IllinoisLoan guaranteeFunding: SSBCIActive

Advantage Illinois Loan Guarantee Program

The Advantage Illinois Loan Guarantee Program, funded by SSBCI 2.0, guarantees part of a loan made by an enrolled lender and pays the lender if the loan defaults. Lenders choose first-loss or pro rata coverage, keep all of the loan income, and can use it for term loans or revolving lines. It serves Illinois small businesses that cannot get financing through normal means.

Agency: Illinois Department of Commerce and Economic Opportunity (DCEO)
Last reviewed: Nov 13, 2026

Key terms

Guarantee amount (standard): Up to 50% of the loan, maximum $2,000,000; minimum guarantee $10,000; dceo.illinois.gov
Guarantee amount (SEDI): Up to 75% of the loan up to $1 million, or 65% of the loan up to $2 million; minimum guarantee $10,000; dceo.illinois.gov
Coverage options: First loss (Advantage Illinois covers losses first, up to the coverage limit) or pro rata (losses shared in proportion to the guaranteed share); dceo.illinois.gov
Origination fee: 3.25% of the guaranteed amount (first loss) or 2% (pro rata); dceo.illinois.gov
Annual guarantee fee: First loss: 0.75% of the guaranteed amount (non-SEDI) or 0.25% (SEDI). Pro rata: 0.50% (non-SEDI) or 0.25% (SEDI).; dceo.illinois.gov
Fee collection: Annual guarantee fees can be escrowed into the borrower's payment; dceo.illinois.gov
Maximum guarantee term: 7 years; amortization beyond 7 years is allowed; dceo.illinois.gov
Loan types: Term loans and revolving lines of credit; dceo.illinois.gov
Interest rate: Negotiated between lender and borrower, within the NCUA interest rate ceiling; the lender keeps 100% of the loan income; dceo.illinois.gov
Job requirement: One full-time job created or retained within 2 years for each $50,000 guaranteed (standard) or each $65,000 (SEDI); dceo.illinois.gov
SSBCI 2.0 allocation: $10.0 million; home.treasury.gov

Borrower eligibility

Fewer than 750 employees.dceo.illinois.gov
Operates in Illinois, is in good standing with the Illinois Secretary of State, is clear of any back taxes, and has had no bankruptcies, judgments or liens in the last five years.dceo.illinois.gov
Must have a present challenge in obtaining financing through normal means, as defined by the financial institution.dceo.illinois.gov
Eligible uses: real estate that is at least 51% occupied by the business, inventory, working capital, equipment, leasehold improvements and accounts receivable. Refinancing is allowed if the existing lender is unrelated, but not to finance an extraordinary dividend or distribution.dceo.illinois.gov
Ineligible uses and project types: goodwill, investment real estate, cannabis, speculative investments and lending operations, lobbying or political contributions, repayment of taxes, and reimbursing or purchasing funds owed to an owner. Gambling may be permissible if the business earns less than 33% of annual net revenue from legal gambling.dceo.illinois.gov
Start-up businesses can use the program; the lender's underwriting guidelines control.dceo.illinois.gov
Businesses owned and controlled (51%) by socially and economically disadvantaged individuals (SEDI), or located in or owned by residents of CDFI Investment Areas, may qualify for better terms. The business must certify its SEDI status, except a business located in a CDFI Investment Area, which can be identified from its address.dceo.illinois.gov

Lender requirements

What a lender must be or do to make these loans.

The lender must be approved and enrolled in Advantage Illinois by DCEO before using the programs. Enrollment is by the online lender application or by email to CEO.SSBCI@illinois.gov.dceo.illinois.gov
DCEO sends a Master Agreement to review; the lender signs a Master Agreement or similar document for each program component it chooses to use.dceo.illinois.gov
Loan agreements must include the borrower reporting required by Section M of the Master Agreements: annual borrower reports to DCEO on job creation or retention, post-closing investment, and prior-year revenue and net income, plus confirmation that the borrower's certifications remain true at closing.dceo.illinois.gov
The lender must notify DCEO when a loan enters default, keep monitoring its Advantage Illinois portfolio, and update Exhibit I when a loan becomes delinquent.dceo.illinois.gov
Lenders report subsequent private financing extended to SSBCI-supported borrowers each year through DCEO's survey, which feeds Illinois' annual SSBCI report to Treasury.dceo.illinois.gov
DCEO will not process new applications from a lender that has an unresolved compliance issue.dceo.illinois.gov
Closing documents must match the approval letter exactly (loan amount, interest rate, business name and other terms).dceo.illinois.gov
Payments to DCEO can be made through Illinois ePay. To receive payments from DCEO by direct deposit, the lender must be registered with the Illinois Comptroller's Office and have a SAP vendor ID.dceo.illinois.gov
Applications are worked first come, first served; turnaround averages four to six weeks.dceo.illinois.gov
The lender pays the origination fee and annual guarantee fees to DCEO, citing the Master Guarantee Agreement number.dceo.illinois.gov

