On March 11, 2021, President Biden signed into law the American Rescue Plan Act of 2021, which provided $10 billion to fund the State Small Business Credit Initiative (SSBCI 2.0). This builds on the initial State Small Business Credit Initiative (SSBCI 1.0), through which Illinois received over $78 million for the Advantage Illinois Participation Loan Program (PLP).

Illinois will receive up to $354.6 Million to administer four programs as part of the State Small Business Credit Initiative. The expanded program offerings through SSBCI will enable Illinois to support small businesses across the state - helping them attract more capital investment and expand or launch business operations while supporting key sectors.

Furthermore, on September 15, 2021, Governor Pritzker and the General Assembly passed and signed into law the Climate and Equitable Jobs Act (CEJA). IFA was officially designated as the state's Climate Bank with the focus on the reduction of carbon emissions, creation energy efficient programs, and provide equity and job creation for communities affected by the climate crisis and the clean energy transition.

To reach its goals, IFA created Climate Bank Finance, (“CBF”), to provide attractive financing in support of economic development and climate-related investment in the state. CBF’s initial effort is its SSBCI-funded Loan Participation Program. ICB/CBF is focused on accelerating the investment of private capital into clean energy projects in a manner reflective of the geographic, racial, ethnic, gender, and income-level diversity of the State.

Through our PLP, Lenders benefit from risk mitigation, will have access to new borrowers, more loan volume, and ultimately, more capital via our low interest rates. Borrowers benefit by having access to capital, which was once not easily accessible, as well as lower rates. Both Lenders and Borrowers will take advantage of our low rates of 2% max per annum for "Standard loans" and 1% max per annum for SEDI & VSBs. IFA/ICB will benefit by helping businesses create more jobs, grow efficiently, expand their footprint, and ultimately increase the economic development of the state of Illinois.

Examples of projects for which CBF seeks to provide financing include;

  • Clean air/clean water projects and wastewater treatment
  • Production/installation/servicing of wind/hydro/solar power equipment
  • Production/installation/servicing of electric vehicles and EV charging stations
  • Clean energy generation, alternative fuels, and new battery technologies
  • Energy conservation
  • Bio material production and sustainable agricultural practices
  • Broadband expansion for rural and other underserved communities
  • Other efforts providing environmental benefit/counter the impacts of climate change

 

 

LENDERS: If you are interested in becoming a Participating Lender, please complete the REQUEST TO BECOME A LENDER form and send back to Evans Joseph at ejoseph@il-fa.com. Please be sure to include a completed and signed Form W-9 and IRS 147-C Letter.