2023 Illinois Compiled Statutes › Chapter 30 - FINANCE › 30 ILCS 750/ - Build Illinois Act. › Article 9

(30 ILCS 750/Art. 9 heading)
Article 9
(30 ILCS 750/9-1) (from Ch. 127, par. 2709-1)
Sec. 9-1. 
		
		This Article shall be known and may
be cited as the "Small Business Development Act".
(Source: P.A. 84-109.)
(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. 96-1106, eff. 7-19-10.)
(30 ILCS 750/9-3) (from Ch. 127, par. 2709-3)
Sec. 9-3. Powers and duties. The Department
has the power:
(a) To make loans or equity investments to small     businesses, and to make loans or grants or investments to or through financial intermediaries.  The loans and investments shall be made from appropriations from the Build Illinois Bond Fund,  Illinois Capital Revolving Loan Fund, State Small Business Credit Initiative Fund, or Illinois Equity Fund for the purpose of promoting the creation or retention of jobs within small businesses or to modernize or maintain competitiveness of firms in Illinois. The grants shall be made from appropriations from the Build Illinois Bond Fund or Illinois Capital Revolving Loan Fund for the purpose of technical assistance.
(b) To make loans to or investments in businesses     that have received federal Phase I Small Business Innovation Research grants as a bridge while awaiting federal Phase II Small Business Innovation Research grant funds.
(c) To enter into interagency agreements, accept     funds or grants, and engage in cooperation with agencies of the federal government, local units of government, universities, research foundations, political subdivisions of the State, financial intermediaries, and regional economic development corporations or organizations for the purposes of carrying out this Article.
(d) To enter into contracts, financial intermediary     agreements, or any other agreements or contracts with financial intermediaries necessary or desirable to further the purposes of this Article. Any such agreement or contract may include, without limitation, terms and provisions, including, but not limited to, loan documentation, review and approval procedures, organization and servicing rights, and default conditions.
(e) To fix, determine, charge and collect any     premiums, fees, charges, costs and expenses, including, without limitation, any application fees, commitment fees, program fees, financing charges, collection fees, training fees, or publication fees in connection with its activities under this Article and to accept from any source any gifts, donations, or contributions of money, property, labor, or other things of value to be held, used, and applied to carry out the purposes of this Article. All fees, charges, collections, gifts, donations, or other contributions shall be deposited into the Illinois Capital Revolving Loan Fund or the State Small Business Credit Initiative Fund.
(f) To establish application, notification, contract,     and other forms, procedures, rules or regulations deemed necessary and appropriate.
(g) To consent, subject to the provisions of any     contract with another person, whenever it deems it necessary or desirable in the fulfillment of the purposes of this Article, to the modification or restructuring of any financial intermediary agreement, loan agreement or any equity investment agreement to which the Department is a party.
(h) To take whatever actions are necessary or     appropriate to protect the State's interest in the event of bankruptcy, default, foreclosure, or noncompliance with the terms and conditions of financial assistance or participation provided hereunder or to otherwise protect or affect the State's interest, including the power to sell, dispose, lease or rent, upon terms and conditions determined by the Director to be appropriate, real or personal property which the Department may receive as a result thereof.
(i) To deposit any "Qualified Securities" which have     been received by the Department as the result of any financial intermediary agreement, loan, or equity investment agreement executed in the carrying out of this Act, with the Office of the State Treasurer and held by that office until agreement to transfer such qualified security shall be certified by the Director of Commerce and Economic Opportunity.
(j) To assist small businesses that seek to apply for     public or private capital in preparing the application and to supply them with grant information, plans, reports, assistance, or advice on development finance and to assist financial intermediaries and participating lenders to build capacity to make debt or equity investments through conferences, workshops, seminars, publications, or any other media.
(k) To provide for staff, administration, and related     support required to manage the programs authorized under this Article and pay for staffing and administration from the Illinois Capital Revolving Loan Fund or the State Small Business Credit Initiative Fund, as appropriated by the General Assembly.  Administration responsibilities may include, but are not limited to, research and identification of credit disadvantaged groups; design of comprehensive statewide capital access plans and programs addressing capital gap and capital marketplace structure and information barriers; direction, management, and control of specific projects; and communicate and cooperation with public development finance organizations and private debt and equity sources.
(l) To exercise such other powers as are necessary or     incidental to the foregoing.
(Source: P.A. 99-933, eff. 1-27-17; 100-377, eff. 8-25-17; 100-863, eff. 8-14-18.)