Underwriting requirements

What the credit file has to show.

The lender does its own underwriting and sends its write-up and loan presentation to Advantage Illinois, which uses them for its review.dceo.illinois.gov
The program is meant for deals with collateral or equity shortfalls, no historical cash flow (start-ups), low credit scores or negative net worth.dceo.illinois.gov
The request should state why the lender would not make the loan without Advantage Illinois (for example a start-up, a low credit score, a high-risk industry such as restaurants, or an amount above the lender's lending limit). SEDI status or wanting the rate offset is not a reason to request support and is likely to lead to an adverse action; deals that are strong on credit, capacity, capital and collateral are unlikely to be supported.dceo.illinois.gov
The borrower and its owners complete the ITR-1 form and Exhibits E and F; DCEO sends the ITR-1 forms to the Illinois Department of Revenue for tax clearance before the loan goes to committee.dceo.illinois.gov
Exhibit D must be included in the project submission.dceo.illinois.gov

Required documents

Advantage Illinois lender enrollment applicationLender request to be approved and enrolled in Advantage IllinoisOpen
Advantage Illinois LGP ePay instructionsHow to pay origination and annual guarantee fees electronicallyOpen
Advantage Illinois direct deposit informationHow a lender sets up direct deposit to receive payments from DCEOOpen

Governing documents

The rules a file is held to, with the version in force.

What changed

Published changes to this program, newest first.

Nov 10, 2026Guide
Treasury SSBCI FAQs add post-program rules for after March 11, 2028
Treasury's authority to run the SSBCI Capital Program ends on March 11, 2028. SSBCI funds disbursed to a state before then stay with the state. After that date the state may change, add or end its SSBCI programs without Treasury approval, and SSBCI rules generally stop applying to returned funds and program income.
What to do: No action is needed on loans already supported. Expect the state to be able to change or end this program after March 11, 2028 without Treasury approval, and check the administrator's terms before relying on the program for deals that close after that date.
Read the source
Oct 21, 2026Information notice
DCEO clarifies Section M borrower reporting in the Master Agreements
DCEO restated that Section M of the Master Participation and Master Guarantee Agreements requires each loan agreement to make the borrower report annually to DCEO on jobs, post-closing investment, and prior-year revenue and net income. Starting with the CY2027 annual reporting cycle, DCEO expects to add these fields to lender reporting, which until now covered only subsequent private financing. Broader agreement language changes will come with the next agreement revision.
What to do: Confirm your loan agreements include the Section M borrower reporting covenant and plan to collect jobs, investment, revenue and net income data for the CY2027 reporting cycle.
Read the source
Oct 21, 2026Information notice
Advantage Illinois receives its third SSBCI tranche
DCEO announced that Advantage Illinois has received its third tranche of SSBCI funding from Treasury, adding resources for the participation and guarantee programs.
What to do: No change to terms was announced. Lenders with eligible deals can continue to submit them.
Read the source
Jul 30, 2026Information notice
Advantage Illinois Q2 2026 newsletter: reporting and closing reminders
DCEO flagged recurring problems: incomplete Exhibit I submissions and delinquency updates, wrong NAICS codes, closing documents that do not match the approval letter, and missed Eligible Passive Company / Operating Company steps highlighted in Treasury office hours. It also noted a brief processing slowdown during the FY27 rollover.
What to do: Complete every Exhibit I field and update it when a loan goes delinquent, verify each borrower's NAICS code, check the closing package against the approval letter before submitting, and review internal EPC/OC procedures.
Read the source
Jan 16, 2026Information notice
Advantage Illinois Q4 2025 newsletter: subsequent private financing survey
DCEO announced its survey on subsequent private financing, required for Illinois' annual SSBCI report to Treasury: lenders must report additional private credit extended in calendar year 2025 to borrowers that received SSBCI support. It also named John Taflan as Loan Program Manager.
What to do: Answer the subsequent private financing survey for every SSBCI-supported borrower and keep a record of later credit extended to them.
Read the source
Oct 30, 2025Information notice
Advantage Illinois Q3 2025 newsletter: Exhibit D and compliance holds
DCEO said Exhibit D must be included in project submission forms and that it will not process new applications from a lender with an outstanding compliance issue until it is resolved.
What to do: Include Exhibit D with every project submission and clear any open compliance items with DCEO before submitting new deals.
Read the source

