Section 650.15 Definitions
The following definitions are applicable to the Cannabis
Social Equity Program.
"Act" means the Cannabis
Regulation and Tax Act [410 ILCS 705].
"Adult Use Dispensing
Organization License" means a license issued by the Department of
Financial and Professional Regulation that permits a person to act as a
dispensing organization under the Act and any administrative rule made in
furtherance of the Act. [410 ILCS 705/1-10]
"Agreement" means a loan
or line of credit agreement under the Program.
"Applicant" means a
person that intends to apply or has applied for licensure under the Act as a
Social Equity Applicant.
"Basic Wage" means
compensation for employment that is no less than the legal minimum wage of the
jurisdiction in which the person is employed. Basic wage shall not include
overtime pay, bonus pay, stock options, awards or any other equity-based
incentive, unreimbursed employee expenses, piecemeal rate of pay, or any form
of deferred compensation.
"Borrower" means a
Qualified Social Equity Applicant that has entered into an agreement with the
Department or a financial institution partner under the Business Loan and
Financial Assistance Program.
"Business Applicant"
means an applicant or a Social Equity Applicant who is seeking to participate
in the Business Loan and Financial Assistance Program.
"Business Loan and Financial
Assistance Program" or "Program" means the loan and line of
credit Program, designed to promote social equity within the Illinois cannabis
industry, set forth in this Part.
"Cannabis Business Establishment"
means a cultivation center, craft grower, processing organization, dispensing
organization, or transporting organization. [410 ILCS 705/1-10]
"CI Act" means the
Criminal Identification Act [20 ILCS 2630].
"Conditional Adult Use
Dispensing Organization License" means a license awarded to top-scoring
applicants for an Adult Use Dispensing Organization License that reserves the
right to an Adult Use Dispensing Organization License if the applicant meets certain
conditions described in the Act, but does not entitle the recipient to begin
purchasing or selling cannabis or cannabis-infused products. [410 ILCS
705/1-10]
"Conditional Commitment Letter"
means a letter from the Department indicating that an applicant has been
provisionally approved for a loan or line of credit under the Program, subject
to receipt of a license and meeting other requirements described in a conditional
commitment letter.
"Department" means the
Illinois Department of Commerce and Economic Opportunity.
"DFPR" means the
Illinois Department of Financial and Professional Regulation.
"Disproportionately
Impacted Area" means a census tract or comparable geographic area that:
satisfies, as determined by the
Department, at least one of the following criteria:
the area has a poverty rate of
at least 20%, according to the latest federal decennial census or the U.S.
Census Bureau American Community Survey 5-Year Estimates, 2013-2017, whichever
is more current;
75% or more of the children in
the area participate in the federal free lunch program, according to reported
statistics from the State Board of Education, if current and uniform
statewide data is available;
at least 20% of the households
in the area receive assistance under the Supplemental Nutrition Assistance
Program, according to data from the U.S. Census Bureau American Community
Survey 5-Year Estimates, 2013-2017; or
the area has an average
unemployment rate, as determined by the Illinois Department of Employment Security,
that is more than 120% of the national unemployment average, as determined by
the United States Department of Labor, for a period of at least 2 consecutive
calendar years preceding the date of the application; and
has high rates of arrest, conviction,
and incarceration related to the sale, possession, use, cultivation,
manufacture, or transport of cannabis. [410 ILCS
705/1-10]
"Financial Institution
Partner" means a chartered bank, credit union, or other responsible source
of financing that has entered into an agreement with the Department to provide
funding to a Qualified Social Equity Applicant on behalf of or in tandem with
the Department.
"Full-Time Employee"
means an individual for whom a W-2 is issued by the applicant and who is
employed for a basic wage for at least 35 hours each week.
