PERMIT OF APPROVAL

APPLICATION FOR PERMIT OF APPROVAL: CHANGE OF OWNERSHIP

FOR PRIVATE BUSINESS AND VOCATIONAL SCHOOLS

APROVED TO OPERATE IN ILLINOIS

Illinois Board of Higher Education

January 15, 2013

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PERMIT OF APPROVAL

General Information for the Permit of Approval: Change of Ownership Application

  1. Read the Private Business and Vocational Schools Act of 2012 (Public Act 97-650) and the Rules (23 Ill. Adm. Code 1095) used to administer the Act. The Act can be viewed as a PDF document at the following link: The statute (105 ILCS 426) is on the General Assembly website at the following link: The rules are available as a PDF document at the following link:
  1. The Permit of Approval: Change of Ownershipapplication is for approved schools that wish to change ownership of the institution. Approval of the Change of Ownership application must be granted in order for the institution to operate in Illinois under the direction of new ownership. Attention New Owners: The Permit of Approval to operate is non-transferable from one owner to the next, therefore, new ownership should be aware that there is no guarantee that a new Permit of Approval: Change of Ownership application will be approved. Institutions must have authorization via an approved Permit of Approval to operate at any given time.
  1. The Schedule of Fees can be located in the Rules in Section 1095.120, School Application and Renewal Fees. Fees are assessed based on total institution size. Applications submitted with insufficient or incorrect fees shall be considered incomplete. Fees are non-refundable except in the instance the Board determines the institution’s request does not require Board approval. Fees shall be submitted via check, certified check, cashier’s check, or money order payable to the Illinois Board of Higher Education.

POA—Change of Ownership Schedule of Fees
Institution Size
<100 Students / 100-399 Students / 400-699 Students / >700 Students
Change of Ownership / 1,000 / 2000 / 4000 / 5,000
  1. The application can be emailed in Microsoft Word, Microsoft Excel, or Adobe PDF formats only to or mailed to the IBHE office. The application will not be considered complete until the original signed cover sheet and payment has been received at the IBHE office. The application materials and payment can be mailed to:

Illinois Board of Higher Education

Division of Private Business and Vocational Schools

1 North Old State Capitol Plaza, Suite 333

Springfield, IL 62701-1377

  1. Applications will be reviewed in the order they are received. The application will be assigned an analyst who will in turn review the application and correspond with the contact person listed on the cover sheet until final determination has been made on the status of the application. Questions regarding the application or review process can be directed to the following email address: .
  1. A site visit will be scheduled as deemed necessary by the analyst before final determination has been made on the status of the application.

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PERMIT OF APPROVAL

Permit of Approval Application Checklist

  1. Completed and notarized Cover Page

2. Appropriate fee with the Illinois Board of Higher Education as the payee
3. Change of Ownership notification letter to the Board
4. Organizational chart
  1. Planning and Budgeting Information table

  1. Financial statements

  1. Surety bond

  1. Documentation or calculations related to surety bond amount

  1. Certificate of Liability Insurance

  1. Facilities table

  1. Documents related to facility compliance with ordinances and laws

  1. Labeled pictures of the facility and equipment

  1. Blueprints or floor plan of the facility

  1. Copy of lease agreement or documentation of ownership of facility

  1. Projected Library Acquisitions and Budget table

  1. Letters of Agreement for library services if applicable

17. Enrollment Agreement
18. Cancellation and Refund Policy
  1. Academic calendar

  1. Projected Annual Enrollment and Certificate/Diploma Awards in Each
Program table
  1. Projected Schedule of Course Offerings table

  1. Academic catalog

  1. Instructors and staff qualifications

  1. Promotional, advertising, and recruiting materials

  1. Student complaint policy

  1. Sample student transcript

  1. Change Notification and Documentation

  1. A school shall send a notification letter to the Board within 10 business days after a change of ownership. Following a change of ownership, the new owners must also obtain a permit of approval via the Permit of Approval: Change of Ownership application in order to operate the school.
  1. Provide the actual sale date or scheduled selling date of the institution.
  2. If the institution has already been sold at the time this application has been submitted, provide a) a copy of the notification letter sent to the Board and b) a copy of the executed sale agreement.

ENTER RESPONSE HERE. Provide complete responses. Do not just reference websites.

  1. When a school has a change of ownership that is 50 percent or more of the school’s stock or assets in one or a series of transactions occurring within a three year period, it shall file a permit of approval application within 60 days. The school is in compliance during the 60-day period prior to filing and compliance will continue after the date of filing until the Board makes a final decision.
  1. Provide a complete list of all current / proposed owners and indicate the percentage of ownership for each person or organization.

ENTER RESPONSE HERE. Provide complete responses. Do not just reference websites.

  1. Institutional Mission & Goals

  1. Describe the overall mission of the institution. Provide a brief history of the institution and the philosophy it will continue to represent. Identify the overall goals to be achieved by the institution in broad terms. Describe any differences, if any, in the institution’s mission and goals between the prior or current owner(s) and the new or pending owner(s). The mission and objectives must be consistent with the school name, and programs and courses offered. The description of the institutional mission generally should not exceed one page in length.

