2023 Illinois Compiled Statutes
Chapter 15 - EXECUTIVE OFFICERS
15 ILCS 516/ - Community Development Loan Guarantee Act.
(15 ILCS 516/Art. 1 heading)
(15 ILCS 516/Art. 5 heading)
(15 ILCS 516/Art. 10 heading)
(15 ILCS 516/Art. 15 heading)
(15 ILCS 516/Art. 20 heading)
(15 ILCS 516/Art. 25 heading)
(15 ILCS 516/Art. 30 heading)
(Source: P.A. 101-657, eff. 3-23-21.)
(15 ILCS 516/30-1)
Sec. 30-1. Short title. This Article may be cited as the Community Development Loan Guarantee Act. References in this Article to "this Act" mean this Article.
(Source: P.A. 101-657, eff. 3-23-21; 102-687, eff. 12-17-21.)
(15 ILCS 516/30-5)
Sec. 30-5. Policy. The General Assembly finds that it is vital for the State to invest in community economic development, particularly in communities which have been historically excluded from investment opportunities due to redlining, discriminatory banking practices, and racism. The purpose of this Act is to establish a Program for guaranteeing small business loans and consumer loans to borrowers who would otherwise not qualify in communities of color and low-income communities.
(Source: P.A. 101-657, eff. 3-23-21.)
(15 ILCS 516/30-10)
Sec. 30-10. Definitions. As used in this Act:
"Financial institution" means a bank, a savings and loan association, a savings bank, a credit union, a minority depository institution as designated by the Federal Deposit Insurance Corporation, or a community development financial institution certified by the United States Treasury Community Development Financial Institutions Fund, which is operating in the State of Illinois.
"Loan Guarantee Account" means an account at a financial institution outside the State Treasury of which the State Treasurer is custodian with the purpose of guaranteeing loans made by a participating financial institution in accordance with this Act.
(Source: P.A. 101-657, eff. 3-23-21; 102-1027, eff. 5-27-22.)
(15 ILCS 516/30-15)
Sec. 30-15. Establishment of the Loan Guarantee Program. The State Treasurer may establish the Loan Guarantee Program by establishing one or more Loan Guarantee Accounts at approved financial institutions. The Loan Guarantee Accounts may be used to cover the losses on guaranteed loans at a participating financial institution.
(Source: P.A. 101-657, eff. 3-23-21; 102-1027, eff. 5-27-22.)
(15 ILCS 516/30-20)
Sec. 30-20. Eligible institutions. The State Treasurer shall determine the eligibility of financial institutions to participate in the Program. In addition to any other requirements of this Act and in accordance with any applicable federal law or program, the State Treasurer in determining eligibility of financial institutions shall consider (i) the financial institution's commitment to low-income communities as defined in Section 45D(e) of the Internal Revenue Code of 1986 codified at 26 U.S.C. Section 45D(e), and (ii) the financial institution's commitment to communities considered disproportionately impacted areas, depressed areas, or enterprise zones as determined, designated, or certified by the Department of Commerce and Economic Opportunity in accordance with any applicable federal law or program.
(Source: P.A. 101-657, eff. 3-23-21.)
(15 ILCS 516/30-25)
Sec. 30-25. Fees. The State Treasurer may establish, as a component of the Program, fees of no more than 5% of the total guaranteed loan amount. The fees shall be deposited into a Loan Guarantee Account.
(Source: P.A. 101-657, eff. 3-23-21; 102-1027, eff. 5-27-22.)
(15 ILCS 516/30-30)
Sec. 30-30. Use of the Loan Guarantee Account.
(a) Moneys in a Loan Guarantee Account may be paid to a participating financial institution to cover losses on guaranteed loans up to the full amount in the Account or the amount of loss, whichever is lesser. The State of Illinois and the State Treasurer shall not be responsible for any losses in excess of the full amount in the Loan Guarantee Account designated for a participating financial institution.
(b) The State Treasurer may set a cap on the total funds held in any Loan Guarantee Account. Funds in excess of the cap may be withdrawn by the Treasurer.
(c) The State Treasurer shall withdraw the full amount in any Loan Guarantee Account in the event the Loan Guarantee Program is discontinued, or the financial institution leaves the Program.
(d) The State Treasurer may withdraw funds from any Loan Guarantee Account for a financial institution's failure to comply with Program requirements.
(Source: P.A. 101-657, eff. 3-23-21; 102-1027, eff. 5-27-22.)
(15 ILCS 516/30-35)
Sec. 30-35. Limitations on funding. The State Treasurer may allocate up to $10,000,000 of investment earnings each year for the Loan Guarantee Program, provided that no more than $50,000,000 may be used for guaranteeing loans at any given time. The State Treasurer shall make the allocation to the Loan Guarantee Administrative Trust Fund prior to allocating interest from the gross earnings of the State investment portfolio.
(Source: P.A. 103-8, eff. 6-7-23.)
(15 ILCS 516/30-36)
Sec. 30-36. Loan Guarantee Administrative Trust Fund. The Loan Guarantee Administrative Trust Fund is created as a nonappropriated trust fund within the State treasury. Moneys in the Fund may be used by the State Treasurer to guarantee loans and to cover administrative expenses related to the Program. The Fund may receive any grants or other moneys designated for administrative purposes from the State, from any unit of federal, State, or local government, or from any other person, firm, partnership, or corporation.
(Source: P.A. 103-8, eff. 6-7-23.)
(15 ILCS 516/30-40)
Sec. 30-40. Rules. The State Treasurer shall adopt rules that are necessary and proper to implement and administer this Act including, but not limited to, fees and eligibility.
(Source: P.A. 101-657, eff. 3-23-21.)
(15 ILCS 516/Art. 35 heading)
(15 ILCS 516/Art. 40 heading)
(15 ILCS 516/Art. 45 heading)
(15 ILCS 516/Art. 50 heading)
(15 ILCS 516/Art. 99 heading)
(Source: P.A. 101-657, eff. 3-23-21.)
(15 ILCS 516/99-99)
Sec. 99-99. Effective date. This Act takes effect upon becoming law, except that Articles 1 and 40 take effect January 1, 2022.
(Source: P.A. 101-657, eff. 3-23-21.)
