Program Name: Climate Bank Finance Participation Loan Program
Organization: Illinois Finance Authority / Illinois Climate Bank
Address: 160 N. LaSalle St.
Suite S-1000
Chicago, Illinois 60601
Phone: 773-590-0578
Fax:
TDD:
Email: ejoseph@il-fa.com
Website: Illinois Climate Bank | Illinois Finance Authority (il-fa.com)
Application Deadline: Applications accepted on a rolling basis
Program Start Date: On-going
Program End Date: March 2028
Application Guidelines: Participating Lender applications available on Illinois Climate Bank website.
Prospective Borrowers should consult with their local financial institution and request that the Lender apply on their behalf.
Briefly Describe the Purpose of the Program
IFA’s Climate Bank Finance PLP assists Illinois businesses that create or retain jobs by offering its Participation Loan Program (“PLP”) in conjunction with enrolled Participating Lenders. Through this program, the Climate Bank will purchase participations directly from the Borrower’s Lender of up to the lesser of a) 25% of a Total Project, b) 50% of a specific loan within the Total Project, c) or $2,000,000.

CBF is focused on clean energy and environmentally focused business such as: clean air/water projects and wastewater treatment, production/installation of wind, hydro, and solar power equipment, clean energy generation, alternative fuel production, new battery technologies, production/installation/servicing of electric vehicles and EV charging stations, energy conservation, as well as rural region-focused biomaterial production, sustainable agricultural practices, expansion of broadband services in underserved communities.
Year Program Established: 2021
Eligibility Requirements or Restrictions
Eligible Applicants must employ less than 750 employees.
Businesses seeking support as Very Small Businesses, (“VSB”) must employ 9 or fewer employees.Strong focus on providing support to Socially and Economically Disadvantaged Individuals (“SEDI”).  SEDI Applicants include individuals subjected to prejudice/cultural bias in American society.  This prejudicial environment may be due to their membership in a group subjected to prejudice related to their;
a) racial/ethnic identity, b) sexual identity, c) Veteran status, d) limited proficiency in English language, e) physical handicap, f) Long-term residence in an isolated environment from mainstream American society, g) membership in a federally or state-recognized Indian tribe, h) long-term residence in a rural community, i) residence in a U.S. territory, j) residence in a community undergoing economic transitions, k) membership in another “underserved community”,

Additionally, all companies located in/planning to locate in CDFI jurisdiction areas, as well as businesses whose majority ownership resides in a CDFI jurisdiction area, qualify as SEDI.
Funding Cap Per Application or Fiscal Year Program Funding: $2,000,000.00
How Must Funds Be Used:
Designed to enable small businesses to obtain short, medium, or long‐term financing in the form of term reduced-interest loans to help grow and expand their operations.

Under the Standard PLP Program, the Climate Bank is willing to consider participating up to the lesser of a) 25% of a project’s total cost, b) 50% of a loan facility within a larger overall project, or c) $2,000,000 for up to 7 years. Climate Bank participation is typically subordinated to that of the Participating Lender and incorporates a “below market” blended/weighted interest rate. The interest rate applicable to the Climate Bank’s Standard PLP participation amount is 2% fixed per annum. It is expected that for each $50,000 participated, at least one new full time job will be created or at least on at-risk job will be retained within the following two years.

SEDI and VSB Support:  Under its Participation Loan Program for SEDI/VSB-classified Borrowers, the Climate Bank is willing to consider participating up to the lesser of a) 50% of a project’s total cost, b) 50% of a loan facility within a larger overall project or c) $2,000,000 for up to 7 years.  Climate Bank’s participation is typically subordinated to that of the Participating Lender and incorporates a “below market” blended/weighted interest rate. The interest rate applicable to the Climate Bank’s SEDI/VSB PLP participation amount is only 1% fixed per annum. It is expected that for each $65,000 participated, at least one new full time job will be created or at least on at-risk job will be retained within the following two years.