1. State Small Business Credit Initiative
Matt Jennings
Illinois Department of Commerce & Economic Opportunity
500 E Monroe
Springfield, IL 62701
Direct Phone: (217)
Address:

2. STATE SMALL BUSINESS CREDIT INITIATIVE (“SSBCI”)
Origin
Small Business Jobs Act of 2010
Title III – “State Small Business Credit Initiative
$1.5 BN, divided according to state/territory population and unemployment experience during 2008 & 2009
Illinois Allotment: $78,365,264, divided into three disbursements of approximately $26MM each

3. Advantage Illinois (“AI”)
AI Performance as of 1/23/14
Total Amt of Loans/Investments:
$443,904,877
Total Amt of AI Funds Obligated/Expended:
$54,732,073
Total Amt of Private Sector Loans/Investments Catalyzed:
$389,227,115
Total Jobs Created/Retained:
2,319 / 1,521

4. Two Avenues to Access Capital
Institutional Lending
Capital Access Program
Participation Loan Program
Venture Capital
Invest Illinois Venture Fund

5. Eligible Business Purposes
start-up costs
working capital
business procurement
franchise fees
equipment
inventory
purchase, construction, renovation, or tenant improvements of an eligible place of business that is not for passive real estate investment purposes.

6. Capital Access Program
Where to Access
A participating lender
How Loans Work
Borrower is charged an upfront fee of 2-5%, which is deposited into a bank Reserve Account.
The fee amount is matched by DCEO and deposited in the same account, aiding the Bank’s ability to build reserves against future loan losses
CAP loans are private transactions between banks and borrowers and the bank assumes risk; DCEO plays no role in lending decisions nor in setting loans terms & conditions
Eligible Borrowers
Business located and legally authorized to do business in Illinois
500 or fewer employees
Maximum loan size: $1M
Types of Loans
Term loans up to 5 years
Revolving Lines of Credit (renewable for up to one year, with only one fee due)

7. Participation Loan Program
Where to Access
A participating lender or DCEO Financial Analyst
How Loans Work
Financial institution identifies potential opportunities for state participation
Or DCEO reviews business plan and facilitates a meeting with the prospective borrower’s bank
Eligible Borrowers
Viable small/middle market business
For-profit business
750 or fewer employees
4 Product Lines
Standard PLP
Minority/Women/Disabled/ Veteran-Owned Business
Revolving Line of Credit

8. Standard Participation Loan Program
DCEO’s Product Lines
Standard Participation Loan Program
DCEO Participation is subordinated to Lender’s credit exposure
Once Master Agreement is signed by Lender, deal-specific documentation and loan servicing is “short and simple”.
Maximum support is the lesser of a) 25% of the “Project”, b) 50% of the Loan, or c) up to $2MM, depending on job creation/retention. Maximum DCEO tenor is 10 years. Interest Rate is “below market.”
DCEO financial support may range from $25K to $50K per FTE, (depending on Loan term, Minority/Women/Disabled/Veteran majority control/ownership, Enterprise Zone location, etc.)
Cannot be used for “passive real estate investment” (Borrower must occupy at least 51% for the business being financed.)
Refinancing of one Lender’s loans by an unrelated Lender now permitted.

9. PLP for Minority/Women/Disabled/Veteran- Owned Businesses (“MWDV PLP”)
DCEO’s Product Lines
PLP for Minority/Women/Disabled/Veteran- Owned Businesses (“MWDV PLP”)
Basic structure is similar to the Standard PLP, except that maximum support is the lesser of a) 40% of the “Project”, b) 50% of the Loan, or c) up to $200K, depending on job creation/retention. Maximum MWDV PLP tenor is 7 years.
Applicable interest rate is “below market”.
DCEO financial support may range from $25K to $65K per FTE, (depending on Loan term, MWDV majority control/ ownership, Enterprise Zone location, etc.)

10. Revolving Line of Credit PLP Program
DCEO’s Product Lines
Revolving Line of Credit PLP Program
(“RLOC PLP”)
Basic structure is similar to the Standard PLP.
Maximum support is the lesser of a) 25% of the “Project”, b) 50% of the RLOC Facility, or c) up to $2MM, depending on job creation/retention. Interest Rate on DCEO’s portion is “below market”.
DCEO financial support may range from $25K to $50K per FTE, (depending on Loan term, Minority/Women/Disabled/Veteran majority ownership/ control, Enterprise Zone location, etc.)
Refinancing of one Lender’s RLOC facility by an unrelated Lender is now permitted.
Maximum RLOC Tenor is two years. Further support requires reapplication.
DCEO’s Participation in the Facility will be deposited with Lender.
The Lender will pay a low annual interest rate on the entire amount of DCEO’s Participation, (which can be built into the overall RLOC interest rate charged by the Lender to the Borrower).

11. Two Avenues to Access Capital
Institutional Lending
Capital Access Program
Participation Loan Program (4)
Collateral Support Program
Venture Capital
Invest Illinois Venture Fund
The 2nd way to access capital is through the state’s new venture capital fund.
GOALS OF THE IIVF
• Accelerate the commercialization of research discoveries and growth of start-up companies in Illinois.
• Increase the number of successful investment-grade companies with a significant presence in Illinois.
• Catalyze private capital investment and position more companies to attract additional venture investment.
• Create sustainable high-paying jobs.
• Generate return within the portfolio to ensure sustainability.
With our Venture Capital program, Invest Illinois, Illinois is targeting high-growth companies (in fields such as bio-tech, agri business, etc.) with the potential for creating good-paying jobs. All stages of venture capital financing are eligible, including seed/angel, early stage, expansion and mezzanine financing.

12. Invest Illinois Venture Fund
Preferred Applicants
3rd party investment commitment
Fast growth company in expanding markets
Dedicated and experienced management team
New idea/leverages technology
Strong and sustainable with competitive advantage
Defined investment plan
Strong strategic partners
Establishing reasonable price per share
State strategic value and potential to impact Illinois economy
How Process Works
Application submitted
Internal Review
Interview with mgt team
Response within 30 days
Funding Parameters
Awards under $1M and/or 25% equity
Investment in form of equity or convertible debt
Likely to follow lead investor terms
Preferred Applicants:
1) Already has an actual, conditional, or anticipated market-based third-party lead investment commitment;
2) Pursues a rapidly expanding market with demonstrated potential for large market share;
3) Has a dedicated management team with significant experience to execute;
4) Features a new idea /leverages technology with a clear path to commercialization and monetization;
5) Has a strategy demonstrating a strong sustainable competitive advantage;
6) Has an investment plan for:
(a) securing follow-on venture capital or financing to successfully sustain the company;
(b) to successfully sustain the company upon completion of the venture capital financing;
7) Has successful collaborations and experience (preferably with Illinois-based incubators, labs and universities) needed to commercialize technology and accelerate the growth of a high-tech start-up company;
8) Establishes reasonable price per share or terms;
9) Offers strategic value to the Illinois economy
10) Conforms to all DCEO and US Treasury SSBCI guidelines.

13. How to Apply www.ildceo.net/AdvantageIllinois
Make sure you have a credible business plan by visiting an Illinois SBDC
Contact a participating financial institution
Visit our web site for more information or
IIVF online application

14. Illinois Department of Commerce & Economic Opportunity
Questions about institutional lending programs
Contact Me
Matt Jennings
217/
Illinois Department of Commerce & Economic Opportunity
Illinois DCEO
Keep in touch
Q & A