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91_HB4404sam001
LRB9113130MWksam
1 AMENDMENT TO HOUSE BILL 4404
2 AMENDMENT NO. . Amend House Bill 4404 by replacing
3 the title with the following:
4 "AN ACT in relation to value-added virtual equity
5 loans."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The Illinois Farm Development Act is amended
9 by adding Section 12.6 as follows:
10 (20 ILCS 3605/12.6 new)
11 Sec. 12.6. Value-added virtual equity program.
12 (a) The Authority shall, subject to appropriation,
13 develop and administer a value-added virtual equity program
14 for the purpose of promoting the value-added processing of
15 Illinois farm products and by-products through loans to
16 current and potential processors. Qualifying processing
17 facilities must be located in Illinois and must process,
18 package, or otherwise enhance the value of farm products or
19 by-products produced in Illinois. Loans may be used for the
20 costs of establishing and operating a value-added processing
21 facility, including, but not limited to, (i) purchasing land,
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1 (ii) purchasing, constructing, or refurbishing buildings,
2 (iii) purchasing or refurbishing machinery or equipment, (iv)
3 installation, (v) repairs, (vi) labor, and (vii) working
4 capital.
5 (b) The recipient of a loan under this Section must
6 provide a minimum percentage, as determined by the Authority,
7 of the total cost of the processing project, with the balance
8 of the project's total cost available from other sources.
9 Other sources include, but are not limited to, commercial and
10 private lenders, leasing companies, and grants. The
11 recipient's match may be in cash, cash-equivalent
12 investments, or both. A loan under this Section may not
13 exceed 50% of the recipient's match or 17% of the processing
14 project's total cost, whichever is less. No loan under this
15 Section may exceed $1,700,000. A loan under this Section
16 must be secured in accordance with Authority rule, may be
17 disbursed only after funds from the project's other sources
18 have been disbursed, and may be subordinate to that of any
19 primary lender. Interest on a loan during the first 7 years
20 shall accrue and compound at a rate determined by the
21 Authority to be below market. Any portion of a loan,
22 including principal and accrued and compounded interest,
23 unpaid after 7 years may accrue and compound at the
24 then-current market rate of interest.
25 (c) Loan applications must be made on forms provided by
26 and in accordance with procedures established by the
27 Authority. At a minimum, an applicant must be an Illinois
28 resident, as defined by Authority rule, and shall be required
29 to provide the names, addresses, and occupations of all
30 project owners, the project address, and any relevant credit
31 and financial information. The Authority shall develop
32 evaluation standards for determination of the total project
33 cost.
34 The Authority may charge an application fee, an annual
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1 administrative fee, or both in connection with a loan, for
2 which the recipient or the recipient's primary lender shall
3 be responsible. Any fees or charges involved in recording
4 mortgages, releasing financing statements, or other
5 loan-related activity, as the Authority may determine, shall
6 be the responsibility of the loan recipient.
7 (d) The Virtual Equity Fund is created as a special fund
8 within the State treasury. The Fund may accept appropriations
9 and moneys from any public or private sources.
10 Appropriations from the Fund shall be used to make loans
11 under this Section. Repayments of loans made under this
12 Section shall be deposited into the Fund.
13 (e) The Authority shall adopt rules necessary for the
14 implementation of this Section.
15 (f) The Authority shall report to the General Assembly
16 on the status of this program on or before January 1
17 annually.
18 (g) This Section is repealed July 1, 2007. Loan
19 repayments outstanding under this Section on or after that
20 date remain due and payable, shall be collected by the
21 Authority, and shall be deposited into the General Revenue
22 Fund.
23 Section 10. The State Finance Act is amended by adding
24 Section 5.542 as follows:
25 (30 ILCS 105/5.542 new)
26 Sec. 5.542. The Virtual Equity Fund. This Section is
27 repealed on July 1, 2007, and the balance in the Fund on that
28 date shall be transferred to the General Revenue Fund.
29 Section 99. Effective date. This Act takes effect upon
30 becoming law.".