Small Business

State Guarantee Program for Agri-Industries

This program is designed for farmers and agribusinesses that wish to diversify into new enterprises or to further process existing crops or livestock.  Loans can be made to farmers or agribusinesses to purchase new or used property, equipment, or other capital items that will be used for one of the following purposes:

1. Growth and development of  new crops or livestock not customarily grown in Illinois, or
2. The further processing of grain or livestock grown in the state. 

Loans are made through a local lender who receives an 85% guarantee on the principal and interest of the loan.  The interest rate can be variable or fixed and must be less than the market rate of interest generally available to the borrower.  

Eligibility requirements include:

• Illinois resident at least 18 years old;
• Principal operator of a farm or land;
• at least 50% of gross income is from farming;
• Gross income is at least $20,000 based on previous years tax return;
• Net worth is less than $500,000;
• An agribusiness must be located in Illinois and the products used must be grown in Illinois currently or soon to be;
• Cash flow and collateral must be adequate for the loan.