How Advantage Illinois Can Benefit Your Business

Many entrepreneurs and small businesses faced a variety of challenges at the height of the COVID-19 pandemic. Fortunately, federal assistance, such as the Paycheck Protection Program (PPP), provided financial relief to employers and their workers. As the economy gears up for a robust recovery, additional capital may still be needed to support small business expansion and job growth.

Eligible businesses should consider using the Advantage Illinois program to finance expansion efforts and create new jobs at a faster rate in a post-pandemic economy.

What is Advantage Illinois?

Funded by the federal State Small Business Credit Initiative, Advantage Illinois aims to encourage business competitiveness and promote job growth. Advantage Illinois partners with financial institutions to provide small businesses with access to capital to help positively impact the Illinois economy.

What loan options are available?

Whether you're a small start-up or an existing business, Advantage Illinois offers a low-cost way to support the growth of your company. Choose between two types of loans: Standard Participation Loan Program (PLP) or Revolving Line of Credit (RLOC).

• PLPs are term loans with below-market interest rates. Funds are disbursed in one lump sum with repayment terms set by the lender.
• RLOCs are lines of credit with a maximum term of two years. During this period, you can draw down and repay funds according to the line of credit agreement. If you need a longer RLOC term, you will need to re-apply after the initial two years.

Both funding sources allow you to borrow money to directly support, expand, or modernize your business.

How does Advantage Illinois work?

Advantage Illinois partners with eligible businesses and lending institutions, such as Town and Country Bank and Peoples Prosperity Bank, to fund specific projects and loans. While each party contributes, Advantage Illinois limits their participation to no more than 25% of the project cost, 50% of the loan, or $1.5 million. Businesses owned by minorities, women, the disabled, or veterans may qualify for additional financial support.

$100,000.00 Loan Participation Example

Advantage Illinois PLP = $50,000.00 in funding

Town and Country Bank and Peoples Prosperity Bank = $40,000.00 in funding

Small Business Borrower = $10,000.00 down payment

The level of program participation is largely based on the number of jobs the funding is expected to create or save and how granting the loan might improve the state economy.

Can I use the funds on any business expenses?

Eligible small businesses can use borrowed funds for a variety of purposes. Whether you're just starting out or you've been in business for years, Advantage Illinois allows you to use the funds to support business growth. For example, you could use loan funds to pay for:

• Start-up costs
• Franchise fees
• Inventory
• Facility improvements
• New or updated equipment

Funds can also be used as working capital to cover payroll or other expenses due to slow accounts payable.

Who's eligible for Advantage Illinois?

If your viable, for-profit entity is authorized to conduct business in Illinois and has less than 750 employees, you may qualify as a small business under the program. Credit restrictions may apply.

How do I apply?

Start by contacting a local Town and Country Bank and Peoples Prosperity Bank Commercial Banker who will review your business strategy or help you create one. The results could help determine which financial solution, such as the Advantage Illinois program, is right for your business.

Schedule your free business financial review today for more information!