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The Business Invest linked deposit program stimulates job creation and economic development by enabling financial institutions to offer below-market interest rates on loans to Illinois businesses, non-profit organizations, child care providers and health care providers.
For each approved Business Invest project, the Treasurer’s Office deposits state funds at a below-market rate with the financial institution providing the loan. This below-market cost of funds enables the financial institution to offer a reduced interest rate on the business’s loan. The reduced interest rate is available for up to the first 5 years of the loan. The borrower’s savings on the loan can be applied to hiring new employees and funding operating costs and other expenses.
Before applying for the Business Invest program, please ensure that your financial institution has approved your loan and agreed to use the Business Invest program in conjunction with that loan. Please note that the financial institution will underwrite the loan according to its normal credit standards and requirements. The Business Invest program does not provide a guarantee or other form of credit enhancement.
If you have any questions or would like more information about the program, please contact our office with questions or for more information about the program by emailing us at businessinvest@treasurer.state.il.us or calling us at (312) 814-8951.
Eligibility:
- Applicant may be a business, non-profit organization, health care provider or child care provider located in the state of Illinois.
Loan Participation:
- The deposit value is matched to the loan value, up to a maximum of $10 million per loan.
- The below-market interest rate is available for an initial 2 years with the possibility of renewal for an additional 3 years based on satisfactory project compliance with program guidelines.
- The term of the loan may be any number of years.
Interest Rates:
- The maximum interest rate on the loan may not exceed the associated deposit rate by more than 4.0% during the term of the Treasurer’s participation in the loan.
- Current deposit rates are available here.
Eligible Uses of Funds:
The program may be used in conjunction with term loans financing the following types of costs:
- Real estate acquisition
- Construction
- Furniture, fixtures and equipment
- Permanent working capital and other costs that may be included in a term loan
- Refinance of existing debt where the loan is at least 2 years old and the borrower will realize at least a 3.0% reduction in interest rate as a result of the refinance
The program cannot be used in conjunction with lines of credit.
Application Process:
- Meet with your lender to discuss your loan and use of the Business Invest program to reduce the interest rate on the loan. (A complete list of financial institutions eligible to participate in the program is available in the “Quick Links” section above.) If your loan officer has questions about the program, please feel free to refer him or her to our office for assistance.
- Apply for the loan with the financial institution. Your lender must approve the loan and agree to use the Business Invest program to reduce the interest rate on the loan.
- After the loan is approved, complete and submit the Business Invest program application. Your lender completes and submits an application for deposit. (Both of these forms are downloadable from the “Quick Links” section above.)
- Submit the application package to our office for review. Typical processing time is approximately 2 weeks. The Treasurer’s Office will also schedule a site visit of the project site with you prior to review of the application.
Program History:
- The Treasurer’s Office began offering its business loan program in 1998. Almost $175 million
has been deposited since inception, reflecting 200 projects and 13,000 new jobs in Illinois.
Personal Experiences:
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John Clark, owner and founder
of
Reggio's Pizza |
The only African American owner and operator of a frozen pizza company in the United States, John M. Clark Jr. followed his dream of opening a business more than 30 years ago.
Clark and his wife, Pearl, started Reggio’s Pizza in 1972 as a small carry-out and delivery pizzeria on Chicago’s South Side.
Today, Clark is the chairman and CEO of company with 200 employees, a USDA food inspection plant, one sit-down restaurant and eateries at O’Hare Airport and University of Chicago. You can find his pizzas in your grocer’s freezer.
The State Treasurer’s Office aided this expansion, providing
access to capital at several
points along the way.
“Without the Treasurer’s Office, we may not be where we are today,” Clark said.
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