(30 ILCS 750/9-4) (from Ch. 127, par. 2709-4)
Sec. 9-4. Intermediary agreements and loans. Any loan made pursuant to this
Article shall:
(a) Be made only if a participating lender or other     investor also provides a portion of the financing with respect to the project.  The participating lender's or other investor's risk assumption may be in the form of a loan, letter of credit, guarantee, loan participation, bond purchase, or any other form approved by the Department;
(b) Finance no more than the lesser of 25% of the     total amount of any single project, or $2,000,000 for any single project, unless such limitations are waived by the Director, upon a finding that such waiver is appropriate to accomplish the purposes of this Article;
(c) Be made only if the Department determines, on the     basis of all information available to it, that the project would not be undertaken unless the loan is provided;
(d) Be protected by security which may include, as     available, first or second mortgage positions on real or personal property, royalty payments on sales of products or services, or any other security satisfactory to the Department to secure payment of the loan agreement. Personal notes or guarantees may be required from persons owning more than 20 percent of the small business;
(e) Be in such amount and form and contain such terms     and provisions with respect to property insurance, repairs, alterations, payment of taxes and assessments, delinquency charges, default remedies, additional security, and other matters as the Department shall determine adequate to protect the public interest;
(f) Be made to a business approved by the Department     as responsible and creditworthy;
(g) Be reviewed by the credit review committee     established by the Department pursuant to this Article;
(h) Be made only after the Department has made a     determination that the loan agreement will cause a project to be undertaken which has the potential to create or retain substantial employment or to modernize or improve the competitiveness of the firm in relation to the amount of the loan;
(i) Be made with businesses that have certified the     project is a new plant start-up, modernization,  or expansion or a new venture opportunity and is not relocation of an existing business from another site within the State unless that relocation results in substantial employment growth.
(Source: P.A. 100-377, eff. 8-25-17.)
(30 ILCS 750/9-4.1) (from Ch. 127, par. 2709-4.1)
Sec. 9-4.1. Applications for
loans.  All applications for loans to small
businesses shall be submitted to the Department on forms and
subject to filing fees prescribed by the Department.  The
Department shall conduct such investigation and obtain such
information concerning the application as it considers
necessary and diligent.  Complete applications received by
the Department shall be forwarded to a credit review committee
consisting of persons experienced in business financing, and
the Director of the
Governor's Office of Management and Budget or his designee, for
a review and report concerning the advisability of approving
the proposed loan.  The review and report shall include facts
about the company's history, job opportunities, stability of
employment, past and present condition and structure, actual
and pro-forma income statements, present and future market
prospects and management qualifications, and any other facts
deemed material to the financing request.  The report shall include
a reasoned opinion as to whether providing the financing
would tend to fulfill the purposes of the Article.  The report
shall be advisory in nature only.  The credit review committee
shall be of such composition, act for such time, and
have such powers as shall be specified by the Department.
After consideration of such report and after such
other action as is deemed appropriate, the Department shall
approve or deny the application.  If the Department approves
the application, its approval shall specify the amount of
funds to be provided by the Department loan agreement provisions.
The business applicant shall be promptly notified of
such action by the Department.
(Source: P.A. 94-793, eff. 5-19-06.)
(30 ILCS 750/9-4.2) (from Ch. 127, par. 2709-4.2)
Sec. 9-4.2. Illinois Capital Revolving Loan Fund.
(a) There is hereby created the Illinois Capital
Revolving Loan Fund, hereafter referred to in this Article as the
"Capital Fund" to be held as a separate fund within the State
Treasury.
The purpose of the Capital Fund is to finance intermediary agreements,
administration, technical assistance agreements,
loans, grants, or investments in Illinois.  In addition, funds may be
used
for a one time transfer in fiscal year 1994, not to exceed the amounts
appropriated, to the Public Infrastructure Construction Loan Revolving Fund for
grants and loans pursuant to the Public Infrastructure Loan and Grant Program
Act.  Investments, administration,
grants, and financial aid shall be used for the purposes set for in this
Article.  Loan financing will be in the
form of
loan agreements pursuant to the terms and conditions set
forth in this Article.  All loans shall be conditioned on the
project receiving financing from participating lenders or other investors.
Loan
proceeds shall be available for project costs, except for
debt refinancing.
(b) There shall be deposited in the Capital Fund
such amounts, including but not limited to:
(i) All receipts, including dividends, principal and     interest payments and royalties, from any applicable loan, intermediary, or technical assistance agreement made from the Capital Fund or from direct appropriations from the Build Illinois Bond Fund or the General Revenue Fund by the General Assembly entered into by the Department;
(ii) All proceeds of assets of whatever nature     received by the Department as a result of default or delinquency with respect to loan agreements made from the Capital Fund or from direct appropriations by the General Assembly, including proceeds from the sale, disposal, lease or rental of real or personal property which the Department may receive as a result thereof;
(iii) Any appropriations, grants or gifts made to the     Capital Fund;
(iv) Any income received from interest on investments     of moneys in the Capital Fund;
(v) All moneys resulting from the collection of     premiums, fees, charges, costs, and expenses in connection with the Capital Fund as described in subsection (e) of Section 9-3.
