(30 ILCS 750/Art. 10 heading) Article 10
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(30 ILCS 750/10-1) (from Ch. 127, par. 2710-1)
Sec. 10-1.
This Article shall be known and may
be cited as the "Large Business Development Act".
(Source: P.A. 84-109.)
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(30 ILCS 750/10-2) (from Ch. 127, par. 2710-2)
Sec. 10-2. Definitions. Unless the context
clearly requires otherwise:
(a) "Financial institution" means a trust company,
a bank, a savings bank, a credit union, an investment bank, a
broker, an investment trust, a pension fund, a building and
loan association, a savings and loan association, an insurance
company or any venture capital company which is authorized to
do business in the State.
(b) "Participating lender" means any trust company,
bank, savings bank, credit union, investment bank, broker,
investment trust, pension fund, building and loan association,
savings and loan association, insurance company or venture
capital company approved by the Department which assumes a
portion of the financing for a business project.
(c) "Department" means the Illinois Department of Commerce
and
Economic Opportunity.
(d) "Business" means a for-profit, legal entity in
Illinois including, but not limited to, any sole proprietorship,
partnership, corporation, joint venture, association or
cooperative.
(e) "Loan" means an agreement or contract to provide a loan or other
financial aid to a business.
(f) "Project" means any specific economic development
activity of a commercial, industrial, manufacturing,
agricultural, scientific, service or other business, the
result of which yields an increase in jobs and may include
the purchase or lease of machinery and equipment, the lease
or purchase of real property or funds for infrastructure
necessitated by site preparation, building construction or
related purposes but does not include refinancing current
debt.
(g) "Fund" means the Large Business Attraction
Fund created in Section 10-4.
(Source: P.A. 94-793, eff. 5-19-06.)
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(30 ILCS 750/10-3) (from Ch. 127, par. 2710-3)
Sec. 10-3. Powers and Duties. The Department has the power to:
(a) Provide loans from the Build Illinois Bond Fund, the Fund for Illinois' Future, or the Large Business
Attraction Fund to a business undertaking a project and accept mortgages or
other evidences of indebtedness or security of such business.
(b) Provide grants from the Build Illinois Bond Fund, the Fund for Illinois' Future, or the Large Business
Attraction Fund to or for the direct
benefit of a business undertaking a project. Any such grant shall (i) be
made and used only for the purpose of assisting the financing of the
business for the project in order to reduce the cost of financing to the
business, (ii) be made only if a participating lender, or other funding
source including the applicant, also provides a portion of the financing
with respect to the project, and only if the Department determines, on the
basis of all the information available to it, that the project would not be
undertaken in Illinois unless the grant is provided, (iii) provide no more
than 25% of the total dollar amount of any single project cost and be
approved for amounts from the Fund not to exceed $500,000 for any single
project, unless waived by the Director upon a finding that such waiver is
appropriate to accomplish the purpose of this Article, (iv) be made only
after the Department has determined that the grant will cause a project to
be undertaken which has the potential to create substantial employment in
relation to the amount of the grant, and (v) be made with a business that
has certified the project is a new plant start-up or expansion and is not a
relocation of an existing business from another site in Illinois unless
that relocation results in substantial employment growth.
(c) Enter into agreements, accept funds or grants and cooperate with
agencies of the federal government, local units of government and local
regional economic development corporations or organizations for the purposes of
carrying out this Article.
(d) Enter into contracts, letters of credit or any other agreements or
contracts with financial institutions necessary or desirable to carry out the
purposes of this Article. Any such agreement or contract may include, without
limitation, terms and provisions relating to a specific project such as loan
documentation, review and approval procedures, organization and servicing
rights, default conditions and other program aspects.
(e) Fix, determine, charge and collect any premiums, fees, charges, costs
and expenses, including application fees, commitment fees, program fees,
financing charges or publication fees in connection with its activities under
this Article.
(f) Establish application, notification, contract and other procedures,
rules or regulations deemed necessary and appropriate.
(g) Subject to the provisions of any contract with another person and
consent to the modification or restructuring of any loan agreement to which the
Department is a party.
(h) Take any actions which are necessary or appropriate to protect the
State's interest in the event of bankruptcy, default, foreclosure or
noncompliance with the terms and conditions of financial assistance or
participation provided under this Article, including the power to sell,
dispose, lease or rent, upon terms and conditions determined by the Director to
be appropriate, real or personal property which the Department may receive as a
result thereof.
(i) Acquire and accept by gift, grant, purchase or otherwise, but not by
condemnation, fee simple title, or such lesser interest as may be desired, in
land, and to improve or arrange for the improvement of such land for industrial
or commercial site development purposes, and to lease or convey such land, or
interest in land, so acquired and so improved, including sale and conveyance
subject to a mortgage, for such price, upon such terms and at such time as the
Department may determine, provided that prior to exercising its authority under
this subsection, the Director shall find that other means of financing and
developing any such project are not reasonably available and that such action
is consistent with the purposes and policies of this Article.
