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HB5264 • 2026
DCEO-SMALL BUSINESS LOANS
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.
DCEO-SMALL BUSINESS LOANS
These notes stay tied to the official amendment files and metadata from the legislature.
Plain English: Illinois General Assembly - Full Text of HB5264 Select Language × The Illinois General Assembly offers the Google Translate™ service for visitor convenience.
Rule 3-9(a) / Re-referred to Assignments
Rule 2-10 Committee Deadline Established As May 22, 2026
Rule 2-10 Committee Deadline Established As May 15, 2026
Assigned to Appropriations
Arrive in Senate
Placed on Calendar Order of First Reading
Chief Senate Sponsor Sen. Karina Villa
First Reading
Referred to Assignments
House Floor Amendment No. 1 Adopted
Placed on Calendar Order of 3rd Reading - Short Debate
Third Reading - Short Debate - Passed 063-034-000
House Floor Amendment No. 1 Rules Refers to Economic Opportunity & Equity Committee
House Floor Amendment No. 1 Recommends Be Adopted Economic Opportunity & Equity Committee ; 005-002-000
House Floor Amendment No. 1 Filed with Clerk by Rep. Elizabeth "Lisa" Hernandez
House Floor Amendment No. 1 Referred to Rules Committee
Second Reading - Short Debate
Held on Calendar Order of Second Reading - Short Debate
Placed on Calendar 2nd Reading - Short Debate
Do Pass / Short Debate Economic Opportunity & Equity Committee ; 005-002-000
Assigned to Economic Opportunity & Equity Committee
First Reading
Referred to Rules Committee
Filed with the Clerk by Rep. Elizabeth "Lisa" Hernandez
DCEO-SMALL BUSINESS LOANS
Illinois General Assembly - Full Text of HB5264 Select Language × The Illinois General Assembly offers the Google Translate™ service for visitor convenience. In no way should it be considered accurate as to the translation of any content herein. Visitors of the Illinois General Assembly website are encouraged to use other translation services available on the internet. The English language version is always the official and authoritative version of this website. NOTE: To return to the original English language version, select the "Show Original" button on the Google Translate™ menu bar at the top of the window. 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Full Text of HB5264 Home Legislation Full Text HB5264 - 104th General Assembly Bill Status Full Text Votes Witness Slips Select Menu Bill Status Full Text Votes Witness Slips Printer Friendly Version Introduced Engrossed House Amendment 001 Printer Friendly Version Introduced Engrossed House Amendment 001 Open PDF HB5264 Engrossed LRB104 19654 HLH 33103 b 1 AN ACT concerning State government. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Department of Commerce and Economic 5 Opportunity Law of the Civil Administrative Code of Illinois 6 is amended by adding Section 605-1119 as follows: 7 (20 ILCS 605/605-1119 new) 8 Sec. 605-1119. Loans to small businesses impacted by an 9 economic shock. 10 (a) The Department shall establish a loan program, subject 11 to appropriation, to provide low-interest loans to small 12 businesses that have been negatively impacted by an economic 13 shock. The Department may make loans under this Section from 14 the Economic Recovery Fund, a special fund created in the 15 State treasury. The Department may administer the program 16 directly or through agreements with banks, credit unions, 17 nonprofit loan administrators, or community development 18 financial institutions. The State shall provide a 100% 19 guarantee on loans issued under this Section. Participating 20 lenders shall act as originators and servicers of loans and 21 shall not be required to deploy their own capital. 22 (b) If the Governor declares that an economic shock exists 23 that has disrupted local or regional businesses and markets, HB5264 Engrossed - 2 - LRB104 19654 HLH 33103 b 1 the Department of Commerce and Economic Opportunity shall 2 provide loans to eligible small businesses as provided in this 3 Section. The Governor shall make any determination under this 4 Section based on objective indicators such as: 5 (1) reduced foot traffic; 6 (2) declining sales in certain corridors; 7 (3) workforce disruptions, such as increased 8 absenteeism or job abandonment; and 9 (4) business closures. 10 (c) Upon a declaration of an economic shock as provided in 11 subsection (b), a business shall be eligible for a loan under 12 this Section if: 13 (1) the business employed 50 or fewer persons at any 14 one time in the prior year; 15 (2) the business's gross receipts in the prior year 16 were $3,000,000 or less; 17 (3) the business has been materially impacted or is 18 located in an area that has been determined by the 19 Department to be materially impacted by the economic 20 shock. 21 (d) The loans shall be in an amount determined by the 22 Department but shall not exceed $50,000 per business. The 23 loans shall be repaid by the business at a fixed interest rate 24 of 2%, and the term of repayment shall not exceed 5 years. No 25 repayments shall be required for the first 6 months following 26 disbursement, and no early repayment penalty shall be charged. HB5264 Engrossed - 3 - LRB104 19654 HLH 33103 b 1 The loan proceeds shall be used for recovery-related operating 2 expenses including: 3 (1) rent and mortgage payments; 4 (2) employee wages and benefits; 5 (3) inventory restocking; 6 (4) equipment repair and replacement; 7 (5) debt repayments incurred to maintain operations; 8 (6) marketing or customer re-engagement expenses; and 9 (7) any other cost that the Department may approve by 10 rule. 11 The Department is authorized to provide participating 12 lenders with an administrative or origination fee, in an 13 amount determined by the Department, to cover the costs of 14 loan origination and servicing. Such a fee may be deducted 15 from loan disbursements. 16 (e) The Department may adopt rules to administer and 17 enforce this Section and may enter into agreements with banks, 18 credit unions, nonprofit loan administrations, or community 19 development financial institutions. The Department shall 20 establish clear and standardized procedures governing loan 21 servicing, delinquency, and default for loans issued under 22 this Section. Such procedures shall authorize participating 23 lenders to service and manage delinquent loans for a period of 24 time, as determined by the Department by rule, prior to loan 25 closure or write-off. 26 (f) All interest and principal collected shall be HB5264 Engrossed - 4 - LRB104 19654 HLH 33103 b 1 deposited into the Economic Recovery Fund to maintain and 2 replenish lending capacity. Loans issued under this Section 3 shall be backed by the State, and any losses resulting from 4 borrower default shall be borne by the Fund. 5 (g) Upon a declaration by the Governor that the economic 6 shock has ended, no new loans may be made. 7 Section 10. The State Finance Act is amended by adding 8 Section 5.1038 as follows: 9 (30 ILCS 105/5.1038 new) 10 Sec. 5.1038. The Economic Recovery Fund. 11 Section 99. Effective date. This Act takes effect upon 12 becoming law. Footer Disclaimer This site is maintained for the Illinois General Assembly by the Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706. Contact ILGA Webmaster ILGA.gov uses cookies to ensure you get the best experience on our website. By continuing to browse ILGA.gov you consent to our use of cookies. 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