Bill Text: IL HB3942 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department of Commerce and Economic Opportunity shall establish the Small Business Emergency Loan Program. Provides that, from funds made available to the Department from the State Small Business Credit Initiative Fund, the Department shall offer low-interest loans of up to $50,000 to eligible small businesses for working capital, with at least 50% of loan proceeds to be applied for specified purposes. Provides that borrower eligibility and loan terms under the Program shall be as prescribed by the Department. Provides for the adoption of rules. Amends the Build Illinois Act to make conforming changes.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2023-02-27 - Added Chief Co-Sponsor Rep. Harry Benton [HB3942 Detail]

Download: Illinois-2023-HB3942-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3942 Introduced , by Rep. Dave Vella SYNOPSIS AS INTRODUCED:
20 ILCS 605/605-1097 new
30 ILCS 750/9-4.8
Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department of Commerce and Economic Opportunity shall establish the Small Business Emergency Loan Program. Provides that, from funds made available to the Department from the State Small Business Credit Initiative Fund, the Department shall offer low-interest loans of up to $50,000 to eligible small businesses for working capital, with at least 50% of loan proceeds to be applied for specified purposes. Provides that borrower eligibility and loan terms under the Program shall be as prescribed by the Department. Provides for the adoption of rules. Amends the Build Illinois Act to make conforming changes.
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A BILL FOR
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AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois
is amended by adding Section 605-1097 as follows:
(20 ILCS 605/605-1097 new)
Sec. 605-1097. Small Business Emergency Loan Program. The
Department of Commerce and Economic Opportunity shall
establish and maintain the Small Business Emergency Loan
Program. From funds made available to the Department from the
State Small Business Credit Initiative Fund, the Department
shall offer low-interest loans of up to $50,000 to eligible
small businesses for working capital, with at least 50% of
loan proceeds to be applied toward payroll or other eligible
compensation, including, but not limited to, salaries, wages,
paid leave, and group healthcare benefits. Borrower
eligibility and loan terms under the Program shall be as
prescribed by the Department. The Department shall adopt rules
necessary for the implementation of this Section.
Section 10. The Build Illinois Act is amended by changing
Section 9-4.8 as follows:

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(30 ILCS 750/9-4.8)
Sec. 9-4.8. State Small Business Credit Initiative Fund.
(a) There is hereby created the State Small Business
Credit Initiative Fund, also referred to in this Article as
the "SSBCI Fund", as a special fund in the State treasury.
The purpose of the SSBCI Fund is to finance intermediary
agreements, administration, technical assistance agreements,
loans, grants, or investments in Illinois. Investments,
administration grants, and financial aid shall be used for the
purposes set forth in this Article and for the purposes set
forth in Section 605-1097 of the Department of Commerce and
Economic Opportunity Law of the Civil Administrative Code of
Illinois. Loan financing shall be in the form of loan
agreements pursuant to the terms and conditions set forth in
this Article, except that loan agreements entered into under
Section 605-1097 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois
shall be pursuant to the terms and conditions of that Section
and rules adopted under the authority of that Section. All
loans for the purposes of this Article shall be conditioned on
the project receiving financing from participating lenders or
other investors.
(b) The following amounts shall be deposited into the
SSBCI Fund:
(1) all receipts, including dividends, principal and

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interest payments, and royalties, from any applicable
loan, intermediary, or technical assistance agreement made
from the SSBCI Fund or from direct appropriations from the
Build Illinois Bond Fund or the General Revenue Fund by
the General Assembly entered into by the Department;
(2) all proceeds of assets of whatever nature received
by the Department as a result of default or delinquency
with respect to a loan agreement made from the SSBCI Fund
or from direct appropriations by the General Assembly,
including proceeds from the sale, disposal, lease, or
rental of real or personal property that the Department
may receive as a result thereof;
(3) any appropriations, grants, or gifts made to the
SSBCI Fund;
(4) any income received from interest on investments
of moneys in the SSBCI Fund;
(5) all moneys resulting from the collection of
premiums, fees charges, costs, and expenses described in
subsection (e) of Section 9-3.
(c) The Treasurer may invest moneys in the SSBCI Fund in
securities constituting obligations of the United States
Government, or in obligations the principal of and interest on
which are guaranteed by the United States Government, or in
certificates of deposit of any State or national bank which
are fully-secured by obligations guaranteed as to principal
and interest by the United States Government.

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(Source: P.A. 100-377, eff. 8-25-17.)