assistance contracts to local
officials or not-for-profit agencies regarding private, state and
federal resources, programs or grant assistances and the needs and
opportunities for diversification; and (vi) when conducted in
cooperation with federal reimbursement programs, financing costs including
guarantee fees, packaging fees and origination fees but not debt refinancing.
(b) Agricultural or rural diversification financing to a rural
business or agribusiness under this Act shall be used
only where it can be shown that the agricultural or rural diversification
project for which financing is being sought has the potential to achieve
commercial success and will increase employment, directly or indirectly
retain jobs, or promote local diversification.
(c) The Office shall establish an internal review committee with
the Director of the Rural Affairs Council, or his designee,
the Director of the Department of Agriculture, or his designee, and the
Director of the Illinois Finance Authority, or
his designee, as
members to assist in the review of all project applications.
(d) The Office shall not provide financing to a rural business or
agribusiness unless the application includes convincing evidence that a
specific agricultural or rural diversification project is ready to
occur and will only occur if the financing is made. The Office shall also
consider the applicability of other state and federal programs prior to
financing any project.
(Source: P.A. 93-205, eff. 1-1-04.)