Illinois Small Business COVID-19 Relief Program Receives More Funding
The Business Invest – Illinois Small Business COVID-19 Relief Program (“Program”) is an impact investment loan program under which the State Treasurer Michael Frerichs has now made available up to $500 million in deposits to banks and credit unions throughout the state, at near-zero rates, to assist Illinois small business and non-profits negatively affected by the COVID-19 pandemic. The purpose of this funding is to provide vital economic support to small businesses and non-profits throughout Illinois to help overcome the loss of revenue they are experiencing.
He said the installment was designed to complement the federal government’s assistance, but Frerichs also noted that the state “can move faster than the federal government because we already have the authority to facilitate the loans.”
Through this program, the Illinois Treasurer’s Office partners 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. Eligible businesses and non-profits must have either been shut down due to the stay-at-home order or have had “limited” operations. They also must have less than $1 million in liquid assets or $8 million average annual receipts.
Individual lenders are allowed up to $25 million in initial funding from the program. Local banks and credit unions can obtain the money through the treasurer’s office, who will then loan it out to their partnered small businesses. The community lenders also determine the eligibility and length of loans.
Frerichs said his office typically can get the money to banks within one or two days. As for how quickly the money actually shows up in the small business owner’s account depends on how quickly the bank is able to process the loan.
Click here for the application or visit illinoistreasurer.gov for more information.
To find an active list of financial institutions participating in the Illinois Small – Business COVID-19 Relief Program, click here.
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