Department of Commerce and Economic Opportunity

Short Description
The Rural Micro-business Participation Loan Program is a variation of the Participation Loan Program designed to provide subordinated loans of up to 50% of a project (maximum $25,000) to Illinois Rural Micro-businesses through participating lending institutions. A rural micro-business is a for profit business that: (i) employs 5 or fewer full-time employees, including the owner if the owner is an employee, and (ii) is based on the production, processing, or marketing of agricultural products, forest products, cottage and craft products, or tourism. The borrower is required to provide equity of at least 10% of the project up to $1,000 (10% of a $10,000 project). Funds cannot be used for debt refinancing or contingency funding.

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Description

The Rural Micro-business Participation Loan Program is subject to annual funds allocation. Applications will be accepted provided funds are available. At least 80% of available funds will be allocated to applicants located in counties with populations of 100,000 or less.

The Department’s interest rate will be established at the time of its loan commitment, will usually not exceed the lender’s rate and may be less. DCEO’s interest rate on this program variation may be lower than on a regular participation. In no event shall the Department’s rate be less than three percent. Rate estimates may be obtained for proposed projects by contacting the Department.

For Further information please contact:
Illinois Department of Commerce &
Econonic Opportunity
Business Finance Division
620 E. Adams
Springfield IL, 62701
Tel: 217-782-3891
TDD: 800 -785-6055