(j) Provide grants from the Build Illinois Bond Fund to municipalities and counties to demolish abandoned buildings
pursuant to Section 11-31-1 of the Illinois Municipal Code or Section 5-1080 of
the Counties Code, for the purpose of making unimproved land available for
purchase by businesses for economic development. Such grants shall be provided
only when: (1) the owner of property on which the abandoned building is
situated has entered into a contract to sell such property; (2) the Department
has determined that the grant will be used to cause a project to be undertaken
which will result in the creation of employment; (3) the business which has
entered into a contract to purchase the property has certified that it will use
the property for a project which is a new plant start-up or expansion or a new
venture opportunity and is not a relocation of an existing business from
another site within the State unless that relocation results in substantial
employment growth. If a municipality or county receives grants under this
paragraph, it shall file a notice of lien against the owner or owners of such
demolished buildings to recover the costs and expenses incurred in the
demolition of such buildings pursuant to Section 11-31-1 of the Illinois
Municipal Code or Section 5-1080 of the Counties Code. All such costs and
expenses recovered by the county or municipality shall be paid to the
Department for deposit in the Build Illinois Purposes Account. Priority shall
be given to enterprise zones or those areas with high unemployment whose tax
base is adversely impacted by the closing of existing factories.
(j-5) A business accepting a grant or loan under this Article shall provide the Department with quarterly reports detailing financial and performance information as requested by the Department during the grant or loan period. (k) Exercise such other powers as are necessary or incidental to the
foregoing.
(Source: P.A. 96-1429, eff. 1-1-11.)
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(30 ILCS 750/10-4) (from Ch. 127, par. 2710-4)
Sec. 10-4.
Loans.
Any loan made under this Article
shall:
(a) Be made only if a participating lender or
other funding source, including the applicant, also provides
a portion of the financing with respect to the project and
only if the Department determines, on the basis of all the
information available to it, that the project would not be
undertaken in Illinois unless the loan is provided. The
other risk assumption may be in the form of a loan, letter of
credit, guarantee, loan participation, bond purchase, direct
cash payment, or other form approved by the Department.
(b) Finance no more than 25% of the total
amount of any single project and be approved for amounts from
the Fund not to exceed $2,000,000 for any single project,
unless waived by the Director upon a finding that a waiver
is appropriate to accomplish the purposes of this Article.
(c) Be protected by adequate security satisfactory
to the Department to secure payment of the loan agreement.
(d) Be in a principal amount and form and contain terms
and provisions with respect to property insurance,
repairs, alterations, payment of taxes and assessments,
delinquency charges, default remedies, additional security,
and other matters as the Department shall determine adequate
to protect the public interest.
(e) Include provisions to call the loan agreement
as due and payable if the project is not completed, if the
project fails to generate anticipated employment opportunities,
or if the business ceases to operate the project.
(f) Be made only after the Department has determined
that the loan will cause a project to be undertaken
that has the potential to create substantial employment in
relation to the principal amount of the loan.
(g) Be made with a business that has certified the
project is a new plant start-up or expansion and is not a
relocation of an existing business from another site in
Illinois unless that relocation results in substantial employment
growth.
(h) All receipts, including principal and interest payments, royalties,
or other payments, paid to the Department because of any loan made under
this Article and all proceeds of assets of whatever nature received by the
Department as a result of default and delinquency with respect to loans
made under this Article, including proceeds from the sale, disposal, lease,
or rental of real or personal property that the Department may receive as a
result of a default or delinquency, shall be deposited into the Large
Business Attraction Fund.
(Source: P.A. 91-34, eff. 7-1-99.)
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(30 ILCS 750/10-5) (from Ch. 127, par. 2710-5)
Sec. 10-5.
Loan Applications.
Applications for
loans shall be submitted to the Department on forms and
subject to filing fees prescribed by the Department. The
Department shall not be prohibited from soliciting such
applications. The Department shall conduct such investigation
and obtain such information concerning the business as
is necessary and diligent to complete a loan agreement.
The Department's investigation shall include facts about the
company's history, job opportunities, stability of employment,
past and present condition and structure, actual and pro-forma
income statements, present and future market prospects and
management qualifications and any other aspects material to
the financing request.
After consideration of such data and after such
other action as is deemed appropriate, the Department shall
approve or deny the application. If the Department approves
the application, its approval shall specify the amount of
funds to be provided and the loan agreement provisions. The
business shall be promptly notified of such action by the
Department.
(Source: P.A. 84-109.)
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(30 ILCS 750/10-6) (from Ch. 127, par. 2710-6)
(Text of Section from P.A. 102-1115)
Sec. 10-6. Large Business Attraction Fund.
(a) There is created the Large Business Attraction Fund to
be held as part of the State Treasury. The Department is
authorized to make loans from the Fund for the purposes
established under this Article. The State Treasurer shall have
custody of the Fund and may invest in securities constituting
direct obligations of the United States Government, in
obligations the principal of and interest on which are
guaranteed by the United States Government, or in certificates
of deposit of any State or national bank that are fully
secured by obligations guaranteed as to principal and interest
by the United States Government. The purpose of the Fund is
to offer loans to finance large firms considering the location
of a proposed plant in the State and to provide financing to
carry out the purposes and provisions of paragraph (h) of
Section 10-3. Financing shall be in the
form of a loan, mortgage, or other debt instrument. All loans
shall be conditioned on the project receiving financing from
participating lenders or other sources. Loan proceeds shall
be available for project costs associated with an expansion
of business capacity and employment, except for debt refinancing.
