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.
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“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, KDavis@lisc.org.
[Karen Davis]
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