Illinois Administrative Code › Title 74 - PUBLIC FINANCE › Part 1100 - ILLINOIS FINANCE AUTHORITY › Subpart G - FARM DEVELOPMENT PROGRAM › Section 1100.735 - Rules and Guidelines Applicable to the State Guarantee Program for Agri-Industries

Current through Register Vol. 48, No. 28, July 12, 2024
a) General Description of Program. The State
				Guarantee Program for Agri-Industries (SGPAI) was created to encourage
				diversification and vertical integration of Illinois agriculture. The
				provisions of this Section are applicable only to the SGPAI, and the provisions
				of Sections
				1100.705,
				1100.710,
				1100.725
				and
				1100.730
				of this Part are inapplicable to the SGPAI and procedures provided for pursuant
				to this Section.
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.
"Agribusiness" means any sole proprietorship, limited
				  partnership, co-partnership, joint venture, corporation or cooperative which
				  operates or will operate a facility located within the State of Illinois that
				  is related to the processing of agricultural commodities (including, without
				  limitation, the products of agriculture, hydroponics and silviculture) or the
				  manufacturing, production or construction of agricultural buildings,
				  structures, equipment, implements, and supplies, or any other facilities or
				  processes used in agricultural production. [20 ILCS
				  3501/801-10(z) ]
"Applicant" means a farmer/agribusiness whose application for
				  a State Guarantee has been submitted to the Authority by a lender.
"Farmer" means a resident of Illinois who is a principal
				  operator of farm or land, at least 50% of whose annual gross income is derived
				  from farming, whose annual total sales of agricultural products, commodities or
				  livestock exceeds $20,000 and whose net worth does not exceed $500,000.
				  [20
				  ILCS 3501/830-35 ]
"Fund" means the Illinois Farmer and Agribusiness Loan
				  Guarantee Fund, which is the State's fund to cover losses resulting from
				  defaults on SGPAI loans.
"Gross Annual Income" means income as defined in Section 61
				  of the Internal Revenue Code (
				  26 USC 61
				  ).
"State Guarantee" means a note for which the State of
				  Illinois shall be liable for 85% of the total principal and interest of the
				  note as described by the Authority.
c) Applicant Eligibility Requirements
1) Farmer. To qualify for participation each
				farmer must:
A) be a resident of Illinois
				[20
				ILCS 3501/830-35 ];
B) be at least 18 years of age at the time of
				application;
C) be the principal
				operator of a farm or land for which the funds guaranteed by the State
				Guarantee are to be used [20 ILCS 3501/830-35];
D) be able to show, based upon his/her most
				recent federal income tax return and/or current data, that at least 50% of
				his/her gross income is derived from farming [20 ILCS 3501/830-35];
E) be able to show, based upon his/her most
				recent federal income tax return and/or current data, that his/her total sales
				of agricultural products, commodities, or livestock exceeds $20,000
				[20
				ILCS 3501/830-35 ];
F) be able to show that his/her net worth
				does not exceed $500,000 [20 ILCS 3501/830-35].