(c) The Treasurer may invest moneys in the Capital
Fund in securities constituting obligations of the United
States Government, or in obligations the principal of and
interest on which are guaranteed by the United States Government,
in obligations the principal of and interest on which
are guaranteed by the United States Government, or in certificates
of deposit of any State or national bank which are
fully secured by obligations guaranteed as to principal and
interest by the United States Government.
(Source: P.A. 102-1071, eff. 6-10-22.)
(30 ILCS 750/9-4.2a)
Sec. 9-4.2a. Rural micro-business loans.
(a) In order to increase the growth of small rural businesses, the rural micro-business loan program is created and shall be administered by the Department of Commerce and Economic Opportunity, subject to appropriation.  This program shall help small businesses that lack sufficient collateral or equity access funds at competitive terms to help create or retain jobs, modernize equipment or facilities, and maintain their competitiveness.
(b) In the making of loans for rural micro-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. The Department shall adopt rules for the administration of this program.
For purposes of this Section, "rural micro-business" means a business that: (i) employs 5 or fewer full-time employees, including the owner if the owner is an employee, and (ii) is based on the production, processing, or marketing of agricultural products, forest products, cottage and craft products, or tourism.
(c) The Department may determine by rule the amount, term, interest rate, and allowable uses of loans awarded under this program, except that:
(1) The loan shall not exceed $25,000 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) The loan shall only be made if the Department     determines that the number of jobs to be created or retained by the business is reasonable in relation to the loan funds requested.
(3) The borrower shall provide a written statement of     the funds required to establish or support the business and shall provide equity capital in an amount equal to 10% of the first $10,000 of the required funds and equity capital, other loans, or leveraged capital, or any combination thereof, in an amount equal to 50% of any additional required funds.
(4) The loan shall be in a principal amount and form     and     contain terms and provisions with respect to security, insurance, reporting, delinquency charges, default remedies, and other matters that the Department determines are appropriate to protect the public interest and are consistent with the purposes of this Section. The terms and provisions may be less than required for similar loans not covered by this Section.
(5) The Department shall award no less than 80% of     the amount available for this program for loans to businesses that are located in counties with a population of 100,000 or less.
(Source: P.A. 103-363, eff. 7-28-23.)
(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 or female or who have a disability or who are veterans.
(b) Loans made pursuant to this Section:
(1) Shall not exceed $400,000 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. 99-143, eff. 7-27-15; 100-377, eff. 8-25-17.)
(30 ILCS 750/9-4.4)
Sec. 9-4.4. 
		Financial intermediary agreements.
(a) The Department is authorized to exercise its powers and duties set forth
in this Article through various financial intermediary agreements to assist
young firms, including business start-ups and micro-enterprises; mature
firms,
including industrial expansions, modernizations, or environmental upgrades; and
other targeted credit disadvantaged firms identified by the Department.
(b) A financial intermediary agreement may include, but is not limited to,
participation agreements in which the Department purchases an undivided
interest in an otherwise qualifying loan made by a participating lender; seed
financing or capitalization of revolving pools of money for lending or
investing in
third parties; financial aid for one or more credit enhancement pools of
political subdivisions of the State; or financial aid for loan loss reserve
accounts or certificates, provided the loss reserve accounts or certificates
are established pursuant to a trust indenture executed for that purpose by a
financial intermediary with a bank or trust company in the State of Illinois
designated by the State Treasurer having trust powers.
(Source: P.A. 88-422.)
(30 ILCS 750/9-4.5)
Sec. 9-4.5. (Repealed).
(Source: P.A. 88-670, eff. 12-2-94. Repealed by P.A. 100-621, eff. 7-20-18.)
(30 ILCS 750/9-4.6)
Sec. 9-4.6. 
		Financial intermediary applications.
(a) Before implementing any financial intermediary program component, the
Department may establish rules including, but not limited to, application,
review, and approval procedures; form of documentation, servicing, and default
conditions; the disposition of any assets remaining, subsequent to or resulting
from an intermediary agreement; and procedures, forms, and manner or approval
of third party applications.
(b) Applications for funds for financial intermediary agreements may
include, but shall not be limited to, history and mission of the applicant;
needs to be served, which shall be consistent with the purpose of this Article;
products, services, and results expected from the effort; staffing, management,
and operational procedures; and budget request and capitalization of the
effort.
(c) The Department shall review the intermediary applications to determine
the viability of the applicant, the consistency of the proposed project with
the purposes of this Article, the economy benefits expected to be derived
therefrom, the prospects for continuation of the project after Departmental
assistance has been provided, and other issues that may be considered
necessary.
