Invest in Illinois – Business Loan Guarantee Program

Helping small businesses in low-income communities overcome barriers to traditional financing.

Become a Participating Lender

Supporting Small Business Growth in Underserved Communities 

Invest in Illinois is a suite of programs designed to expand access to affordable financing and strengthen 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

Loan Terms and Program Limits

  • Total Program Pool: $30 million currently available, allocated across all participating lenders
  • Max Per Lender: Up to $1,000,000 in total guarantees, based on availability of guarantee funds
  • Allocation Timeline: Must deploy all guarantee funds within 1 year, 30 business days to submit the first application
  • Lender Fee: $1,000 one-time, non-refundable, and due upon approval
  • Guarantee Coverage: Up to 25% of the loan principal
  • Guarantee Duration: 5 years from the date the loan is closed, the lender may remove the guarantee early at no penalty
  • Eligible Loan Types: Term loans only, no lines of credit or open-end credit plans
  • Loan Purpose: Business growth and operations, no refinancing of existing debt
  • Interest Rate: Set by the Lender, the bank maintains full control of rate-setting
  • Compliance Reporting: Annual report required on all guaranteed loans; ISTO requires an annual status report

Ready to get started?

How to Apply

Frequently Asked Questions (FAQs)

Find answers to the most common questions about the Invest in Illinois-Business Loan Guarantee Program. If you can’t find what you’re looking for here, please contact us.

What is the purpose of the Business Loan Guarantee Program?

The Program is here to support small businesses in low-income communities, helping them access the financing they need to grow and thrive, and strengthening local economies along the way.

How can my bank or credit union become a Participating Lender?

We welcome your participation! To join, your financial institution simply needs to complete and submit a Lender Participation Application. Our team at the Treasurer’s Office reviews each application for approval.

What are the eligibility requirements for Participating Lenders?

To qualify, lenders must:
1. Be insured by the FDIC or NCUA
2. Have a CRA rating of Satisfactory or Outstanding
3. Have an IDC rating of 75 or higher
4. Complete and submit a Lender Participation Application
5. Be authorized to do business in Illinois and have a presence in Illinois.

Can businesses apply directly to the Treasurer’s Office?

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.

Is there a fee for lenders to participate?

Yes. Participating Lenders must pay a one-time, non-refundable $1,000 fee to join the Program.

How do I determine if a business is qualified for the program?​

Step 1: Go to the FFIEC Geocoding/Mapping System​
Step 2: Select 2025 from the “Year” drop-down​
Step 3: Enter the business address​
Step 4: Click “Census Demographic Data”​
Step 5: Review the “Income” 2nd tab and check ​the “%Below Poverty Line”​

What types of businesses qualify?

To qualify, a business must:
1. Have fewer than 500 employees at the time of application 
2. Be located in a low-income community using the FFEIC Geocoding System

What businesses are not eligible?

Businesses in the investment real estate, tobacco products, adult entertainment, and gambling sectors are not eligible to participate in the Program.

Why should you consider the Invest in Illinois Business Loan Guarantee Program?

– Reduces your loss exposure
– Enables lending to viable businesses with limited collateral
– Competitive differentiation

What types of businesses qualify?

To qualify, a business must:
Have fewer than 500 employees at the time of application
Be located in a low-income community.

What happens if the business defaults?

Businesses in the investment real estate, tobacco products, adult entertainment, and gambling sectors are not eligible to participate in the Program.

Is there a documentation requirement for the ‘but for’ standard?​

Yes. Lenders must document why their existing loan products do not meet the business’s needs and include that explanation in the application.

What percentage of a loan can be guaranteed?

Lenders choose the guarantee percentage for each loan. The maximum guarantee is 25% of the loan amount.

What is the term of the loan guarantee?

Each loan guarantee is available for up to 5 years. Lenders may choose to remove the guarantee earlier at no penalty.

Can the guarantee be combined with other State or Federal Assistance?​

The Business Loan Guarantee may be combined with other financing programs, including SBA or Rural Development loans, if program requirements are satisfied.

How can I find a lender that is participating in the program?

To find a participating Lender in your area, contact us at investinillinois@illinoistreasurer.gov.