Incentives

Advantage Illinois

Capital Access Program

The Capital Access Program (CAP) may be accessed via participating banks. Through the program, financial institutions are encouraged to make capital financing loans to small and new businesses that do not qualify under conventional lending policies.

CAP uses small amounts of public resources to generate private bank financing. Funding from a CAP can be used for many business purposes, including, but not limited to:

  • start-up costs,
  • working capital,
  • business procurement,
  • franchise fees,
  • equipment,
  • inventory,
  • and the purchase, construction, renovation, or tenant improvements of an eligible place of business that is not for passive real estate investment purposes.

For more information go to www.commerce.state.il.us

Participation Loan Program (PLP)

The four 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- Basic structure similar to the Standard PLP. This program allows the lender to secure SBA-7A Guarantee support covering its own exposure in the overall financing. DCEO's support is subordinated to both the lender's and SBA's respective positions.

For more information go to www.commerce.state.il.us.

Collateral Support Program

The Collateral Support Program (CSP) may be accessed via participating banks. It is designed to supplement loan collateral of small businesses and entrepreneurs to enhance the equity and/or loan collateral levels of these potential borrowers.  The program supplies pledged collateral accounts to participating lending institutions. This program enhances the collateral of individual loans, while providing a source of deposits to lending institutions.

For more information go to www.commerce.state.il.us.

Illinois Innovation Venture Fund

The Illinois Innovation Venture Fund (IIVF) is a venture capital program seeking to support young,  innovative companies, and start-ups that show a high potential for future growth resulting in the creation of high-paying professional Illinois jobs.  Applicants with a good business model and other interested investors should apply directly to DCEO.

For more information go to www.commerce.state.il.us.

Employer Training Investment Program (ETIP)

The Employer Training Investment Program (ETIP) supports Illinois workers’ efforts to upgrade their skills in order to remain current in new technologies and business practices, enabling companies to remain competitive, expand into new markets and introduce more efficient technologies into their operations. ETIP grants may reimburse Illinois companies for up to 50 percent of the cost of training their employees. Grants may be awarded to individual businesses, intermediary organizations operating multi-company training projects and original equipment manufacturers sponsoring multi-company training projects for employees of their Illinois supplier companies. For more information go to www.commerce.state.il.us.

Economic Development For a Growing Economy Tax Credit Program (EDGE)

The EDGE program 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. For more information go to www.commerce.state.il.us.

High Impact Business (HIB)

The HIB program is designed to encourage large-scale economic development activities, by providing tax incentives (similar to those offered within an enterprise zone) to companies that propose to make a substantial capital investment in operations and will create or retain above average number of jobs.  Businesses may qualify for: investment tax credits, a state sales tax exemption on building materials, an exemption from state sales tax on utilities, a state sales tax exemption on purchases of personal property used or consumed in the manufacturing process or in the operation of a pollution control facility.

The project must involve a minimum of $12 million investment causing the creation of 500 full-time jobs or an investment of $30 million causing the retention of 1500 full-time jobs. The investment must take place at a designated location in Illinois outside of an Enterprise Zone. For more information go to www.commerce.state.il.us.

Industrial Revenue Bonds (IRB)

The Illinois Finance Authority issues tax-exempt Industrial Revenue Bonds (IRB’s) on behalf of manufacturing companies to finance the acquisition of fixed assets such as land, buildings and equipment. Bond proceeds also may be used for either new construction or renovation.

Qualified Industrial Revenue Bond projects include facilities that are primarily used to manufacture or process tangible products. The Internal Revenue Code defines all IRB eligibility requirements. For more information go to www.commerce.state.il.us.

Will County Tax Abatement Program

Will County offers abatement of ad valorem real estate taxes as an incentive to new or retained businesses. Each community develops their specific abatement to the project request on a case-by-case basis.

Will County’s tax abatement program is done on an application/weighted process. As a result of the application evaluation, a project can receive 50% abatement on improvements for 3, 4 or 5 consecutive tax levy years. Abatement can only apply to improvements done to the property, based on the equalized assessed valuation of the property.

The Will County Tax Abatement Incentive is administered by the Will County Center for Economic Development. For more information go to www.c-e-d.org.