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Public Act 096-1106


 

Public Act 1106 96TH GENERAL ASSEMBLY



 


 
Public Act 096-1106
 
SB3817 EnrolledLRB096 20657 HLH 36372 b

    AN ACT concerning State government.
 
    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 9-2 and 9-4.3 as follows:
 
    (30 ILCS 750/9-2)  (from Ch. 127, par. 2709-2)
    Sec. 9-2. Definitions. The following terms, whenever used
or referred to in this Article, shall have the following
meanings ascribed to them, except where the context clearly
requires otherwise:
    (a) "Financial intermediary" means a community development
corporation, a state development credit corporation, a
development authority authorized to do business by an act of
this State, or other public or private financing institution
approved by the Department whose purpose includes financing,
promoting, or encouraging economic development.
    (b) "Participating lender" means any trust company, bank,
savings bank, credit union, merchant bank, investment bank,
broker, investment trust, pension fund, building and loan
association, savings and loan association, insurance company,
venture capital company or other institution 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) "Small business" means any for-profit business in
Illinois including, but not limited to, any sole
proprietorship, partnership, corporation, joint venture,
association or cooperative, which has, including its
affiliates, less than 500 full time employees, or is determined
by the Department to be not dominant in its field.
    Business concerns are affiliates of one another when either
directly or indirectly (i) one concern controls or has the
power to control the other, or (ii) a third party or parties
controls or has the power to control both. Control can be
exercised through common ownership, common management and
contractual relationships.
    (e) "Qualified security" means any note, stock,
convertible security, treasury stock, bond, debenture,
evidence of indebtedness, limited partnership interest,
certificate of interest or participation in any profit-sharing
agreement, preorganization certificate or subscription,
transferable share, investment contract, certificate of
deposit for a security, certificate of interest or
participation in a patent or application therefor, or in
royalty or other payments under such a patent or application,
or, in general, any interest or instrument commonly known as a
"security" or any certificate for, receipt for, guarantee of,
or option, warrant or right to subscribe to or purchase any of
the foregoing, but not including any instrument which contains
voting rights or can be converted to contain voting rights in
the possession of the Department.
    (f) "Loan agreement" means an agreement or contract to
provide a loan or accept a mortgage or to purchase qualified
securities or other means whereby financial aid is made
available to a start-up, expanding, or mature, moderate risk
small business.
    (g) "Loan" means a loan or acceptance of a mortgage or the
purchase of qualified securities or other means whereby
financial aid is made to a start-up, expanding, or mature,
moderate risk small business.
    (h) "Equity investment agreement" means an agreement or
contract to provide a loan or accept a mortgage or to purchase
qualified securities or other means whereby financial aid is
made available to or on behalf of a young, high risk,
technology based small business.
    (i) "Equity investment" means a loan or acceptance of a
mortgage or the purchase of qualified securities or other means
whereby financial aid is made to or on behalf of a young, high
risk, technology based small business.
    (j) "Project" means any specific economic development
activity of a commercial, industrial, manufacturing,
agricultural, scientific, service or other business, the
result of which is expected to yield an increase in or
retention of jobs or the modernization or improvement of
competitiveness of firms and may include working capital
financing, the purchase or lease of machinery and equipment, or
the lease or purchase of real property but does not include
refinancing current debt.
    (k) "Technical assistance agreement" means an agreement or
contract or other means whereby financial aid is made available
to not-for-profit organizations for the purposes outlined in
Section 9-6 of this Article.
    (l) "Financial intermediary agreement" means an agreement
or contract to provide a loan, investment, or other financial
aid to a financial intermediary for the purposes outlined in
Section 9-4.4 of this Article.
    (m) "Equity intermediary agreement" means an agreement or
contract to provide a loan, investment, or other financial aid
to a financial intermediary for the purposes outlined in
Section 9-5.3 of this Article.
    (n) "Other investor" means a venture capital organization
or association; an investment partnership, trust or bank; an
individual, accounting partnership or corporation that invests
funds, or any other entity which provides debt or equity
financing for a business project.
    (o) "Veteran" means an Illinois resident who has served as
a member of the United States Armed Forces on active duty or
State active duty, a member of the Illinois National Guard, or
a member of the United States Reserve Forces and who has
received an honorable discharge.
(Source: P.A. 94-793, eff. 5-19-06.)
 
    (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,
female or disabled or who are veterans.
    (b) Loans made pursuant to this Section:
        (1) Shall not exceed $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. 95-97, eff. 1-1-08.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 7/19/2010