20 ILCS 3501/810-25
2021 Illinois Compiled Statutes|Chapter 20 - EXECUTIVE BRANCH|20 ILCS 3501/ - Illinois Finance Authority Act.|Article 810 - Venture Investment Fund

Sec. 810-25.     Direct and Co-venture Investments.     An enterprise seeking a  direct investment from the Illinois Venture Investment Fund shall file an  application with the Authority along with an applicable fee to be determined by  the Authority. A valid application shall contain a business plan, including a  description of the enterprise and its management, a statement of the amount,  timing, and projected use of the capital required, a statement concerning the  feasibility of the proposed technology, product, process, or invention, its  state of development and likelihood of commercial success, a statement of the  potential economic impact of the enterprise on the State, including the number,  location, and types of jobs expected to be created, and such other information  as the Authority shall require.  In addition to the foregoing, the Authority shall approve an application for a  direct investment and shall approve a co-venture investment only after it has  made the following findings:(a) The enterprise has a reasonable chance of success;(b) If the application is for a direct investment, Authority participation  is  necessary to the success of the enterprise because conventional, private  funding  is unavailable in the traditional capital markets, or because funding has been  offered on terms that would substantially hinder the success of the enterprise;(c) The technology, product, process, or invention for which the investment  is  being made is feasible, has the potential to achieve commercial success and the  enterprise has the potential to create substantial employment within the State  per dollar invested and that this employment, so far as feasible, may be  expected to be for residents of areas of critical labor surplus;(d) The entrepreneur, investors, shareholders, and other founders of the  enterprise have already made or are obligated to make a substantial financial  and time commitment to the enterprise;(e) The securities to be purchased are qualified securities;(f) The Authority determines that the possible gains on the investment are  at least commensurate with the risk of loss and that there is a reasonable  possibility that the Authority will recoup its investment, within 10 years  after  the investment or such other time period as negotiated by the Authority,  through the receipt of interest payments, dividends, capital gains, or other  distribution of profits, or royalties on investments made by the Authority; and(g) Binding commitments have been made to the Authority by the enterprise  for  adequate reporting of financial data to the Authority and any participating  professional investors or seed capital investors. The report shall include an  annual audit of the books of the enterprise by an independent certified public  accountant if the Authority so requires. The Authority and any participating  professional investors or seed capital investors shall secure sufficient  contractual rights from the enterprise as the Authority shall consider prudent  to protect the investment of the Authority, including, at the discretion of the  Authority and without limitation, a right of access to financial and other  records of the enterprise.  The Authority's interest in qualified securities from investments shall not  represent more than 49% of the voting stock of any single enterprise at the  time of purchase after giving effect to the conversion of all outstanding  convertible  securities of the enterprise. In the event of severe financial difficulty that  in the judgment of the Authority threatens the investment of the Authority  therein, a greater percentage of those securities may be owned or acquired by  the Authority.    (Source: P.A. 93-205, eff. 1-1-04.)