Current through Register Vol. 48, No. 38, September 20, 2024
a) Purpose - The purpose of Illinois
Technology Enterprise Development Centers is provided in Section 3004.5 of the
Act. 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 [20 ILCS 3004.5(a)
].
b) Allowable Costs - Allowable
costs are defined at Section 3004.5(b) of the Act. Grant funds may be used to
support the operation of technology enterprise development centers. Grant funds
may be used to help subsidize expenses, as approved by the Department, for:
1) personnel;
2) fringe benefits;
3) travel;
4) equipment;
5) supplies;
6) commodities, including telecommunication
or other costs;
7) contractual
services;
8) other support
costs;
9) capital improvements;
and
10) revolving funds.
c) Technical Assistance and
Support Services - Per Section 3004.5(c) of the Act, technology enterprise
development centers may provide crucial business information at affordable
prices for firms that are developing early-stage, technology-oriented
manufacturing projects including:
1) general
or short-term assistance, general outreach, feasibility studies for new venture
formation, and research assistance for new venture creation;
2) innovation evaluation and market research
to evaluate the viability of technology, product, or service or the market
potential of technology, product, or service;
3) technical assistance related to management
and operations and strategic partnering and assistance in the implementation of
strategic manufacturing and marketing alliances; and
4) service in locating new technologies or
technological solutions.
d) Financial Services - Per Section 3004.5(d)
and (e) of the Act, technology enterprise development centers may provide
financial services that include:
1) financial
packaging to enhance proposals and make companies more competitive for federal
or private funding;
2) access to
private investor capital through venture capital events and regional venture
capital networking programs;
3)
management of local for-profit or limited profit seed capital funds;
and
4) pre-seed financing to
start-up technology-based businesses to commercialize new technology. Financing
options may include:
A)
micro-loans;
B) small grants;
and
C) equity investment capital
for seed funding, product commercialization and prototype development, and
commercial introduction and marketing.
e) Professional Development of ITECs - As
provided in Section 3004.5(f) of the Act, the Department may provide grant
funds 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.
f) Procedures for
Establishment of Centers
1) Identification of
Service Regions - The Department shall designate locations in the State to be
targeted for the creation of technology enterprise development centers. When
making regional designations, the Department shall solicit recommendations from
stakeholder groups, including the Illinois Coalition and the Illinois
Technology Office, and shall consider factors, including but not limited to:
A) concentrations of high technology business
establishments;
B) concentrations
of entrepreneurs and innovators;
C)
access to capital markets;
D)
access to technical support and related service providers; and
E) proximity to universities, research
facilities, and laboratories.
2) Identification of Recipients of Financial
Assistance - The Department, in selecting an intermediary organization to
operate a center, shall first solicit the advice of stakeholders, including the
Illinois Coalition and the Illinois Technology Office. Subsequently, the
Department may negotiate with an intermediary organization to receive financial
assistance for the purpose of operating a technology enterprise development
center. In addition to the advice of stakeholders, in determining which
applicants shall be awarded a grant, the Department shall examine:
A) prior compliance with loan or grant
awards;
B) the relationship of a
proposed project to the State's future economic growth;
C) the qualifications and expertise of
organizations undertaking the effort;
D) the applicant's understanding of the
requirements and needs of entrepreneurs, innovators, and start-up firms in
high-growth, high technology sectors;
E) the potential of the applicant's project
to provide an economic benefit of the State;
F) the likelihood that the project has a
potential for creating new ventures in the State; and
G) the potential of the applicant and/or its
consortium to finance the regional center. [20
ILCS 700/3004.5(g)]
3) Application for Financial
Assistance - The Department shall issue instructions and formats to selected
applicants for the submittal of applications for financial assistance to
support technology enterprise development centers. Applications shall include
information such as:
A) a description of the
related experience of the applicant agency;
B) a discussion of market niches
served;
C) measurable
objectives;
D) a description of the
available services, including:
i) marketing
plan to attract entrepreneurs;
ii)
networking with and access to related services and providers;
iii) management consulting assistance and
coaching;
iv) technology transfer
services; and
v) access to venture
capital;
E) an
implementation schedule;
F) a
description of center staffing and expertise;
G) a line item budget proposal;
H) a description of matching funds by source
and amount; and
I) a description of
service fee and investment policies.
4) Renewal of Awards - The Department may
renew a grant award for a subsequent year for any technology enterprise
development center judged to be meeting performance objectives, as evaluated by
the Department under this subsection (f)(4), during the current grant period.
In making determinations regarding the renewal of grant awards, the Department
shall consider evaluative criteria, including but not limited to:
A) success of public relations
events;
B) success in providing
technical information;
C) the
number of prototype project evaluations completed;
D) the number of market research assessments
completed;
E) the success of
management consulting assistance provided;
F) the number of projects enrolled for
ongoing services;
G) the total
amount of venture capital accessed for projects; and
H) the number of new ventures established and
jobs created.
