Full Text of SB3817 96th General Assembly
SB3817eng 96TH GENERAL ASSEMBLY
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SB3817 Engrossed |
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| AN ACT concerning State government.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Build Illinois Act is amended by changing | 5 |
| Sections 9-2 and 9-4.3 as follows:
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| (30 ILCS 750/9-2) (from Ch. 127, par. 2709-2)
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| Sec. 9-2. Definitions. The following terms,
whenever used | 8 |
| or referred to in this Article, shall have the
following | 9 |
| meanings ascribed to them, except where the context
clearly | 10 |
| requires otherwise:
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| (a) "Financial intermediary" means
a community development | 12 |
| corporation, a state
development credit corporation, a | 13 |
| development authority authorized to do
business by an act of | 14 |
| this State, or other public or
private financing
institution
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| approved by the Department whose purpose includes financing, | 16 |
| promoting, or
encouraging economic development.
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| (b) "Participating lender" means any trust company,
bank, | 18 |
| savings bank, credit union, merchant bank, investment bank, | 19 |
| broker,
investment trust, pension fund, building and loan | 20 |
| association,
savings and loan association, insurance company, | 21 |
| venture capital company or
other
institution approved by the | 22 |
| Department which assumes a
portion of the financing for a | 23 |
| business project.
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| (c) "Department" means the Illinois Department of Commerce
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| and
Economic Opportunity.
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| (d) "Small business" means any for-profit business
in | 4 |
| Illinois including, but not limited to, any sole | 5 |
| proprietorship,
partnership, corporation, joint venture, | 6 |
| association or
cooperative, which has, including its | 7 |
| affiliates, less than
500 full time employees, or is determined | 8 |
| by the Department
to be not dominant in its field.
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| Business concerns are affiliates of one another
when either | 10 |
| directly or indirectly (i) one concern controls
or has the | 11 |
| power to control the other, or (ii) a third party
or parties | 12 |
| controls or has the power to control both.
Control can be | 13 |
| exercised through common ownership, common
management and | 14 |
| contractual relationships.
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| (e) "Qualified security" means any note, stock,
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| convertible security, treasury stock, bond, debenture,
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| evidence of indebtedness, limited partnership interest,
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| certificate of interest or participation in any profit-sharing
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| agreement, preorganization certificate or subscription,
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| transferable share, investment contract, certificate of
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| deposit for a security, certificate of interest or | 22 |
| participation
in a patent or application therefor, or in | 23 |
| royalty or
other payments under such a patent or application, | 24 |
| or, in
general, any interest or instrument commonly known as a
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| "security" or any certificate for, receipt for, guarantee of,
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| or option, warrant or right to subscribe to or purchase any
of |
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| the foregoing, but not including any instrument which
contains | 2 |
| voting rights or can be converted to contain voting
rights in | 3 |
| the possession of the Department.
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| (f) "Loan agreement" means an agreement
or contract to | 5 |
| provide a loan or accept a mortgage or to
purchase qualified | 6 |
| securities or other means whereby financial
aid is made | 7 |
| available to a start-up, expanding, or mature, moderate risk
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| small business.
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| (g) "Loan" means a loan or acceptance
of a mortgage or the | 10 |
| purchase of qualified securities or
other means whereby | 11 |
| financial aid is made to a start-up, expanding, or
mature,
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| moderate risk small business.
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| (h) "Equity investment agreement" means an agreement
or | 14 |
| contract to provide a loan or accept a mortgage or to
purchase | 15 |
| qualified securities or other means whereby financial
aid is | 16 |
| made available to or on behalf of a young, high risk,
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| technology based small business.
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| (i) "Equity investment" means a loan or acceptance
of a | 19 |
| mortgage or the purchase of qualified securities
or other means | 20 |
| whereby financial aid is made to or on behalf of a young,
high
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| risk, technology based small business.
