The Illinois Department of Commerce and Economic Opportunity is administering Advantage Illinois, made possible by the federally-funded State Small Business Credit Initiative (SSBCI). Advantage Illinois consists of three programs to spur institutional lending and one program to leverage venture capital in start-ups and high-growth businesses. The $78 million allotment from the federal government is expected to leverage more than $800 million in private investment in Illinois' small businesses. Visit the
Advantage Illinois 
page for more information.
Capital Access Program (CAP) assists businesses with various financing needs. It is designed to encourage financial institutions to make loans to small and new businesses that do not qualify under conventional lending policies.
ELIGIBLE BORROWERS
- CAP loans are available to most businesses located and legally authorized to do business in Illinois
- For small businesses with 500 or fewer employees
- Maximum loan size: $1,000,000
HOW THE LOANS WORK
- CAP loans are private transactions between banks and borrowers
- DCEO plays no role in lending decisions nor in setting loans terms & conditions
- The bank assumes the risk of the loan
- The bank has flexibility to recast, extend or refinance the loan to address the needs of the business owner
TYPES OF LOANS
- Term loans up to 5 years
- Revolving Lines of Credit (renewable for up to one additional year, with only one fee due)
APPLICATION
- For businesses: Contact a participating bank, which are listed at the DCEO-Advantage Illinois web site.
- For banks: Interested banks can enroll in the program by submitting a master agreement to DCEO
| Visit the Advantage Illinois page for details and contact information. Program staff can help inform your local bank about the program and its benefits. |
 |
Participation Loan Program (PLP) supports businesses with projects that create or retain jobs and/or modernize their businesses to improve competitiveness. One component of the program is devoted to Minority/Women/Disabled/Veteran-Owned businesses (MWDV PLP). The state purchases and subordinates part of the loan to help mitigate lender risk.
PLP PROGRAMS
- Standard Participation Loan Program (PLP)
- Minority/Women/Disabled/Veteran-Owned Businesses (MWDV PLP)
- Revolving Line of Credit (RLOC PLP)
- Convertible Subordinated Debenture Issuance
- SBA Supported Activity
ELIGIBLE BORROWERS
- Viable small/middle market businesses
- For-profit businesses including corporations, joint ventures, partnerships, sole proprietorships, or others authorized to conduct business in Illinois
- Business size limited to 750 employees or less worldwide
HOW THE LOANS WORK
- After cursory review of business plan, DCEO facilitates a meeting with the prospective borrower's bank.
- If the bank is unwilling to support project on its own, DCEO approximates the amount of Advantage Illinois participation.
- If new terms are acceptable to the bank, bank issues a loan commitment to the business contingent on DCEO and Advantage Illinois support.
| Visit the Advantage Illinois page for details and contact information. Program staff can help inform your local bank about the program and its benefits |
|
Collateral Support Program (CSP) establishes savings accounts or CDs that provide cash collateral support to lending institutions to enhance the equity and/or loan collateral levels of small business borrowers.
ELIGIBLE BORROWERS
- Corporations, joint ventures, partnerships, sole proprietorships, or other for-profit entities, authorized to conduct business in Illinois.
- Business size limited to 750 employees or less worldwide
HOW THE LOANS WORK
- DCEO will deposit funds with the lender equal to 15-20% of the lender's loan is provided to a borrower in cases where the bank believes that the borrower's own collateral is inadequate. The lender will pay interest at its normal rate for deposits.
- Assuming borrower is current in loan repayments, the amount of pledged collateral will be re-adjusted annually to reflect the same percentage of the borrower's loan that existed at loan inception.
- In the event that the borrower defaults on the loan, the lender will have the rights to the CSP account as cash collateral to cover any post-liquidation shortfall.
TYPES OF LOANS
- Term loans
- Maximum term is five years (unless part of much larger project)
Invest Illinois Venture Fund Program (IIVF) is a new venture capital program to support young, innovative companies in Illinois that show high growth potential, can demonstrate their place in the market and already have other investors.
GOALS OF THE IIVF
- Accelerate the commercialization of research discoveries and growth of start-up companies in Illinois.
- Increase the number of successful investment-grade companies with a significant presence in Illinois.
- Catalyze private capital investment and position more companies to attract additional venture investment.
- Create sustainable high-paying jobs.
- Generate return
ELIGIBLE APPLICANTS
- Illinois-based companies (or companies relocating their headquarters or principal business operations to Illinois)
- Already has an actual or conditional market-based third-party lead investment commitment.
FUNDING AVAILABLE
- Request should be specifically and narrowly tailored to the plan outlined in the application.
- Typical awards are under $1M and/or 25% equity. It is not expected that each applicant will request the maximum amount of funds available. • Awards will be in the form of equity or convertible debt.
APPLICATION
- Pursues a rapidly expanding market with demonstrated potential for large market share.
- Has a dedicated management team with significant experience to execute.
- Features a new idea/leverages technology with a clear path to commercialization and monetization.
- Has a strategy demonstrating a strong sustainable competitive advantage.
- Has an investment plan for (a) securing follow-on venture capital or financing to successfully sustain the company; or (b) to successfully sustain the company upon completion of the venture capital financing.
- Has successful collaborations and experience (preferably with Illinois-based incubators, labs and universities) needed to commercialize technology and accelerate the growth of a high-tech start-up company.
- Establishes reasonable price per share or terms.
- Conforms to all DCEO and US Treasury SSBCI guidelines.
| SBA has developed a number of financial programs for small businesses, all of which will be explained in this section.
Illinois Finance Authority
The Illinois Finance Authority provides expert, hands-on support to help businesses get the capital they need for growth.
Click here for financing. Check out the
Tax Credits 
page for more resources and incentives.
Check out the Industry Partners and Associations under the
Links Tab. There are several databases which can direct businesses to available funding opportunities.
Finding a Grant
|
Industry Specific Grants
|
Federal Business Opportunities
|