Illinois Administrative Code › Title 74 - PUBLIC FINANCE › Part 1100 - ILLINOIS FINANCE AUTHORITY › Subpart G - FARM DEVELOPMENT PROGRAM › Section 1100.730 - Rules and Guidelines Applicable to the Specialized Livestock Guarantee Program

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				General Description of Program. The Specialized Livestock Guarantee Program
				(SLP) is designed to enhance opportunities for many Illinois farmers who want
				to position themselves for success in the changing livestock industry. This
				program targets specialized, family sized livestock operations, including swine
				and dairy and beef cattle operations. Loan funds may be used primarily for
				construction, purchase, and/or remodeling of facilities, and also for purchases
				of equipment, breeding livestock or other capital assets. In some cases, loan
				proceeds may be used to refinance existing debt as needed to improve lien
				positions or improve financial structure. The provisions of this Section are
				applicable only to the SLP.
b)
				Definitions
Words defined in the Illinois Finance Authority Act and in
				  Section
				  1100.50 have the same
				  meaning when used in this Subpart unless a more specific definition is
				  prescribed in this Section. This Section establishes additional definitions for
				  use in this Subpart only.
"Applicant" means a farmer whose application for a
				  Specialized Livestock Guarantee has been submitted to the Authority by a
				  lender.
"Asset" includes, but is not limited to, the following: crops
				  or feed on hand; livestock held for sale; breeding stock; cash; marketable
				  bonds and securities; securities not readily marketable; accounts receivable;
				  notes receivable; cash invested in growing crops; net cash value of life
				  insurance; machinery and equipment; cars and trucks; farm and other real estate
				  including life estates and personal residence; value of beneficial interest in
				  trusts; government payments or grants; capitalized leases; retirement accounts;
				  and any other assets.
"Debt to Asset Ratio" means total outstanding liabilities,
				  including any debt to be financed or refinanced under this Section, divided by
				  total assets.
"Fund" means the Illinois Farmer and Agribusiness Loan
				  Guarantee Fund, which is the State's fund to cover losses resulting from
				  defaults on Specialized Livestock Guarantee loans.
"Liability" includes, but is not limited to, the following:
				  accounts payable; notes or other indebtedness owed to any source; taxes; rent;
				  amounts owed on real estate contracts or real estate mortgages; judgments
				  accrued; interest payable; indebtedness under capitalized leases; and any other
				  liability.
"SLP Loan" means an installment note for which the State of
				  Illinois shall be liable for 85% of the total principal and interest as
				  determined by the Authority.
c) Eligible Farmers. To qualify for
				participation in the SLP, the applicant must:
1) be a resident of the State of Illinois. In
				the case of entities other than sole proprietorships, the owners of such entity
				must be Illinois residents.
2) be
				the principal operator and/or materially involved in the operation.
3) have adequate cash flow and
				collateral.
4) certify to the
				Authority that, at the time the State Guarantee is provided, the borrower will
				not be delinquent in the repayment of any debt. [20 ILCS
				3501/830-50 ]