The bill establishes a loan selection committee that will evaluate applications and determine eligibility criteria for the loans. Loans provided under this program cannot be used for refinancing existing debt or purchasing non-construction vehicles, thereby ensuring that the funds are directed towards legitimate construction-related expenses. Importantly, businesses may only obtain a limited number of loans (up to three) and cannot receive multiple loans simultaneously, promoting equitable distribution of resources among eligible businesses.
SB2562, known as the Business Loan Program, aims to support disadvantaged business enterprises and minority-owned businesses in Illinois by providing access to low-interest loans through the establishment of the Working Capital Revolving Loan Fund. The bill amends the Capital Development Board Act and the Toll Highway Act, allowing the Capital Development Board and the Illinois Highway Toll Authority to issue loans specifically for project financing costs related to construction contracts. The loans are intended for businesses ready to engage in Board-procured construction projects, addressing financial barriers highlighted in a disparity study conducted by the Board.
While the bill primarily aims to enhance support for underrepresented businesses in the construction sector, concerns may arise regarding the selection process for eligible businesses. Critics could argue that the rules set forth by the selection committee could create unnecessary barriers or favoritism in loan awarding, particularly if the eligibility criteria are not clearly outlined. Additionally, there may be debates surrounding the sustainability of the Working Capital Revolving Loan Fund, considering the annual limits on fund transfers and the expiration of loan issuance authority slated for June 1, 2028.