About IFA
The Illinois Finance Authority (IFA) is a self-financed, state authority principally engaged in issuing taxable and tax-exempt bonds, making loans, and investing capital for businesses, non-profit corporations, and local government units statewide. As a self-funded agency, IFA receives no general revenue funds from the State of Illinois, and the state bears no direct or indirect liability for the debt IFA issues or incurs except for specific, statutorily authorized programs. IFA's operating income is exclusively derived from application and closing fees, interest income, and investment income.
The IFA Board of Directors, who are appointed by the governor and confirmed by the senate, represent a breadth of business experience throughout the state.
IFA has offices in Chicago, Mt. Vernon, Peoria, and Springfield.
Mission
IFA's mission is statutorily defined as follows:
To foster economic development to public and private institutions that create and retain jobs and improve the quality of life in Illinois by providing access to capital.
Role
IFA's role is to support the Governor of Illinois' economic development agenda. IFA is uniquely positioned to provide such support by providing required financing resources for businesses, municipalities and not-profit entities.
As a state Authority, IFA does not set the State priorities. Rather, it supports and carries out State established priorities–being a tool of the State created to spur business maintenance and growth and support the State goals for the overall economic direction of Illinois.
Financial Partners
IFA's ability to finance any project is contingent upon private sector financing. Commitments from commercial banks or other sources are essential for bonds, small business loans and venture capital.
When IFA issues a bond, the bank purchases or enhances the bonds. For loans, IFA typically "participates" in a bank loan. And for venture capital requests, IFA matches the venture investment.
IFA markets through a variety of intermediaries, with most projects originating through:
- Banks and investment banks
- Attorneys
- Financial advisors
- Venture investment firms
- Economic development organizations.
For projects where IFA is the conduit issuer, the borrower selects its own finance team, including financial advisor, borrower's counsel, bond counsel, underwriter or lender, among others.
IFA policies are provided in its Bond Program Handbook, Bond Closing Procedures–Farm Bond Financing, Guidelines–llinois State Guarantee Programs, and other policies found on the Key Policies page.