"High Rates of Arrest, Conviction,
and Incarceration" means an average annual rate of arrests that exceeds 30
per 10,000 residents of the census tract, according to population data from the
latest U.S. Census Bureau American Community Survey 5-year estimates,
2013-2017, and arrest data maintained by the Illinois State Police for the
period of January 1, 2009 through May 8, 2019. When at least 20% of arrests by
an arresting agency have arrestee address information, those arrests without
arrestee address information will be assigned to a census tract as follows:
the distribution of each arresting
agency's arrests with known addresses shall be determined for each census tract
within that agency's jurisdiction (each tract's share of the total known
addresses for that arresting agency being that census tract's "census tract
share" for that arresting agency);
the number of arrests with unknown
addresses for each arresting agency shall be multiplied by each tract's census tract
share, with the product of each calculation being allocated to each census
tract as an arrest (each such allocation being an "imputed arrest"
for that census tract and arresting agency); and
the imputed arrest for each census
tract will be summed across all arresting agencies, with the total being added
to the known arrests in each census tract summed across all arresting agencies
to arrive at each census tract's total number of estimated arrests for that
census tract over the period.
However, if uniform statewide
data on annual rates of conviction and incarceration is unavailable, the
Department may use an average annual rate of persons being released onto parole
or mandatory supervised release for offenses eligible for expungement under CI
Act Section 5.2 that exceeds 1 per 10,000 residents and has a minimum of 5
persons being released onto parole or mandatory supervised release for offenses
eligible for expungement under the Act between July 1, 2009 and August 23,
2019), according to population data from the latest U.S. Census Bureau American
Community Survey 5-year estimates, 2013-2017, and data maintained by the
Illinois Department of Corrections for the period of July 1, 2009 through
August 23, 2019.
"License" means any of
the Cannabis Business Establishment licenses established under the Act.
"Member of an Impacted Family"
means an individual who has a parent, legal guardian, child, spouse, or dependent,
or was a dependent of an individual who, prior to the effective date of the
Act, was arrested for, convicted of, or adjudicated delinquent for any offense
that is eligible for expungement under the Act. [410 ILCS 705/1-10]
"Ordinary
and Necessary Expenses" are those expenses incurred in day-to-day
operations that are appropriate, helpful to the success of the business, and
approved by the Department.
"Organizational and Ownership
Records" means records requested by the Department to verify the bona fide
ownership and control of an applicant. These records may include, but are not
limited to:
a Table of Organization, Ownership
and Control as described in Section 15-50 of the Act;
articles of incorporation or
organization, trust agreement, partnership agreement, joint venture agreements
and the like, including any exhibits to these documents;
operating agreement, articles of
partnership, corporate bylaws and the like, including any exhibits;
capitalization tables and other
records of ownership interests;
to the extent any owner, member,
partner, or trustee of the applicant is a corporate entity, the governing
documents of that entity and records showing its owners;
copies of all guarantees to which
the applicant is a party;
licensing or franchise agreements;
and
any other information requested by
the Department to identify ownership or any significant beneficial interests in
the applicant.
"Ownership and Control"
means ownership of at least 51% of the business, including corporate stock if a
corporation, and control over the management and day-to-day operations of the
business and an interest in the capital, assets, and profits and losses of the
business proportionate to percentage of ownership. [410 ILCS 705/1-10]
"Pay Stub" means a
written receipt that shows hours worked, rate of pay, overtime pay and overtime
hours, gross wages, an itemization of all deductions, and wages and deductions for
the year to date for an employee.
"Person" means a
natural individual, firm, partnership, association, joint stock company, joint
venture, public or private corporation, or limited liability company, or a
receiver, executor, trustee, guardian, or other representative appointed by
order of any court. [410 ILCS 705/1-10]
"Qualified Social Equity
Applicant" means a Social Equity Applicant who has been awarded a
conditional license under the Act to operate a Cannabis Business Establishment.
[410 ILCS 705/1-10]
"Residency Records"
means records requested by the Department to verify an applicant's eligibility
to participate in the Program. These records may include, but are not limited
to:
a signed lease agreement that
includes the applicant's name;
a property deed that includes the applicant's
name;
records reflecting government
housing or other assistance that contain the applicant's name and address;
school records;
a voter registration card;
an Illinois driver license, an
Illinois Identification Card, or an Illinois Person with a Disability
Identification Card;
paycheck stubs;
utility bills;
military service records showing
the member's state of legal residency or home of record;
proof of receipt of a homestead
exemption for Illinois property (see 35 ILCS 200/15-175);
a certification of homeless status
during the time relevant for consideration;
the applicant's most recent State
tax return showing the applicant is subject to the Illinois Income Tax and the
Personal Property Tax Replacement Income Tax as a resident of Illinois; or
other proof that is generally
accepted by DFPR, the Department of Agriculture (DOA), the Department of
Revenue, or the Illinois Secretary of State to establish a person's status as a
resident in Illinois and that is approved by the Department.
