Fund your business in Illinois

When your own money isn’t enough, Illinois options work like the federal ones: a lender makes the loan, and a government program can stand behind part of it. Free advisors can help you get ready to ask.

What’s different in Illinois

• One SBA district covers the whole state, from an office in Chicago.
• State loan programs run through the lender. Advantage Illinois works only through an enrolled lender; it is not a direct loan. You ask a lender; you do not apply to the state for a check.
• The state’s SSBCI money is $354.6 million across a loan guarantee program, two loan participation programs and a venture capital program, run by the Illinois Department of Commerce and Economic Opportunity (DCEO).
• Help with the application is free. Illinois Small Business Development Centers offer business consulting at no cost.

Do this

1. Write down what you need and what it is for. Equipment, inventory and rent are different asks, and programs are sorted by use.
2. Talk to a free advisor first. The Illinois Small Business Development Centers offer consulting at no cost. The SBA’s Illinois District Office in Chicago offers counseling and connects you to partner organizations.
3. Understand who lends. Regular SBA loans come from participating lenders, not the SBA. The SBA loans guide explains who makes each kind.
4. Ask your lender about Advantage Illinois by name. The Department of Commerce and Economic Opportunity lists it for loans from $10,000 to $2,000,000 to businesses with fewer than 750 employees. It covers start-up costs, working capital, equipment and inventory. The lender sets the rate and the terms, and not every lender is enrolled.
5. Ask about the SSBCI programs. Run by the Illinois Department of Commerce and Economic Opportunity (DCEO): a loan guarantee program, two loan participation programs and a venture capital program, per Treasury’s program summaries. Help with the application exists too, through providers the agency partners with, in the form of legal, accounting and financial advisory services, per Treasury’s technical assistance summaries.
6. Raising equity instead? The Illinois Innovation Venture Fund (INVENT) targets investments from $10,000 to $6 million. It is the venture capital program, so it invests rather than lends.
7. Owned by a minority, woman, person with a disability or veteran? The state lists the Business Enterprise Program (BEP), for businesses owned by minorities, women and persons with disabilities, and the Veterans Business Program (VBP). Who qualifies for the Veterans Business Program, and which agency runs each, weren’t on the pages we could read.* Check the official source at bep.illinois.gov.
8. Looking for a grant? Whether Illinois has a grant open to a new small business wasn’t something we could confirm.* Check the official source at the Department of Commerce and Economic Opportunity.

What you get back

A loan offer from a lender, with rate, term and collateral. Any state participation or guarantee is between the lender and the state. Your agreement is with the lender.