We’ll help! The Greater Peoria EDC can assist you in identifying programs that can fill a financial gap or make a project viable. There are a variety of low interest loans, bonds, foreign direct investment (FDI), venture capital funds and infrastructure workforce grants available for business projects. So check out our resources, and let us know how we can help you get going.
- TIF Districts
- Infrastructure Grants
- Large Business Development Program
- Illinois Department of Transportation
- Micro Funding
- Regional Revolving Loan Funds
- Rural Business Enterprise Grant Program
- EDGE Tax Credit Program
- Employer Training Investment Program
- Standard Participation Loan Programs
- Illinois Finance Authority
- USDA Rural Development Programs
- Small Business Administration Programs
Tax Increment Financing, or TIF, is a public financing method that is used as a subsidy for redevelopment, infrastructure, and other community-improvement projects in many countries, including the United States. Similar or related value capture strategies are used around the world.
The following communities in Greater Peoria have established TIF Districts:
Community Development Assistance Program For Economic Development (CDAP-ED)
The CDAP-ED program is a federally funded program that is designed to provide grants to units of local government for economic development activities related to business retention and or expansion opportunities. The program is targeted to assist low-to-moderate income people by creating job opportunities and improving the quality of their living environment. Local governments qualifying to receive grant funds can then make these funds available in the form of loans to businesses locating or expanding in their community. A local government may request grant funds of up to $750,000. Funds may be used for machinery and equipment, working capital, and building construction and renovation. The local government may also use the grant funds for improvements to public infrastructure that directly support a specific economic development project. Applications may be submitted at any time. Local government entities located in heavily populated metropolitan areas of the state may receive funding directly from the federal government and therefore, are ineligible for participation through this program.
Large Business Development Program (LBDP)
The LBDP program is designed to provide grants to businesses undertaking a major expansion or relocation project that will result in substantial private investment and the creation and/or retention of a large number of Illinois jobs. Funds available through the program may be used by large businesses for bondable business activities, including financing the purchase of land or buildings, building construction or renovation, and certain types of machinery and equipment. Grant eligibility and amounts are determined by the amount of investment and job creation or retention involved.
IDOT has several programs that provide state assistance in improving highway and rail access improvements to new or expanding industrial, distribution or tourism developments. The focus of these programs is the retention and creation of Illinois jobs. Funding may be available for transportation improvement projects related to facilities that provide direct access to economic development projects. Projects providing access to retail establishments, office parks, government facilities or school/universities are not eligible.
IDOT Economic Development Program
Administered through the Illinois Department of Transportation (IDOT), the EDP program is designed to provide state assistance to local governments for highway improvements and access to new or expanding industrial distribution and tourism development projects. The state may provide up to 50 percent matching (grant) funds to local governments for eligible public roadway related construction and engineering items. Projects involving private roadways, retail development, office parks, government facilities, and school/universities are not eligible for funding.
IDOT Rail Freight Program
Administered through the Illinois Department of Transportation (IDOT), the RFP program is designed to provide capital assistance to communities, railroads and shippers to preserve and improve rail freight service in Illinois. The primary role of the program is to facilitate investments in rail service by serving as a link between interested parties and channeling government funds to projects that achieve statewide economic development. IDOT will generally provide low interest loans to finance rail improvements and, in some cases, provide grants. The focus is on projects with the greatest potential for improving access to markets and maintaining transportation cost savings, and where state participation will leverage private investments to foster permanent solutions to rail service problems. A benefit/cost ratio is used to evaluate potential rail freight projects.
IDOT Truck Access Route Program
Administered through the Illinois Department of Transportation (IDOT), the TARP program can provide grants to local government agencies to assist them in upgrading roads to accommodate 80,000-pound trucks. The routes are to provide access to points of loading and unloading and to facilities for food, fuel, truck repair, and driver rest. Projects must connect to a truck route and end at another truck route or truck generator. IDOT will provide up to $30,000 per lane mile and $15,000 per intersection. The states participation will not exceed 50 percent of the total construction cost or $600,000 whichever is less. Each fall IDOT solicits local projects that can be constructed during the upcoming fiscal year.
