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91_SB0752
LRB9101810PTpk
1 AN ACT concerning small businesses.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Civil Administrative Code of Illinois is
5 amended by adding Section 46.70 as follows:
6 (20 ILCS 605/46.70 new)
7 (Section scheduled to be repealed on December 31, 2004)
8 Sec. 46.70. Small business incubator grants.
9 (a) Subject to availability of funds in the Small
10 Business Incubator Fund, the Director of Commerce and
11 Community Affairs may make grants to eligible small business
12 incubators in an amount not to exceed 50% of State income
13 taxes paid in the previous calendar year by qualified tenant
14 businesses subject to the restrictions of this Section.
15 (b) There is created a special fund in the State
16 Treasury known as the Small Business Incubator Fund. The
17 money in the Fund may be used only for making grants under
18 subsection (a) of this Section. The Department of Revenue
19 shall certify by March 1 of each year to the General
20 Assembly the amount of State income taxes paid by qualified
21 tenant businesses in the previous year. The Department of
22 Revenue may, by rule, prescribe forms necessary to identify
23 qualified tenant businesses under this Section. An amount
24 equal to 50% of the amount certified by the Department of
25 Revenue shall be appropriated into the Fund annually.
26 (c) Eligible small business incubators that receive a
27 grant under this Section may use the grant only for capital
28 improvements on the building housing the eligible small
29 business incubator. Each small business incubator shall be
30 eligible for a grant equal to no more than 50% of the amount
31 of State income taxes paid in the previous year by qualified
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1 tenant businesses of the small business incubator, minus
2 administrative costs. The eligible small business incubator
3 must keep written records of the use of the grant money for a
4 period of 5 years from disbursement.
5 (d) By April 1 of each year, an eligible small business
6 incubator may apply for a grant under this Section on forms
7 developed by the Department. The Department may require
8 applicants to provide proof of eligibility. Upon review of
9 the applications, the Director of Commerce and Community
10 Affairs shall approve or disapprove the application. At the
11 start of each fiscal year or upon approval of the budget for
12 that fiscal year, whichever is later, the Director shall
13 determine the amount of funds available for grants under this
14 Section and shall then approve the grants.
15 (e) For purposes of this Section:
16 (1) "eligible small business incubator" means an
17 entity that is dedicated to the successful development of
18 entrepreneurial companies, has a specific written policy
19 identifying requirements for a business "to graduate"
20 from the incubator, either owns or leases real estate in
21 which qualified tenant businesses operate, and provides
22 all of the following services: management guidance,
23 rental spaces, shared basic business equipment,
24 technology support services, and assistance in obtaining
25 financing.
26 (2) "qualified tenant business" means a business
27 that currently leases space from an eligible small
28 business incubator, is less than 5 years old, and either
29 has not fulfilled the eligible small business incubator's
30 graduation requirements or has fulfilled these
31 requirements within the last 5 years.
32 (f) Five percent of the amount that is appropriated
33 annually into the Small Business Incubator Fund shall be
34 allotted to the Department of Commerce and Community Affairs
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1 for the purpose of administering, overseeing, and evaluating
2 the grant process and outcome.
3 (g) This Section is repealed on December 31, 2004. The
4 evaluation of the effectiveness of the grant process and
5 subsequent outcome of job and business creation shall
6 recommend the continuation or the repeal of this Section and
7 shall be submitted to the Governor and the General Assembly
8 before December 31, 2003.
9 Section 10. The State Finance Act is amended by adding
10 Section 5.490 as follows:
11 (30 ILCS 105/5.490 new)
12 Sec. 5.490. The Small Business Incubator Fund.
13 Section 99. Effective date. This Act takes effect upon
14 becoming law.