ENTER RESPONSE HERE. Provide complete responses. Do not just reference websites.

  1. Describe the objectives of the institution and present the institution’s plans for achieving these objectives during the first five years of operation under the new ownership structure, including resources required to meet the institution’s short-term objectives and the strategies for meeting those objectives (such as the acquisition and allocation of new and existing resources).

ENTER RESPONSE HERE. Provide complete responses. Do not just reference websites.

  1. Institutional Structure and Accreditation/Licensure (Institution Level)

  1. Provide the names and contact information of the members of the governing board as well as the names and contact information of the governing board of any other corporation or corporations that may control, directly or indirectly, the institution. For each board identified, describe the board’s role and responsibilities. Please be sure to highlight changes to the governing board due to new ownership.

ENTER RESPONSE HERE. Provide complete responses. Do not just reference websites.

  1. Provide an organizational chart that shows the overall structure of the institution and relationships among key administrators. Provide the names and contact information for administrators along with a description of their responsibilities. Please be sure to highlight changes to the organizational structure due to new ownership. Address the following:
1)Describe any legal action against the proposed institution, its parent company, owners, governing board, or board members.
2)Do any of the governing board members, owners, or senior administrators have a felony criminal record?

ENTER RESPONSE HERE. Provide complete responses. Do not just reference websites.

  1. Identify the organization(s) that accredit or license institutions similar to the proposed institution and provide contact information for each entity.
1)If the institution is not already accredited, describe the institution’s plan and timetable for seeking accreditation. Please note: a rationale is necessary if the proposed institution does not plan to seek accreditation or licensure.
2)If the institution is currently accredited or licensed, provide the name and contact information for the accrediting or licensure body, along with documentation providing evidence of this status. Also provide documentation or evidence that the accreditation or licensure is transferable and will continue under new ownership.

ENTER RESPONSE HERE. Provide complete responses. Do not just reference websites.

  1. Institutional Finances

  1. Complete the Planning and Budgeting Information table.

ENTER RESPONSE HERE. Provide complete responses. Do not just reference websites.

  1. Provide a narrative description of the institution’s fiscal plan that addresses the following:
1)Rationale and projections (e.g. basis for enrollment projections, market studies) made in determining revenue from tuition and fees,
2)Rationale and projections made in determining revenues from other sources, including governmental grants and contracts, private gifts and grants, endowment/investment income, sales and services, and other sources of revenue,
3)Rationale and projections (e.g. student need analyses, enrollment projections) made in determining student financial aid available to student enrolled at the proposed institution if applicable, and
4)Rationale and projections made in determining expenditures for instructors salaries, administrative compensation, student services, equipment and instructional materials, library, contractual services, operation and maintenance of plant, and other expenditures.

ENTER RESPONSE HERE. Provide complete responses. Do not just reference websites.

  1. Attach financial statements from most recent fiscal year as well as other documentation to demonstrate adequate resources are available by the new ownership to support continuation of the institution’s operation plan, and to show adequate resources will be available to meet the institution’s future fiscal obligations.

ENTER RESPONSE HERE. Provide complete responses. Do not just reference websites.

  1. Surety Bond

  1. Provide a fully executed, continuous surety bond reflecting the new owner(s) by a company authorized to do business in Illinois in an amount sufficient to provide cumulative unearned prepaid tuition for students enrolled at any one time in the event of closure of the proposed institution. The amount shall be no less than $10,000 and must be adjusted as enrollments increase. The Illinois Board of Higher Education Surety Bond Form and FAQ’s regarding surety bonds can be located at the following link:

ENTER RESPONSE HERE. Provide complete responses. Do not just reference websites.

  1. Submit documentation or calculations that provide a rationale for the institution’s projection of the greatest amount of unearned prepaid tuition used to determine the surety bond amount.

ENTER RESPONSE HERE. Provide complete responses. Do not just reference websites.

  1. Liability Insurance

  1. Provide a certificate of insurance reflecting the new owner(s) from a company authorized to do business in Illinois showing compliance with the minimum amounts of liability insurance required.
1)The liability insurance policy shall specify limits of liability of not less than $100,000 per person and $300,000 per occurrence for bodily injury liability and not less than $50,000 per occurrence for property damage liability.
2)The insurance policy shall include coverage for off-campus learning experiences, internships/externships, cooperative education, and experiential learning activities unless the school furnishes the Board a certificate of insurance evidencing such coverage is being provided by the employer or other person responsible for the off-campus learning experience.

ENTER RESPONSE HERE. Provide complete responses. Do not just reference websites.

