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Illinois Governor Proposes $100M to Improve Capital Access

Monday, March 12, 2007

In his recent combined State of the State and budget address on March 7, Illinois Gov. Rod Blagojevich proposed the formation of the Illinois Community Assets Fund (ICAF), a $100 million venture designed to increase access to capital and financing to economically distressed communities and populations that have had inadequate access to mainstream capital markets within the state. The assets of ICAF would be contained within the State Treasury, and the Illinois Department of Commerce and Economic Opportunity (DCEO) would administer the fund. All $100 million would be distributed within a three-year period.

 

The ICAF would consist of the following four programs:

  • Community Financial Institutions Participation Fund – $30 million to partner with third-party financial intermediaries and invest in businesses that lack access to traditional lending sources;
  • Immediate Returns Capital Grants – $25 million to support small business expansion and job creation projects in economically depressed areas of the state, to be administered by the DCEO;
  • High Growth Equity Fund – $25 million to contribute to existing private sector equity investments in high-growth businesses based in underserved regions; and,
  • High Risk Loan Fund – $20 million to financial institutions, such as banks, credit unions or community development corporations that serve clients in markets lacking investment capital. The DCEO will loan money at 1 percent interest to these institutions that establish their own lending programs.

On Feb. 27 of this year, HB3676 was introduced to the 95th General Assembly of Illinois and currently is assigned to the House’s International Trade & Commerce Committee. The next hearing on the bill will take place this week at the State Capitol.

 

If you would like to track the status of HB3676, visit:

http://ilga.gov/legislation/

 

Gov. Rod Blagojevich’s FY 2008 proposal for Illinois’ Capital Budget can be found at:

http://www2.state.il.us/budget/FY08%20Capital%20Budget.pdf

Illinois