Illinois Administrative Code › Title 14 - COMMERCE › Part 600 - ILLINOIS EQUITY INVESTMENT FUND › Section 600.30 - Evaluation Process

Current through Register Vol. 48, No. 28, July 12, 2024
Applications will be evaluated on the technical, market, and
				financial feasibility of the proposal to assure compliance with the
				requirements and the purpose of the Small Business Development Act (Sections
				9-1, 9-2, 9-3, 9-5 et seq. of P.A. 84-109, effective July 25, 1985) (Act).
				Complete applications will be reviewed and evaluated by Department staff.
				Applicants will be notified of deficiencies in applications and given an
				opportunity to correct such deficiencies through resubmission (see Section
				600.25
				). This review and evaluation process will be completed within 30 days. The
				evaluation will address the following criteria:
a) Technical evaluation component - The
			 Department will require applicants to show: evidence of need for program funds
			 in accordance with Section 9-5(c) of the Act, including identification of
			 alternative funding sources pursued and leverage of other funds to cover 662/3
			 percent of total project costs in accordance with Section 9-5(a) of the Act;
			 project implementation readiness, including commitments from all lenders and
			 investors; written cost estimates which support project costs; and evidence of
			 job creation, including written assurances from the company which identify the
			 number and types of jobs to be created at generally a ratio of at least one job
			 to each $5,000 of project funds. A project with a lower ratio will be
			 considered for funding if the application demonstrates severe need (e.g.,
			 distressed community with an unemployment rate which is considerably higher
			 than the State's average; area with limited economic development projects as
			 evidenced by prior and current development activities; funding would support
			 business with potential to generate additional growth in area and creation of
			 jobs as a result of spinoff businesses; funding needed to avert loss of the
			 area's major source of employment, etc.).
b) Financial Evaluation Component - The
			 applicant's financial statements, including the annual balance sheet, profit
			 and loss statement, forecast of expenses and earnings, and related information,
			 will be reviewed through a standard credit analysis which will determine the:
			 liquidity and debt coverage for the project; ability of the company to manage
			 debt; business trends; and projected earnings. This data will be compared to
			 similar data for companies in the same industry using "Robert Morris Associates
			 Annual Statement Studies" (1985), if such industry is evaluated by this source.
			 This standard credit analysis will determine the financial stability of the
			 company in accordance with Section 9-5(f) of the Act.
c) Market Evaluation Component - The
			 Department will require applicants to show the market feasibility of each
			 application received and shall require applicants to undergo a technical
			 feasibility analysis conducted under the auspices of a designated university
			 technology commercialization center if the Department lacks the expertise to
			 evaluate the market feasibility of an application (See Section 46.19 a of the
			 Civil Administrative Code of Illinois (Ill. Rev. Stat. 1984, Supp., ch. 127,
			 par. 46.19a).