How to participate

Submit the online Advantage Illinois lender application or email CEO.SSBCI@illinois.gov; DCEO sends the Master Guarantee Agreement and can meet to walk through the program. For each deal the lender underwrites the loan, has the borrower and owners complete the ITR-1 and Exhibits, and sends its write-up to Advantage Illinois. DCEO obtains tax clearance, takes the loan to committee, and sends an approval letter for the lender to sign; the guarantee follows once DCEO receives the closing documents.

Last reviewed Nov 13, 2026. A summary of official sources, linked beside each fact, kept current by Kita each week. Program rules change: confirm against the current source before you rely on a figure. Not legal advice. Spotted something out of date? Email hello@kita.ai.

For lenders

Run Advantage Illinois LGP on Kita.

Kita underwrites the whole file, configured to your own credit policy and to the programs you run. Your underwriter keeps the decision.

01 · Reads the file

Tax returns, bank statements and financials, as PDFs, scans or photos.

02 · Builds the spreads

Period over period, with debt service coverage computed from the spread.

03 · Checks it against the program

Tests the file against Advantage Illinois LGP requirements and flags what is missing before it reaches review.

04 · Drafts the credit memo

Every figure links to the page it came from, so it can be checked.

See the AI Underwriter

Related programs

All programs →

IllinoisLoan participation

Advantage Illinois PLP

Advantage Illinois is DCEO's SSBCI loan support program. Under the Participation Loan Program, DCEO buys a subordinate share of a term loan made by an enrolled lender at a fixed below-market rate, lowering the borrower's blended rate and the lender's exposure. It serves Illinois small businesses that cannot get financing through normal means.

Illinois Department of Commerce and Economic Opportunity (DCEO)

IllinoisLoan participation

Illinois Climate Bank PLP

The Illinois Finance Authority, as the Illinois Climate Bank, uses SSBCI 2.0 funds to buy a subordinate share of loans that lenders make to clean energy and other environmentally beneficial businesses in Illinois. IFA's share carries a fixed 2% rate, or 1% for socially and economically disadvantaged and very small businesses, which lowers the borrower's blended rate and the lender's risk.

Illinois Finance Authority (Illinois Climate Bank), with DCEO oversight

FederalOther

SSBCI

SSBCI is a federal program, run by the U.S. Department of the Treasury, that funds state, territory, District of Columbia and Tribal government programs supporting private small business lending and investment. Treasury does not lend. Each jurisdiction runs its own mix of capital access, loan participation, loan guarantee, collateral support and equity or venture capital programs under federal rules. Lenders take part by enrolling in the programs each jurisdiction runs.

U.S. Department of the Treasury

FederalLoan guarantee

SBA 7(a)

SBA's primary business loan program: SBA guarantees part of a loan a participating lender makes to an eligible small business that cannot get the credit on reasonable terms elsewhere. Standard 7(a) loans are 7(a) term loans above $350,000 and up to $5,000,000, used for real estate, equipment, working capital, debt refinancing and changes of ownership. Loans are made under SOP 50 10 8.1, effective October 1, 2026.

U.S. Small Business Administration

FederalLoan guarantee

SBA Express

SBA Express is a 7(a) delivery method for loans and revolving lines of credit up to $500,000 that lenders with SBA Express authority approve themselves, using their own forms, analysis and collateral policies. In exchange for this autonomy SBA guarantees at most 50% of the loan. SBA Express loans to veteran-owned businesses pay no upfront guaranty fee.