With any of the PLP loans, the financial institution identifies potential opportunities for state participation. To participate, the lender must submit the Master Agreement below to the Illinois Department of Commerce.
The five loan programs are:
- The Standard Participation Loan Program (PLP) - designed to enable small businesses to obtain medium to long-term financing, always will be in the form of term loans, to help them grow and expand their businesses. The Department of Commerce participation is subordinated to the lender and has a "below market" interest rate.
- Minority/Women/Disabled/Veteran-Owned Businesses- similar to the Standard PLP. However, the amount of financial support may range depending on loan term, MWDV majority control/ownership.
- Revolving Line of Credit (RLOC PLP)-similar to the Standard PLP except in the form of a revolving line of credit. Maximum term is two years and further support requires reapplication.
- PLP Support of Small Business Administration SBA-7A Activity - the Department of Commerce support will now be restricted to financing purposes other than those financed under the SBA-7A Guaranteed Loan. Thus the Department of Commerce will participate in up to 50% of "Companion Loans" provided by the Lender to the same Borrower, and documented with separate, unguaranteed Notes. The Department of Commerce's support is subordinated to both the lender's and SBA's respective positions.
- PLP Support of Small Business Administration SBA-504 Activity - the Department of Commerce support will now be restricted to financing purposes other than those financed under the SBA-504 Structure. Thus the Department of Commerce will participate in up to 50% of "Companion Loans" provided by the Lender to the same Borrower, and documented with separate Notes. The Department of Commerce's credit exposure will be subordinated to the Lender's, and when required, to the SBA's interests as well.
Funding from these programs can be used for many business purposes, Including, but not limited to:
- start-up costs,
- working capital,
- business procurement,
- franchise fees,
- as well as the purchase, construction, renovation, or tenant improvements of an eligible place of business that is not for passive real estate investment purposes.
Printable Fact Sheet About PLP