(30 ILCS 750/Art. 11 heading)

(30 ILCS 750/11-1) (from Ch. 127, par. 2711-1) Sec. 11-1. Short Title. This Article shall be known and may be cited as the "Illinois Small Business Incubator Act". (Source: P.A. 84-109.)

(30 ILCS 750/11-2) (from Ch. 127, par. 2711-2) Sec. 11-2. Definitions. As used in this Article: (a) "Small business incubator" or "Incubator" means a property described in Sections 11-7 and 11-8. (b) "Community Advisory Board" or "Board" means a board created pursuant to Section 11-4. (c) "Department" means the Illinois Department of Commerce and Economic Opportunity. (d) "Educational institution" means a local school district, a private junior college or university, or a State supported community college or university within the State. (e) "Local governmental unit" means a county, township, city, village or incorporated town within this State. (f) "Non-profit organization" means local chambers of commerce, business and economic development corporations and associations, and such other similar organizations so designated by the Department. (g) "Sponsor" means an educational institution, local governmental unit or non-profit organization which receives Department funds under this Article. (h) "Costs of establishment" means the actual costs of acquisition, whether by lease, purchase or other devices, and of construction and renovation of the incubator. (i) "Costs of administration" means the costs of wages or salary for the incubator manager and related clerical and administrative costs. (Source: P.A. 94-793, eff. 5-19-06.)

(30 ILCS 750/11-3) (from Ch. 127, par. 2711-3) Sec. 11-3. Incubator Benefits. A small business incubator shall provide the following benefits to its tenants: (a) Physical space within the incubator; (b) Business and management assistance, agreed upon by the sponsor and the Department, which may include access to local experts in professional areas such as bookkeeping, legal services, accounting, financing, product marketing, engineering and other business support services; (c) Facility services, agreed upon by the sponsor and the Department, available within the incubator which may include but are not limited to typing and reception; cleaning and building security; conference, laboratory and library facilities; and duplicating machines, computers and other electronic equipment; and (d) As determined by the sponsor, certain professional services which focus on but are not limited to: information on government small business regulations; basic management skills; detailed advertising, promotion, marketing and sales information; control of inventory levels; recruitment of employees; labor relations; and financial counseling in areas such as venture capital, risk management, taxes, insurance and qualifying for government small business loans. (Source: P.A. 84-109.)

(30 ILCS 750/11-4) Sec. 11-4. (Repealed). (Source: P.A. 84-109. Repealed by P.A. 100-621, eff. 7-20-18.)

(30 ILCS 750/11-5) (from Ch. 127, par. 2711-5) Sec. 11-5. Board duties. (a) Upon appointment, the Community Advisory Board shall: (1) identify the property under consideration for

designation as a small business incubator;

(2) market the concept of a small business incubator

in the surrounding area;

(3) solicit the views of the community concerning the

designation of the property under consideration as a small business incubator;

(4) identify probable tenants for the small business

incubator; and

(5) obtain commitments from persons, organizations,

businesses, local governmental units or other sources for a share of those costs not covered by rental fees or grants and for other types of incubator support.

(b) If, after performing the duties required by subsection (a), the Board determines that a designation of the property under consideration as a small business incubator is desirable and possible, the Board shall notify the Department of its intent to conduct a feasibility study. (Source: P.A. 84-109.)

(30 ILCS 750/11-6) (from Ch. 127, par. 2711-6) Sec. 11-6. Feasibility Study and Petition. (a) After filing a notice with the Department pursuant to Section 11-5, the Community Advisory Board, with the advice of the Department, shall conduct, complete and deliver to the Department, within time lines given by the Department, an in-depth incubator feasibility study. The study shall include but not be limited to all of the following factors: (1) Costs of establishment of the incubator such as necessary lease, purchase, renovation or construction costs associated with the site and structures; (2) Estimated costs of maintenance of the site and structures including utility costs and costs of financing; (3) Estimated wage and salary rates for the incubator manager and related administrative costs; (4) Estimated costs of providing incubator benefits identified in Section 11-3; (5) Estimated income from the incubator including the estimated rental fees collected from lessees within the incubator, the estimated annual local cash subsidies, the value of in-kind services, the value of anticipated grants from other sources and the amount of Department funds requested; (6) Prospects of attracting suitable businesses to the incubator and the ability of the community to develop and market the incubator; and (7) The ability of the community to provide necessary support for the incubator, including but not limited to technical assistance and training, assistance in attracting employees, assistance in locating prospective tenants and assistance in business start-up financing. (b) If, after performing the duties required by subsection (a), the Board determines that a designation of the property under consideration as a small business incubator is desirable, the Board shall transmit a completed copy of the feasibility study to the Department along with a petition from the local governmental unit, non-profit organization or educational institution requesting designation of the incubator. (Source: P.A. 84-1124.)

