Illinois Amends Community Development Loan Guarantee Act
Illinois recently amended the Community Development Loan Guarantee Act, which was enacted as a way for the State to invest in community economic development by creating a program that guarantees small business loans and consumer loans to borrowers in communities of color and low-income communities who would not otherwise qualify for those loans. Under the Community Development Loan Guarantee Act, the Illinois State Treasurer may establish one or more Loan Guarantee Accounts at approved financial institutions.
The amendment gives the Illinois State Treasurer the authority to withdraw funds from a Loan Guarantee Account if the financial institution fails to comply with the Loan Guarantee Program Requirements.
The amendment went into effect immediately.