Bill > HB2937

This bill establishes the Illinois Inclusive Venture Investment Act to address systemic barriers in accessing capital for minority entrepreneurs, venture capital firms, and financial managers. The Act creates a Direct Matching Funds Program administered by the State Treasurer, which incentivizes covered institutions (such as universities, museums, hospitals, and public pension funds) to invest in minority-owned businesses and initiatives. Under the program, for every dollar invested by a covered institution in a minority-owned financial manager, venture capital firm, or minority-led startup, the State Treasurer will provide a matching contribution of up to 50 cents, with an additional 25 cents possible for investments that exceed annual performance benchmarks. Participating institutions must allocate at least 20% of their investment portfolios to minority-owned firms, startups, or special investment initiatives supporting diverse founders. The bill requires transparent annual reporting, allows for audits, and includes compliance mechanisms such as potential loss of program eligibility for institutions that fail to meet investment or reporting requirements. The primary goal is to drive equitable economic growth by ensuring significant institutional capital flows to minority-led businesses and initiatives, with the program capped at $10 million and focused on firms with substantial operations in Illinois. The Act will take effect on July 1, 2026, with the State Treasurer required to adopt implementing rules within six months of that date.

Government Affairs

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2937&GAID=18&DocTypeID=HB&SessionID=114&GA=104