"Social Equity
Applicant" means an applicant that is an Illinois resident that meets one
of the following criteria:
an applicant with at least 51% ownership
and control by one or more individuals who:
have resided for at least 5 of
the preceding 10 years in a Disproportionately Impacted Area;
have been arrested for,
convicted of, or adjudicated delinquent for any offense that is eligible for
expungement under the CI Act; or
are members of an impacted family;
or
for applicants with a minimum
of 10 full-time employees, an applicant with at least 51% of current employees
who:
currently 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 member of an impacted family. [410 ILCS
705/1-10]
 |
TITLE 14: COMMERCE
SUBTITLE C: ECONOMIC DEVELOPMENT
CHAPTER I: DEPARTMENT OF COMMERCE AND ECONOMIC OPPORTUNITY
PART 650
CANNABIS SOCIAL EQUITY PROGRAM
SECTION 650.20 FEES
Section 650.20 Fees
a) The Department may charge a borrower a closing fee of up to
$5,000, which may be paid at closing or, in the case of a term loan, added to
the principal balance of the loan.
b) If, during the term of an Agreement, a borrower transfers,
sells, or grants its license within 5 years after it was issued to a person or
entity that does not qualify as a Social Equity Applicant, the transfer
agreement shall require the new license holder to pay the Department a Program
closeout fee of up to $10,000 in addition to the balance of the loan or line of
credit.
c) If, during the term of an Agreement, a borrower ceases to meet
the criteria of a Social Equity Applicant, the Department may accelerate
repayment of the balance of the loan or line of credit and require the borrower
to pay a Program closeout fee of up to $10,000.
| TITLE 14: COMMERCE
SUBTITLE C: ECONOMIC DEVELOPMENT
CHAPTER I: DEPARTMENT OF COMMERCE AND ECONOMIC OPPORTUNITY
PART 650
CANNABIS SOCIAL EQUITY PROGRAM
SECTION 650.25 APPLICATION CYCLE
Section 650.25 Application Cycle
Applications under the Program will be accepted until
allocated Program funds are exhausted, subject to the availability of funding
as determined by the Department. Funding decisions will also be subject to
market entry or license issuance dates and demand for financial support. The
Department will supply an application package upon request.
| TITLE 14: COMMERCE
SUBTITLE C: ECONOMIC DEVELOPMENT
CHAPTER I: DEPARTMENT OF COMMERCE AND ECONOMIC OPPORTUNITY
PART 650
CANNABIS SOCIAL EQUITY PROGRAM
SECTION 650.30 LOAN AND FINANCIAL ASSISTANCE PROGRAM APPLICATION DOCUMENTATION
Section 650.30 Loan and
Financial Assistance Program Application Documentation
Receipt of an application to the
Program does not commit the Department to award a loan or line of credit or to
pay any costs incurred by a Business Applicant in preparation of an
application. Written applications will be required and must be submitted on the
standard application form provided by the Department.
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.
b) The Department may, at its discretion, accept documentation in
place of records listed in subsection (a)(1) when the record has been
destroyed, lost, or is otherwise unavailable in the time needed to apply to the
Program and for licensure under the Act.
c) Should any information change between the time of application
submission and the time the Department and the Business Applicant enter into an
Agreement, the Business Applicant shall notify the Department of any change.
| TITLE 14: COMMERCE
SUBTITLE C: ECONOMIC DEVELOPMENT
CHAPTER I: DEPARTMENT OF COMMERCE AND ECONOMIC OPPORTUNITY
PART 650
CANNABIS SOCIAL EQUITY PROGRAM
SECTION 650.35 BUSINESS LOAN AND FINANCIAL ASSISTANCE APPLICATION EVALUATION
Section 650.35 Business Loan
and Financial Assistance Application Evaluation
The Department will evaluate
eligible applications taking into consideration funding available for the
Program, demand to participate in the Program, and availability of licenses
under the Act. The Department will also consider a Business Applicant's creditworthiness,
the potential economic benefit of the project, and the extent to which a
Business Applicant demonstrates that the company, its owners, or its employees
have been directly and adversely impacted by the enforcement of
cannabis-related laws. Specific terms of any loan or line of credit, including
the amount, interest rate, security required, and performance measures, will be
determined based on the needs and risk profile of each Business Applicant.
