Illinois Administrative Code › Title 14 - COMMERCE › Part 650 - CANNABIS SOCIAL EQUITY PROGRAM › Section 650.35 - Business Loan and Financial Assistance Application Evaluation

Current through Register Vol. 48, No. 28, July 12, 2024
The Department will evaluate eligible applications taking into
				consideration funding available for the Program, demand to participate in the
				Program, and availability of licenses under the Act. The Department will also
				consider a Business Applicant's creditworthiness, the potential economic
				benefit of the project, and the extent to which a Business Applicant
				demonstrates that the company, its owners, or its employees have been directly
				and adversely impacted by the enforcement of cannabis-related laws. Specific
				terms of any loan or line of credit, including the amount, interest rate,
				security required, and performance measures, will be determined based on the
				needs and risk profile of each Business Applicant.
a) The Department will only evaluate
			 completed applications. The Department will deem an application complete only
			 after it has received all information it has requested from the Business
			 Applicant.
b) General Criteria for
			 Evaluating Applications. The Department will screen all applications to
			 determine that all requirements of the application package have been addressed.
			 A Business Applicant will be notified of deficiencies in its application and
			 given an opportunity to correct any deficiencies through submission of
			 additional documentation. Department staff will conduct a technical and
			 financial evaluation of each application.
1)
			 Technical Evaluation. Each application will be reviewed to determine whether
			 issuance of a loan or line of credit will further the goals of the General
			 Assembly as set forth in Section 7-1 of the Act. The evaluation will address
			 the following criteria:
A) Evidence of Need
			 for Program Funding. The Business Applicant must demonstrate the need for
			 Program funds, including evidence that a loan or line of credit will improve
			 the likelihood of the Business Applicant receiving a license under the Act or
			 that the Business Applicant faces barriers to obtaining sufficient working
			 capital to maintain licensure or operate a successful business without the
			 Department's support. The Department will also evaluate whether the proposed
			 use of funds is consistent with the purposes of the Act.
B) Project Implementation Readiness. The
			 Business Applicant must demonstrate project readiness, including identifying
			 loans and investments from all lenders and investors (or any such investment
			 that is contingent on receipt of a license or conditional commitment letter); a
			 time schedule for project initiation; commitments from material project
			 partners; and cost estimates that support proposed project costs.
C) Employment Impact. The application shall
			 provide evidence of: employment impact/opportunity (e.g., potential job
			 creation), including a description of the type and the number of any jobs to be
			 created; the average salary or wage of each position category; and any evidence
			 that the jobs will generate additional wealth or employment opportunities for
			 persons living in Disproportionately Impacted Areas or who have been adversely
			 impacted by the enforcement of cannabis-related laws.
D) Social Equity Applicant Status. The
			 Business Applicant must demonstrate that it falls within the definition of
			 Social Equity Applicant. It must also demonstrate that its owners or employees
			 have been directly and substantially adversely impacted by enforcement of
			 cannabis-related laws. Funding may be prioritized for Business Applicants with
			 owners who have arrests or convictions for offenses eligible for expungement
			 under the CI Act. The Department will also consider the extent to which the
			 Business Applicant demonstrates a commitment to retain, hire and promote
			 residents of Disproportionately Impacted Areas or other persons directly and
			 substantially adversely impacted by the enforcement of cannabis-related
			 laws.