Frequently Asked Questions | Business Loan Guarantee
Business Loan Guarantee FAQs
This FAQ covers the basics of the program, including who qualifies, how the loan guarantee works, lender requirements, and how to get started. Use it as a quick reference for participating lenders and businesses seeking financing opportunities.
The Business Loan Guarantee Program helps small businesses in low-income communities access financing they may not otherwise qualify for. The program is designed to support business growth, create opportunities, and strengthen local economies.
To become a Participating Lender, a financial institution must complete and submit a Lender Participation Application. The Illinois State Treasurer’s Office will review the application for approval.
Yes. Participating Lenders must pay a one-time, non-refundable $1,000 fee to join the program.
Lenders choose the guarantee percentage for each loan. The maximum guarantee is 25% of the loan amount.
To qualify, a lender must:
- complete and submit a Lender Participation Application
- be insured by the FDIC or NCUA
- have a CRA rating of Satisfactory or Outstanding
- have an IDC rating of 75 or higher
- be authorized to do business in Illinois
- have a physical presence in Illinois
Each loan guarantee is available for up to 5 years. Lenders may remove the guarantee earlier with no penalty.
Yes, Financial Institution acknowledges that the Treasurer will require an annual report that includes information on all of the
loans that have received guarantees through the Program;
Yes. The Business Loan Guarantee may be combined with other financing programs, including SBA or Rural Development loans, if all program requirements are met.
To qualify, a business must:
- be located in a low-income community
- have fewer than 500 employees at the time of application
Use the FFIEC Geocoding/Mapping System to confirm whether the business is located in a qualifying low-income community:
- Review the % Below Poverty Line field.
- Go to the FFIEC Geocoding/Mapping System.
- Select 2025 from the Year drop-down menu.
- Enter the business address.
- Click Census Demographic Data.
- Open the Income tab.
If a guaranteed loan defaults, the Participating Lender must immediately notify the Illinois State Treasurer’s Office and follow the program’s claim process and documentation requirements. Yes. Participating Lenders must notify the Illinois State Treasurer’s Office immediately if a guaranteed loan goes into default.
Businesses in the following sectors are not eligible:
- gambling
- investment real estate
- tobacco products
- adult entertainment
Yes. Lenders must explain why their existing loan products do not meet the business’s needs and include that explanation in the application.
No. Businesses must apply through a Participating Lender. The lender works 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.
To find a Participating Lender in your area, contact us at investinillinois@illinoistreasurer.gov.