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| (j) "Project" means any specific economic development
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| activity of a commercial, industrial, manufacturing,
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| agricultural, scientific, service or other business, the
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| result of which is expected to yield an increase in or | 26 |
| retention of jobs
or
the modernization or improvement of |
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| competitiveness of firms and may include
working capital | 2 |
| financing, the purchase or lease of machinery
and equipment, or | 3 |
| the lease or purchase of real property but
does not include | 4 |
| refinancing current debt.
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| (k) "Technical assistance agreement" means an agreement or | 6 |
| contract or
other means whereby financial aid is made available | 7 |
| to not-for-profit
organizations for the purposes outlined in | 8 |
| Section 9-6 of this Article.
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| (l) "Financial intermediary agreement" means an agreement | 10 |
| or contract
to provide a loan, investment, or other financial | 11 |
| aid to a financial
intermediary for the purposes outlined in | 12 |
| Section 9-4.4 of this Article.
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| (m) "Equity intermediary agreement" means an agreement or | 14 |
| contract to
provide a loan, investment, or other financial aid | 15 |
| to a financial intermediary
for the purposes outlined in | 16 |
| Section 9-5.3 of this Article.
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| (n) "Other investor" means a venture capital
organization | 18 |
| or association; an investment partnership, trust
or bank; an | 19 |
| individual, accounting partnership or corporation
that invests | 20 |
| funds, or any other entity which provides debt
or equity | 21 |
| financing for a business project.
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| (o) "Veteran" means an Illinois resident who has served as | 23 |
| a member of the United States Armed Forces on active duty or | 24 |
| State active duty, a member of the Illinois National Guard, or | 25 |
| a member of the United States Reserve Forces and who has | 26 |
| received an honorable discharge. |
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| (Source: P.A. 94-793, eff. 5-19-06.)
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| (30 ILCS 750/9-4.3) (from Ch. 127, par. 2709-4.3)
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| Sec. 9-4.3. Minority, veteran, female and disability | 4 |
| loans.
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| (a) In the making of loans for minority, veteran, female or | 6 |
| disability
small businesses, as defined below, the Department | 7 |
| is authorized to employ
different criteria in lieu of the | 8 |
| general provisions of subsections (b),
(d), (e), (f), (h), and | 9 |
| (i) of Section 9-4.
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| Minority, veteran, female or disability small businesses, | 11 |
| for the purpose of this
Section, shall be defined as small | 12 |
| businesses that are, in the Department's
judgment, at least 51% | 13 |
| owned and managed by one or more persons who are
minority, | 14 |
| female or disabled or who are veterans .
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| (b) Loans made pursuant to this Section:
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| (1) Shall not exceed $100,000 or 50% of the business | 17 |
| project costs
unless the Director of the Department | 18 |
| determines that a waiver of these
limits is required to | 19 |
| meet the purposes of this Act.
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| (2) Shall only be made if, in the Department's | 21 |
| judgment, the number of
jobs to be created or retained is | 22 |
| reasonable in relation to the loan funds
requested.
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| (3) Shall be protected by security. Financial | 24 |
| assistance may be
secured by first, second or subordinate | 25 |
| mortgage positions on real or
personal property, by royalty |
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| payments, by personal notes or guarantees, or
by any other | 2 |
| security satisfactory to the Department to secure | 3 |
| repayment.
Security valuation requirements, as determined | 4 |
| by the Department, for the
purposes of this Section, may be | 5 |
| less than required for similar loans not
covered by this | 6 |
| Section, provided the applicants demonstrate adequate
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| business experience, entrepreneurial training or | 8 |
| combination thereof, as
determined by the Department.
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| (4) Shall be in such principal amount and form and | 10 |
| contain such terms
and provisions with respect to security, | 11 |
| insurance, reporting, delinquency
charges, default | 12 |
| remedies, and other matters as the Department shall
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| determine appropriate to protect the public interest
and | 14 |
| consistent with the purposes of this Section. The terms and | 15 |
| provisions
may be less than required for similar loans not | 16 |
| covered by this Section.
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| (Source: P.A. 95-97, eff. 1-1-08.)
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| Section 99. Effective date. This Act takes effect upon | 19 |
| becoming law.
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