a) The Department will only evaluate completed applications. The
Department will deem an application complete only after it has received all
information it has requested from the Business Applicant.
b) General Criteria for Evaluating Applications. The Department
will screen all applications to determine that all requirements of the
application package have been addressed. A Business Applicant will be notified
of deficiencies in its application and given an opportunity to correct any
deficiencies through submission of additional documentation. Department staff
will conduct a technical and financial evaluation of each application.
1) Technical Evaluation. Each application will be reviewed to
determine whether issuance of a loan or line of credit will further the goals
of the General Assembly as set forth in Section 7-1 of the Act. The evaluation
will address the following criteria:
A) Evidence of Need for Program Funding. The Business Applicant
must demonstrate the need for Program funds, including evidence that a loan or
line of credit will improve the likelihood of the Business Applicant receiving
a license under the Act or that the Business Applicant faces barriers to
obtaining sufficient working capital to maintain licensure or operate a
successful business without the Department's support. The Department will also
evaluate whether the proposed use of funds is consistent with the purposes of
the Act.
B) Project Implementation Readiness. The Business Applicant must
demonstrate project readiness, including identifying loans and investments from
all lenders and investors (or any such investment that is contingent on receipt
of a license or conditional commitment letter); a time schedule for project
initiation; commitments from material project partners; and cost estimates that
support proposed project costs.
C) Employment Impact. The application shall provide evidence of:
employment impact/opportunity (e.g., potential job creation), including a
description of the type and the number of any jobs to be created; the average
salary or wage of each position category; and any evidence that the jobs will
generate additional wealth or employment opportunities for persons living in
Disproportionately Impacted Areas or who have been adversely impacted by the
enforcement of cannabis-related laws.
D) Social Equity Applicant Status. The Business Applicant must
demonstrate that it falls within the definition of Social Equity Applicant. It
must also demonstrate that its owners or employees have been directly and
substantially adversely impacted by enforcement of cannabis-related laws. Funding may be prioritized for Business Applicants with
owners who have arrests or convictions for offenses eligible for expungement
under the CI Act. The Department will also consider the extent to which the
Business Applicant demonstrates a commitment to retain, hire and promote
residents of Disproportionately Impacted Areas or other persons directly and
substantially adversely impacted by the enforcement of cannabis-related laws.
2) Financial, Management, and Operational Evaluation. The
Department will conduct an analysis of the Business Applicant's financial
information, which may consider the liquidity and debt coverage for the
project, ability of the company to manage debt, business trends, and projected
earnings. The Department will also consider the extent to which the Business
Applicant demonstrates commitments from investors, incubators, community-based
organizations, or other external partners to provide long-term operational or
management support to the Business Applicant to enable it to secure and
maintain licensure. The Department may consider the credit risk of the Business
Applicant's owners and officers and the presence of management or a workforce
with experience in the cannabis business or comparable industries.
| TITLE 14: COMMERCE
SUBTITLE C: ECONOMIC DEVELOPMENT
CHAPTER I: DEPARTMENT OF COMMERCE AND ECONOMIC OPPORTUNITY
PART 650
CANNABIS SOCIAL EQUITY PROGRAM
SECTION 650.40 SELECTION FOR FUNDING
Section 650.40 Selection for
Funding
a) Applications that best meet the objectives of the Program and
demonstrate the greatest potential for benefit to persons and communities
directly and adversely impacted by enforcement of cannabis-related laws may be
issued conditional commitment letters or approved to participate in the
Program. The conditional commitment letters may be provided to and relied upon
by DFPR or DOA in scoring applications for licensure under the Act. The conditional
commitment letters will indicate that the Business Applicant is eligible for
funding under the Program if it is issued a license under the Act. The amount
of funding will be expressed as a minimum amount, but the total funding amount
will be determined after licenses have been issued.
