The City of Peoria, and the County, region, State, and Federal governments have a variety of programs to help attract, start, or expand business in our region. Give us call or send us an email if you would like to discuss using some of these programs.
Contact the City of Peoria Economic Development Department at at 309 494 8640 or firstname.lastname@example.org for more information and assistance on all programs.
Peoria Area Governmental Financing Programs
City of Peoria, Department of Economic Development
Business Development Fund Secondary financing, not to exceed 33% of total financing package. Theremust be at least 10% equity participation from business. City will lend $10,000 per job created and/or retained, not to exceed $150,000. Fixed interest rate 4% below prime (but not lower than 4%). The term mirrors that of the primary lender.
Peoria County G.A.P. LoansSecondary financing, not to exceed 40% of total financing package. There must be at least 10% equity participation from business. County will lend $10,000 per job created or retained, not to exceed $150,000. Fixed interest rate 3% below prime (not lower than 3%). Term will be one year for each $15,000 loaned (7 years maximum for loans for inventory and working capital).
Illinois Finance Authority Participation Loan
IFA will work with prime lender to purchase up to 50% ($1M max) of a loan for purchase of land or buildings, construction or renovation of buildings, and acquisition of machinery and equipment. Interest rate is 2% below the lender's rate, leading to a blended rate (lender may take up to 1% as servicing fee). 10 year maximum term (if lender term is longer, balloon payment required after 10 years). More info: www.il-fa.com/products/ind_part.html.
Industrial Revenue Bonds
Very large loans (must be greater that $1.5M) for significant manufacturing and industrial projects, used to acquire fixed assets. Can be issued by the City of Peoria. Can finance up to 100% of the total project costs at below-prime rates (fixed or variable terms). Call the City of Peoria's Department of Economic Development at (309) 494-8640 or get more info at www.il-fa.com/products/ind_irb.html.
Illinois Department of Commerce and Economic Opportunity
Enterprise Zone Participation Loan
Works much like the IFA's Participation Loan, but is limited to businesses expanding or locating in an Enterprise Zone. Funds can be used for purchase and installation of machinery and equipment, working capital, purchase of land, construction or renovation of buildings. Cannot be used for debt refinancing or contingency. For DCEO's portion of the loan, the interest rate on variable-rate loans is 2% below indexed rate. Fixed and adjustable rates are similar to US Treasury notes, plus 0-1%. Borrower cannot employ more than 500 FTEs. More info: www.illinoisbiz.biz/dceo/Bureaus/Business_Development/Loan+Programs/ezp-plp.htm.
Revolving Line of Credit
Allows businesses to borrow the amount of money needed to meet the demand and to repay the loan from the sales revenues. Line of credit established for between $10K and $750K, but not more that 25% of total project. Attractive interest rates, but all review and terms set by lead lender. Must not employ more than 500 FTEs. Three year maximum term. More info: http://www.blogger.com/www.illinoisbiz.biz/dceo/Bureaus/Business_Development/Loan+Programs/rloc.htm .
Manufacturing Modernization Loan
Secondary financing of between $10K and $750K for manufacturers who are retooling, upgrading machinery, or expanding. Must constitute 25% or less of total financing package. Sub-prime rates, maximum term of 10 years. More info: www.illinoisbiz.biz/dceo/Bureaus/Business_Development/Loan+Programs/mmlp.htm.
Illinois State Treasurer State Treasurer's Economic Program
The Treasurer will deposit up to $25K into the business' bank at below market rates for each full-time employee created or retained. That bank, in turn, can lend those funds to the business at below prevailing rates for a term of between 1 and 5 years. More info: www.state.il.us/treas/Programs/step.htm.
Economic Recovery Loan Program
Similar to the STEP program directly above, but the limit to be deposited is up to $50K per job created or retained. More info: www.state.il.us/treas/Programs/ER.htm.
US Small Business Administration SBA 504 Loan
Provides businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings, not to exceed 40% of total financing package. Requires 10% equity participation by business. For most businesses, the loan is $50,000 per job created, up to $1.5M. For "small manufacturers", the loan can be $100,000 per job created, up to $4M. Interest rate tied to 5- and 10-year US Treasury issues. Term is 10 or 20 years. More info: www.sba.gov/financing/sbaloan/cdc504.html.
7(a) Loan Loan guaranty for prime lender. All financing is handled through the lender, with partial guaranty by SBA in case of failure to pay. Applicants must meet certain qualification set out by SBA. Maximum loan is $2M (75% guaranty). Terms: maximum of 25 years for real estate and equipment, 7 years for working capital. Interest rates may be fixed or variable and may not exceed the prime rate by a certain number of points (depends on size and term). More info: www.sba.gov/financing/sbaloan/7a.html
Tax Increment Financing and Enterprise Zone IncentivesTax Increment Financings http://peoriatif.blogspot.com/