  1. Facilities and Equipment

  1. Describe the facility used for providing instruction. Include the following:
1)A completed Facilities table,
2)Current documentation showing the facility to be used remains in compliance with all appropriate local, state, and federal ordinances or laws for use as an educational facility, including the Americans with Disabilities Act (e.g. fire marshal reports, occupancy certificates).
3)Assurance that the institution will continue to be maintained and operated in compliance with all local, state, and federal ordinances or laws,
4)Labeled pictures of facilities and equipment - electronic format is acceptable,
5)Blueprints and/or floor plan of the facility, and
6)Copy of a lease agreement or proof of ownership of the facility.

ENTER RESPONSE HERE. Provide complete responses. Do not just reference websites.

  1. Describe the level of technology, equipment, and instructional materials available to support each of the proposed programs of study and/or course offerings. Identify computers, software, and equipment necessary for programs of study and/or course offerings. Describe plans for acquiring additional equipment and instructional materials.

ENTER RESPONSE HERE. Provide complete responses. Do not just reference websites.

  1. Describe the library resources available to support the institution and the objectives of its planned program of study or course offerings. Describe current library holdings and the plan for acquiring additional resources.
1)Complete the Library table.
2)Provide letters of agreement describing access to any libraries not owned by the institution that are being used to support the programs of study and course offerings.
3)Describe any bibliographic search systems that are being used and how these systems are accessed.
4)Describe the process and timeframes involved to access any library materials that are not available at the proposed site.

ENTER RESPONSE HERE. Provide complete responses. Do not just reference websites.

  1. Academic Programs and Curriculum (Program Level)

  1. Describe the requirements for admission into the institution (e.g. test scores, certificate, diploma) and indicate any changes in these requirements due to new ownership.
1)Provide a copy of an enrollment agreement.
2)Provide the institution’s cancellation and refund policy. Provide an academic calendar which specifies the length of a term and the number of terms per year.

ENTER RESPONSE HERE. Provide complete responses. Do not just reference websites.

  1. Provide a brief description of each of the programs of study and course offerings the institution currently offers, along with any plans the institution has to develop new programs of study and/or course offerings in the next three to five years of operation. Program names should align with CIP Code guidelines (
1)Complete the Projected Annual Enrollment and Certificate/Diploma Awards in Each
Program table.
2)Detail the admission criteria for each program of study.
3)Describe the length for each program of study or course offering.
4)Describe how completion of the program of study or course offering satisfies employment requirements in the occupational field or improves, enhances, or adds to the skills and abilities of the graduate relative to occupational responsibilities or career opportunities.
a)Include a description/designation of what credential each student receives upon satisfactory completion of the program of study or course offering and whether or not there is an industry license or certification exam that must be completed.
5)Indicate whether or not instructors for each program of study or course offering must be licensed or certified in order to teach.
6)Describe the institution’s plan and timetable for seeking accreditation and/or licensure for each program of study or course offering if applicable.

ENTER RESPONSE HERE. Provide complete responses. Do not just reference websites.

  1. Detail the institution’s continued capacity to develop, deliver, and support each of its programs of study and/or course offerings.
1)Complete the Projected Schedule of Course Offerings Table.
2)Describe policies and procedures relating to the effective design, evaluation, and assessment of the programs of study or course offerings.
3)Describe instructor involvement in curricula and program development.

ENTER RESPONSE HERE. Provide complete responses. Do not just reference websites.

  1. Provide an academic catalog.

ENTER RESPONSE HERE. Provide complete responses. Do not just reference websites.

Institutions continuing to offer programs and courses in part or in whole using mediated instruction (e.g. on-line, correspondence) must complete items e-h. Institutions offering solely face-to-face instruction can proceed to the next section.

  1. Describe the technical and physical plant facilities as well as the staffing and technical assistance available to support electronically offered program of study or courses.
1)Describe the training and technical support students, instructors, and staff receive with regard to hardware, software, and delivery systems required for completion of a program or course.
2)Indicate the hours the help desk will be available to assist students, instructors, and staff. The help desk must be available to student at a minimum of 18 hours a day.
3)Describe the measures used to guarantee the security of systems and the support available for those systems.
4)Demonstrate the selected technologies are appropriate for the students, instructors, and delivery of the curriculum.

ENTER RESPONSE HERE. Provide complete responses. Do not just reference websites.

  1. Describe the institution’s admission process, policies, and assessments used to ensure students in program delivered in full or in part by mediated instruction are capable of succeeding in a non-traditional learning environment. In addition, indicate how students are informed of the nature and expectations of a non-traditional education setting.

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  1. Describe the institution’s plans for assessment of programs and courses offered via mediated instruction. At a minimum, include the following information:
1)The institution’s ongoing plans for demonstrating that student learning and program/course outcomes are appropriate to the field and consistent regardless of delivery method,
2) The process employed by the institution for ensuring ongoing assessments of student learning, especially exams, take place in circumstances that include student identification and assurance of the integrity of student work, and
3)How these assessment processes occur in the context of the regular evaluation of all academic programs.

ENTER RESPONSE HERE. Provide complete responses. Do not just reference websites.

  1. Describe the role of instructors in making decisions regarding curricula and program oversight with regards to mediated instruction.

ENTER RESPONSE HERE. Provide complete responses. Do not just reference websites.