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Public Act 100-0377


 

Public Act 0377 100TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 100-0377
 
HB2698 EnrolledLRB100 08759 HLH 18897 b

    AN ACT concerning finance.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Build Illinois Act is amended by changing
Sections 9-3, 9-4, 9-4.2, and 9-4.3 and by adding Section 9-4.8
as follows:
 
    (30 ILCS 750/9-3)  (from Ch. 127, par. 2709-3)
    Sec. 9-3. Powers and duties. The Department has the power:
    (a) To make loans or equity investments to small
businesses, and to make loans or grants or investments to or
through financial intermediaries. The loans and investments
shall be made from appropriations from the Build Illinois Bond
Fund, Illinois Capital Revolving Loan Fund, State Small
Business Credit Initiative Fund, or Illinois Equity Revolving
Fund for the purpose of promoting the creation or retention of
jobs within small businesses or to modernize or maintain
competitiveness of firms in Illinois. The grants shall be made
from appropriations from the Build Illinois Bond Fund or
Illinois Capital Revolving Loan Fund for the purpose of
technical assistance.
    (b) To make loans to or investments in businesses that have
received federal Phase I Small Business Innovation Research
grants as a bridge while awaiting federal Phase II Small
Business Innovation Research grant funds.
    (c) To enter into interagency agreements, accept funds or
grants, and engage in cooperation with agencies of the federal
government, local units of government, universities, research
foundations, political subdivisions of the State, financial
intermediaries, and regional economic development corporations
or organizations for the purposes of carrying out this Article.
    (d) To enter into contracts, financial intermediary
agreements, or any other agreements or contracts with financial
intermediaries necessary or desirable to further the purposes
of this Article. Any such agreement or contract may include,
without limitation, terms and provisions including, but not
limited to loan documentation, review and approval procedures,
organization and servicing rights, and default conditions.
    (e) To fix, determine, charge and collect any premiums,
fees, charges, costs and expenses, including without
limitation, any application fees, commitment fees, program
fees, financing charges, collection fees, training fees, or
publication fees in connection with its activities under this
Article and to accept from any source any gifts, donations, or
contributions of money, property, labor, or other things of
value to be held, used, and applied to carry out the purposes
of this Article. All fees, charges, collections, gifts,
donations, or other contributions shall be deposited into the
Illinois Capital Revolving Loan Fund, or the State Small
Business Credit Initiative Fund.
    (f) To establish application, notification, contract, and
other forms, procedures, rules or regulations deemed necessary
and appropriate.
    (g) To consent, subject to the provisions of any contract
with another person, whenever it deems it necessary or
desirable in the fulfillment of the purposes of this Article,
to the modification or restructuring of any financial
intermediary agreement, loan agreement or any equity
investment agreement to which the Department is a party.
    (h) To take whatever actions 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
hereunder or to otherwise protect or affect the State's
interest, 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) To deposit any "Qualified Securities" which have been
received by the Department as the result of any financial
intermediary agreement, loan, or equity investment agreement
executed in the carrying out of this Act, with the Office of
the State Treasurer and held by that office until agreement to
transfer such qualified security shall be certified by the
Director of Commerce and Economic Opportunity.
    (j) To assist small businesses that seek to apply for
public or private capital in preparing the application and to
supply them with grant information, plans, reports,
assistance, or advice on development finance and to assist
financial intermediaries and participating lenders to build
capacity to make debt or equity investments through
conferences, workshops, seminars, publications, or any other
media.
    (k) To provide for staff, administration, and related
support required to manage the programs authorized under this
Article and pay for staffing and administration from the
Illinois Capital Revolving Loan Fund, or the State Small
Business Credit Initiative Fund, as appropriated by the General
Assembly. Administration responsibilities may include, but are
not limited to, research and identification of credit
disadvantaged groups; design of comprehensive statewide
capital access plans and programs addressing capital gap and
capital marketplace structure and information barriers;
direction, management, and control of specific projects; and
communicate and cooperation with public development finance
organizations and private debt and equity sources.
    (l) To exercise such other powers as are necessary or
incidental to the foregoing.
(Source: P.A. 94-91, eff. 7-1-05.)
 
