Illinois § 9-4

§ 9-4.

Intermediary agreements and loans. Any loan made pursuant to this Article shall: (a) Be made only if a participating lender or other investor also provides a portion of the financing with respect to the project. The participating lender's or other investor's risk assumption may be in the form of a loan, letter of credit, guarantee, loan participation, bond purchase, or any other form approved by the Department; (b) Finance no more than the lesser of 25% of the total amount of any single project, or $2,000,000 for any single project, unless such limitations are waived by the Director, upon a finding that such waiver is appropriate to accomplish the purposes of this Article; (c) Be made only if the Department determines, on the basis of all information available to it, that the project would not be undertaken unless the loan is provided; (d) Be protected by security which may include, as available, first or second mortgage positions on real or personal property, royalty payments on sales of products or services, or any other security satisfactory to the Department to secure payment of the loan agreement. Personal notes or guarantees may be required from persons owning more than 20 percent of the small business; (e) Be in such amount and form and contain such terms and provisions with respect to property insurance, repairs, alterations, 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; (f) Be made to a business approved by the Department as responsible and creditworthy; (g) Be reviewed by the credit review committee established by the Department pursuant to this Article; (h) Be made only after the Department has made a determination that the loan agreement will cause a project to be undertaken which has the potential to create or retain substantial employment or to modernize or improve the competitiveness of the firm in relation to the amount of the loan; (i) Be made with businesses that have certified the project is a new plant start-up, modernization, or expansion or a new venture opportunity and is not relocation of an existing business from another site within the State unless that relocation results in substantial employment growth. (Source: P.A. 100-377, eff. 8-25-17.)