Having access to North Branch Works’ low-interest business loan fund is a valuable benefit we provide to our members.
Our mission is to strengthen economic development in our service area by helping businesses get started, grow, and expand so they can provide high-quality jobs to Chicagoans.
Toward that end, we have a microloan fund that can make loans of up to $25,000 to startup companies and up to $50,000 to existing businesses.
Our interest rates range from 2-8% and the term ranges from 6-36 months with a small 2% closing cost. In some cases such as when a business has received a Small Business Improvement Fund (SBIF) award, we can make loans above these limits.
Because SBIF projects must be financed by a business before it can submit for reimbursement from the City of Chicago, our loan fund is a great way to avoid diverting capital or taking out a loan from another lender at a higher interest rate.
Loans from North Branch Works can be used for business purposes such as purchasing equipment and inventory, customizing and repairing your physical space, and working capital.
The primary goal of our loan fund is to help businesses grow and expand while incurring the lowest possible costs. For example, let’s say a business in our service area needs to make $17,000 worth of improvements to a physical space before it can move into our area and open.
The business could apply to our loan fund; for the sake of this example, let’s assume our loan fund committee reviews and approves the loan at 2%. We can issue the check immediately. At this rate, it would cost the company $340 to borrow $17,000 and the 2% APR would be amortized over the term of the loan.
And if your business needs a loan that is larger than what we can offer, we’d love to connect you to other lenders in our network like Allies for Community Business and LISC Chicago.
Coming out of the pandemic, North Branch Works would like to see our resources deployed in our service area and positioning our members for present and future success.
Currently, we have a goal of making two low-interest loans by the end of 2021. For more information, please see our business loan fund one-pager.
With questions and to express interest in applying to our business loan fund, please contact Steve Simmons at 773-929-5552 x2226 or firstname.lastname@example.org.