Small Business
Rural Development Loan Program
Description:
In participation with the Rural Development Administration's Intermediary Relending Program, the Illinois Finance Authority will finance business facilities and community development projects in eligible rural areas.
Benefits:
Benefits of the program include:
- Finance up to 75% of project cost – maximum of $250,000
-
Interest rate as follows, with a cap of 6%, whichever is less:
- Up to 5 years: Prime(-)1.25%
- Up to 10 years: Prime(-)1.00%
- Up to 15 years: Prime(-)0.50%
- Up to 20 years: Prime(-)0.25%
- Prime = Wall Street Journal, last business day of month
- Long-term financing – terms up to twenty (20) years available
Type of Financing:
This program helps businesses in rural communities with populations of less than 25,000 finance fixed asset projects. Loan proceeds may be used to finance the purchase of land to construct or renovate an industrial building or to purchase machinery and equipment. Real estate projects for manufacturing facilities and industrial warehousing are preferred.
Eligibility:
Applicant must demonstrate the ability to repay the debt. Loan maturities of up to twenty years are available (or matching asset life on equipment). This financing is available to industrial businesses that create new or retain jobs in Illinois.
Applicant must demonstrate that conventional financing was not available (at a comparable rate or term) for the project. Only businesses in non-SSMMA rural areas are eligible for this loan. Please check with an IFA Funding Manager to determine whether your project location qualifies.
Fee:
A non-refundable application fee is due when the application is submitted. A loan commitment fee is payable to IFA at the time the Board approves the transaction and a loan servicing fee is due at the loan closing. In most cases, applications can be reviewed by staff and considered by the Board of Directors within 30 to 45 days of submission.
Contact:
For a fee schedule and additional information, contact a Funding Manager at your local IFA office.
- Chicago office: 312.651.1300
- Springfield office: 217.782.5792
- Peoria office: 309.495.5959
- Mt. Vernon office: 618.244.2424
Applications:
Rural Development Loan Application in PDF Format Rural Development Loan Application in Word FormatNondiscrimination Policy:
The Illinois Finance Authority prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, and reprisal. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact: TTY 800/526-0844 / Voice 800/526-0857.
