The Illinois Department of Commerce and Economic Opportunity (DCEO) and the Illinois Department of Financial and Professional Regulation (IDFPR) have established the Illinois Small Business Emergency Loan Fund to offer small businesses low-interest loans of as much as $50,000.
Businesses located outside of Chicago with fewer than 50 workers and less than $3 million in revenue in 2019 will be eligible to apply. Successful applicants will pay nothing for six months and will then begin making fixed payments at a below-market interest rate for the remainder of a five-year loan term.
Loan funds must be used for working capital, and at least 50% of loan proceeds must be applied toward payroll or other eligible compensation including salaries, wages, tips, paid leave and group healthcare benefits. Eligible uses will exclude compensation in excess of $100,000. Loan guidelines include:
- Term and Interest Rate: The Emergency Loan is offered as a five-year term loan at 3% annual interest. Payments are deferred for six months, and fixed principal and interest payments will be due after the initial deferral. The loan may be repaid early without penalty.
- Loan Amount: Borrowers may receive as much as $50,000, with borrower loan amounts determined by average monthly revenues prior to COVID-19.
- Loan Uses: Loan funds must be used for working capital, and at least 50% of loan proceeds must be applied toward payroll or other eligible compensation, with a commitment to hire or retain at least 50% of a business workforce for six months.