(20 ILCS 700/Art. 3 heading)
(20 ILCS 700/3001) (from Ch. 127, par. 3703-1)
Sec. 3001.
Illinois Technology Enterprise Development
and Investment Program. The Department
shall, subject to appropriated funds, establish an Advanced Technology
Enterprise Development Program to: (i) provide
investments, loans, or qualified security investments to or
on behalf of young or growing businesses, in cooperation with private
investment companies, private investors or conventional lending
institutions which also assume
a portion of the investment loan or financing for a business project, or
on behalf of new or emerging business through financial intermediaries as
they commercialize
advanced technology projects;
(ii)
fund regional technology enterprise development centers that make
available resources and
expertise in furthering the technical or managerial skills of owners; aid the
ventures in locating financing;
and help new companies with product development and marketing.
(Source: P.A. 91-476, eff. 8-11-99.)
(20 ILCS 700/3002) (from Ch. 127, par. 3703-2)
Sec. 3002.
Investment requirements.
Any direct financial assistance
shall:
(a) Be awarded only if other financing with respect to the business project
is provided. Other financing may be in the form of any loan, equity
position, convertible preferred stock, letter of credit, guarantee, limited
partnership interest, bond
purchase or any other form approved by the Department;
(b) Be protected by adequate security.
Financial assistance may be secured by first or second
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, if required, by the financial assistance
agreement;
(c) Be in such principal amount and form, and contain such terms and
provisions with respect to the property, insurance, repairs, alteration,
payment of taxes and assessments, delinquency charges, default remedies,
additional security and other matters as the Department shall
determine adequate to protect the public interest.
(Source: P.A. 91-476, eff. 8-11-99.)
(20 ILCS 700/3003) (from Ch. 127, par. 3703-3)
Sec. 3003.
Applications.
(a) An application for direct financial assistance shall be
submitted to the
Department in accordance with forms and filing fees prescribed by the
Department. The application may require facts about the company's history,
job opportunities, stability of employment, past and present condition and
structure, actual and pro-forma income statements, present and future
market prospects and management qualification, and any other facts deemed
material to the financing request. The Department shall obtain such
additional information concerning the application as it deems necessary and
diligent.
The Department may create a credit review committee which shall, on the
basis of the application, and any other information, prepare a report
concerning the credit-worthiness of the proposed borrower, the financial
commitment of other investors, the manner in
which the proposed business project will advance the economy of the State,
and the soundness of the proposed financial assistance agreement.
After consideration of such report, and after such other action as it
deems appropriate, the Department shall approve or deny the application.
If the Department approves the application, its approval shall specify the
amount of funds to be provided and the financial assistance agreement
provisions which shall apply to the applicant. The applicant shall be
promptly notified of such action by the Department.
(b) The Department may, subject to available appropriated funds, provide
grants or investments in
revolving fund portfolios with intermediary organizations or participating
lenders or investors. The
financial assistance may be made available to intermediaries that assume a
responsibility for the
administration of the projects funded through the grant or investment.
Applications shall be submitted to the Department in accordance with forms
and filing fees
prescribed by the Department. The application may require facts about the
intermediary's history, past,
and present condition and structure, actual, and pro-forma income statements,
present and future market
prospects and management qualification, and any other facts deemed material to
the financing request.
(Source: P.A. 91-476, eff. 8-11-99.)
(20 ILCS 700/3004) (from Ch. 127, par. 3703-4)
Sec. 3004.
Investment purpose.
(a) Direct qualified investments, loans, or
participation investments in investment or loan portfolios authorized by this
Article of this Act may be made
for the purpose
of financing any new process, technique, product, service or device which is,
or which may be, capable of being reduced to practice, and which is, or which
may be, commercially exploitable by (i) young or growing Illinois
businesses or (ii) applicants who have qualified for Federal Small Business
Innovation
Research funds.
Financial assistance proceeds may be used for expenses that include, but
are not limited to, costs
incurred for research and development, amortizable organizational costs,
working capital financing, the purchase or lease of machinery and equipment,
and the acquisition, improvement or rehabilitation of land and buildings. In
determining if direct qualified security investments or
loans are to be
made, the Department shall find that there is a likelihood of
commercial feasibility given the state of development of the proposed
product, process, or technical device, and that there is a likelihood of
increased job opportunities in the near term as a result of the security
investment. Direct qualified security investments or investment loans for an eligible applicant shall
not be made for more than $500,000 and shall not be made for more than 50%
of the business project costs unless the Director determines that a waiver
of these limits is required to meet the purpose of this Act.
In making a determination to participate in an
investment
or loan portfolio of an authorized participating lender or investor on behalf of eligible
applicants, the Department shall find that the administering financial
intermediary is capable of effectively evaluating the commercialization
feasibility of the proposed product, process, service or technical device
technology and the likelihood of increased job creation impact that may result
from project financing. In no instance shall the Department's participation in
an investment or loan portfolio of any authorized
participating lender or investor exceed $2,000,000 at one time.
