Bill Text: IL HB5264 | 2025-2026 | 104th General Assembly | Engrossed

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Bill Title: Reinserts the provisions of the introduced bill with changes. Provides that the Department of Commerce and Economic Opportunity shall establish a loan program to provide low interest loans to small businesses that have been negatively impacted by an economic shock (in the introduced bill, federal immigration enforcement). Renames the Federal Immigration Recovery Fund the Economic Recovery Fund. Provides that the Department of Commerce and Economic Opportunity is authorized to provide participating lenders with an administrative or origination fee, in an amount determined by the Department, to cover the costs of loan origination and servicing. Provides that the State shall provide a 100% guarantee on loans issued under the amendatory Act. Provides that participating lenders shall act as originators and servicers of loans and shall not be required to deploy their own capital. Effective immediately.

Sponsorship: Partisan Bill (Democrat 2)

Status: (Engrossed - Dead) 2026-05-22 - Rule 3-9(a) / Re-referred to Assignments [HB5264 Detail]

Download: Illinois-2025-HB5264-Engrossed.html

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HB5264 Engrossed LRB104 19654 HLH 33103 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 Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois
is amended by adding Section 605-1119 as follows:
(20 ILCS 605/605-1119 new)
Sec. 605-1119. Loans to small businesses impacted by an
economic shock.
(a) The Department shall establish a loan program, subject
to appropriation, to provide low-interest loans to small
businesses that have been negatively impacted by an economic
shock. The Department may make loans under this Section from
the Economic Recovery Fund, a special fund created in the
State treasury. The Department may administer the program
directly or through agreements with banks, credit unions,
nonprofit loan administrators, or community development
financial institutions. The State shall provide a 100%
guarantee on loans issued under this Section. Participating
lenders shall act as originators and servicers of loans and
shall not be required to deploy their own capital.
(b) If the Governor declares that an economic shock exists
that has disrupted local or regional businesses and markets,

HB5264 Engrossed - 2 - LRB104 19654 HLH 33103 b
the Department of Commerce and Economic Opportunity shall
provide loans to eligible small businesses as provided in this
Section. The Governor shall make any determination under this
Section based on objective indicators such as:
(1) reduced foot traffic;
(2) declining sales in certain corridors;
(3) workforce disruptions, such as increased
absenteeism or job abandonment; and
(4) business closures.
(c) Upon a declaration of an economic shock as provided in
subsection (b), a business shall be eligible for a loan under
this Section if:
(1) the business employed 50 or fewer persons at any
one time in the prior year;
(2) the business's gross receipts in the prior year
were $3,000,000 or less;
(3) the business has been materially impacted or is
located in an area that has been determined by the
Department to be materially impacted by the economic
shock.
(d) The loans shall be in an amount determined by the
Department but shall not exceed $50,000 per business. The
loans shall be repaid by the business at a fixed interest rate
of 2%, and the term of repayment shall not exceed 5 years. No
repayments shall be required for the first 6 months following
disbursement, and no early repayment penalty shall be charged.

HB5264 Engrossed - 3 - LRB104 19654 HLH 33103 b
The loan proceeds shall be used for recovery-related operating
expenses including:
(1) rent and mortgage payments;
(2) employee wages and benefits;
(3) inventory restocking;
(4) equipment repair and replacement;
(5) debt repayments incurred to maintain operations;
(6) marketing or customer re-engagement expenses; and
(7) any other cost that the Department may approve by
rule.
The Department is authorized to provide participating
lenders with an administrative or origination fee, in an
amount determined by the Department, to cover the costs of
loan origination and servicing. Such a fee may be deducted
from loan disbursements.
(e) The Department may adopt rules to administer and
enforce this Section and may enter into agreements with banks,
credit unions, nonprofit loan administrations, or community
development financial institutions. The Department shall
establish clear and standardized procedures governing loan
servicing, delinquency, and default for loans issued under
this Section. Such procedures shall authorize participating
lenders to service and manage delinquent loans for a period of
time, as determined by the Department by rule, prior to loan
closure or write-off.
(f) All interest and principal collected shall be

HB5264 Engrossed - 4 - LRB104 19654 HLH 33103 b
deposited into the Economic Recovery Fund to maintain and
replenish lending capacity. Loans issued under this Section
shall be backed by the State, and any losses resulting from
borrower default shall be borne by the Fund.
(g) Upon a declaration by the Governor that the economic
shock has ended, no new loans may be made.
Section 10. The State Finance Act is amended by adding
Section 5.1038 as follows:
(30 ILCS 105/5.1038 new)
Sec. 5.1038. The Economic Recovery Fund.
Section 99. Effective date. This Act takes effect upon
becoming law.