(d) As a part of an intermediary agreement, the Department may provide for,
and the Department is authorized to rely upon, the financial intermediary to
undertake on behalf of the State the review and approval of the credit,
collateral security, and documentation; determination of eligibility; the
collection and use of fees, premiums, or charges; the organization, servicing,
and disbursement of financial assistance; and any other purposes and
activities that the Department determines to be reasonable, appropriate, and
consistent with the purposes of this Article.
(e) The Department shall require as a condition of an intermediary agreement
that the financial intermediary cause to be prepared at least annual
transaction reports detailing the activities of the program including, the
number and type of firms and amount of financing provided.
(Source: P.A. 88-422; 88-670, eff. 12-2-94.)
(30 ILCS 750/9-4.7)
Sec. 9-4.7. Military Reservist Business Assistance Loan Program.
(a) As used in this Section:
"Period of military conflict" means (i) a period of war declared by Congress; (ii) a period of national emergency declared by Congress or by the President; or (iii) a period in which a member of a reserve component of the armed forces of the United States is ordered to active duty  pursuant to Section 12304 of Title 10 of the United States Code.
"Owner" means a person with at least a 20% ownership interest in a small business.
"Key employee" means an individual who is employed by a small business and whose managerial or technical expertise is critical to the successful day-to-day operation of the business.
"Small business" means a business with 50 or fewer employees.
"Substantial economic injury" means an economic harm to a small business that results in the inability of the small business to (i) meet its obligations as they mature; (ii) pay its ordinary and necessary operating expenses; or (iii) market, produce, or provide a product or service.
(b) In the making of military reservist business assistance loans, 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.
(c) From funds appropriated for that purpose, the Department shall administer a Military Reservist Business Assistance Loan Program. The Director shall make loans to small businesses (i) that lose an owner or a key employee due to a period of military conflict and (ii) that will experience substantial economic injury as a result of the loss of that owner or key employee.
(d) The Department may accept grants, loans, or appropriations from the federal government or from  any private entity to be used for the purposes of this program and may enter into contracts and agreements in connection with those grants, loans, or appropriations.
(e) Loans made pursuant to this Section:
(1) Shall not exceed $150,000.
(2) Shall have an interest rate below the market rate     loan percent.
(3) Shall have repayment terms determined by the     Department and that do not exceed 30 years.
(4) 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 applicant demonstrates adequate business experience, entrepreneurial training, or a combination thereof, as determined by the Department.
(5) Shall be in the principal amount and form and         contain the terms and provisions with respect to security, insurance, reporting, delinquency charges, default remedies, and other matters that the Department determines are appropriate to protect the public interest and consistent with the purposes of this Section.
(f) The Department shall not award any loan under this Section to: (i) a small business or subsidiary of that business that has already been awarded a loan under this Section within the same fiscal year; or (ii) a small business that was awarded a loan under this Section on which  the balance remains unpaid.
(g) Within 30 days after the owner or key employee returns to non-active duty status, arrangements shall be made for the repayment of the loan.
(Source: P.A. 94-485, eff. 8-8-05.)
(30 ILCS 750/9-4.8)
Sec. 9-4.8. State Small Business Credit Initiative Fund.
(a) There is hereby created the State Small Business Credit Initiative Fund, also referred to in this Article as the "SSBCI Fund", as a special fund in the State treasury.
The purpose of the SSBCI Fund is to finance intermediary agreements, administration, technical assistance agreements, loans, grants, or investments in Illinois.  Investments, administration grants, and financial aid shall be used for the purposes set forth in this Article. Loan financing shall be in the form of loan agreements pursuant to the terms and conditions set forth in this Article. All loans shall be conditioned on the project receiving financing from participating lenders or other investors.
(b) The following amounts shall be deposited into the SSBCI Fund:
(1) all receipts, including dividends, principal and     interest payments, and royalties, from any applicable loan, intermediary, or technical assistance agreement made from the SSBCI Fund or from direct appropriations from the Build Illinois Bond Fund or the General Revenue Fund by the General Assembly entered into by the Department;
(2) all proceeds of assets of  whatever nature     received by the Department as a result of default or delinquency with respect to a loan agreement made from the SSBCI Fund or from direct appropriations by the General Assembly, including proceeds from the sale, disposal, lease, or rental of real or personal property that the Department may receive as a result thereof;
(3) any appropriations, grants, or gifts made to the     SSBCI Fund;
(4) any income received from interest on investments     of moneys in the SSBCI Fund;
(5) all moneys resulting from the collection of     premiums, fees charges, costs, and expenses described in subsection (e) of Section 9-3.
(c) The Treasurer may invest moneys in the SSBCI Fund in securities constituting obligations of the United States Government, or in obligations the principal of and interest on which are guaranteed by the United States Government, or in certificates of deposit of any State or national bank which are fully-secured by obligations guaranteed as to principal and interest by the United States Government.
(Source: P.A. 100-377, eff. 8-25-17.)
(30 ILCS 750/9-5) (from Ch. 127, par. 2709-5)
Sec. 9-5. 
