Governor Quinn Signs Bill into Law

Aids Minority, Women Owned Businesses

Lee Edwards | As of Wednesday, August 21, 2013

Ill. Gov. Pat Quinn has signed House Bill 3267 (HB3267) into law that will create the Disadvantaged Business Revolving Loan Program (DBRLP) which now allows smaller minority and women owned to apply for loans for state construction projects. For many smalls businesses, trying to secure start-up costs involving, insurance premiums, equipment capital, etc. prevented them from submitting timely bids for state approved sub-contracts.

“Small, minority-owned firms often don’t have the necessary resources to bid on state construction projects, and this new law helps them get a foot in the door," Governor Quinn said. “As the loans are paid back, those funds help other firms who are in the same situation, which grows our economy and creates jobs."

HB3267 amends the Department of Transportation Law of the Civil Administrative Code of Illinois which would allow the Department of Transportation to now make low-interest loans from the Working Capital Revolving Loan Fund to disadvantaged business enterprises according to its’ synopsis.

“I am always looking for opportunities to help small minority/women owned businesses to take advantage of the dollars spent in the state,” Ill. State Rep. Will Davis (Dist.-30th) told the Chicago Citizen Newspaper. “This [bill] makes sense and it’s the right thing to do. “

“I have worked tirelessly to create a state financing program that will level the playing field for all businesses by providing working capital to contractors who are shut out by the banks but, are qualified to successfully complete state construction projects,” Ill. State Senator Mattie Hunter (Dist.-3rd) said. “A subcontractor’s inability to attain lines of credit severely hinders them from attaining bonding or becoming prime contractors. This legislation works to eliminate one of the major barriers to meeting those goals.”

HB3267 will also assist small businesses in taking part in the Illinois Jobs Now! program. Illinois Jobs Now! is a $31 billion initiative (the largest capital construction program in the history of the state) sponsored by Gov. Quinn that is estimated to support over 439,000 jobs over six years. One of the main beneficiaries of HB3267 is the Illinois Department of Transportation (IDOT).

“We commend Governor Quinn’s decision to sign into law House Bill 3267, which provides low-interest loans for qualifying Disadvantaged Business Enterprises (DBE). IDOT was among many who championed this legislation to help improve participation of DBEs on state construction projects,” IDOT spokeswoman Paris Ervin told the Chicago Citizen Newspaper. “Under the leadership of Governor Quinn, increasing minority participation in state contracts is a top priority and we will continue to work diligently on new ways to ensure that happens to support job creation and foster business growth in Illinois.”

HB3267 is currently a pilot project with a budget cap of three million dollars over a five to seven year span. If within that time the program is deemed to be a success, it may receive additional funding, an extension on its length and potentially become permanent.

“HB 3267 will encourage the growth of small businesses in disadvantaged areas while at the same time, ensuring that the funds loaned through the program are used to improve Illinois’ infrastructure,” said Small Business Advocacy Council CEO Elliot Richardson told the Chicago Citizen Newspaper. “That is a good thing for those fighting to stay in business in impoverished areas and for Illinois citizens traveling on our roads and bridges,”

The Joint Commission on Administrative Rules (JCAR) will be working out the final details of the HB3267 by the end of August 2013. JCAR will be responsible for defining key materials for the law such as the review process. One current provision of HB3267 is that state approved sub-contractors can apply for state loans only after being twice denied by local financers. The final draft of the law is expected to be in place by the time major contracts are bid upon this upcoming fall with next spring being the latest.

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