| The Illinois State Treasurer’s Office offers short-term,
low-cost loans to Illinois Funds participants.
The goal of the short-term loan program is to bridge the gap between a local government agency’s immediate needs and the time when additional revenues are available.
Amounts and Terms:
- Loans are made for 3-month, 6-month, 9-month, or 12-month terms.
- Loans are made by local financial institutions based upon the creditworthiness of the participant and the participant's ability to repay within the term of the loan.
- Loan amounts are determined by the participant’s need.
- Participants and financial institutions may use this program in conjunction with
competitive bids for funding.
Maximum Interest Rate as of March 12, 2010
| 3 months |
6 months |
9 months |
12 months |
4.50% |
4.50% |
4.50% |
4.50% |
The listed rates are updated here daily to give potential borrowers an indication of current rate figures. The final deposit rate is determined on the business day prior to issuing the loan.
Eligibility:
The applicant must be a participant of the Illinois Funds and not a state government agency.
How to Apply:
- Contact the State Treasurer's Office at 1-800-346-7414 for an overview of the loan program.
- Complete and submit a short-term loan application.
- View participating financial institutions.
- Your lender must complete and submit an application for linked deposit.
- The applications will be reviewed by the State Treasurer’s Deposit Review Committee.
- If approved, the loan will be direct deposited in your Illinois Funds Account.
Program History:
The Local Government Short-Term Loan program began in May 2004. Twenty-four projects have been funded as of May 2007 for a total of $29.8 million.
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