		Equity Investments. 
		Any equity investment shall:
(a) Be made only if a participating lender or
other investor also provides a portion of the financing with
respect to the project.  The participating lender's or other
investor's financing may be in the form of an equity position,
convertible debt, convertible preferred stock, loan, letter
of credit, guarantee, bond purchase or any other form approved
by the Department;
(b) Finance no more than the lesser of 33 1/3%
of the total amount of any single
project or $250,000 for any single project unless such
limitations are waived by the Director upon a finding that
such waiver is appropriate to accomplish the purposes of this Article;
(c) Be made only if the Department determines,
on the basis of all the information available to it, that the
project would not be undertaken unless the equity investment is provided;
(d) Be protected by adequate security on equity investment
agreements issued by the Department.  Equity investment agreements may be
secured by first or second 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 payment of the equity investment;
(e) Be in such principal amount and form, and
contain such terms and provisions with respect to the property
insurance, repairs, alterations, payment of taxes and assessments,
delinquency charges, default remedies, additional
security and other matters as the Department shall determine
adequate to protect the public interest;
(f) Be made to an eligible small business approved
by the Department as responsible and creditworthy;
(g) Be reviewed by the credit review committee
established by the Department pursuant to this Article;
(h) Be made only after the Department has made a
determination that the loan or investment agreement will
cause a project to be undertaken which has the potential to
create substantial employment in relation to the principal
amount of the loan or investment;
(i) Be made for a small business that has certified
the project is a new plant start-up or expansion or a new
venture opportunity and is not an area relocation of an
existing business from another site within Illinois unless
that relocation provides substantial employment growth;
(j) Be made for a small business which agrees: to at all times keep
proper books of record and account in accordance with generally accepted
accounting principles consistently applied, and agree that the Department
is authorized to make or cause to be made, in such manner and at such times
as the Department may reasonably require but subject to Section 9-8 of this
Act, (i) inspection and audits of any books, records and papers in the
custody or control of the small business or others, relating to the small
business's financial or business conditions, including without limitation
the making of copies thereof and extracts therefrom, and (ii) inspection
and appraisals of any of the small business's assets, authorizations to all
federal, State and municipal authorities and officials to furnish reports
of examinations, records and other information relating to the conditions
and affairs of the small business and any information from reports,
returns, files and records of such authorities upon written request to the
small business by the Department;
(k) Be made only to a small business which agrees that if at any time
after the Department has made an equity investment, whatever the reason for
such event and whether it shall be voluntary or involuntary or be effected
by operation of law or pursuant to any court or any order, rule or
regulation of any governmental or non-governmental body the small business
shall (a) commence a voluntary case under the federal bankruptcy laws (as
now or hereafter in effect), (b) file a petition seeking to take advantage
of any other laws, domestic or foreign, relating to bankruptcy, insolvency,
reorganization, composition, winding up or adjustment of debts, (c) consent
to or fail to contest in a timely and appropriate manner any petition filed
against it in an involuntary case under such bankruptcy or similar laws,
(d) apply for or consent to, or fail to contest in a timely and appropriate
manner, the appointment of, or the taking of possession by, a receiver,
custodian, trustee or liquidator of itself or of a substantial part of its
property, (e) admit in writing its inability to pay, or generally not be
paying, its debts as they become due, (f) make a general assignment for the
benefit of creditors; then, and in every such event, in the case of any of
the events specified in clauses (a) through (f) above, without any notice
to the small business or any other act by the Department, the small
business (or an entity acting on its behalf) shall immediately become
obligated to purchase or redeem, and the Department shall immediately
become obligated to sell or surrender for redemption,
all such shares from the Department.
(Source: P.A. 84-1124.)
(30 ILCS 750/9-5.1) (from Ch. 127, par. 2709-5.1)
Sec. 9-5.1. Applications for Illinois Equity
Investments.
(a) All applications for the Illinois Equity
Investments to or on behalf of
small businesses shall be submitted to the Department on
forms and subject to filing fees prescribed by the Department.
For business project applications, the Department shall conduct such
investigation and obtain
such information concerning the application as it deems necessary and
diligent.  Complete applications
received by the Department shall be forwarded to an outside
credit review committee consisting of persons experienced in
new venture equity financing and the Director of the
Governor's Office of Management and Budget, or his or her
						designee, for small business for a
review and report concerning the advisability of approving
the proposed investment.  The review and report shall include facts
about the company's history, job opportunities, stability of
employment, past and present condition and structure, actual
and pro-forma income statements, present and future market
prospects and management qualifications, and any other facts
deemed material to the financing request.  The report shall be
advisory in nature only and shall include a reasoned opinion
as to whether providing the financing would tend to fulfill
this purpose of the Act.  Except for the Director of the
Governor's Office of Management and Budget or his or her designee, the Department may
utilize the services of existing outside organizations as the
credit review committee.