KeyStart is an idea submission and pitch competition which will award a $5,000 investment to one new business idea per month through October 2015. That’s right–we are going to facilitate investment in six companies in six months! The purpose of this program is to provide entrepreneurs with fast access to capital in order to turn ideas into real companies.
The Morton MicroGrant provides small grants of up to $5,000 to for-profit business owners interested in starting, moving, or growing a business in Morton. Funds can be used for property improvement or acquisition, equipment purchases, inventory and working capital, and rent subsidies. The Morton MicroGrant is funded through a directed investment with the Morton EDC made by Morton Community Bank. Applications are reviewed on a monthly basis as needed
Regional Revolving Loan Funds
Community Development Assistance Program (CDAP)
Illinois DCEO administers the CDAP Economic Development Program which is a federally funded program that is designed to provide grants to units of local government for economic development activities related to business retention and or expansion opportunities. The program is targeted to assist low-to-moderate income people by creating job opportunities and improving the quality of their living environment. Local governments qualifying to receive grant funds can then make these funds available in the form of fixed low-interest loans up to $150,000 to businesses locating or expanding in their community. Revolving Loan Funds may be used for machinery and equipment, working capital, and building construction and renovation. The local government may also use the grant funds for improvements to public infrastructure that directly support a specific economic development project.
The following counties and communities in the Greater Peoria Region have Funded Revolving Loan Funds:
Rural Business Enterprise Grant (RBEG) Program
The RBEG program provides grants for rural projects that finance and facilitate development of small and emerging rural businesses, help fund distance learning networks, and help fund employment related adult education programs. To assist with business development, RBEGs may fund a broad array of activities including the establishment of revolving loan funds that make fixed, low-interest loans for start ups and working capital. Any project funded under the RBEG program should benefit small and emerging private businesses in rural areas. Small and emerging private businesses are those that will employ 50 or fewer new employees and have less than $1 million in projected gross revenues.
The following communities have an established a USDA RBEG Revolving Loan Fund:
- City of Elmwood
Economic Development for A Growing Economy (EDGE) Tax Credit Program
The EDGE program is one of the Department of Commerce and Economic Opportunity (DCEO) Illinois Programs. It is designed to offer a special tax incentive to encourage companies to locate or expand operations in Illinois when there is active consideration of a competing location in another state. The program can provide tax credits to qualifying companies, equal to the amount of state income taxes withheld from the salaries of employees in the newly created jobs. The non-refundable credits can be used against corporate income taxes to be paid over a period not to exceed 10 years. To qualify a company must provide documentation that attests to the fact of competition among a competing state, and agree to make an investment of at least $5 million in capital improvements and create a minimum of 25 new full time jobs in Illinois. For a company with 100 or fewer employees, the company must agree to make a capital investment of $1million and create at least 5 new full time jobs in Illinois.
Employer Training Investment Program (ETIP)
ETIP is eligible to Pre-Qualified Illinois businesses applying for training funds as part of an Economic Development Incentive Project. Companies located in Illinois who are expanding, relocating, or are in jeopardy of closing may be eligible for pre-qualification in the program. Participation requires companies to meet certain capital investment and Job creation and/or retention goals and provide a dollar for dollar match of the grant award.
Standard Participation Loan Programs
With any of the PLP loans, the financial institution identifies potential opportunities for state participation. To participate, the lender must submit the Master Agreement below to DCEO.
The five loan programs are:
- The Standard Participation Loan Program (PLP) – designed to enable small businesses to obtain medium to long-term financing, always will be in the form of term loans, to help them grow and expand their businesses. DCEO participation is subordinated to the lender and has a “below market” interest rate.
- Minority/Women/Disabled/Veteran-Owned Businesses- similar to the Standard PLP. However, the amount of financial support may range depending on loan term, MWDV majority control/ownership.