(30 ILCS 750/11-7) (from Ch. 127, par. 2711-7) Sec. 11-7. Government or Non-Profit Organization Sponsored Incubator. (a) In designating small business incubators sponsored by a unit of local government or non-profit organization, priority shall be given to those proposals that the Department determines: (1) Are sponsored by a local governmental unit or

non-profit organization which agrees to contribute monetarily or in-kind;

(2) Consist of an unoccupied or nearly unoccupied

building or group of buildings on a contiguous site, an unimproved or partially improved site, or an existing incubator facility;

(3) Have a financial commitment of at least 50% of

the projected costs for the establishment and administration of a building in a manner suitable for occupancy by small firms;

(4) Have a financial commitment for the projected

unreimbursed costs of maintenance of the incubator for the first 3 years; unreimbursed costs of maintenance meaning total operating costs, excluding costs of administration, less rental receipts;

(5) Are supported by local representatives of

business, labor and education;

(6) Will generate a significant number of jobs; (7) Will provide the benefits and services identified

in Section 11-3, including mechanisms to provide detailed management assistance to start-up firms; and

(8) Include local funding commitments to assist in

the financing of start-up firms.

(b) During the first 5 years of operation of an incubator designated pursuant to subsection (a) the Department may provide funding, subject to appropriation, for no more than 50% of the costs of establishment and administration and development and operation. (c) The Department may provide ongoing funding for an incubator located in an area that qualifies for assistance under the Financially Distressed City Law. (Source: P.A. 87-558.)

(30 ILCS 750/11-8) (from Ch. 127, par. 2711-8) Sec. 11-8. Educational institution sponsored incubator. (a) In designating small business incubators sponsored by an educational institution, priority shall be given to those proposals the Department determines: (1) are sponsored by an educational institution which

agrees to contribute monetarily or in kind;

(2) consist of an existing incubator facility, an

unoccupied or nearly unoccupied building or group of buildings on a contiguous site or unoccupied or nearly unoccupied property or unimproved or partially improved site in close proximity to the sponsoring educational institution;

(3) have a financial commitment of at least 25% of

the projected costs for the establishment and administration of a site in a manner appropriate for commercial or industrial use by advanced technology firms, including the costs of necessary laboratory structures and establishing a structure suitable for occupancy by small and medium sized advanced technology firms;

(4) have a financial commitment for the unreimbursed

costs of maintenance of the incubator for the first 3 years; unreimbursed costs of maintenance meaning total operating costs, excluding costs of administration, less rental receipts;

(5) are supported by local representatives of

business, labor and government;

(6) will generate a significant number of jobs; (7) will provide the benefits and services identified

in Section 11-3, including mechanisms to provide detailed management assistance to start-up firms; and

(8) include local funding commitments to assist in

the financing of start-up firms.

(b) During the first 3 years of operation of an incubator designated pursuant to subsection (a), the Department may provide funding subject to appropriation, for not more than 75% of the costs of establishment and administration and development and operation. (Source: P.A. 84-1124.)

