Illinois Business Financing Matrix 4-08 - SIUE
[Pages:10]ILLINOIS BUSINESS FINANCING MATRIX
A Guide for Federal, State and Regional Loan Incentive and Grant Programs for
Business and Economic Development
ILLINOIS BUSINESS FINANCING MATRIX
PROGRAM PURPOSE
ELIGIBILITY
LOAN AMOUNT
TERM RATE FEES
WEBSITE
SBA 7(a) Loan Guaranty
Program The SBA's primary
loan program
Business start ups or expansion; construction of new facility; purchase
land or buildings; purchase equipment, fixtures, leasehold improvements; working capital; refinance debt for compelling reasons;
inventory
SBA LowDoc One-page SBA
loan application, quick turnaround after applicant meets
lender requirements
Same as 7(a) except may not be used to repay certain types
of existing debt
Must be operated for profit; meet SBA size standards; show good character, management expertise and commitment, and ability to
repay; may not be involved in speculation or investment in rental
real estate
Up to $2,000,000
Same as 7(a), program relies on
applicant's character and credit
history
Up to $150,000
Depends on ability to repay; generally
working capital is 5-7 years; machinery
/equipment up to 10 years; real estate,
construction, up to 25 years (not to exceed life
of equipment)
Negotiable with lender; loans under 7 years,
max. prime + 2.25%; 7 years or more, max. 2.75% over prime; under $50,000, rates
may be slightly higher
Paid by lender (may be passed on). Based on maturity, amount of SBA exposure: 1 year or less, 0.25%; over 1
year, SBA share $150,000 or less, 1%; $150,000 - $700,000,
2.5%; more than $700,000, 3.5%
Depends on ability to repay and use of proceeds, but not to exceed 25 years for
fixed assets; 10 years in all other
uses See 7(a)
See 7(a)
SBA Minority Prequalification Loan Program & Women's
Prequalification Loan Program Intermediaries help
prepare application and secure loan; both pilot programs, limited sites
SBA CAPLines Seasonal, Contract, Builders, Standard AssetBased, and Small Asset-Based
SBA Express Lender approves loan, no additional
paperwork for SBA; pilot
program, limited sites
SBAExport Express Same as
SBAExpress with trade
related exceptions
See 7(a)
Must be at least 51% owned and operated by racial/ethnic minority or women; focus on credit history, ability to repay,
probability of success
Finance seasonal working-capital needs; costs to
perform; construction costs; advances against existing inventory
and receivables; consolidation of short-term debts
possible
Existing businesses, See 7(a)
Same as 7(a); limitations on real
estate and construction; may be used for term loans or revolving
credits
See 7(a)
Broad range of financing
needs aimed at initiating or expanding
export activity. See Program
Guide for details
See 7(a) Note: must have minimum 1 full year operating
history
Up to $250,000 See 7(a)
See 7(a)
$2,000,000 (except Small Asset-Based) $200,000 (total loan
amount)
Up to 5 years
Up to $250,000
Term loan same as 7(a); no more than
5 years on revolving line of
credit
$Up to $250,000
Term loan same as 7(a); no more than 5
years on revolving line
of credit
See 7(a)
See 7(a)
See 7(a)
See 7(a); plus minority program may use for profit intermediaries; women's program uses non-profits only;
both may charge fees
See 7(a) Under Standard Asset-Based, no restrictions on servicing fees
See 7(a)
See 7(a)
PROGRAM PURPOSE
ILLINOIS BUSINESS
FINANCING MATRIX
SBA International Trade Loan Short and longterm financing
SBA Export Working Capital Program Special application, fast
turnaround; may apply for prequalification letter
Working capital; acquisition or
improvements in US for
producing goods or services; may not be used to repay existing
debt
Short-term workingcapital loans for
pre-export or postshipment financing of specific exporter orders
SBA 7(m) MicroLoan Program Through nonprofit lending organizations;
technical assistance also provided; pilot program, limited
sites
Purchase equipment, machinery, fixtures, leasehold improvements; finance increased
receivables; working capital; may not be used to repay existing debt
SBA 504 Certified Development
Company Program Longterm, fixed- asset loans through
nonprofit development companies; must create or retain 1 job per $35,000 of
debenture proceeds
Purchase of major fixed assets such as
land, buildings, improvements,
long- term equipment, construction, renovation
United State Department of Agriculture -USDA Business Industrial
Land & building, new construction or
renovation equipment working capital +
refinance (maximum 50% of project)
ELIGIBILITY
LOAN AMOUNT
Small businesses engaged in international trade or adversely affected by competition
from imports; see 7(a) for qualification
Up to $2 Million SBA share
TERM
Up to 25 years
RATE
See 7(a)
Small business exporters who need short-term working capital to initiate or expand exports; see 7(a) for other qualifications
Up to $1,000,000 SBA share (may be combined with International Trade
Loan to reach $1.25 Million)
Matches single transaction cycle up to 18 months or 1 year line of credit for multiple
sales No cap
Same as 7(a)
$35,000 (total loan amount)
Shortest term possible, not to exceed 6 years Negotiable with intermediary
For-profit businesses that do
not exceed $7 million in tangible net worth and did not have average net income over
$2.5 million for past 2 years
Up to $1,300,000
10 or 20 years
Based on current market rate for 5-10
year Treasury issues, plus an increment above Treasury rate
Virtually any legally organized entity
Up to $25,000,000 aggregate per borrower
Real estate 30 yr Equipment 15 yr Working Cap 7 yr
Lender
FEES
JOB CRITERIA
See 7(a)
See 7(a): no restrictions on servicing fees
No guaranty fee
Fees related to debenture, approx 3%
2% on guaranteed portion
Potential to create & retain jobs
OTHER REQUIRE-
MENTS
WEBSITE
No in-house debt refinancing (greater than 50% of the total
package)
rurdev.
ILLINOIS BUSINESS FINANCING MATRIX
PROGRAM PURPOSE
DCEO Capital Access
Program
Designed to encourage lending institutions to make loans to new and small business that do not qualify under
conventional lending policies
DCEO Enterprise Zone Financing Program
Land & building, new construction or
renovation equipment working
capital
DCEO Participation Loan
Program
Land & building, new construction or
renovation equipment working
capital
DCEO Minority &
Women Participation Loan
Program
Land & building new construction or
renovation equipment working
capital
Illinois Development Finance Authority IDFA Rural Development Loan Program
Assist businesses in rural communities with pop. less than 25,000 finance fixed
asset project
ELIGIBILITY
Any for profit entity w/less than 500
employees located in IL
Any for profit entity w/less than 500 employees
located in IL Enterprise Zone
Any for profit small business w/less than 500 FT employees
Minority and/or women business; ................
................
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