LISC and State Farm® Announce $10 million Fund to Rescue Central Illinois Small Businesses and Non-Profits
The Fund will provide low-interest Loans to Minority-and Women-Owned Businesses and Nonprofits in Vulnerable Communities

[May 31, 2020]    As part of the company’s Good Neighbor Relief response to the COVID-19 crisis, State Farm continues to provide support to communities in need in unprecedented ways.

LISC and State Farm today announced a Good Neighbor Partnership to assist Central Illinois small businesses and nonprofit organizations work through the economic fallout from the pandemic. In the partnership State Farm is providing a $10 million low-cost loan to Local Initiative Support Corporation (LISC), helping the Central Illinois area (for example: Bloomington-Normal, Champaign-Urbana, Decatur, Peoria and Springfield)

With State Farm’s loan, LISC will establish a Small Business Rescue Fund that will enable loans to be distributed to small businesses and nonprofit social enterprises for urgent needs, including operational costs like paying employees, vendors, and rent.

The fund will target the following entities, which represent those most in need of capital infusion:
Women-, minority-, and veteran-led small businesses that provide vital goods, services, and jobs in communities most in danger of permanent closure
Nonprofit social enterprises with revenues of less than $5 million
Small Community Development Financial Institutions (CDFIs) with missions to support small businesses.

As a result of the spread of COVID-19, social distancing is dramatically reducing the revenue of small businesses. Small businesses and those serving traditionally disinvested communities are less likely to have cash reserves, access to credit, funds to support paid leave, and the ability to work remotely.

“We understand the importance of small businesses and realize they are the cornerstone of the community.” Karen Davis, Executive Director of LISC Central Illinois states. “The Rescue Loan Fund will provide capital to help businesses become operational again.”

“State Farm’s commitment will allow LISC to provide reduced costs to borrowers associated with underwriting, closing, and servicing loans,” said State Farm Area Vice President and LISC Chicago Board Member Amy Isuani. “This is important as the risk profile is higher for small business loans, and given the interruption in the economy, underwriting requires a higher level of due diligence within a much shorter time period.”

Since its inception, LISC has invested $22 billion to build or rehab more than 419,000 affordable homes and apartments and develop 70.3 million square feet of retail, community and educational space. In 2020, State Farm and LISC will celebrate the 20th anniversary as partners in support of community development. Since 2000, State Farm has provided more than $149 million in grants and investments, in addition to this loan.

For more information, contact: Karen Davis, Executive Director, LISC Central Illinois, [e-mail].

[Karen Davis]