(30 ILCS 750/11-9) (from Ch. 127, par. 2711-9) Sec. 11-9. Department Decision. (a) The Department may designate unoccupied or nearly unoccupied properties as small business incubators for the purpose of encouraging and assisting the establishment and expansion of small businesses within this State. Designation of properties as small business incubators shall be made only upon Department receipt of a petition and feasibility study pursuant to this Article. (b) Within 45 calendar days after receipt of the feasibility study and petition, the Department shall notify the Board of its decision to designate or withhold designation based upon the study and the criteria set forth in this Article. If the Department does not designate the property as a small business incubator, the Department shall set forth the reasons for its decision in its notification to the Board. A Board receiving a negative response may reapply for designation of the property when circumstances which led to its initial rejection have been remedied. (c) The Department shall administer State funding for the incubators it designates. The funding may be provided in the form of a grant or an interest free or below market rate loan. The repayment of a loan may be deferred or waived by the Department so long as the incubator continues to operate. The Department shall not provide any State funding under this Article to a designated small business incubator after the incubator's first 3 years of operation. (d) The level of funding provided to a designated incubator shall be based in part on the ability of the incubator to generate adequate financing for small businesses entering the incubator, on the potential of the incubator to create new jobs, on the amount of matching community resources provided to support the incubator and on related factors. (e) The total amount of principal and interest due on any Department loan to an incubator shall be amortized over the life of the incubator or a maximum of 15 years. (Source: P.A. 84-1124.)

(30 ILCS 750/11-10) (from Ch. 127, par. 2711-10) Sec. 11-10. Community Funding. A local governmental unit, educational institution or other community organization, public or private, singly or cooperatively, shall participate in the initial funding and in the maintenance of any facility that a sponsor requests to have designated as a small business incubator. The funding shall be in an amount sufficient to cover the costs of establishment, administration and maintenance that are not covered by rental fees or Department funds. The community shall provide funding assistance to the incubator as long as the facility needs such assistance to operate properly. (Source: P.A. 84-109.)

(30 ILCS 750/11-11) (from Ch. 127, par. 2711-11) Sec. 11-11. Operation of the Incubator. (a) The sponsor of a small business incubator or its agent may hold title to the incubator facility or may lease the property from the titleholder. (b) Except as provided in subsection (c), designation of a building or site as a small business incubator shall remain in effect for 15 years unless otherwise agreed to at any time during the period of designation by the Department and the sponsor. (c) The titleholder of a building or site designated as a small business incubator who desires to have the building or site returned to its previous use before the expiration of the 15 year designation shall notify the sponsor 5 years before the time the building will be needed. The sponsor shall notify the Department and shall publicize the closing date of the incubator, the lessees of the incubator and to the community. (d) The local governmental unit, non-profit organization or educational institution providing the feasibility study and petition to create an incubator shall provide for the continual operation of the incubator and may enter into agreements with public or private entities or with the Community Advisory Board to recommend potential applicants pursuant to Sections 11-12 and 11-13 or to provide small business incubator services pursuant to Section 11-3. (e) The incubator sponsor may reserve a reasonable portion of the incubator facility for related public purposes such as laboratory or research facilities or offices of the incubator manager. (f) The incubator sponsor shall report in writing at least annually to the Department on the activities of the small business incubator. The report shall include the balance sheet and profit and loss statement of the incubator; the name of each applicant it rejects and the reasons for the rejection; the name of each applicant it favorably evaluates, a description of the applicant's business and the number and types of jobs created; and the types of services provided within the incubator and other economic benefits. (Source: P.A. 84-109.)

(30 ILCS 750/11-12) (from Ch. 127, par. 2711-12) Sec. 11-12. Small Business Applications. When a building is designated as a small business incubator, the incubator sponsor may begin accepting applications from persons desiring to start or expand a small business and to locate that business within a small business incubator. The application form, subject to the approval of the Department, shall request information pertaining to: (a) The type of business that the applicant wishes to start or expand; (b) An estimate of the number of employees the applicant will need in order to start or expand the business and a 2 year projection of future employment; (c) The skill and educational level of the employees that the applicant plans to hire; (d) The ability of the applicant to start or operate a successful business; (e) A general statement as to why the applicant wishes to be accepted into the small business incubator; (f) A signed statement by the applicant that he or she understands and accepts the obligations placed upon him or her under Section 11-14; and (g) Information that the applicant considers to be of a proprietary nature and that he or she does not want to be made public. (Source: P.A. 84-109.)

