Relief Program amid COVID-19
Illinois Small Business COVID-19 Relief Program is launched to help fight the economic aspects of the pandemic. To assist the Illinois small business and non-profits suffering negatively from the COVID-19 pandemic, the program is launched which is an impact investment loan program. The State Treasurer will make up to $250 million in deposits available to financial institutions throughout the state, at near-zero rates.
The sole purpose of this funding is to provide crucial economic support to the non-profits and small businesses throughout Illinois that are facing a loss of revenue due to the COVID-19 pandemic. The Treasurer’s Office will be partnering with approved financial institutions to provide the loans. The loans will be 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.
- With qualified financial institutions, state funds would be deposited for a 1-year term at a near-zero deposit rate of 0.01% (0.0001).
- The deposits could be drawn in $1 or $5 million increments. The maximum limit will be $25 million per financial institution.
- Affordable loans (not to exceed 4.75%) will be facilitated with the deposited funds to the small businesses and non-profits. The loans could be used to provide bridge funding, pay fixed debts, payroll, accounts payable and other bills.
- The eligible Illinois businesses or non-profits must meet the following conditions:
- have been shut down or limited due to COVID-19
- have less than $1 million in liquid assets or $8 million average annual receipts (per SBA standards)
- be headquartered in the state of Illinois or agree to use the funds in Illinois.
- The Treasurer’s Office will determine the renewable deposits.
- Financial institutions would be required to provide reports to the Treasurer’s Office regarding the usage of program funds, including the number and types of loans provided and the economic impact of such loans.