Small Business Financing

Small Business Financing

Small businesses are able to receive GAP Loans, ranging from $5,000 to $500,000, from SWIDA through the Southwestern Illinois Community Development Corporation (SWICDC). The for-profit company provides financing to small businesses when conventional lenders are unwilling to assume 100 percent of the risk of lending. SWICDC concentrates on small to medium-sized businesses, which require capital for modernization, physical rehabilitation of their facilities, or cash flow to make them more commercially viable.

SWICDC exists for the public purpose of promoting economic development through the provision of financing that will directly benefit small businesses and create and retain jobs. It is managed by SWIDA, with stockholders that also include commercial banks and public utilities. Representatives from the Illinois Department of Commerce and Economic Opportunity (DCEO), the Small Business Development Centers in East St. Louis and at Southern Illinois University Edwardsville and representatives of Bond, Clinton, Madison and St. Clair counties are ex-officio members.

Small businesses that are interested in receiving a loan for property acquisition, construction, leasehold improvements, equipment, inventory or working capital must meet the following criteria:

  • The business must show significant potential for growth in sales, profits and new jobs.
  • The company must be in operation for at least a year before requesting financing.
  • A member bank of SWICDC must lend a majority of the necessary funds and must sponsor the SWICDC loan application
  • The organization must be in the manufacturing or service industries. SWICDC will consider retail, but not restaurants or bars.


Additional details about a SWICDC Loan

Interest Rate: Rates float above prime with the specific rate subject to negotiation.

Security: Loans will be secured by a first or second position on real or personal property, by note of guarantee, or a combination of the two.

Term: The loan term is negotiable but generally coincides with the term of the primary private lender debt.

Fees: A $100 non-refundable application fee is due with submittal of the application