Sec. 55. Authority's responsibilities.

154 words·~1 min read·/il/chapter-20/act-3820/55

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)The Authority shall make grants and low-rate loans to CDFIs so that CDFIs may fill a credit gap by engaging in below market rate financing in economically disadvantaged communities and to low income people. As part of a grant or loan agreement, a CDFI may request and the Authority may consent to having the grant or loan proceeds paid directly to a CDFI's creditor. As part of a loan agreement, the Authority may require additional security from the CDFI, including without limitation a pledge of a certain percentage of the CDFI's assets or future earnings.

(b)The Authority shall provide technical assistance to CDFIs to

(i)expand the financial services the CDFI sector offers, such as micro-business lending, facilities financing, low income housing financing, and personal financial services for low income persons,

(ii)encourage the establishment of downstate CDFIs, and

(iii)provide technical assistance and training to CDFIs' borrowers.