Public Accountability Report

About Illinois Finance Authority

The Illinois Finance Authority (the “Authority”) provides capital asset financing to 501(c)(3) non-profit 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 the elimination of seven governmental entities, the Authority is a body politic and corporate of the State of Illinois.  The Authority is governed by a fifteen-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. 

Program Overview

The Fire Truck Revolving zero and low interest Loan Program was initially funded by a $10,000,000 appropriation between fiscal years 2005 and 2006.  By the end of the fiscal year 2009, over $11.1 million had been loaned directly to Illinois fire districts and municipalities.  The zero and low 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, $9.0 million and $4.0 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 $4.0 million, respectively.  These appropriations funded approximately $10.6 million of Fire Truck Loans and $993,200 of 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 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 purposed 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.

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, and the Authority’s review of submitted applications overlapped into fiscal year 2020.  As a result, the Authority funded $7.0 million and $2.1 million of loans under the Fire Truck Revolving Loan Program and the Ambulance Revolving Loan Program, respectively, in Fiscal Year 2020.    The Authority collected loan repayments of approximately $2.0 million and $325 thousand in fiscal year 2021 for the Fire Truck Revolving Loan Fund and the Ambulance Revolving Loan Fund, respectively.

In fiscal year 2022, the Authority collected loan repayments of approximately $2.7 million and $421 thousand for the Fire Truck Revolving Loan Fund and the Ambulance Revolving Loan Fund, respectively.

On August 26, 2022, 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, 2022. The Authority will review the applications and anticipates funding new loans by the end of June 30, 2023.

Importantly, as both the Fire Truck Revolving Loan Program and 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 application.  During fiscal year 2023, the Authority expects to collect approximately $2.4 million of loan repayments for the Fire Truck Revolving Loan Fund and the Ambulance Revolving Loan Fund. Based on these assumptions, total monies available for disbursement from the Fire Truck Revolving Loan Fund and Ambulance Revolving Loan Fund in fiscal year 2023 will be approximately $13.3 million.