Federal Funds Will Support State’s Small Businesses and Create Jobs Across Illinois
CHICAGO–(ENEWSPF)–October 12, 2013. Governor Pat Quinn today announced that the U.S. Treasury Department has awarded $26.64 million to Illinois to expand the state’s efforts to support small businesses and economic development. The award recognizes Illinois’ success in creating and expanding opportunities for small businesses and helps the state partner with local banks to ensure that small businesses have access to necessary credit. Today’s announcement is part of Governor Quinn’s agenda to foster small business growth in Illinois.
“Illinois’ small businesses are the cornerstone of our economic comeback,” Governor Quinn said. “This federal award will provide access to capital for small business owners across our state who are helping to drive our economy and put more people back to work.”
The funds are through the federal State Small Business Credit Initiative (SSBCI). The new award brings the total Illinois has received under SSBCI to $78.36 million since it was enacted in 2010. These funds have leveraged more than $403 million in private sector loans and investments to date. Recipients report the financing is allowing them to create 2,534 jobs across Illinois and retain another 1,547.
The funds will continue to grow as loans are repaid with interest and will be recycled into loans for additional small businesses across Illinois.
Illinois ranks fourth among the states in its overall funding allocation under SSBCI. The state handles the funds through the Advantage Illinois program operated by the Illinois Department of Commerce and Economic Opportunity (DCEO). The program has approved loans totaling $53.4 million during almost three years of operation and so far none are in default.
“Access to capital is a critical component for small businesses and entrepreneurs to build their businesses and that is what this program provides. Through the State Small Business Credit Initiative, the U.S. Treasury Department, the Illinois Department of Commerce and Economic Opportunity and private sector lenders are investing in small businesses to help drive economic growth locally,” U.S. Treasury Department’s Deputy Secretary Sarah Bloom Raskin said. “Small businesses are at the forefront of the nation’s economic recovery, and this initiative provides small business owners in Illinois with access to the resources they need to create jobs.”
“With this highly successful program, the state can stand alongside talented business owners and entrepreneurs who are investing in themselves,” DCEO Director Adam Pollet said. “The result is job creation that would not occur without the state’s participation.”
Examples of companies that have received loans under Advantage Illinois include:
Vosges Holdings Inc., a Chicago-based producer of fine chocolates that used $1 million to create 93 jobs.
Rockford Process Control Inc., a Rockford manufacturer that used a $50,000 loan as part of a $10 million investment that created 19 jobs.
DKB Partners Inc., a tool and die company in O’Fallon, which created 10 jobs with a loan of $240,240.
Cortina Tool and Molding Co., a Franklin Park firm that added 35 jobs with a loan of $1.375 million.
Compact Industries Inc. of St. Charles, a producer of cocoa and drink mixes that tapped $1 million to create 30 jobs.
Under Advantage Illinois, the state provides low-interest loans together with financing from local lenders. The partnership reduces the risk for banks and enables borrowers to qualify for a larger amount of financing. The program also includes the Invest Illinois Venture Fund, which provides capital for startup companies with a high potential for growth.
For more information on SSBCI and the U.S. Treasury Department’s other small business programs, please visit www.treasury.gov/smallbusiness.
For more information about doing business in Illinois, visit www.illinois.gov/dceo.