[AUG. 6, 2005] SPRINGFIELD -- In an aggressive move to help
small businesses in rural communities throughout Illinois gain
access to critical capital, Gov. Rod R. Blagojevich signed
legislation Aug. 1 creating an innovative rural business loan
program. By tapping into this new program, small businesses will be
able to make key improvements to their infrastructure, allowing them
to modernize their operations and increase their competitiveness.
The loan program is expected to make a major impact in downstate
communities, where it should help create and retain hundreds of
jobs.
"Small businesses in Illinois who want to expand or modernize their
operations should never be stopped solely due to a lack of access to
capital," Blagojevich said. "By establishing this micro-loan
program, we are increasing the availability of capital for small
businesses, especially in rural areas where it's often hardest to
find, and providing another critical tool to help make their
ventures successful. This legislation will ensure that good jobs
stay in the community and help strengthen the foundation of
small-business activity in rural areas across the state. When we
help small business prosper, we help the entire Illinois economy
prosper."
This legislation, as spelled out in
Senate Bill 15, establishes the Rural Microbusiness Loan
Program. Under the program, the Illinois Department of Commerce and
Economic Opportunity will partner with banks to issue loans to
businesses of five or fewer people that produce, process or market
agricultural, forest, cottage and craft products, or who are
involved in tourism. The state's participation allows lenders to
stretch limited resources and reduce exposure in loans made through
this program, permitting banks to approve loans they otherwise could
not. Loans are to be used to help create or retain jobs, modernize
equipment or facilities, or maintain competitiveness.
Senate Bill 15 is sponsored by state Sen. John Sullivan,
D-Rushville, and state Rep. Bob Flider, D-Mount Zion.
"Small business is the key to fostering a diversified economy
that has the capacity to generate more opportunities and prosperity
for working families," Sullivan said. "Governor Blagojevich and I
believe this legislation is another important effort to act as a
better partner to small businesses and ensure they have all the
tools they need to make their ventures a success in this global
economy."
"Small businesses are at the heart of rural economies throughout
central Illinois," Flider said. "Allowing them to obtain loans at a
more competitive rate helps them to expand and create more jobs.
This program will support local economic engines by focusing on the
development of businesses that specialize in central Illinois,
including agriculture and tourism."
