Illinois Administrative Code › Title 14 - COMMERCE › Part 590 - ILLINOIS LARGE BUSINESS DEVELOPMENT PROGRAM › Subpart A - LOANS FOR LARGE BUSINESS DEVELOPMENT › Section 590.70 - Administrative Requirements

Current through Register Vol. 48, No. 28, July 12, 2024
a) Loan
				Terms - The Department will negotiate the loan terms and amortization schedule.
				These terms will be flexible and consistent with the economic life of the asset
				being financed. Loans for real estate normally will be amortized for a period
				of up to 15 to 25 years; Loans primarily utilized for machinery and equipment
				will generally vary from 7 to 10 years. Installments shall be due and payable
				to the Department according to a negotiated amortization schedule. All payments
				shall be applied first to interest and then to principal.
b) Reporting - The Recipient (applicant
				receiving grant/loan funds) will provide, at least annually, information and
				reports required by the Department (e.g. reports on job creation/retention;
				financial statement of assets, liabilities, and net worth).
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.