(b) For equity intermediary agreements, applications may include, but
shall not be limited to, history and mission of the applicant; needs to be
served, which shall be consistent with the purpose of this subsection;
products,
services, and results expected from the effort; staffing, management, and
operational procedures; and budget request and capitalization of the effort.
The Department shall review the intermediary applications to determine the
viability of the applicant, the consistency of the proposed project with the
purposes of this Article, the economic benefits expected to be derived
therefrom, the prospects for continuation of the project after Departmental
assistance has been provided, and other issues that may be considered
necessary.
(c) The Department shall, on the basis of the application,
the report of the credit review committee, and any
other appropriate information, prepare a report concerning the
credit-worthiness of the proposed borrower or intermediary, the financial
commitment of the participating lender or other investor, the
manner in which the proposed small business or intermediary project will
advance the economy of the State, and the soundness of the
proposed equity investment or intermediary agreement.
After consideration of such report and after such
other action as it deems appropriate, the Department shall
approve or deny the application.  If the Department approves
the application, its approval shall specify the amount of
funds to be provided and the Department equity investment
agreement provisions.
The small business or intermediary applicant shall be promptly
notified of such action by the Department.
(Source: P.A. 94-793, eff. 5-19-06.)
(30 ILCS 750/9-5.2) (from Ch. 127, par. 2709-5.2)
Sec. 9-5.2. Illinois Equity
Fund.
(a) There is created the Illinois Equity
Fund, to be held as a separate fund within the State Treasury.
The purpose of the Illinois Equity Fund is to make equity investments in
Illinois.  All financing will be done in conjunction with
participating lenders or other investors.  Investment proceeds
may be directed to working capital expenses associated with
the introduction of new technical products or services of individual business
projects or may be used for equity finance pools operated by intermediaries.
(b) There shall be deposited in the Illinois Equity Fund
such amounts, including but not limited to:
(i) All receipts including dividends, principal and     interest payments, royalties, or other return on investment from any applicable loan made from the Illinois Equity Fund, from direct appropriations by the General Assembly from the Build Illinois Fund or from intermediary agreements made from the Illinois Equity Fund entered into by the Department;
(ii) All proceeds of assets of whatever nature     received by the Department as a result of default or delinquency with respect to loan agreements made from the Illinois Equity Fund, or from direct appropriations by the General Assembly including proceeds from the sale, disposal, lease or rental of real or personal property which the Department may receive as a result thereof;
(iii) any appropriations, grants or gifts made to the     Illinois Equity Fund;
(iv) any income received from interest on investments     of moneys in the Illinois Equity Fund.
(c) The Treasurer may invest moneys in the Illinois Equity
Fund in securities constituting direct obligations of the
United States Government, or in obligations the principal of
and interest on which are guaranteed by the United States
Government, or in certificates of deposit of any State or
national bank which are fully secured by obligations guaranteed
as to principal and interest by the United States Government.
(Source: P.A. 102-1071, eff. 6-10-22.)
(30 ILCS 750/9-5.3)
Sec. 9-5.3. 
		Equity intermediary agreements.
(a) The Department is authorized to exercise its powers and
duties set forth
in this Article through equity intermediary agreements to assist young, high
risk, technology based firms, including business start-ups.
(b) An equity intermediary agreement may include seed financing or
capitalization of one or more equity investment pools managed by a financial
intermediary, provided that the assistance is used for investing in third
parties.
(c) The Department is authorized to rely upon the financial intermediary to
determine the portion of the equity investment requirements of the third party
recipient to be financed and upon the documentation and analysis standards of
the
intermediary instead of the requirements of subsection (b) of Section 9-5.1,
provided
that other organizations have contributed substantially to the capitalization
of the equity pool.
(Source: P.A. 88-422.)
(30 ILCS 750/9-6) (from Ch. 127, par. 2709-6)
Sec. 9-6. 
		Technical Assistance Grants. 
		Any grant made pursuant to this
Article shall:
(a) Be made only if a recipient not-for-profit organization also provides a
portion of the financing with respect to the technical assistance project.  The
participating not-for-profit organization's financing may be in the form of
cash or in-kind services or any other form approved by the Department;
(b) Be made only if the Department determines, on the basis of all
information available to it, that the technical assistance project would not be
undertaken unless the grant is provided;
(c) Be made only after the Department has made a determination that the
grant will cause a technical assistance project to be undertaken which has the
potential to improve the capital marketplace structure or to reduce information
barriers that are impediments to the flow of capital.
(Source: P.A. 88-422.)
(30 ILCS 750/9-6.1) (from Ch. 127, par. 2709-6.1)
Sec. 9-6.1. 
		Applications for grants.
