|Written by Tetiana Sitiugina-Babiuk - Independent writer and content strategist, updated on 9/10/2021|
|At a glance — Throughout the United States, Illinois earns the 28th spot for starting or owning a small business. As of 2021, it counts over 1.23 million registered small businesses, with over 45% of the state’s workforce employed in this field. Illinois has local laws that support the industry growth with the average small business loan amount at around $37,971.|
Top 3 Options for Small Business Loans in Illinois
Backed by the nation-wide Heartland Financial USA, Illinois Bank & Trust is dedicated to providing local financial services for personal and business needs alike. Whether your Illinois small business is in need of new equipment, additional office space, or just a business line of credit, the bank offers numerous solutions, including government-guaranteed SBA loans, lines of credit, term loans, and more.
Some of other programs offered by Illinois Bank & Trust include:
- SBA 7(a) program. The Bank’s 7(a) program provides long-term loans to help businesses cover expenses associated with expansion, restructuring, business development and refinancing, and more. Both small and large loan amounts are available, and the fees and rates are comparable to other, non-guaranteed loans.
- SBA 504 loans. This initiative primarily focuses on equipment and real estate acquisition, as well as ground-up construction or building improvements.
- Other lending options. Additional lending options and tools available for small businesses include lines of crest, term loans, letters of credit, leasing solutions, and more.
The Illinois Department of Commerce and Economic Opportunity (DCEO), in partnership with the Illinois Department of Financial and Professional Regulation (IDFPR), has established the Illinois Small Business Emergency Loan Fund with the goal to provide the state’s small businesses with affordable low-interest loans of up to $50,000.
In addition, the Illinois state government has established the $636 million Business Interruption Grants (BIG) program to provide much-needed relief for small businesses who have suffered due to the Covid-19 pandemic.
All-in-all, the Illinois Small Business Emergency Fund offers the following products and services:
- Illinois Small Business Emergency Loan. Small businesses may apply for a low-interest loan of up to $50,000. The loan must be used for working capital, with at least 50% of loan proceeds applied toward payroll or other compensation schemes, such as wages, salaries, paid leave, tips, or group healthcare benefits.
- Business Interruption Grant (BIG) program. The BIG program allows eligible small business owners who have already received loans to convert them to grants in order to offset the significant losses encountered due to the COVID-19 pandemic.
3. Byline Bank
If you require a large, government-backed business loan, but don’t have sufficient assets, Byline Bank could offer some good options for you.
Among other Illinois small business loan alternative, Byline Bank offers:
- SBA 7(a) loans. The Bank’s 7(a) loans are backed by the SBA, ranging between 75% and 85%. For such loans, you would generally be required to put up collateral to cover the remaining 15% to 25%. However, with Byline Bank, you would typically not have to put up the entire amount. As such, Byline Bank is both an SBA Preferred Lender and one of the business SBA 7(a) loan providers in the United States.
- SBA 504 loans and CAPLines. If you need a line of credit, real estate financing, or supplies, Byline Bank also offers SBA 504 loans and CAPLines.
- Business and Industry loans. Eligible applicants can apply to receive a Business and Industry (B&I) loan as well. This scheme is sponsored by the US Department of Agriculture (USDA) and guaranteed by the government, allowing rural businesses to borrow between $1 and $10 million for terms ranging up to 30 years.
- Franchise loans. Loans for franchises are available as well. The Byline Bank’s professional franchise lending team will help you to receive an SBA loan customized to your own needs.
- Loans for financial advisers. If you are a financial adviser, you are also welcome to apply for an SBA loan, - Byline offers loans between $150,000 and $5 million for a 10-year period of up to 100% funding.
- Equipment financing. The Bank also provides flexible loan options for equipment financing.
Summary of Top 3 Illinois Small Business Loan Providers
Type of Financing
Illinois Bank & Trust
SBA 7(a) program
SBA 504 loans
Business lines of credit
It varies depending on the loan amount
Illinois Small Business Emergency Loan Fund
Small Business Emergency Loans
Business Interruption Grants
Up to $50,000
SBA 7(a) loans
SBA 504 loans
Business and Industry Loans
$1 to $10 million depending on loan type and the collateral that you are able to put up
Varies according to loan type, amount, and repayment term
Up to 30 years