WeVote
Log In

Bill

Bill

SB 1900

INCLUSIVE VENTURE INVESTMENT

104th Regular Session Introduced by Elgie Sims

The bill would create a Direct Matching Funds Program to match state funds with private investment in Illinois minority-led startups, firms, and managers.

Referred to Assignments
0
WeVote Research Nonpartisan
Bill Summary · SB 1900

Summary: Illinois Inclusive Venture Investment Act (SB 1900)

Overview

SB 1900, introduced February 6, 2025 by Sen. Elgie R. Sims, Jr., would create the Illinois Inclusive Venture Investment Act and establish a Direct Matching Funds Program administered by the State Treasurer. The program is designed to leverage state-managed funds to invest in minority-owned venture capital firms, minority-owned financial managers, and minority-led startups. The act would take effect July 1, 2026 and is currently referred to Assignments.

Purpose and intent

  • Expand access to capital for minority entrepreneurs and minority-led investment entities in Illinois.
  • Use state matching funds to amplify private and public investment in minority-owned ventures and managers.
  • Promote diversity, equity, and inclusion within Illinois’s financial and entrepreneurial ecosystems.

Key provisions

Definitions (Section 10)

  • Covered institution: large endowment or investment portfolios in institutions such as universities, museums/educational organizations, nonprofit hospitals, and public pension funds (specific thresholds are provided for portfolio size and endowments).
  • Minority-led startup: 51% owned and controlled by minority individuals, women, or persons with disabilities, located or operating significantly in Illinois.
  • Minority-owned financial manager / minority-owned venture capital firm: at least 51% owned by eligible individuals under the above act; management daily operations controlled by those owners.
  • Special Investment Initiative: programs (e.g., accelerators, incubators) that support underrepresented founders and operate in Illinois.
  • Special Investment Initiative / Special Investment Initiative: includes university programs, nonprofit mentorship, accelerators, and related efforts aiding diverse founders.

Direct Matching Funds Program (Section 15)

  • The Treasurer shall create a Direct Matching Funds Program to leverage state funds for investments in minority-owned VC firms, minority-led startups, and minority-owned financial managers.
  • Matching mechanics: for every dollar invested by a covered institution in an eligible minority entity, the state provides up to 50 cents in matching funds; investments exceeding performance benchmarks may receive an additional 25 cents per dollar.
  • Cap and eligibility: matching funds capped at $10 million (subject to available resources); restricted to Illinois-based investments with significant Illinois operations; allocation determined by Treasurer via rule.
  • Portfolio participation hurdle: covered institutions must allocate at least 20% of their investment portfolios to eligible minority-focused entities or initiatives.
  • All qualifying investments must advance diversity, equity, and inclusion within Illinois.

Administration, transparency, and reporting (Sections 20 and 25)

  • Administration: State Treasurer manages the program—verifying eligibility, distributing funds, and publishing an annual outcomes report (jobs created, capital raised, economic impact). Unused funds may be reallocated at fiscal year-end based on documented needs.
  • Reporting and transparency: participating institutions must submit documentation of qualifying investments and detailed reporting on recipients’ diversity status and Illinois operations.

Who is affected

  • Large endowment- and portfolio-holding institutions (universities, museums/educational centers, nonprofit hospitals, and public pension funds) that are considered “covered institutions.”
  • Minority-led startups, minority-owned VC firms, minority-owned financial managers, and special investment initiatives operating in Illinois.

Timeline and status

  • Introduced: February 6, 2025; first readings in early 2025.
  • Status: Referred to Assignments; awaiting assignment and potential committee consideration.
  • Effective date: July 1, 2026 (if enacted).

Potential impact

  • Could significantly increase capital flow to Illinois-based minority founders and managers.
  • Creates a measurable accountability framework via annual reporting and performance benchmarks.
  • May influence investment strategies of large Illinois institutions and elevate DEI metrics in state investment activity.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.