Stimulus could help Lake Co. businesses

Nearly $60 million in tax-free loans could soon be available to Lake County businesses through the federal stimulus program, officials said Tuesday.

The effort would allow new and existing businesses to borrow money for building-related construction projects, Lake County finance director Gary Gordon said during a public discussion of the proposal.

The concept is part of the stimulus plan's recovery zone program. To qualify as a recovery zone, a community must have significant poverty, unemployment, foreclosure rates or general distress, county officials said.

Regions also could be declared recovery zones if they're impacted by the closure or realignment of a military base, or if they meet other criteria.

Based on its estimated 9-percent unemployment rate and other factors, Gordon said, the county qualifies.

Businesses throughout the Chicago area could be eligible for funding in their home counties, too.

"I assume all of the counties in Illinois will make this designation," Gordon said.

For companies to get the loans, the Lake County Board first must apply for recovery-zone status. The board's health and community services committee on Tuesday approved a draft resolution that would do just that.

The full board could vote on the resolution at its next meeting, Aug. 11 in Waukegan.

An estimated $15 billion is set aside within the federal stimulus plan for such recovery-zone loans. It will be allocated among states, counties and large municipalities.

More than $1 billion could be headed to Illinois, Gordon said. Of that sum, Lake County is set to receive about $59.6 million.

Other Chicago-area counties will need to be approved as recovery zones to qualify for their own funding, Gordon said. However, area counties already have been allotted funding through the program in anticipation of their approval.

According to a treasury department report:

•Cook County businesses could borrow up to $196.8 million.

•DuPage County businesses could borrow from a pool of $69.1 million.

•Kane County businesses would be eligible for up to $25.2 million.

•McHenry County businesses would be eligible for up to $27.5 million.

•Will County businesses could borrow up to $41.1 million.

Officials in Cook and McHenry counties have applied for the recovery classification, said Frank S. Brisbois, interim president of Lake County Partners, a privately run economic development group that would manage the loan program if Lake County is named a recovery zone.

Several Chicago-area cities could qualify for funding, too, including:

•Aurora, for $13.7 million.

•Chicago, for $199.8 million.

•Elgin, for $8.5 million.

•Naperville, for $12 million.

No Lake County cities qualify individually.

The amounts are based on a federal formula, Brisbois said.

County officials will team with Lake County Partners to promote the effort, Gordon said.

A detailed timetable was not discussed Tuesday.