(b) A loan made for company modernization or retooling may be for any
purpose consistent with the objectives of this Act including, but not
limited to, purchases of advanced machinery, equipment and tooling;
organizational expenses for services, personnel training, corporate
restructuring; working capital; acquisition, improvement or rehabilitation of
land and buildings which are an integral part of a new production or process
technology; or any other business expense reasonably related to the project. In
determining if a loan is to be provided, the Department shall determine whether
there will be an expected improvement in production levels, quality of output
or timeliness of delivery and that the number of jobs to be created or retained
is reasonable in relation to the loan funds requested. A loan to eligible
applicants for modernization or retooling shall not be made for more than
$500,000 or for more than 25% 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.
(c) Grants may be made for the purpose of financing feasibility studies,
competitive assessments or productivity services which the Department
determines may result in technology enhancement, retooling, restructuring
or other competitiveness improvements. In determining the amount of a
grant, the Department shall: (i) examine the level of expertise of the
consultant or firm undertaking the feasibility study or competitive
assessment; (ii) evaluate the likelihood of an applicant's proposed
feasibility study or competitive assessment resulting in a substantial
improvement in the applicant's operations; (iii) determine whether that
improvement will result in the creation or retention of jobs. Grants to
eligible applicants shall not exceed $100,000 or 50% of the project costs
unless the Director of the Department determines that a waiver of these
limits is required to meet the purposes of this Act.
(Source: P.A. 91-476, eff. 8-11-99.)
(20 ILCS 700/3004.5)
Sec. 3004.5.
Illinois Technology Enterprise Centers Requirements.
(a) The Department may, subject to available appropriated funds, working
with the Illinois Coalition,
establish one or more regional technology enterprise development centers whose
mission is to assist
entrepreneurs, innovators, and start-up firms in high-growth, high technology
sectors in furthering the
technical or managerial skills of owners; aid the ventures in locating
financing; and help new companies
with product development and marketing in support of new venture formation
within the State.
(b) The Department may provide grants or may provide cost share or
reimbursements pursuant to
this Section to support the operation of technology enterprise development
centers. Grants awarded
pursuant to this Article may be used to help subsidize expenses, as approved by
the Department, for
revolving funds, personnel, support costs, capital improvements, equipment,
contractual services,
commodities, including telecommunication or other costs.
(c) Technology enterprise development centers may provide crucial business
information at
affordable prices for firms that are developing early-stage,
technology-oriented manufacturing including
(i) general or short-term assistance, general outreach, feasibility studies for
new venture formation, and
research assistance for new venture creation; (ii) innovation evaluation and
market research to evaluate
the viability of technology, product, or service or the market potential of
technology, product, or service; (iii)
technical assistance related to management and operations and strategic
partnering
and assistance in the
implementation of strategic manufacturing and marketing alliances; and (iv)
service in locating new
technologies or technological solutions.
(d) Technology enterprise development centers may provide financial services
that include (i)
financial packaging to enhance proposals and make companies more competitive
for federal or private
funding; (ii) access to private investor capital through venture capital
events and regional venture capital
networking programs; and (iii) management of local for-profit or limited profit
seed capital funds.
(e) Technology enterprise development centers may address local shortfalls
of
capital to
commercialize new technology by providing pre-seed financing to start-up,
technology-based businesses.
Financing options could include micro-loans, small grants, and equity
investment capital for seed funding,
product commercialization and prototype development, and commercial
introduction and marketing.
(f) The Department may provide grant funds made available to support
professional development
and capacity building of the technology enterprise development centers within
the State as may be
required for the administration, operations, research, analysis, or training of
the centers.
(g) In determining which applicants shall be awarded a grant, the Department
shall conduct an
evaluation of prior compliance with loan or grant awards; the relationship of
a proposed project to the
State's future economic growth; the qualifications and expertise of
organizations undertaking the effort; the
applicant's understanding of the requirements and needs of entrepreneurs,
innovators, and start-up firms in
high-growth, high technology sectors; the potential of the applicant's project
to provide an economic benefit
of the State; and the likelihood that the project has a potential for creating
new ventures in the State.
(h) The Director of the Department shall determine the level of the grant
award and shall determine
the share of total directly attributable costs of the project that may be
considered for funding under this
Article.
(Source: P.A. 91-476, eff. 8-11-99.)
(20 ILCS 700/3005) (from Ch. 127, par. 3703-5)
Sec. 3005.
Eligible applicants - forms of assistance.
Financial
assistance may be made to, or on behalf of, any for profit entity, sole
proprietorship, partnership, corporation or joint venture carrying on
business, or organized to carry on business, in this State. Financial
assistance authorized under this Article may be in the form of
participation agreements with participating lenders, direct loans, grant
agreements, purchases of qualified security or any other form as determined
by the Department.
(Source: P.A. 86-870.)
Structure Illinois Compiled Statutes