(a) All applications for grants to not-for-profit organizations shall be submitted to the Department on forms prescribed by the Department.  The
Department shall conduct such investigation and obtain such
information concerning the application as it deems
necessary and diligent.
(b) Each application shall at minimum address the proposed work plans,
timelines, objectives, and results of the project, the persons responsible for
administering the effort, the costs of completing the proposed effort, and
other documentation that may be necessary.
(c) After conducting the investigation and after such
other action as is deemed appropriate, including determination that a
not-for-profit organization's proposed project is in compliance with the
provisions of this Article and subsection, the Department shall
approve or deny the application.  If the Department approves
the application, its approval shall specify the amount of
grants to be provided by the Department.
The applicant shall be promptly notified of
such action by the Department.
(d) The Department shall establish reporting mechanisms and other
informational requirements of the participants to track performance of eligible
grant
activities, report actual operating expenses, and provide a narrative report of
eligible grant activities and accomplishments.
(Source: P.A. 88-422.)
(30 ILCS 750/9-7) (from Ch. 127, par. 2709-7)
Sec. 9-7. 
		Hold Harmless. 
		Nothing in this Article
shall be construed as creating any rights of a competitor of
an approved borrower or any applicant whose application is
denied by the Department to challenge any application which
is accepted by the Department and any loan or other agreement
executed in connection therewith.
(Source: P.A. 84-109.)
(30 ILCS 750/9-8) (from Ch. 127, par. 2709-8)
Sec. 9-8. 
		Confidentiality. 
		Any documentary
materials or data made or received by any member, agent or
employee of the Department, to the extent that such material
or data consists of trade secrets, commercial, or financial
information regarding the operation of any enterprise
conducted by an applicant for, or a recipient of, any form
of assistance which the Department is empowered to render
under this Article, or  regarding the competitive position of
such enterprise in a particular field of endeavor, shall be
deemed to be confidential and shall not be deemed public
records; provided, however, that if the Department purchases
a qualified security from such enterprise, the commercial
and financial information, excluding trade secrets, shall be
deemed to become a public record of the Department after the
expiration of three years from the later of the date of purchase of such
qualified security or the date of receipt of such information by the
Department to the extent that such information is available to
the holder of such qualified security.
(Source: P.A. 88-422.)
(30 ILCS 750/9-9) (from Ch. 127, par. 2709-9)
Sec. 9-9. 
		Annual Report. 
		On January 1 of
each year, the Department shall report on its operations of
the Illinois Capital Revolving Loan Fund and the Illinois
Equity Fund for the preceding fiscal year to the Governor
and the General Assembly.
(Source: P.A. 84-109.)
(30 ILCS 750/9-10) (from Ch. 127, par. 2709-10)
Sec. 9-10. Federal Programs.
(a) The Department is
authorized to accept and expend federal moneys pursuant to
this Article except that the terms and conditions hereunder
which are inconsistent with, prohibited by, or more restrictive than the federal
authorization under which such moneys are made available
shall not apply with respect to the expenditure of such
moneys.
(b) The Department is authorized to receive and expend federal funds made available pursuant to the federal State Small Business Credit Initiative Act of 2010 as amended by Section 3301 of the federal American Rescue Plan Act of 2021, enacted in response to the COVID-19 public health emergency.
(1) Such funds may be deposited into the State Small     Business Credit Initiative Fund and may be used by the Department, subject to appropriation, for any permitted purposes in accordance with the federal State Small Business Credit Initiative Act of 2010 as amended by Section 3301 of the federal American Rescue Plan Act of 2021 and any related federal guidance.
(2) Permitted purposes include to provide support to     small businesses responding to and recovering from the economic effects of the COVID19 pandemic, to ensure business enterprises owned and controlled by socially and economically disadvantaged individuals have access to credit and investments, to provide technical assistance to help small businesses applying for various support programs, and to pay reasonable costs of administering the initiative.
(3) Terms such as "business enterprise owned and     controlled by socially and economically disadvantaged individuals", "socially and economically disadvantaged individual" and "very small business", and any other terms defined in the federal State Small Business Credit Initiative Act of 2010 as amended by Section 3301 of the federal American Rescue Plan Act of 2021 and any related federal guidance, have the same meaning for purposes of the Department's implementation of this initiative. The term "small business" includes both for-profit and not-for-profit business enterprises to the extent permitted by federal law and guidance.
(4) The Department may use such funds to enter into     technical assistance agreements and other agreements with both for-profit and not-for-profit business enterprises and may provide technical assistance to small businesses to the extent permitted by federal law and guidance.
(Source: P.A. 102-16, eff. 6-17-21.)
(30 ILCS 750/9-11)
Sec. 9-11. Port Development Revolving Loan Program.
