Public Act 096-1106
 
SB3817 EnrolledLRB096 20657 HLH 36372 b



    AN ACT concerning State government.

 
    Be it enacted by the People of the State of Illinois, 
represented in the General Assembly: 






 
    Section 5. The Build Illinois Act is amended  by changing 
Sections 9-2 and 9-4.3 as follows:
 



    (30 ILCS 750/9-2)  (from Ch. 127, par. 2709-2)



    Sec. 9-2. Definitions. The following terms,
whenever used 
or referred to in this Article, shall have the
following 
meanings ascribed to them, except where the context
clearly 
requires otherwise:

    (a) "Financial intermediary" means
a community development 
corporation, a state
development credit corporation, a 
development authority authorized to do
business by an act of 
this State, or other public or
private financing
institution

approved by the Department whose purpose includes financing, 
promoting, or
encouraging economic development.

    (b) "Participating lender" means any trust company,
bank, 
savings bank, credit union, merchant bank, investment bank, 
broker,
investment trust, pension fund, building and loan 
association,
savings and loan association, insurance company, 
venture capital company or
other
institution approved by the 
Department which assumes a
portion of the financing for a 
business project.

    (c) "Department" means the Illinois Department of Commerce

and
Economic Opportunity.

    (d) "Small business" means any for-profit business
in 
Illinois including, but not limited to, any sole 
proprietorship,
partnership, corporation, joint venture, 
association or
cooperative, which has, including its 
affiliates, less than
500 full time employees, or is determined 
by the Department
to be not dominant in its field.

    Business concerns are affiliates of one another
when either 
directly or indirectly (i) one concern controls
or has the 
power to control the other, or (ii) a third party
or parties 
controls or has the power to control both.
Control can be 
exercised through common ownership, common
management and 
contractual relationships.

    (e) "Qualified security" means any note, stock,

convertible security, treasury stock, bond, debenture,

evidence of indebtedness, limited partnership interest,

certificate of interest or participation in any profit-sharing

agreement, preorganization certificate or subscription,

transferable share, investment contract, certificate of

deposit for a security, certificate of interest or 
participation
in a patent or application therefor, or in 
royalty or
other payments under such a patent or application, 
or, in
general, any interest or instrument commonly known as a

"security" or any certificate for, receipt for, guarantee of,

or option, warrant or right to subscribe to or purchase any
of 
the foregoing, but not including any instrument which
contains 
voting rights or can be converted to contain voting
rights in 
the possession of the Department.

    (f) "Loan agreement" means an agreement
or contract to 
provide a loan or accept a mortgage or to
purchase qualified 
securities or other means whereby financial
aid is made 
available to a start-up, expanding, or mature, moderate risk

small business.

    (g) "Loan" means a loan or acceptance
of a mortgage or the 
purchase of qualified securities or
other means whereby 
financial aid is made to a start-up, expanding, or
mature,

moderate risk small business.

    (h) "Equity investment agreement" means an agreement
or 
contract to provide a loan or accept a mortgage or to
purchase 
qualified securities or other means whereby financial
aid is 
made available to or on behalf of a young, high risk,

technology based small business.

    (i) "Equity investment"  means a loan or acceptance
of a 
mortgage or the purchase of qualified securities
or other means 
whereby financial aid is made to or on behalf of a young,
high

risk, technology based small business.

    (j) "Project" means any specific economic development

activity of a commercial, industrial, manufacturing,

agricultural, scientific, service or other business, the

result of which is expected to yield an increase in or 
retention of jobs
or
the modernization or improvement of 
competitiveness of firms and may include
working capital 
financing, the purchase or lease of machinery
and equipment, or 
the lease or purchase of real property but
does not include 
refinancing current debt.

    (k) "Technical assistance agreement" means an agreement or 
contract or
other means whereby financial aid is made available 
to not-for-profit
organizations for the purposes outlined in 
Section 9-6 of this Article.

    (l) "Financial intermediary agreement" means an agreement 
or contract
to provide a loan, investment, or other financial 
aid to a financial
intermediary for the purposes outlined in 
Section 9-4.4 of this Article.

    (m) "Equity intermediary agreement" means an agreement or 
contract to
provide a loan, investment, or other financial aid 
to a financial intermediary
for the purposes outlined in 
Section 9-5.3 of this Article.

    (n) "Other investor" means a venture capital
organization 
or association; an investment partnership, trust
or bank; an 
individual, accounting partnership or corporation
that invests 
funds, or any other entity which provides debt
or equity 
financing for a business project.

    (o) "Veteran" means an Illinois resident who has served as 
a member of the United States Armed Forces on active duty or 
State active duty, a member of the Illinois National Guard, or 
a member of the United States Reserve Forces and who has 
received an honorable discharge. 
(Source: P.A. 94-793, eff. 5-19-06.)

 



    (30 ILCS 750/9-4.3)  (from Ch. 127, par. 2709-4.3)



    Sec. 9-4.3. Minority, veteran, female and disability 
loans. 

    (a) In the making of loans for minority, veteran, female or 
disability
small businesses, as defined below, the Department 
is authorized to employ
different criteria in lieu of the 
general provisions of subsections (b),
(d), (e), (f), (h), and 
(i) of Section 9-4.

    Minority, veteran, female or disability small businesses, 
for the purpose of this
Section, shall be defined as small 
businesses that are, in the Department's
judgment, at least 51% 
owned and managed by one or more persons who are
minority, 
female or disabled or who are veterans.

    (b) Loans made pursuant to this Section:


        (1) Shall not exceed $100,000 or 50% of the business 
    project costs
unless the Director of the Department 
    determines that a waiver of these
limits is required to 
    meet the purposes of this Act.


        (2) Shall only be made if, in the Department's 
    judgment, the number of
jobs to be created or retained is 
    reasonable in relation to the loan funds
requested.


        (3) Shall be protected by security.  Financial 
    assistance may be
secured by first, second or subordinate 
    mortgage positions on real or
personal property, by royalty 
    payments, by personal notes or guarantees, or
by any other 
    security satisfactory to the Department to secure 
    repayment.
Security valuation requirements, as determined 
    by the Department, for the
purposes of this Section, may be 
    less than required for similar loans not
covered by this 
    Section, provided the applicants demonstrate adequate

    business experience, entrepreneurial training or 
    combination thereof, as
determined by the Department.


        (4) Shall be in such principal amount and form and 
    contain such terms
and provisions with respect to security, 
    insurance, reporting, delinquency
charges, default 
    remedies, and other matters as the Department shall

    determine appropriate to protect the public interest
and 
    consistent with the purposes of this Section.  The terms and 
    provisions
may be less than required for similar loans not 
    covered by this Section.

(Source: P.A. 95-97, eff. 1-1-08.)

 

    Section 99. Effective date. This Act takes effect upon 
becoming law.