Current through Register Vol. 48, No. 38, September 20, 2024
The Department shall screen all applications to determine
that all requirements of the application package have been addressed. Complete
applications will be reviewed and evaluated by Department staff. Applicants
will be notified of deficiencies in applications and given an opportunity to
correct such deficiencies through submission of additional documentation. This
review and evaluation process will be completed within 45 days of the
Department's receipt of a complete application. Department staff will conduct a
technical and financial evaluation of each application.
a) Technical Evaluation Component - Each
application will be reviewed to assure compliance with technical program
requirements as specified in the Public Infrastructure Loan and Grant Program
Act (Ill. Rev. Stat. 1991, ch. 127, par. 2708-1 et seq.) [30 ILCS 750 /Art. 8]
(Act). The technical evaluation will address the following criteria:
1) Evidence of Need for Public Participation
- The application must demonstrate the need for public funds in the manner set
forth in Section 8-5 of the Act, including identification of the essential need
for public infrastructure in order to secure the private sector development,
expansion, or retention; evidence that the project cannot be financed solely
from local revenue sources or cannot be financed at an interest rate and term
which makes the project viable; and an indication of the relationship of the
proposed public infrastructure improvement to a local capital improvements plan
(if applicable) or a documented need for the improvement.
2) Project Implementation Readiness - The
application must show that the Infrastructure Program is ready for
implementation by providing a time schedule for the immediate project
initiation; detailed engineering reports and cost estimates which demonstrate
cost feasibility of the project; and a signed resolution of support from the
local government.
3) Project Impact
- The application must clearly demonstrate a positive project impact consisting
of an increase in employment or the retention of jobs and evidence that jobs
created/retained will generate additional wealth for the community (e.g., final
goods or services produced are sold in markets outside Illinois or final goods
or services produced and sold locally substitute for those imported from
outside the State) - some preference will be given to these types of
jobs.
b) Financial
Evaluation Component - The Department will conduct a financial analysis of each
application received. The financial evaluation will include an analysis of the
local government and the company undertaking the business project.
1) Analysis of Local Government - The
Department's local government financial analysis will review alternative
funding sources available to and pursued by the applicant, such as general
obligation or revenue bonds, federal grant programs, tax increment financing,
or special service area tax proceeds and user-charges; a determination of the
financial health of the governmental unit based on the most recent audit of
governmental funds including current tax rates, outstanding debt structure,
utility user charges (if applicable to the project); and the community's
ability to pay a portion of the costs for the infrastructure
improvement.
2) Analysis of the
Business - The firm's financial statements, including the annual balance sheets
and profit and loss statements, for the past three years, as well as the most
recent ninety days and a three year projected balance sheet and profit and loss
statement, as well as a one year monthly cash flow statement. A comprehensive
business plan or company annual reports may be submitted in lieu of the
aforementioned material. These statements will be reviewed through a standard
credit analysis which will determine the: liquidity and debt coverage of the
project; ability of the company to manage debt; business trends; and projected
earnings. This data will be compared to similar data for companies in the same
industry using the 1988 (no later amendments or editions included) "RMA Annual
Statement Studies" published by Robert Morris Associates, P.O. Box 8500,
S-1140, Philadelphia, PA 19178) or comparable source which more closely matches
the applicant's business operation if the applicant's industry is evaluated by
such sources. This standard credit analysis will determine the financial
stability of the company in accordance with Section 8-5(g) of the
Act.
