A new Illinois law is designed to boost growing minority and women-owned businesses that have state construction contracts.
Illinois Governor Pat Quinn signed the law July 30, and it goes into effect immediately.
The law will create the Disadvantaged Business Revolving Loan Program. Through the program, certified woman- and minority-owned businesses that have state construction contracts can apply for low-interest loans.
The state will invest $3 million in the program, according to a news release. It’s expected to be largely self-funded as borrowers pay back into the program.
The Disadvantaged Business Revolving Loan Program was established as an economic development tool for the state. Many small women- and minority-owned lack access to the capital they need to secure the bonding and capital equipment financing state construction projects require.
“Small, minority-owned firms often don’t have the necessary resources to bid on state construction projects, and this new law helps them get a foot in the door. As the loans are paid back, those funds help other firms who are in the same situation, which grows our economy and creates jobs,” the Gov. Quinn said when announcing the law.
The program comes as the state is in the midst of the $31 billion Illinois Jobs Now! program. The Quinn administration created the statewide capital construction program in 2009 to support and retain 439,000 jobs over six years.