CITY OF CHICAGO FINANCING
The City of Chicago offers three types of below market loan programs. Borrowers and their principals are
ineligible if they owe the City for water bills, property taxes, head taxes or parking tickets. Contractors
must meet the Davis-Bacon Act minimum wage levels for their employees. Chicago residents must be considered
first for 51% of the new jobs created. No relationship to an enterprise zone is required.
Micro Loans-Micro Loans are direct financings to credit-worthy small for-profit businesses located in Chicago.
The loans must create or retain jobs in Chicago.
Funds Use. Proceeds may be used to purchase machinery and equipment, for rehabilitation, or for
Commercial Business Development Loans
Loan Size. Loans are for 100% of project costs, up to a maximum of $20,000.
Interest. Interest is 3% (fixed) or 75% of prime, fixed at the time of borrowing, depending on
location and type of business.
Term. Loans range from 1 to 5 years, depending on the project.
No start-up: Businesses applying for Micro loans must have at least two years of business
Prior Bank Rejection. Businesses must have applied to a bank for project financing. If the loan
was rejected for non-credit reasons, the company may then apply for a City Micro Loan.
No Existing Debt Financed. Proceeds may not be used to refinance existing debt.
Collateral. 100% collateral coverage is required plus guarantees from each person owning 10% of the
Short Term Loans
Low Income Benefits.
No Existing Debt.
Commercial Loan Size.
Industrial Loan Size.
Interest. Interest ranges from 3% to 75% of prime.
Term. Loan terms range from 3 to 15 years, depending on the project.
50 Participating Banks. 50 banks participate in this program.
Job Creation Required.
Go to Government Incentives for Illinois Businesses Table of Contents
No Existing Debt.
For the full unabridged edition of this document call 847/867-8500.
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