Illinois Administrative Code › Title 14 - COMMERCE › Part 650 - CANNABIS SOCIAL EQUITY PROGRAM › Section 650.45 - Loan and Financial Assistance Administrative Requirements

Current through Register Vol. 48, No. 28, July 12, 2024
a) Agreement. A borrower must comply with all
			 terms of the loan or line of credit Agreement, as applicable. A borrower must
			 be able to make all representations, warranties, and covenants set forth in the
			 Agreement. In the event of default under the Agreement, the Department and the
			 borrower may enter into a forbearance agreement at the sole discretion of the
			 Department.
b) Security. The
			 Department may protect its interests in the event of default by requiring
			 personal guarantees from the borrower's principals (all individuals/entities
			 owning or controlling 20% or more of the borrower) or other persons with a
			 material interest in the borrower.
c) Use of Proceeds. The funding made
			 available is to be used for the borrower's ordinary and necessary expenses to
			 start and operate a cannabis business establishment. Proceeds may not be used
			 on capital expenditures unless otherwise approved by the Department.
d) Payments. Payments shall be due and
			 payable to the Department in the method and times specified in the Agreement.
			 Unless otherwise provided in the Agreement, all payments shall be applied first
			 to interest and then to principal on all simple interest loans. All payments on
			 amortized loans will be applied to the amortization schedule as
			 stated.
e) Reporting. A borrower
			 shall provide, at least quarterly, information and reports required by the
			 Department (e.g., reports on job creation/retention; uses of proceeds;
			 financial statement of assets and liabilities; statements of status as a
			 Qualified Social Equity Applicant; and changes in owners, officers and
			 directors).
f) Monitoring and
			 Evaluation. A borrower must permit any agent authorized by the Department, the
			 Illinois Attorney General, the Illinois Auditor General, or any other legal
			 authority, upon presentation of credentials, to have full access to and the
			 right to examine any documents, papers, and records of the borrower involving
			 transactions related to the Program.
g) Records. A borrower shall keep detailed
			 records of the project and the use of proceeds. A borrower of more than
			 $100,000 is required to furnish to the Department, with the periodic submission
			 of financial statements following the expenditure of project funds, a copy of
			 any audit reports received during a specified period. The Department, pursuant
			 to the Agreement, may require a borrower to undergo an audit to verify the use
			 of loan or line of credit proceeds.
h) Performance Requirements. The Department
			 may require a borrower to meet certain economic development objectives (e.g.,
			 create a minimum number of full-time jobs within a certain time or achieve
			 certain job quality standards identified in an Agreement).
i) Transfer of License. Loans and lines of
			 credit will not be transferrable, and any outstanding amount owed by a borrower
			 at the time of a transfer of its license shall be paid by the new license
			 holder, along with any waived fees. (See Section 7-25 of the Act.)
j) Confidentiality. Any documentary materials
			 or data made available or received by the Department or any agent of the
			 Department shall be deemed confidential and shall not be deemed public records
			 to the extent that the materials or data consists of trade secrets, commercial
			 or financial information regarding the operation of the business conducted by
			 the applicant or borrower, or any information regarding the competitive
			 position of a business in a particular field of endeavor, or any information,
			 the disclosure of which would be an unwarranted invasion of personal privacy
			 (e.g., criminal history record information or information about the impact of
			 the enforcement of cannabis-related laws on a specific person or family).
			 Nothing in this subsection shall prevent the Department from sharing
			 information with other governmental entities. The names of borrowers and the
			 amounts of any financial assistance shall be considered a public
			 record.