Ill. Admin. Code tit. 14 § 570.50

Current through Register Vol. 48, No. 49, December 6, 2024

Section 570.50 - Funding Limitations

a) Direct Funding

1) In accordance with Sections 9-4(b) and 9-4.3(b) of the Act, the Department shall finance no more than the lesser of 25% of the total project or $750,000 (50% of the project or $100,000 for Minority, Women and Disability Business Loans) unless the Director waives limitations governing the amount of the loan/grant and percentage of leverage when it is determined that these funding limitations would prohibit an otherwise approved project, in accordance with Sections 570.30(a) and 570.40(a), and the subsequent employment impact/opportunity, from occurring.

2) For the Technical Assistance Grant Program, the funding limitation will not exceed $25,000 unless a Director waiver is granted. The recipient of grant funds shall be required to provide a portion of the financing with respect to the project. The recipients' financing may be in the form of cash, in-kind services or any other form approved by the Department.

3) Department Financial Assistance to a Development Corporation in the form of a grant shall be limited to not more than $10,000, unless a Director waiver is granted.

b) Indirect Funding

1) For each loan in which the Department buys a participation under the Participation Loan Program, the financial intermediary will be required to retain at least 50% of the amount of its loan. The Department's participation will not exceed 25% of the total amount of the project or $2,000,000. In accordance with subsection (a)(1), the Director may waive limitation governing the amount of the loan and percentage of leverage when it is determined that these funding limitations would prohibit an otherwise approved project.

2) As to the amounts received by the ultimate recipients of funds, the Loan Loss Reserve Program funding limitations will be established by the financial intermediary staff involved.

3) Department Financial Assistance to or through a Development Corporation in the form of a participation shall not be made for more than 50% of the Development Corporation's loan and the Department's participation will not exceed 25% of the total amount of the project or $2,000,000, unless the Director waives limitations governing the amount of the loan and percentage of leverage when it is determined that these funding limitations would prohibit an otherwise approved project, in accordance with subsection (a)(1).

4) Notwithstanding the provisions of subsections (b)(1) and (3), Minority, Veteran, Women and Disability Participation Loans, in accordance with Section 9-4.3 of the Act, shall not exceed the lesser of $400,000 or 50% of the total amount of the project unless a Director waiver is granted.

5) Rural Micro-business Participation Loans, in accordance with Section 9-4.2a of the Act, shall not exceed the lesser of $25,000 or 50% of the total amount of the project, unless the Director determines that a waiver of these limits is required to meet the purposes of the Act and is in accordance with subsections (b)(1) and (3).

Ill. Admin. Code tit. 14, § 570.50

Amended at 32 Ill. Reg. 8926, effective June 5, 2008

Amended at 42 Ill. Reg. 4821, effective 3/2/2018