Illinois Department of Commerce & Economic Opportunity (DCEO)

1. Illinois Department of Commerce & Economic Opportunity (DCEO) Stan Luboff Capital Programs Manager Business Finance Division (312) 814-1595

2. Financing Programs • Participation Loan Program(PLP) PLP Derivatives • Minority, Women and Disabled PLP • Development Corporation PLP • Enterprise Zone PLP

3. Participation Loan Program (PLP)To support small, for profit businesses, operating in Illinois, focusing on projects that create/retain substantial employment or modernizations that improve competitiveness. Designed to provide credit enhanced financing in the form of subordinated debt. 1)Lender executes Master Participation Agreement 2)Lender reviews individual loan applications, applies its own credit standards, and, if appropriate, approves the credits, (including the pertinent collateral and security matters), contingent upon DCEO’s participation 3)Short and Simple Application Process. • One Page application by lender with supporting documentation • One Page application by borrower

4. Participation Loan Program Uses • Typically utilized for manufacturing/industrial projects, involving construction, purchase, or renovation of business premises and the purchase/installation of machinery/equipment • May be used for almost any business expense except debt refinancing or contingency funding.

5. Standard Participation Loan Program TermsLender determines the rate and fees they wish to charge. • DCEO participation: Up to 25% of the total project/up to 50% of Lender’s loan, (whichever is less), not to exceed $750,000, nor, initially, to be less than $10,000 • Lender must retain at least 50% of the loan • Interest rate on DCEO participation: - Variable Rate: Prime/Prime -1%, floating, (but not < 3%) - Fixed/Adjustable Rate: Established at a level that produces an inducement comparable to DCEO’s Variable Rate pricing. • The loan term will generally match the Lender’s, but may not be longer than 10 years. • DCEO’s position as Creditor is subordinated to that of the Lender’s

6. Minority, Women and Disabled PLP(51%-owned, and daily operations controlled by, one or more members of the applicable classifications) All aspects of the Standard Participation Loan Program apply except for the following: • DCEO can participate in these small business loans up to 50% of the total project cost, but no more than 50% of the Lender’s loan. • DCEO participation: Minimum of $10,000/Maximum $50,000, for a maximum term of 5 years. • Interest rate on DCEO participation: - Variable Rate: Prime -0.5/-1.5%, floating, (but not < 3%) -Fixed/Adjustable Rate: Established at a level that produces an inducement comparable to DCEO’s Variable Rate pricing

7. Development Corporation PLP Established to supplement commercial lenders in promoting economic development through Development Corporations, (public and bank-sponsored/funded entities), that support underserved small businesses. All aspects of Standard PLP apply EXCEPT: • Fewer industry restrictions • Interest rate on DCEO participation: - From the same interest rate charged by the Development Corporation to the Development Corporation’s rate minus 1.0%, (but not < 3%) • Development Corp/DCEO share collateral on a pro-rata basis

8. Enterprise Zone Financing Program Established in order to promote economic development within Illinois Enterprise Zones. All aspects of Standard PLP apply EXCEPT: • Fewer industry restrictions • Interest rate on DCEO participation: - Variable Rate: Prime minus 0.5% to Prime minus 2.0%, floating, (but not < 3%) -Fixed/Adjustable Rate: Established at a level that produces an inducement comparable to DCEO’s Variable Rate pricing • The Zone Administrator must verify that the business project is located within the Enterprise Zone.