Illinois Administrative Code
Title 14 - COMMERCE
Part 545 - TECHNOLOGY ADVANCEMENT AND DEVELOPMENT ACT PROGRAMS
Subpart C - ENTERPRISE DEVELOPMENT AND INVESTMENT PROGRAM
Section 545.220 - Direct Investment Strategy

Universal Citation: 14 IL Admin Code ยง 545.220

Current through Register Vol. 48, No. 38, September 20, 2024

As authorized by Section 3001 of the Act [20 ILCS 700/3001] , the Department may directly provide investments, loans, or qualified security investments to promote the commercialization of advanced technology. Generally, investments may be made to finance any new process, technique, product, service, or device that is now, or that may become, commercially exploitable.

a) Eligible Applicants - Direct investments may be made in young, growing businesses, and businesses who have qualified for Federal Small Business Innovation Research funds. [20 ILCS 700/3004(a)]

b) Allowable Activities - Direct investments may be made for the purposes specified in Section 3004 of the Act. Financial assistance proceeds may be used for expenses that include, but are not limited to:

1) costs incurred for research and development;

2) amortizable organizational costs;

3) working capital financing;

4) the purchase or lease of machinery and equipment; and

5) acquisition, improvement, or rehabilitation of land and buildings. [20 ILCS 700/3004(a)]

c) Limitations - Investments are subject to the following limitations:

1) The Department may make direct investments and loans based on the Department's current investment strategy in cooperation with private sector investment companies, private investors, or conventional lending institutions which also assume a portion of the investment loan or financing for the business project [20 ILCS 700/3001] . The Department may decline to make any direct investment that does not meet the Department's current investment strategy. The Department shall require applicants to show the source of new, unexpended, actual or anticipated matching funds covering a minimum of 50% of total advanced technology or business project costs. Matching funds covering a minimum of 25% of total advanced technology or business project costs shall be from sources independent of the applicants.

2) Direct qualified security investments or investment loans 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 the Act [20 ILCS 700/3004(a)] .

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