Modernization Retooling Loan Program

Section 545 Section 545.320  Modernization Retooling Loan Program a)         Purpose – The purpose of the Modernization Retooling Loan Program is defined in Section 3505 of the Act.  The Department may, subject to appropriated funds, establish a loan program to improve business production systems and work processes.  Such improvements shall result in the preservation and/or creation of private sector jobs by increasing the firms' long-term competitive viability. b)         Eligible Applicants – Any small, medium-sized or mature Illinois business may make an application for financial assistance under this program.  An eligible business includes any for-profit business located in Illinois organized as a sole proprietorship, corporation, joint venture, partnership, association, or cooperative. For the purpose of this program, a mature business is one (including predecessor companies) that has been in continuous profitable operation for at least two years or has a meaningful operating history. c)         Allowable Activities – Per Section 3505(a) and (b) of the Act, loans may be provided to, or on behalf of, the State's mature, small, or medium-sized businesses for the modernization and installation of advanced technologies or processes.   A loan made for company modernization or retooling may be for any purpose consistent with the objectives of the Act, including but not limited to: 1) purchases of advanced machinery; 2) equipment and tooling; 3) organizational expenses for services; 4) personnel training; 5) corporate restructuring; 6) working capital; 7) acquisition, improvement, or rehabilitation of land and buildings; or 8) any other business expense reasonably related to the project. d)         Limitations – Per Section 3505(b) and (c) of the Act, the following limitations apply to this program: 1) No loan made by the Department, or by an intermediary organization making a loan on behalf of the Department, shall be used to pay for the retirement of previous debt unless the debt is a part of the purchase or lease of machinery or equipment that is being upgraded. 2) A loan under this program shall not be made for more than $500,000 or for more than 25% of the business project costs unless the Director determines that a waiver of these limits is required to meet the purposes of the Act.