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 working capital.

    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 operations.

    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 business.

Commercial Business Development Loans
    Job Creation.
    Low Income Benefits.
    Funds Use.
    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.
    City's Participation.
    Personal Guarantee.
Short Term Loans
    Job Creation Required.
    Loan Use.
    Loan Size.
    No Existing Debt.
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