Quinn touts $78M plan to finance small businesses

Gov. Pat Quinn says a new state initiative will help small businesses get the financing they need to start up or expand.

Quinn on Wednesday said the state will leverage $78 million in federal funding to help banks and other lending institutions support Illinois businesses.

The state Department of Commerce and Economic Opportunity will enroll lending institutions in the initiative, called Advantage Illinois. Lenders then will provide financing to businesses through three loan programs.

They include encouraging banks to give loans to business that don’t qualify for conventional loans, allowing the state to buy part of a loan for businesses and establishing accounts to provide collateral so businesses can get loans.

The state also is starting a new venture capital program to support companies that show high growth potential.