Illinois Finance Authority
(Appropriated Spending in Thousands)
Totals may not add due to rounding.
The Illinois Finance Authority provides capital asset financing to 501(c)(3) nonprofit organizations, certain for-profit corporations, and local governments that retain and create jobs. A construct of federalism, the Authority is the primary Illinois delivery system for federal tax benefits that support lower interest rate financing of capital projects by qualified borrowers under the federal tax code (also known as conduit bonds). In addition to issuing conduit bonds, the Authority issues taxable property assessed clean energy (PACE) bonds and administers certain state-backed loan guarantee and credit enhancement programs as well as a limited number of direct and participation loan programs to support businesses and essential purpose infrastructure for local governments.
Created on January 1, 2004 through the consolidation and elimination of seven governmental entities, the Authority is a body politic and corporate of the State of Illinois. The Authority is governed by a 15-person volunteer board, appointed by the Governor and confirmed by the Senate. No state appropriations support the administration and operation of the Authority. Instead, the Authority relies on fees charged to borrowers who utilize the Authority as an issuer of federally tax-exempt conduit bonds or taxable PACE bonds, as well as from interest and fees collected from certain investments.
The zero-interest Fire Truck Revolving Loan Program was initially funded by a $10 million appropriation between fiscal years 2005 and 2006. By the end of fiscal year 2009, over $11.1 million had been loaned directly to Illinois fire districts and municipalities. The zero-interest loans have saved thousands of dollars in interest costs to these local governments through the life of the individual loans.
During fiscal year 2008, $9 million and $4 million were transferred from the Fire Prevention Fund and appropriated to the Fire Truck Revolving Loan Fund and the Ambulance Revolving Loan Fund, respectively.
As of fiscal year 2009, the appropriations for the Fire Truck Revolving Loan Fund and the Ambulance Revolving Loan Fund were increased to approximately $10.6 million and $4 million, respectively. These appropriations funded approximately $10.6 million in Fire Truck Loans and $993,200 in Ambulance Loans.
On August 6, 2012, Public Act 97-0901 was enacted into law. Effective January 1, 2013, the law allows the Authority and the State Fire Marshal, among other things, to charge low-interest and fees in the Fire Truck Revolving Loan Program, the Fire Station Revolving Loan Program, and the Ambulance Revolving Loan Program. Additionally, monies from the Fire Truck Revolving Loan Fund, the Fire Station Revolving Loan Fund, and the Ambulance Revolving Loan Fund shall be transferred to the Authority, provided that the State Fire Marshal and the Authority entered into an intergovernmental agreement to use the monies solely for purposes set forth in the Authority Act. The intergovernmental agreement between the State Fire Marshal and the Authority was signed on April 8, 2014. Accordingly, the monies held at the Office of the State Treasurer on behalf of the Fire Truck Revolving Loan Fund and the Ambulance Revolving Loan Fund were then transferred to a locally held Authority account on June 30, 2014. These monies continue to be used solely for the purposes set forth in the Authority Act.
On August 18, 2017, Public Act 100-0152 was enacted into law. Effective January 1, 2018, the law increases the maximum loan amount for the Ambulance Revolving Loan Program from $100,000 to $200,000.
In fiscal year 2017, in conjunction with the Office of the State Fire Marshal, the Authority approved and disbursed $350,000 for two loans from the Fire Truck Revolving Loan Fund and disbursed $200,000 for two loans from the Ambulance Revolving Loan Fund.
In fiscal year 2018, no new loans were funded from either the Fire Truck Revolving Loan Fund or the Ambulance Revolving Loan Fund. However, the Authority collected loan repayments of approximately $1.9 million and $294,320 for the Fire Truck Revolving Loan Fund and the Ambulance Revolving Loan Fund, respectively.
On August 2, 2018, the Office of the State Fire Marshal began accepting application materials for the Fire Truck Revolving Loan Program and the Ambulance Revolving Loan Program. Applications were due by October 31, 2018, with review of submitted applications expected to be completed near April 2019 in order for funding to occur by June 30, 2019.
Importantly, as both the Fire Truck Revolving Loan Program and the Ambulance Revolving Loan Program are revolving loan programs, loan repayments collected by the Authority are immediately available to fund new loans upon finalizing review of submitted applications. During fiscal year 2019, the Authority expects to collect approximately $2 million and $2 million of loan repayments for the Fire Truck Revolving Loan Fund and the Ambulance Revolving Loan Fund, respectively. Based on these assumptions, total monies available for disbursement from the Fire Truck Revolving Loan Fund and the Ambulance Revolving Loan Fund in fiscal year 2019 will be approximately $9.9 million.