- Revolving Line of Credit (RLOC PLP)-similar to the Standard PLP except in the form of a revolving line of credit. Maximum term is two years and further support requires reapplication.
- PLP Support of Small Business Administration SBA-7A Activity – DCEO support will now be restricted to financing purposes other than those financed under the SBA-7A Guaranteed Loan. Thus DCEO will participate in up to 50% of “Companion Loans” provided by the Lender to the same Borrower, and documented with separate, unguaranteed Notes. DCEO’s support is subordinated to both the lender’s and SBA’s respective positions.
- PLP Support of Small Business Administration SBA-504 Activity – DCEO support will now be restricted to financing purposes other than those financed under the SBA-504 Structure. Thus DCEO will participate in up to 50% of “Companion Loans” provided by the Lender to the same Borrower, and documented with separate Notes. DCEO’s credit exposure will be subordinated to the Lender’s, and when required, to the SBA’s interests as well.
Illinois Finance Authority
The Illinois Finance Authority (IFA) offers an array of financing programs for not-for-profits, businesses and municipalities. IFA provides expert, hands-on support to help businesses get the capital they need for growth. To strengthen Illinois businesses and the State’s economic development agenda, the IFA provides access to low-cost, non-conventional financing, through banks and other sources. IFA secures financing for farms, industries, businesses, local govenments, hospitals and other non-profits. The agency is continually seeking new opportunities and invites developers, financiers and community partners to see how IFA can help.
USDA Rural Development Programs
USDA Rural Development is the leading advocate for rural America. The mission area supports rural communities and enhances quality of life for rural residents by improving economic opportunities, community infrastructure, environmental health, and the sustainability of agricultural production.
To support rural regional economic prosperity, USDA Rural Development provides job training and business development opportunities for rural residents, including cooperative business development, community economic development and strategic community planning and faith-based and self-help initiatives. Funding for most of these efforts is administered by USDA Rural Business Programs.
Rural Development also offers programs to provide the educational opportunities, training, technical support, and tools for rural residents to start small businesses and to access jobs in agricultural markets, the green economy, and other existing markets, as well as acquire training in vocational and entrepreneurship skills they can use in the marketplace and business sector.
Small Business Administration Programs
The U.S. Small Business Administration (SBA) was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation. The SBA helps Americans start, build and grow businesses. Through an extensive network of field offices and partnerships with public and private organizations, SBA delivers its services to people throughout the United States, Puerto Rico, the U. S. Virgin Islands and Guam.
The SBA offers general small business loans, micro loans, real estate and equipment loans, and disaster loans for small businesses. Many local banks and financial institutions offer support in accessing the SBA programs for their clients.
ILLINOIS ENTERPRISE ZONES
The Illinois Enterprise Zone Program is designed to stimulate economic growth and neighborhood revitalization in economically depressed areas of the state. This is accomplished through state and local tax incentives, regulatory relief, and improved governmental services.
The Illinois Enterprise Zone Act was signed into law December 7, 1982. The purpose of the Act is to stimulate economic growth and neighborhood revitalization in economically depressed areas of the state. Businesses located (or those that choose to locate) in a designated enterprise zone can become eligible to obtain special state and local tax incentives, regulatory relief, and improved governmental services, thus providing an economic stimulus to an area that would otherwise be neglected.
- Property Tax Abatement
- Permit Fee Waivers
- Jobs Tax Credit
- Dividend Income Deduction
- Interest Deduction
- Contribution Deduction
- Building Material Sales Tax Exemption
- Machinery & Equipment/Pollution Control Facilities Sales Tax Deduction
- Utility Tax Exemption
- Investment Tax Credit
LOCAL ENTERPRISE ZONES
- City of East Peoria
- City of Washington
- Village of Germantown Hills
- Tazewell County
- State Financing Application Assistance
- Sales Tax Abatement
- Fee Waiver (varies)
- Property Tax Abatement
- Business Community Improvement Program Grant