(1) There is created in the State Treasury the Port Development Revolving
Loan Fund, referred to in this Section as the Fund.  Moneys in the Fund may
be appropriated for the purposes of the
Port Development Revolving Loan Program created by this Section to be
administered by the Department of Commerce and Economic Opportunity in order to
facilitate and enhance the
utilization of Illinois' navigable waterways or the development of inland
intermodal freight facilities or both.  The Department may adopt rules
for the administration of the Program.
The General Assembly may make appropriations for the purposes
of the Program.
Repayment of loans made to individual
port districts shall be paid back into the Fund to establish an ongoing
revolving loan fund to facilitate continuing port development activities in the
State.
(2) Loan funds from the Program shall be made available to Illinois port
districts on a competitive basis.  In order to obtain assistance under the
Program, a port district must submit a comprehensive application to the
Department for consideration.
Projects eligible for funding under the Program must be intermodal
facilities and within the scope of powers and responsibilities as granted in
each
port district's enabling legislation.  Loan funds shall not be used for working
capital or administrative purposes by the port district.
(3) The maximum amount which may be loaned from the Program to fund
any one project is $3,000,000.  Program funds may be used for up to 50% of an
individual project financing.  The balance of financing for an individual
project must be secured by the respective district.
The maximum loan term shall be for 20 years with an interest rate of 5%
per annum.  Principal and interest payments shall be made on a semi-annual
basis.
(4) In order to receive a loan from the Program, a port district must:
(a) demonstrate that the proposed project shall     generate sufficient revenue to support amortization of the loan and be willing to pledge revenues from the project to loan repayment or
(b) demonstrate that the port district can     financially support debt service payments through general revenue sources of the port district and pledge the full faith and credit of the port district to loan repayment.
In order to achieve the requirement of paragraph (a) of this subsection (4),
the port
district may use guarantees provided under facility operating agreements or
guaranteed facility use agreements from private concerns to demonstrate loan
repayment ability.
Certain infrastructure facilities developed under the Program may be
general use public facilities where there is not a definitive and guaranteed
revenue stream to support the project, nevertheless the facilities are
important to facilitate overall long term port development objectives.  In such
cases, the full
faith and credit of the port district may be used as loan collateral.
(5) A loan agreement shall be executed between the port district and the
State stipulating all of the terms and conditions of the loan.  The Department
shall release funds on a reimbursement basis for eligible costs of the project
as incurred.  The port district shall certify to the Department that expenses
incurred during construction are in accordance with plans and specifications as
approved by the Department.  Funds may be drawn once per month during
construction of the project.
(6) The loan agreement shall contain customary and usual loan default
provisions in the event the port district fails to make the required payments.
The loan agreement shall stipulate the State's recourse in curing any default.
In the event a port district becomes delinquent in payments to the State,
that port district shall not be eligible for any future loans until the
delinquency is remedied.
(7) Individual port district project applications shall include the
following:
(a) Statement of purpose.  A description of the     project shall be submitted along with the project's anticipated overall effect on meeting port district objectives.
(b) Project impact.  The anticipated net effects of     the project shall be enumerated.  These impacts may include the economic impact to the State, employment impact, intermodal freight impacts, and environmental impacts.
(c) Cost estimates and preliminary project layout.      The overall project development cost estimate and general site and or facility drawings.
(d) Proposed loan amount.  A statement as to the     amount proposed from the Program and the port district's intentions as to the source of other financing for the project.
(e) Business Proforma.  A detailed business proforma     must be supplied which estimates facility/project revenues as well as operating costs and debt service.
(f) Loan collateral and guarantees.  The port     district's intentions as to how it intends to collateralize the loan amount, including third party guarantees, pledging of project and facility revenue, or pledging general revenues of the district.
(8) The Department shall annually invite Illinois port districts to submit
projects for consideration under the Program.  The Department shall perform a
cost/benefit
analysis of each project to determine if a project meets minimum requirements
for eligibility.  Those applications which meet minimum criteria shall then be
ranked by the overall net positive impact on the State.
(a) Minimum criteria shall include:
(i) positive cost/benefit ratio;
(ii) demonstrated economic feasibility of the         project; and
(iii) the ability of the port district to repay         the loan.
(b) Ranking criteria may include:
(i) a cost/benefit ratio of project in relation         to other projects;
(ii) product tonnage to be handled;
(iii) product value to be handled;
(iv) soundness of business proposition;
(v) positive intermodal impacts of Illinois         transportation system;
(vi) meets overall State transportation         objectives;
(vii) economic impact to the State; or
(viii) environmental benefits of the project.
Projects shall be selected according to their ranking up to the limit of
available funds.  Selected projects shall be invited to submit detailed plans,
specifications, operating agreements, environmental clearances, evidence of
property title, and other documentation as necessitated by the project.  When
the
Department determines all necessary requirements are met and the remainder of
the project financing is available, a loan agreement shall be executed and
project development may commence.
(Source: P.A. 94-793, eff. 5-19-06.)