Illinois

INCREASING AWARENESS

Policy declaration: 1982

An act has been passed to encourage the employees of a plant that is closing or in danger of closing to acquire businesses with the consent of the owners and continue to operate them as employee-owned cooperatives which are 60% owned and controlled by employees. This act will strengthen the economy and retain jobs. (48 §1302)

Educational Programs: 1982, 1995

Department of Commerce and Community Affairs shall initiate educational programs relating to employee-owned enterprises. (1982: 48 §1304)

State employee ownership program: 1995

A 1995 act created the Center for Business Ownership Succession and Employee Ownership. It states that "there is created within the Department of Commerce and Community Affairs the Center for Business Ownership Succession and Employee Ownership. The purpose of the Center is to foster greater awareness of the most effective techniques that facilitate business ownership succession and employee ownership with an emphasis on the retention and creation of job opportunities." (§20 ILCS 609/2)

Several of the functions of the Center are (1) to develop and disseminate materials to promote effective business ownership succession and employee ownership strategies, (2) plan, organize, sponsor, or conduct conferences and workshops on business ownership succession and employee ownership issues and network and contract with local economic development agencies, business organizations, and professional advisors to accomplish the goals of the Center. (§20 ILCS 609/2)

It is important to note that this Center is yet to be established.

Company Participation: 1982

The present owners must give written consent before loans are approved. (48 §1302)

PROVIDING TECHNICAL ASSISTANCE

Provide actual assistance: 1982, 1995

The Department of Commerce and Community Affairs shall assist in, dealings with other parts of the government, streamline application process, receive complaints, develop proposals and conduct investigations. (1982: 48 §1304)

Provide counseling to individual companies and referral services to provide professional advisors expert in the field of business ownership succession and employee ownership. (1995: §20 ILCS 609/2.)

Provide help in finding assistance: 1982

The department shall assist in obtaining managerial, technical, and financial assistance. (48 §1304)

Provide financing for technical assistance: 1982

Technical, engineering, legal, and financial services are in included in "project cost." (48 §1303)

PROVIDING FINANCIAL ASSISTANCE

Below market interest rates: 1982

The Employee-Owned Enterprise Council and the Illinois Development Finance Authority can approve loans not exceeding 50% of the project cost. The Authority will pay for loan closing services by a financial institution. The loan must be repaid in 13 years, interest rate cannot be less 70% of the prime, and repayment may begin up to 3 years after the effective date. (48 §1306-§1311)

$500,000 was authorized for the start of this program (1982). (NCEO)

A 1994 amendment allowed for the Authority to enter into agreements or arrangements with federal or state agencies to carry out the purposes of this act. (20 ILCS 3503/7)

Issuance of revenue bonds: 1995

(§20 ILCS 3505/7)

 

ENCOURAGING EMPLOYEE PARTICIPATION

Definition of employee ownership specified: 1982

An employee-owned enterprise is a business controlled and at least 60% owned by its employees. (48 §1303)

A 1993 amendment established a task force to "study the scope and effectiveness of current and past efforts by and within the state of Illinois to encourage and assist with ownership succession and recommend any necessary changes." (House Bill 1746)