    (30 ILCS 750/9-4)  (from Ch. 127, par. 2709-4)
    Sec. 9-4. Intermediary agreements and loans. Any loan made
pursuant to this Article shall:
    (a) Be made only if a participating lender or other
investor also provides a portion of the financing with respect
to the project. The participating lender's or other investor's
risk assumption may be in the form of a loan, letter of credit,
guarantee, loan participation, bond purchase, or any other form
approved by the Department;
    (b) Finance no more than the lesser of 25% of the total
amount of any single project, or $2,000,000 $750,000 for any
single project, unless such limitations are waived by the
Director, upon a finding that such waiver is appropriate to
accomplish the purposes of this Article;
    (c) Be made only if the Department determines, on the basis
of all information available to it, that the project would not
be undertaken unless the loan is provided;
    (d) Be protected by security which may include, as
available, first or second mortgage positions on real or
personal property, royalty payments on sales of products or
services, or any other security satisfactory to the Department
to secure payment of the loan agreement. Personal notes or
guarantees may be required from persons owning more than 20
percent of the small business;
    (e) Be in such amount and form and contain such 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;
    (f) Be made to a business approved by the Department as
responsible and creditworthy;
    (g) Be reviewed by the credit review committee established
by the Department pursuant to this Article;
    (h) Be made only after the Department has made a
determination that the loan agreement will cause a project to
be undertaken which has the potential to create or retain
substantial employment or to modernize or improve the
competitiveness of the firm in relation to the amount of the
loan;
    (i) Be made with businesses that have certified the project
is a new plant start-up, modernization, or expansion or a new
venture opportunity and is not relocation of an existing
business from another site within the State unless that
relocation results in substantial employment growth.
(Source: P.A. 88-422.)
 
    (30 ILCS 750/9-4.2)  (from Ch. 127, par. 2709-4.2)
    Sec. 9-4.2. Illinois Capital Revolving Loan Fund.
    (a) There is hereby created the Illinois Capital Revolving
Loan Fund, hereafter referred to in this Article as the
"Capital Fund" to be held as a separate fund within the State
Treasury.
    The purpose of the Capital Fund is to finance intermediary
agreements, administration, technical assistance agreements,
loans, grants, or investments in Illinois. In addition, funds
may be used for a one time transfer in fiscal year 1994, not to
exceed the amounts appropriated, to the Public Infrastructure
Construction Loan Revolving Fund for grants and loans pursuant
to the Public Infrastructure Loan and Grant Program Act.
Investments, administration, grants, and financial aid shall
be used for the purposes set for in this Article. Loan
financing will be in the form of loan agreements pursuant to
the terms and conditions set forth in this Article. All loans
shall be conditioned on the project receiving financing from
participating lenders or other investors. Loan proceeds shall
be available for project costs, except for debt refinancing.
    (b) There shall be deposited in the Capital Fund such
amounts, including but not limited to:
        (i) All receipts, including dividends, principal and
    interest payments and royalties, from any applicable loan,
    intermediary, or technical assistance agreement made from
    the Capital Fund or from direct appropriations from the
    Build Illinois Bond Fund or the Build Illinois Purposes
    Fund (now abolished) or the General Revenue Fund by the
    General Assembly entered into by the Department;
        (ii) All proceeds of assets of whatever nature received
    by the Department as a result of default or delinquency
    with respect to loan agreements made from the Capital Fund
    or from direct appropriations by the General Assembly,
    including proceeds from the sale, disposal, lease or rental
    of real or personal property which the Department may
    receive as a result thereof;
        (iii) Any appropriations, grants or gifts made to the
    Capital Fund;
        (iv) Any income received from interest on investments
    of moneys in the Capital Fund;
        (v) All moneys resulting from the collection of
    premiums, fees, charges, costs, and expenses in connection
    with the Capital Fund as described in subsection (e) of
    Section 9-3.
    (c) The Treasurer may invest moneys in the Capital Fund in
securities constituting obligations of the United States
Government, or in obligations the principal of and interest on
which are guaranteed by 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 which are fully
secured by obligations guaranteed as to principal and interest
by the United States Government.
(Source: P.A. 94-91, eff. 7-1-05; 94-392, eff. 8-1-05; 95-331,
eff. 8-21-07.)
 
