Illinois Administrative Code › Title 14 - COMMERCE › Part 560 - ILLINOIS SMALL BUSINESS INCUBATOR PROGRAM › Section 560.60 - Administrative Requirements

Current through Register Vol. 48, No. 28, July 12, 2024
a) Loan
			 Terms - Monthly installments shall be due and payable to the Department at a
			 time specified in the loan agreement. All payments shall be applied first to
			 interest and then to principal.
b)
			 Reporting - The Recipient (applicant receiving grant/loan) will provide, at
			 least annually, information and reports required by the Department (e.g.
			 reports on job creation/retention; client status report, and expenditure
			 summary).
c) Termination of
			 Grants/Loans - Grants/loans shall be terminated for the following reasons:
1) Termination Due to Loss of Funding - In
			 the absence of state funding for a grant year, all grants/loans for that year
			 will be terminated in full. In the event of a partial loss of state funding,
			 the Department will make proportionate cuts to all Recipients. In the event the
			 Department suffers such a loss of funding in full or part, the Department will
			 give the Recipient written notice setting forth the effective date of full or
			 partial termination, or if a change in funding is required setting forth the
			 change in funding and changes in the approved budget.
2) Termination for Cause
A) If the Department determines that the
			 Recipient has failed to comply with the terms and conditions of the grant/loan,
			 the Department shall terminate the grant/loan in whole, or in part, at any time
			 before the date of completion. Circumstances which will result in the
			 termination of a grant/loan include, but are not necessarily limited to the
			 following: consistent failure to submit required reports; failure to maintain
			 required records; failure to protect inventory; misuse of equipment purchased
			 with grant/loan funds; evidence of fraud and abuse; consistent failure to meet
			 performance standards and failure to resolve points of the agreement (i.e.,
			 narrative, number to be served). These circumstances are explained in the
			 grant/loan agreement.
B) The
			 Department shall promptly notify the Recipient in writing of the determination
			 to terminate, the reasons for such termination, and the effective date of the
			 termination. Payments made to the Recipient or recoveries by the Department
			 shall be made in accordance with legal rights and liabilities explained in the
			 grant/loan agreement.
3)
			 Termination by Agreement - The Department and the Recipient shall terminate the
			 grant/loan in whole, or in part, when the Department and the Recipient agree
			 that the continuation of the program objectives would not produce beneficial
			 results commensurate with the future expenditures of funds. The Department and
			 the Recipient shall agree upon termination conditions, including the effective
			 date and, in the case of partial termination, the portion to be terminated.
			 Recipient shall not incur new obligations for the terminated portion after the
			 effective date, and shall cancel as many outstanding obligations as possible.
			 The Department shall allow full credit to the Recipient for the Department's
			 share of the noncancellable obligations, properly incurred by the Recipient
			 prior to termination.