Targeted companies for the program shall primarily
consist of established industrial and service companies with
proven records of earnings that will sell their product to
markets beyond Illinois and have proven multistate
location options. New ventures shall be considered only if
the entity is protected with adequate security with regard to
its financing and operation. The limitations and conditions
with respect to the use of this Fund shall not apply in
carrying out the purposes and provisions of paragraph (h) of Section 10-3.
(b) Deposits into the Fund shall include, but are
not limited to:
(1) Any appropriations, grants, or gifts made to the | ||
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(2) Any income received from interest on investments | ||
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(c) The State Comptroller and the State Treasurer shall from time to
time, upon the written direction of the Governor, transfer from the Fund to
the General Revenue Fund or the Budget Stabilization Fund, those amounts that the Governor determines are in
excess of the amounts required to meet the obligations of the Fund. Any amounts transferred to the Budget Stabilization Fund may be transferred back to the Large Business Attraction Fund by the State Comptroller and the State Treasurer, upon the written direction of the Governor.
(Source: P.A. 102-1115, eff. 1-9-23.)
(Text of Section from P.A. 102-1125)
Sec. 10-6. Large Business Attraction Fund.
(a) There is created the Large Business Attraction Fund to
be held as part of the State Treasury. The Department is
authorized to make loans from the Fund for the purposes
established under this Article. The State Treasurer shall have
custody of the Fund and may invest in securities constituting
direct obligations of the United States Government, in
obligations the principal of and interest on which are
guaranteed by the United States Government, or in certificates
of deposit of any State or national bank that are fully
secured by obligations guaranteed as to principal and interest
by the United States Government. The purpose of the Fund is
to offer loans to finance large firms considering the location
of a proposed plant in the State and to provide financing to
carry out the purposes and provisions of paragraph (h) of
Section 10-3. Financing shall be in the
form of a loan, mortgage, or other debt instrument. All loans
shall be conditioned on the project receiving financing from
participating lenders or other sources. Loan proceeds shall
be available for project costs associated with an expansion
of business capacity and employment, except for debt refinancing.
Targeted companies for the program shall primarily
consist of established industrial and service companies with
proven records of earnings that will sell their product to
markets beyond Illinois and have proven multistate
location options. New ventures shall be considered only if
the entity is protected with adequate security with regard to
its financing and operation. The limitations and conditions
with respect to the use of this Fund shall not apply in
carrying out the purposes and provisions of paragraph (h) of Section 10-3.
(b) Deposits into the Fund shall include, but are
not limited to:
(1) Any appropriations, grants, or gifts made to the | ||
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(2) Any income received from interest on investments | ||
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(c) The State Comptroller and the State Treasurer shall from time to
time, upon the written direction of the Governor, transfer from the Fund to
the General Revenue Fund those amounts that the Governor determines are in
excess of the amounts required to meet the obligations of the Fund.
(d) Notwithstanding subsection (a) of this Section, the Large Business Attraction Fund may be used for the purposes established under the Invest in Illinois Act, including for awards, grants, loans, contracts, and administrative expenses. (Source: P.A. 102-1125, eff. 2-3-23.)
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(30 ILCS 750/10-7) (from Ch. 127, par. 2710-7)
Sec. 10-7.
Construction.
Nothing in this Article
shall be construed as creating any rights of a competitor
of an approved borrower or any applicant whose application
is denied by the Department to challenge any application
which is accepted by the Department and any loan or other
agreement executed in connection therewith.
(Source: P.A. 84-109.)
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(30 ILCS 750/10-8) (from Ch. 127, par. 2710-8)
Sec. 10-8.
Confidentiality.
Any documentary
materials or data made or received by any member, agent or
employee of the Department shall be deemed to be confidential
and shall not be deemed public records to the extent that
such materials or data consist of trade secrets, commercial
or financial information regarding the operation of any
business conducted by an applicant for or recipient of any
form of assistance under this Article or information regarding
the competitive position of such business in a particular
field of endeavor.
(Source: P.A. 84-109.)
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(30 ILCS 750/10-9) (from Ch. 127, par. 2710-9)
Sec. 10-9.
Report.
On January 1 of each year,
the Department shall report on its operation of the Fund for
the preceding fiscal year to the Governor and the General
Assembly.
(Source: P.A. 84-109.)
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(30 ILCS 750/10-10) (from Ch. 127, par. 2710-10)
Sec. 10-10.
Federal Programs.
The Department
is authorized to accept and expend federal monies pursuant to
this Article except that terms and conditions hereunder which
are inconsistent with or prohibited by the federal authorization
under which such monies are made available shall not
apply with respect to the expenditure of such monies.
(Source: P.A. 84-109.)
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