    (30 ILCS 750/9-4.3)  (from Ch. 127, par. 2709-4.3)
    Sec. 9-4.3. Minority, veteran, female and disability
loans.
    (a) In the making of loans for minority, veteran, female or
disability small businesses, as defined below, 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.
    Minority, veteran, female or disability small businesses,
for the purpose of this Section, shall be defined as small
businesses that are, in the Department's judgment, at least 51%
owned and managed by one or more persons who are minority or
female or who have a disability or who are veterans.
    (b) Loans made pursuant to this Section:
        (1) Shall not exceed $400,000 $100,000 or 50% of the
    business project costs unless the Director of the
    Department determines that a waiver of these limits is
    required to meet the purposes of this Act.
        (2) Shall only be made if, in the Department's
    judgment, the number of jobs to be created or retained is
    reasonable in relation to the loan funds requested.
        (3) Shall be protected by security. Financial
    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 applicants demonstrate adequate
    business experience, entrepreneurial training or
    combination thereof, as determined by the Department.
        (4) Shall be in such principal amount and form and
    contain such terms and provisions with respect to security,
    insurance, reporting, delinquency charges, default
    remedies, and other matters as the Department shall
    determine appropriate to protect the public interest and
    consistent with the purposes of this Section. The terms and
    provisions may be less than required for similar loans not
    covered by this Section.
(Source: P.A. 99-143, eff. 7-27-15.)
 
    (30 ILCS 750/9-4.8 new)
    Sec. 9-4.8. State Small Business Credit Initiative Fund.
    (a) There is hereby created the State Small Business Credit
Initiative Fund, also referred to in this Article as the "SSBCI
Fund", as a special fund in the State treasury.
    The purpose of the SSBCI Fund is to finance intermediary
agreements, administration, technical assistance agreements,
loans, grants, or investments in Illinois. Investments,
administration grants, and financial aid shall be used for the
purposes set forth in this Article. Loan financing shall be in
the form of loan agreements pursuant to the terms and
conditions set forth in this Article. All loans shall be
conditioned on the project receiving financing from
participating lenders or other investors.
    (b) The following amounts shall be deposited into the SSBCI
Fund:
        (1) all receipts, including dividends, principal and
    interest payments, and royalties, from any applicable
    loan, intermediary, or technical assistance agreement made
    from the SSBCI Fund or from direct appropriations from the
    Build Illinois Bond Fund or the General Revenue Fund by the
    General Assembly entered into by the Department;
        (2) all proceeds of assets of whatever nature received
    by the Department as a result of default or delinquency
    with respect to a loan agreement made from the SSBCI Fund
    or from direct appropriations by the General Assembly,
    including proceeds from the sale, disposal, lease, or
    rental of real or personal property that the Department may
    receive as a result thereof;
        (3) any appropriations, grants, or gifts made to the
    SSBCI Fund;
        (4) any income received from interest on investments of
    moneys in the SSBCI Fund;
        (5) all moneys resulting from the collection of
    premiums, fees charges, costs, and expenses described in
    subsection (e) of Section 9-3.
    (c) The Treasurer may invest moneys in the SSBCI Fund in
securities constituting obligations of the United States
Government, or 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 which are
fully-secured by obligations guaranteed as to principal and
interest by the United States Government.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/25/2017