(20 ILCS 700/3505)
Sec. 3505.
Modernization Retooling Loan Program.
(a) The Department may establish,
subject to available appropriated funds, a loan program that will
improve businesses' production systems and work organization to
preserve and create private sector jobs by increasing the firms'
long-term
competitive viability. The program may provide loans to, or on behalf of,
the State's mature, small, or medium-sized businesses for the modernization and
installation of advanced technologies or processes.
(b) A loan made for company modernization or retooling may
be for any purpose consistent with the objectives of this Act including, but
not limited to, purchases of advanced machinery, equipment, and tooling;
organizational expenses for services, personnel training, and corporate
restructuring; working capital; acquisition, improvement, or rehabilitation
of land and buildings that are an integral part of a new production or process
technology; or any other business expense reasonably related to the
project. No loan made by the Department shall
be used to pay for the retirement of previous debt unless the debt is a part
of the purchase or lease of machinery or equipment that is being upgraded.
(c) In determining if a loan is to be provided, the Department
shall determine whether there will be an expected improvement in production
levels, quality of output, or timeliness of
delivery and that the number of jobs to be created or retained is reasonable in
relation to the loan funds requested. A loan to an eligible applicant for
modernization or retooling shall not be made for more than $500,000 or for more
than 25% of the business project costs unless the Director
determines that a waiver of these limits is required to meet the purposes of
this Act.
(Source: P.A. 91-476, eff. 8-11-99.)
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