(30 ILCS 750/11-13) (from Ch. 127, par. 2711-13) Sec. 11-13. Evaluation of Applicants. (a) The incubator sponsor shall evaluate all applicants who want to start or expand a small business and to locate within the small business incubator. The evaluation of applicants shall be based upon, but not be limited to, all of the following factors: (1) The likelihood that the business will be profitable; (2) Whether the product to be manufactured or the service to be rendered would be new or improved; (3) Whether the potential market for the product or service is regional, statewide or national; (4) The likelihood that the business will generate a significant number of new jobs and not eliminate existing community or area jobs; (5) Certification that the business is a new plant start-up or new venture opportunity and is not an area or regional relocation of an existing business, unless that relocation results in substantial growth of the business; (6) The likelihood that the business will be substantially aided by its location in the small business incubator. (b) The incubator sponsor shall forward to each local governmental unit, educational institution or other agency that has agreed to contribute monetarily or in-kind to the incubator, and to each applicant for incubator space that it favorably evaluates, notification of its decision and whether space exists. (c) The incubator sponsor shall notify each applicant it rejects and shall provide the reasons for the rejection. (Source: P.A. 84-109.)

(30 ILCS 750/11-14) (from Ch. 127, par. 2711-14) Sec. 11-14. Lessee Responsibilities. A business which leases space within a designated incubator shall do all of the following: (a) Pay rent determined by the incubator sponsor. The sponsor may agree to have the rent for a predetermined number of months payable at a later date by which time the business is expected to have received committed starting capital. (b) Pay utilities and other associated costs determined by the sponsor. (c) Make every effort to relocate to a permanent location not later than 36 months after entering a small business incubator. A business may request suspension of this requirement for periods of not more than 12 months at a time. The sponsor may suspend the requirement for 12 months at a time upon a determination that a business still requires the services of the incubator. (Source: P.A. 84-109.)

(30 ILCS 750/11-15) (from Ch. 127, par. 2711-15) Sec. 11-15. Department responsibilities. The Department shall work closely with the designated small business incubators, offering advice and assistance when possible, and shall promote, through advertising and other appropriate means, the concept, benefits and availability of small business incubators. The Department shall cooperate with the Community Advisory Boards, local governmental units, non-profit organizations and educational institutions to effectuate the purposes of this Article. The Department, if it finds that a Community Advisory Board or sponsor of an incubator is not operating in compliance with this Article, may withdraw State funding from the incubator. The Department shall report each January 1 to the Governor and the committees of the Senate and House of Representatives responsible for economic development as to the operations of the preceding fiscal year and the implementation of this Article. This shall include information relating to the number of applicants accepted into small business incubators, the number of small businesses in operation at the time of the report, and the structure and operations characteristics of each incubator. (Source: P.A. 84-109.)

(30 ILCS 750/11-16) (from Ch. 127, par. 2711-16) Sec. 11-16. Open Meetings and Confidentiality. (a) Except as provided in subsection (c), the business of the Community Advisory Board or the incubator sponsor or its agent with respect to meeting the requirements of this Article shall be conducted in compliance with the Open Meetings Act. Public notice of the time, date and place of meetings shall be given in the manner required by the Open Meetings Act. (b) Except as provided in subsection (c), any written materials prepared, owned, used, possessed by or retained by the Community Advisory Board or the sponsor or its agent in the performance of an official function shall be made available to the public in compliance with The Freedom of Information Act. (c) The Community Advisory Board or the sponsor or its agent shall not disclose, either orally or in writing, matters of a proprietary nature such as commercial or financial information, trade secrets and confidential personal information without the consent of the party submitting the information. (Source: P.A. 84-109.)

(30 ILCS 750/11-17) (from Ch. 127, par. 2711-17) Sec. 11-17. Federal Programs. The Department is authorized to accept and expend federal monies pursuant to this Article except that the terms and conditions hereunder which are inconsistent with or prohibited by the federal authorization under which such monies are made available shall not apply with respect to the expenditures of such monies. (Source: P.A. 84-109.)