Illinois Administrative Code
Title 14 - COMMERCE
Part 570 - ILLINOIS SMALL BUSINESS DEVELOPMENT PROGRAM
Section 570.60 - Allowable Leverage
Universal Citation: 14 IL Admin Code ยง 570.60
Current through Register Vol. 48, No. 38, September 20, 2024
a) Direct Funding
1) In addition to the forms of
allowable leverage defined in Sections 9-4(a) and 9-6(a) of the Act, allowable
leverage will include such tangible assets as:
A) under-utilized land and/or buildings which
are a part of the project;
B)
machinery and equipment brought into the state from another state;
C) cash equity provided by the principals,
stockholders, or other investors; and
D) funds expended by the business prior to
the date of a loan or grant award; existing in-state equipment, land,
buildings, furnishings, inventory (already owned and being utilized); lines of
credit; post-project costs; and debt refinancing will not be considered as
leverage.
2) For the
Technical Assistance Grant Program, forms of allowable leverage are cash and
in-kind services. In-kind services may include the following:
A) real or personal property;
B) services; or
C) any other form as designated by the
Department.
3) For the
Development Corporation Grant Program, the recipient of the grant funds shall
be required to provide a portion of the financing with respect to the project.
The recipient's financing shall be in the form of cash. Department funds must
be matched 1:1 by cash from private sources. None of the matching funds shall
have originated as a loan or a grant or other investment of local, State or
federal government funding. Gifts, grants, loans, revolving loan funds, or
stock purchases by local, State, or federal governments are encouraged but will
not be considered in calculating Development Corporation match.
b) Indirect Funding
1) For the Participation Loan Program, the
allowable leverage shall be in the form of a loan, letter of credit, guarantee,
purchase or any other form approved by the Department, along with Section
570.60(a)(1).
2) For the Loan Reserve Program, the
allowable leverage will be established by the financial intermediary staff
involved.
3) For Development
Corporation Participations, the allowable leverage shall be in the form of a
loan, letter of credit, guarantee, bond purchase or any other form approved by
the Department, along with Section
570.60(a)(1).
4) For the Rural Micro-business Participation
Loan Program, the borrower shall provide equity capital in an amount equal to
10% of the first $10,000 of the required funds and equity capital, other loans,
or leveraged capital, or any combination thereof, in an amount equal to 50% of
any additional required funds.
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