a) Applications shall
be submitted to the Department office location identified on the application.
The application for loans and lines of credit will include:
1) Social Equity Applicant Status Information
A) DFPR or DOA Certification shall be
provided. Certification means any letter or other written documentation from
DFPR or DOA verifying the applicant's status as a Social Equity Applicant or a
Qualified Social Equity Applicant for a license issued by that agency. This
verification may be provided at any time prior to entering into the loan or
line of credit agreement.
B) The
Business Applicant shall provide:
i) Proof of
the Business Applicant's Illinois Residency. The proof must consist of at least
two residency records. Residency will be verified at the time of application to
the Program and certified by the borrower at closing. The Department may
require more than two residency records to confirm eligibility.
ii) Owner Information. If the Business
Applicant's eligibility is based on the majority of its owners having resided
in a Disproportionately Impacted Area, the Business Applicant shall provide,
for each owner who is relevant to the eligibility determination, the following:
* at least two residency records that establish residency in a
Disproportionately Impacted Area for 5 of the 10 years preceding the
application; and
* organizational and ownership records requested by the
Department.
iii)
Eligibility Documentation. If the Business Applicant's eligibility is based on
the majority of its owners having been arrested for, convicted of, or
adjudicated delinquent for any offense that is eligible for expungement under
the CI Act or being a member of an impacted family, the Business Applicant
shall provide, for each owner who is relevant to the eligibility determination,
a record of the arrest, conviction or adjudication from the responsible legal
authority. If an owner is a member of an impacted family, the Business
Applicant may be required to provide proof (e.g., copies of birth certificates
or other records) of the owner's relation to the individual who was arrested
for, convicted of, or adjudicated delinquent for such an offense.
iv) Employee Information. If the Business
Applicant has at least 10 full-time employees at the time of its application,
it may be considered a Social Equity Applicant if at least 51% of its full-time
employees reside in a Disproportionately Impacted Area or have been arrested
for, convicted of, or adjudicated delinquent for any offense that is eligible
for expungement under the CI Act or a member of an impacted family. A Business
Applicant eligible under this criterion shall provide, for each relevant
employee:
* a W-2 issued to the employee by the Business Applicant and
the two most recent pay stubs if the employee was first employed by the
Business Applicant prior to January 1, 2019. If an employee was first employed
by the Business Applicant after January 1, 2019, then the Business Applicant
may provide a copy of the W-4 and the two most recent pay stubs. "Most recent"
means the two regular pay periods most proximate to the date the application is
submitted to the Department. In lieu of W-4s, a Business Applicant may submit
copies of the New Hire Reporting Form that it submitted to the Illinois
Department of Employment Security for that employee;
* the Business Applicant's most recent payroll run; and
* the residency records for the employee or the arrest,
conviction or adjudication records. If the employee is a member of an impacted
family, the Business Applicant shall also provide proof of the employee's
relation to the individual who was arrested for, convicted of, or adjudicated
delinquent for an offense eligible for expungement under the CI Act.
v) Impact of Cannabis-Related
Laws. The Business Applicant shall provide a brief narrative of how the
Business Applicant, its owners, or its employees were directly and adversely
impacted by the enforcement of cannabis-related laws and any supporting
documents (e.g., criminal history or case records, affidavits of impacted
individuals, public records and news articles; evidence of business or
employment opportunities being denied because of criminal history,
etc.).
vi) Maintenance of Status. A
statement that a Business Applicant approved for a conditional commitment
letter will maintain its status as a Social Equity
Applicant.
2)
Company Information
A) History of the
Company. A brief history of the Business Applicant and the employee headcount
in each year the business has been in operation (limited to the past five
years). If the Business Applicant has been in operation for less than one year,
only the current headcount is required.
B) Market Information/Business Plan. To the
extent available, information on the Business Applicant's intended products or
services and identification of existing and potential major customers and
competitors. A Business Applicant may substitute a general business plan for a
market analysis.
C) Project
Summary. A description of what the Business Applicant intends to do if it
receives a license under the Act and funding under the Program, including the
type of license the Business Applicant is seeking under the Act and when it was
applied for or when the Business Applicant plans to apply for it.
D) Need for Funds. A statement and any
supporting justification of a need for support under the Program. The request
shall also identify the amount of financial support it seeks from the
Department. The request shall also detail how funds borrowed from the
Department could be secured and repaid (including the anticipated timing for
use and repayment of the funds), and how the Business Applicant intends to use
any borrowed funds. The Business Applicant should also indicate whether it
would prefer a term loan or access to a line of credit under the Program and
demonstrate why such an arrangement would be beneficial.
E) Financial Information. If the Business
Applicant has been operating for more than six months, it shall provide
historic financial statements for each of the past three years (to the extent
it was operating), if the Business Applicant is not a new plant start-up or new
business opportunity (i.e., has not been in operation for more than six
months), and interim statements dated no more than 90 days prior to application
that include:
i) profit and loss (income)
statements;
ii) balance sheets;
and
iii) disclosure of contingent
liabilities (if applicable).
F) Five-Year Projections. Five-year
projections of the profit and loss statement and a breakdown of projected
expenses and monthly cash flow over a five-year period.
G) Site Map (if known). An outline of the
general location of the project on a site map, including the location of any
floodplain areas. If the site is not known at the time of application,
potential sites may be submitted.
H) Description of Machinery and Equipment (if
applicable). Major equipment or classes of equipment to be acquired with the
Department's Program funds identified; for acquisition of new machinery and
equipment, attachments of reliable vendor cost estimates; for moving and
installation costs, attachments of written estimates; and for used machinery
and equipment acquisition, an appraisal demonstrating that the fair market
value is in line with the purchase price, and a specific description of the
equipment, including serial numbers if available.
I) Company Management. A listing of those
individuals who are responsible for the management of the company, their
positions and responsibilities, and resumes of key senior individuals (e.g.,
owner, partner, president, vice president, treasurer) at the company location.
Also include information about any long-term management or operational support
from investors, incubators, or community-based organizations (or other sources
of external support).
J)
Organizational and Ownership Records. As to the extent the Business Applicant
did not provide organizational and ownership records as part of application,
the Business Applicant shall provide organizational and ownership records
sufficient to explain the legal structure of the Business Applicant's business
and to identify all owners and persons having a beneficial interest in the
applicant and its business.
K)
Letters of Commitment (if any). Commitment letters documenting all sources of
funding. Loans from investors or lenders must have language indicating the
investment or loan amount, the specified term and interest, collateral,
conditions attendant to the investment or loan, and whether the investment or
loan is approved or contingent.
L)
Any additional records or information to verify eligibility.