How FAME Can Benefit Minority Enterprises

Whether due to the economic upheaval of the COVID-19 pandemic, The Great Resignation, or some other reason, workers across the country are leaving their jobs en masse and trading in their status as employees for entrepreneurs. New business applications have reached record numbers, and states have allocated resources to support the surge that is expected to be good news for the economy.

To encourage minorities, women, disabled persons, and veterans to open or expand their businesses, Advantage Illinois offers the Fund for the Advancement of Minority Enterprises (FAME) loan program. These loans are intended to help minority-owned businesses create new jobs at a faster rate.

How might FAME help my business?

Whether you're thinking about opening a new business in Illinois or need funds to expand existing operations in the state, the FAME program could help you achieve your goal. Eligible companies can use loan proceeds to cover:

• Start-up costs
• Franchise fees
• Equipment, inventory, and supplies
• Facility acquisition or renovations
• Working capital to cover payroll
• And more!

FAME is not a grant program. It is part of the Advantage Illinois (AI) program, which partners with Illinois financial institutions to loan money to support business expansion and job growth. AI is funded by the federal State Small Business Credit Initiative (SSBCI), which provides Illinois with an allocation of funds so small businesses have greater access to credit. FAME loan proceeds must be repaid according to the terms and conditions of the loan agreement.

The FAME program can help fund the lesser of 50% of a project, 50% of a loan, or $400,000. For instance, a project with a financial need of $50,000 might be funded in the following manner:

FAME Loan: $25,000.00

Town and Country Bank and Peoples Prosperity Bank Loan: $24,000.00

Small Business Borrower: $1,000.00 down payment

Borrowers benefit from generous loan terms, including a repayment period of up to seven (7) years and a fixed rate of 2%.

Does my business qualify?

In addition to meeting the Illinois definition of a minority, women, disabled persons, or veteran-owned business, the start-up or existing business must be a for-profit entity with fewer than 750 employees. Additional loan qualification standards vary by lender but are often more flexible than traditional business loans. Participating lenders will review your application to assess their risk of extending credit.

Regardless of which lender you choose, be prepared to submit a completed application and a business plan, along with any required supporting documentation to improve the likelihood of loan approval. Experienced lenders may offer assistance with the preparation of your business plan.

How do I apply?

Let us help finance the start-up costs for your new business or grow an existing one. Town and Country Bank and Peoples Prosperity Bank can help you determine whether FAME is a good match for your business goals, as well as assess your business operations, strategy, and performance.

Contact one of our experienced Commercial Bankers today to begin the application process and take the next step toward achieving your business goals!