The state treasurer’s office announced it will make up to $250 million available to Illinois banks and credit unions that wish to participate in an impact investment loan program. The approved financial institutions will determine which small businesses and non-profits are eligible for the loans to help get them through the COVID-19 emergency.
For more about the Illinois Small Business COVID-19 Relief Program click HERE.
The purpose of this program is to provide vital economic support to small businesses and non-profits to help overcome the loss of revenue they are experiencing. Through this program, the Treasurer’s Office would partner with approved financial institutions to provide loans — either lower rate loans, or loans to a business or non-profit that would not otherwise qualify — to Illinois small businesses impacted by the COVID-19 pandemic.
- State funds would be deposited with qualified financial institutions for a 1-year term at a near-zero deposit rate of 0.01%
- Deposited funds would facilitate affordable loans (not to exceed 4.75%) to small businesses and non-profits that could be used to provide bridge funding, pay fixed debts, payroll, accounts payable and other bills
- Deposits could be drawn in $1 million or $5 million increments, up to a maximum of $25 million per financial institution
- Eligible Illinois businesses or non-profits must (1) have been shut down or limited due to COVID-19; (2) have less than $1 million in liquid assets or $8 million average annual receipts (per SBA standards); and (3) be headquartered in the State of Illinois or agree to use the funds in Illinois
- Deposits would be renewable as determined by the Treasurer’s Office
- Financial institutions would be required to provide reports to the Treasurer’s Office regarding the usage of program funds, including the number and types of loans provided to small businesses and non-profits and the economic impact of such loans
How to Apply
Step 1: Become an Approved Program Depository
To participate in Business Invest – Illinois Small Business COVID-19 Relief Program, financial institutions must be or apply to become an approved program depository with the Treasurer’s Office. For more information, please visit:
• Become an Approved Program Depository
• View the current List of Approved Program Depositories.
Step 2: Review Eligibility and Submit Application
Approved depositories seeking to determine their eligibility and apply for Business Invest –Illinois Small Business COVID-19 Relief Program must review and submit the following document:
• Business Invest Illinois Small Business COVID-19 Relief Program Application, click here.