Providing Illinois and Wisconsin small business owners with access to critical capital through expanded grants and discounted loans.
Chicago, June 3, 2024–(BUSINESS WIRE)–Small businesses drive our economy, and access to capital is one of the biggest obstacles they face in staying in business. The Federal Home Loan Bank of Chicago (FHLBank Chicago) is responding with a two-pronged approach that includes both grants and discounted loans. Recognizing the importance of small businesses and the challenges they often face, FHLBank Chicago has expanded its program offerings in 2024.
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Funding increased to $19.5 million Community First® Promoting subsidies for small and medium-sized enterprises It supports a variety of purposes, including real estate, equipment, workforce development and technology purchases or improvements. Eligible small businesses must have a business relationship with an FHLBank Chicago member who submits the grant application on their behalf. Funds will be awarded as a single grant of $30,000 to one business or as two separate grants of $15,000 to two different businesses. The grant application period runs from June 3 to September 30, 2024.
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Expanded Community Small Business Assistance Grant funding from $10 million in 2023 to $15 million in 2024. Through this grant, FHLBank Chicago's member financial institutions will provide loans at significantly below-market rates to business owners in low- and moderate-income communities. The total grant amount has been fully utilized, and FHLBank Chicago plans to offer additional discounted lending opportunities to member financial institutions and their small business clients this summer.
“Small businesses play a vital role in communities in driving economic growth, from creating jobs to fostering community development,” said Katie Nafzger, senior vice president of community investments at FHLBank Chicago. “As a leader in the housing and community development sector, FHLBank Chicago recognizes that affordable housing isn't just about the housing itself, it's about ensuring the entire community has what it needs to thrive, including economic opportunity for residents and the small businesses that call it home.”
Bay View Printing Co., a historic Milwaukee letterpress shop, reached a key milestone in 2023 after receiving a $25,000 Small Business Community First Accelerate grant through First Federal Bank of Wisconsin, member of FHLBank Chicago. The grant helped fuel the shop's growth and strengthen its role as a vibrant community space. The funding allowed owner Ashley Town to modernize the shop, update equipment and work to expand Bay View Printing Co.'s retail line.
“Leveraging our relationship with the Federal Home Loan Bank of Chicago ensures we remain a strong organization, which is of utmost importance to a community bank,” said Michael Berry, vice president of cash management at First Federal Bank of Wisconsin. “This partnership allows us to maintain liquidity and provide products and services to small businesses in our area.”
The availability of low-cost loans, in addition to general grants to expand or strengthen businesses, is beneficial for small business owners seeking sustainable, long-term financing.
“Having options like the Community Small Business Advance available in rural towns like ours in central Illinois is critical,” said Rich Eckert, president and CEO of Beardstown Savings Bank. “It means our small business clients – manufacturers, mechanics, builders, retailers and other businesses that provide vital community services – have a low-cost source of financing. We're proud to partner with FHLBank Chicago to make this funding available locally.”
About the Federal Home Loan Bank of Chicago
FHLBank Chicago is a community bank in the Federal Home Loan Bank System. FHLBanks are government-sponsored enterprises created by Congress to provide member financial institutions with access to low-cost financing and are focused on providing solutions that support the housing and community development needs of their member customers. FHLBank Chicago is a self-capitalized cooperative owned by its members in Illinois and Wisconsin, including commercial banks, credit unions, insurance companies, thrifts and community development financial institutions. For more information about FHLBank Chicago, visit fhlbc.com.
“Community First” is a registered trademark of the Federal Home Loan Bank of Chicago.
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