Treasurer backs business loans to Reserve Forces

Low-interest financing available during deployment

Thursday, November 8, 2007

Active duty reservists and members of the National Guard are now eligible for low-interest business loans, Illinois State Treasurer Alexi Giannoulias announced today.

The Employ Illinois: Reserve Forces loans are available to service members who are activated for 90 or more consecutive days. To qualify, service members must be either the owners or essential employees of a business and anticipate economic hardship as a result of their absence.

“Our troops put their lives on the line everyday to protect our freedom,” Giannoulias said. “Called up on short notice for extended periods of time, they put their businesses at risk as well. This program will help remove the financial strain that can accompany military service.”

Borrowers can receive up to $250,000 from a local lender. The below-market interest rate secured by the Treasurer’s Office is available for two years with the possibility of a three-year extension.

The Treasurer’s Office recently developed the Reserve Forces loan program in conjunction with Illinois Department of Veterans Affairs’ Director Tammy Duckworth.

"Many of our service men and women are being deployed a number of times and usually for an extensive length of time," Director Duckworth said. "This is difficult not only emotionally and physically, but financially, especially if the service member owns their own business. We need to help these service members and their families by making sure they have the opportunity to continue to run their businesses successfully. I applaud Treasurer Giannoulias for his efforts with this new program, providing low-interest loans to our service members."

The Treasurer’s Office also offers low-interest financing to help the families of service members make ends meet during deployment. Under the Opportunity Illinois: Citizen Soldiers program, families can receive a $10,000 loan at an annual interest rate of 3 percent. Payments are deferred during deployment.

The Illinois National Guard announced in October that 2,700 members from the Urbana-based 33rd Infantry Brigade are headed for a tour of Afghanistan next year. It will be the largest deployment of Illinois Guard troops since World War II.

Under state law, the Treasurer’s Office has the authority to deposit state money at a reduced rate of interest in local financial institutions that issue loans at below-market rates for specific projects and programs.

Service members can learn more about the loan programs by visiting the Treasurer’s booth this Sunday during the Supermarket of Veterans Affairs at the Interstate 355 Veterans Memorial Tollway opening. Information is also available by calling (312) 814-1700 or logging onto www.treasurer.il.gov.