SMALL BUSINESS DEVELOPMENT LOANS
Funded by the Illinois Department of Commerce and Economic Opportunity through the Community Services Block Grant Program (CSBG), this is an economic development program that creates employment opportunities for income eligible individuals by allowing entrepreneurs to start or expand their business at favorable rates.
- Must meet SBA size guidelines for a small business
- Be an organized for profit entity
- Be located in Edwards, Gallatin, Hamilton, Saline, Wabash, Wayne or White counties
- Be able to demonstrate a need for the desired credit
What are the terms of the loan?
- Fixed rate financing
- A maximum interest rate of national prime plus no more than 4 percent. Rate is dependent on risk level. Past loans have been at 3%.
- Term of loan cannot exceed 10 years
- One job must be created for and filled by an income eligible person for each $20,000 borrowed. Two part-time hires may count as a full-time hire if the weekly combined hours are at least 37.5.
What are the limitations of the loan?
- The CSBG Loan may not exceed 49% of the total project cost. Remaining financing is obtained from a bank, owner’s equity or other sources
- CSBG financing must be committed simultaneously or prior to the closing of other financing
- CSBG Loan funds may be used to purchase machinery, equipment, inventory, or to provide working capital. CSBG funds may NOT be used to purchase or improve real property.