By IRN
Chicago, IL – The Illinois Department of Commerce and Economic Opportunity is working with a Downstate organization to help small businesses.
The program would provide loans to small businesses and startup businesses, and would be modeled after a program unveiled Wednesday in Chicago.
DCEO Director Warren Ribley says $5 million is available as micro-loans through the Community Development Fund, part of the governor's Neighborhood Recovery Initiative launched in October to help revitalize urban communities.
Because of the poor economy, small businesses are having trouble obtaining loans through traditional methods. Through the fund, existing small businesses can obtain loans of up to $75,000 and start-up businesses can borrow up to $50,000. Loans will have a maximum fixed interest rate of 10 percent up to five years.
Ribley says the primary funding source for the $5 million Community Development Fund is federal dollars.
Ribley says his office is working with Springfield-based Illinois Ventures for Community Action, a community development financial institution, to bring the same program Downstate. IVCA will work in conjunction with community action agencies throughout the region to administer loans.
