Illinois State Treasurer

State Treasurer's Economic Program (STEP)

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STEP was created to encourage and promote economic development and expansion of businesses in Illinois. Every STEP project is approved at the exclusive discretion of the Treasurer’s Office. However, loans are not made directly to the borrower. The financial institution that receives the discounted deposit determines the credit worthiness of the borrower. STEP provides Illinois companies with access to affordable capital to expand their operations and retain or create jobs in the state.

For each permanent full-time job* that is created or retained, the Treasurer can deposit up to $25,000 at below market rates into the borrower’s financial institution. That institution will then lend the money at below prevailing interest rates to the borrower.

*Two part-time jobs equal one full-time job.

 Eligible projects should meet the following general guidelines:

• Existing Illinois for-profit business
• The project must create and/or retain a minimum of three Illinois jobs.
• The borrower must be able to demonstrate that the State will gain long-term benefits from the project.
• The borrower must have the financial ability to carry out the project.

 Eligible use of funds:

• Real estate acquisition
• New construction or remodeling
• Machinery or equipment

 Linked-deposit loan amounts and terms:

• Maximum loan amount: $10 million
• Two-year loan term with possible three-year renewal
• $25,000 for each job created and/or retained
• Financial institutions are capped at a 3 percent mark-up on the state's deposit rate. For the current deposit rate, go to www.state.il.us/treas/. Click on Daily Rates.

*Two part-time jobs equal one full-time job.

STEP Small Business

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The STEP Small Business Program* encourages the creation and retention of jobs and business activity, recognizing that small businesses are often where today's jobs are being created. The program gives small businesses the ability to get a low-interest loan to help them get up and running or to keep them in business giving them a better chance of survival and long-term success.

 Eligibility requirements:

• For brand-new start-up businesses or existing businesses
• Brand-new start-up business must create a minimum of two jobs
• Annual gross sales/revenue (or estimated) of $2 million or less

 Eligible use of funds:

• Real estate acquisition, new construction or remodeling
• Machinery or equipment
• Working capital
• Inventory

 Linked-deposit loan amounts and terms:

• Minimum loan, $2,500; Maximum loan, $750,000
• Two-year loan term with possible three-year renewal
• Financial institutions are capped at a 3 percent mark-up on the state's deposit rate. For the current state deposit rate, go to www.state.il.us/treas/. Click on Daily Rates.

*The STEP Small Business Program is available to assist in our state's economic recovery period commencing July 1, 2004 through June 30, 2006.

Economic Recovery Loan Program (ER)

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The focus of ER is to bring new jobs to Illinois - good-paying jobs with benefits. For each new full-time job that is created, Treasurer Topinka can deposit up to $50,000 at below market rates into the borrower's financial institution. A financial institution then can lend the money at below prevailing market rates to borrowers.

 Eligibility requirements:

• Out-of-state business looking to locate in Illinois for the first time
• Project must bring new, good-paying jobs with benefits to Illinois
• Borrower must have the financial ability to carry out the project
• Demonstrate that the State of Illinois will gain long-term benefits from the project

 Eligible use of funds:

• Real estate acquisition
• New construction or remodeling
• Machinery or equipment

 Linked-deposit loan amounts and terms:

• Maximum loan amount: $10 million
• Two-year loan term with possible three-year renewal
• $50,000 for each job created
• Financial institutions are capped at a 2 percent mark-up on the state's deposit rate. For the current state deposit rate, go to www.state.il.us/treas/. Click on Daily Rates.

For more information on any of these programs, call (312) 814-1788 (Chicago) or

(217) 557-6436 (Springfield), or log on to www.state.il.us/treas/programs/program_page.htm.

SOURCE: Division of Economic Opportunity brochure from Judy Baar Topinka, Illinois State Treasurer.