b) Funding Terms. The amount of funding available to a Business
Applicant, the repayment terms, the applicable interest rates, and other terms
will be determined after the Business Applicant is verified to be a Qualified
Social Equity Applicant.
c) Conditions to Close. To proceed to closing, a Qualified Social
Equity Applicant must maintain its eligibility for the loan or line of credit
and comply with all pre-closing instructions. The Department will verify that
the Business Applicant remains eligible prior to closing, and it may decline
issuance of a loan or line of credit if the Business Applicant ceases to be a
Social Equity Applicant, if funding from the Department is not necessary due to
additional investment in the company post-license issuance, or if the Business
Applicant is unable to fulfill all terms of the loan or line of credit
agreement.
| TITLE 14: COMMERCE
SUBTITLE C: ECONOMIC DEVELOPMENT
CHAPTER I: DEPARTMENT OF COMMERCE AND ECONOMIC OPPORTUNITY
PART 650
CANNABIS SOCIAL EQUITY PROGRAM
SECTION 650.45 LOAN AND FINANCIAL ASSISTANCE ADMINISTRATIVE REQUIREMENTS
Section 650.45 Loan and
Financial Assistance Administrative Requirements
a) Agreement. A borrower must comply with all terms of the loan
or line of credit Agreement, as applicable. A borrower must be able to make all
representations, warranties, and covenants set forth in the Agreement. In the
event of default under the Agreement, the Department and the borrower may enter
into a forbearance agreement at the sole discretion of the Department.
b) Security. The Department may protect its interests in the
event of default by requiring personal guarantees from the borrower's
principals (all individuals/entities owning or controlling 20% or more of the borrower)
or other persons with a material interest in the borrower.
c) Use of Proceeds. The funding made
available is to be used for the borrower's ordinary and necessary expenses to
start and operate a cannabis business establishment. Proceeds may not be used
on capital expenditures unless otherwise approved by the Department.
d) Payments. Payments shall be due and payable to the Department
in the method and times specified in the Agreement. Unless otherwise provided
in the Agreement, all payments shall be applied first to interest and then to
principal on all simple interest loans. All payments on amortized loans will be
applied to the amortization schedule as stated.
e) Reporting. A borrower shall provide, at least quarterly,
information and reports required by the Department (e.g., reports on job
creation/retention; uses of proceeds; financial statement of assets and
liabilities; statements of status as a Qualified Social Equity Applicant; and
changes in owners, officers and directors).
f) Monitoring and Evaluation. A borrower must permit any agent
authorized by the Department, the Illinois Attorney General, the Illinois
Auditor General, or any other legal authority, upon presentation of
credentials, to have full access to and the right to examine any documents,
papers, and records of the borrower involving transactions related to the
Program.
g) Records. A borrower shall keep detailed records of the project
and the use of proceeds. A borrower of more than $100,000 is required to
furnish to the Department, with the periodic submission of financial statements
following the expenditure of project funds, a copy of any audit reports
received during a specified period. The Department, pursuant to the Agreement, may
require a borrower to undergo an audit to verify the use of loan or line of
credit proceeds.
h) Performance Requirements. The Department may require a borrower
to meet certain economic development objectives (e.g., create a minimum number
of full-time jobs within a certain time or achieve certain job quality
standards identified in an Agreement).
i) Transfer of License. Loans and lines of credit will not be
transferrable, and any outstanding amount owed by a borrower at the time of a
transfer of its license shall be paid by the new license holder, along with any
waived fees. (See Section 7-25 of the Act.)
j) Confidentiality. Any documentary materials or data made
available or received by the Department or any agent of the Department shall be
deemed confidential and shall not be deemed public records to the extent that
the materials or data consists of trade secrets, commercial or financial
information regarding the operation of the business conducted by the applicant
or borrower, or any information regarding the competitive position of a
business in a particular field of endeavor, or any information, the disclosure
of which would be an unwarranted invasion of personal privacy (e.g., criminal
history record information or information about the impact of the enforcement
of cannabis-related laws on a specific person or family). Nothing in this
subsection shall prevent the Department from sharing information with other
governmental entities. The names of borrowers and the amounts of any financial
assistance shall be considered a public record.
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