Small businesses and nonprofits in central Illinois struggling due to the coronavirus have a new option for loan assistance thanks to a $10 million investment from State Farm.
State Farm said Tuesday it will provide a $10 million low-cost loan to the Local Initiative Support Corp. (LISC), which has a Central Illinois office based in Peoria. LISC will then loan money out to nonprofits and small businesses across Central Illinois, including Peoria, Bloomington-Normal, Champaign-Urbana, Decatur, and Springfield.
“The partnership between State Farm and LISC could not have come at a better time. We have many great federal and state resources to assist Central Illinois businesses impacted by COVID-19. However, some businesses fall through the cracks,” Bloomington-Normal Economic Development Council CEO Patrick Hoban said in a statement. “The Small Business Rescue Fund is a great opportunity to help some of those who missed out on earlier funding opportunities.”
Indeed, the $349 billion federal Paycheck Protection Program to boost small businesses ran out of money last week. Congress and the Trump administration are working to replenish that program.
LISC’s Small Business Rescue Fund, created using State Farm’s loan, will target the following organizations which represent those most in need of capital infusion:
- Women-, minority-, and veteran-led small businesses that provide vital goods, services, and jobs in communities most in danger of permanent closure.
- Nonprofit social enterprises with revenues of less than $5 million.
- Small Community Development Financial Institutions (CDFIs) with missions to support small businesses.
“We understand the importance of small businesses and realize they are the cornerstone of the community,” said Karen Davis, executive director of LISC Central Illinois. “The Small Business Rescue Fund will provide capital to help businesses become operational again.”
LISC has been involved with many community projects in Central Illinois, including senior and veterans housing units at the Glen Oak Housing Development in Peoria and a home repair program in East Peoria’s Richland neighborhood. In Bloomington, LISC was one of the partners that opened the Financial Opportunity Center with Mid Central Community Action in 2018.
For more information about the loan program, contact Karen Davis.
