Supporting Small Business Growth in Underserved Communities
The Invest in Illinois – Business Loan Guarantee Program (“Program”) helps small businesses in low-income communities overcome barriers to traditional financing. Through strategic partnerships with approved financial institutions (“Lenders”), the program provides loan guarantees to qualified small businesses in low-income communities, defined as geographic areas that have a poverty rate of at least 20 percent.
Program Highlights
- Offers loan guarantees of up to 25% for eligible small business loans
- Focuses on businesses located in Low-Income Communities—defined as areas with a poverty rate of at least 20%
- Financial institutions may qualify for up to $1,000,000 in loan guarantees
- Designed to help small businesses that may not meet traditional lending requirements
- A one-time, non-refundable fee of $1,000 is required from financial institutions to participate in the Program
- Download the Business Loan Guarantee Program Flier for more information
How Financial Institutions Can Apply
Step 1: Become a Participating Lender
To offer guaranteed loans through this Program, financial institutions must first be approved by the Illinois State Treasurer’s Office.
If you’re already an approved Lender in the Loan Guarantee Program, you can proceed directly to Step 2.
Step 2: Submit a Business Loan Guarantee Application
Once approved, participating Lenders have 30 days from their approval date to submit their Business Loan Guarantee Application(s).
Frequently Asked Questions
The Invest in Illinois-Business Loan Guarantee Program works with Participating Financial Institutions to provide loan guarantees to small businesses located in low-income communities throughout Illinois.
For Lenders
To participate, your financial institution must complete and submit a Lender Participation Application. All applications must be approved by the Treasurer’s Office.
The Program aims to help small businesses in low-income communities access financing that may not be available through traditional lending options.
To qualify, Lenders must:
- Be insured by the FDIC or NCUA
- Have a CRA rating of Satisfactory or Outstanding
- Have an IDC rating of 75 or higher
- Complete and submit a Lender application
- Must be authorized to conduct business in Illinois with a presence in Illinois
Yes. Lenders must pay a one-time, non-refundable fee of $1,000 to participate in the Program.
Lenders determine the percentage of the loan that is guaranteed. However, the maximum guarantee allowed is 25% of the loan amount.
Each loan guarantee is available for up to 5 years. Lenders may choose to remove the guarantee earlier at no penalty.
To qualify a business must:
- Have fewer than 500 employees at the time of application
- Be located in a low-income community
Businesses in the investment real estate, tobacco products, adult entertainment, and gambling sectors are not eligible to participate in the Program.
Use the FFIEC Census Date Tool to verify:
- Go to the FFIEC Geocoding System
Enter the business address
- Click “Census Demographic Data”
- Review the “Income” tab and check the “Below Poverty Line”
For Small Business Owners
To qualify a business must:
- Have fewer than 500 employees at the time of application
- Be located in a low-income community
Businesses in the investment real estate, tobacco products, adult entertainment, and gambling sectors are not eligible to participate in the Program.
No. The Treasurer’s Office partners with Lenders on this Program. Businesses must apply through a participating Lender, who will work with the business to submit the Business Application for the Program.
To find a participating Lender in your area, contact us at investinillinois@illinoistreasurer.gov.
Use the FFIEC Census Date Tool to verify:
- Go to the FFIEC Geocoding System
Enter the business address
- Click “Census Demographic Data”
- Review the “Income” tab and check the “Below Poverty Line”
