IllinoisLoan participationFunding: SSBCIActive

Climate Bank Finance Participation Loan Program

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.

Agency: Illinois Finance Authority (Illinois Climate Bank), with DCEO oversight
Last reviewed: Nov 13, 2026

Key terms

Maximum participation (standard): Lesser of 25% of the total project, 50% of the loan, or $2,000,000; illinoisclimatebank.com
Maximum participation (SEDI and very small business): Lesser of 50% of the total project, 50% of the loan, or $2,000,000; illinoisclimatebank.com
Minimum participation: $25,000; illinoisclimatebank.com
Rate on IFA's share: 2% fixed per annum (standard); 1% fixed per annum (SEDI and very small business); illinoisclimatebank.com
Maximum term: 7 years on IFA's participation; if the loan matures after 7 years, IFA requires a balloon payment at the end of year 7; illinoisclimatebank.com
Lien position: IFA's participation is subordinated to the lender; illinoisclimatebank.com
Fees: IFA charges no fees and no prepayment penalties; no closing costs beyond what the lender charges to originate; illinoisclimatebank.com
Job requirement: One full-time job estimated to be created or retained within 2 years for each $50,000 participated (standard) or each $65,000 (SEDI and very small business); illinoisclimatebank.com
Overall cap: IFA's participation in any loan never exceeds 50%; the 25% of project and 50% of loan limits can be waived only by written determination of the IFA Board; home.treasury.gov
SSBCI 2.0 allocation: $20.0 million; home.treasury.gov

Borrower eligibility

No more than 750 employees; operates in Illinois; in good standing with the Illinois Secretary of State; clear of back taxes; no bankruptcies, judgments or liens in the past 5 years.illinoisclimatebank.com
The project must fit an eligible category: clean air or water and wastewater treatment; wind, hydro or solar equipment; electric vehicles and charging stations; clean energy generation, alternative fuels and battery technologies; energy conservation; biomaterials and sustainable agriculture; rural or underserved broadband; or other efforts with environmental benefit.illinoisclimatebank.com
Eligible uses include start-up costs, business procurement, franchise fees, equipment, inventory, and the purchase, construction, renovation or tenant improvements of a place of business that is not for passive real estate investment.illinoisclimatebank.com
Nonprofits, including hospitals, educational institutions and churches, can apply.illinoisclimatebank.com
Not eligible: cannabis, investment real estate, tobacco, adult entertainment and gambling, goodwill in a change of ownership, and any project without a green or clean element.illinoisclimatebank.com

Lender requirements

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

To become a participating lender, complete the Request to Become a Lender form and send it with a signed IRS Form W-9 and IRS 147-C letter to Francisco Galliano at fgalliano@il-fa.com.illinoisclimatebank.com
Participating lenders sign the Climate Bank Finance Master Participation Agreement with IFA (a draft is posted on the program page).illinoisclimatebank.com
The lender originates, underwrites and services every loan and accepts applications on a rolling basis using its own underwriting standards and loan processes.illinoisclimatebank.com

Underwriting requirements

What the credit file has to show.

IFA staff review the bank's analysis to confirm it meets the Climate Bank's credit standards, industry best practices and other IFA requirements.illinoisclimatebank.com
IFA does not require a business plan; the lender may.illinoisclimatebank.com

Required documents

Request to become an IFA/CBF Participation Loan Program LenderLender application to join the programOpen
Climate Bank Finance Master Participation Agreement (draft)Master agreement between IFA and the participating lenderOpen

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

How to participate

Send the Request to Become a Lender form, a signed W-9 and an IRS 147-C letter to IFA (fgalliano@il-fa.com) and sign the Master Participation Agreement. For each deal, the lender underwrites and structures the loan, then submits its analysis to IFA for review; IFA buys its participation and the lender services the whole loan. Borrowers whose lender is not yet approved can arrange a call with IFA and the lender.

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 Illinois Climate Bank PLP 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 Illinois Climate Bank PLP 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.

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