Key Terms

Most small business loans can have 5-to-10-year terms, but some are longer, providing a more affordable monthly payment for borrowers that fits within their financial goals.
If you do not have a business credit history established, the owner’s personal credit score could be a factor in determining if the borrower qualifies.
The lowest rates for small business loans often come from those who have a strong credit history, a number of years in the business, and a profitable company.

Illinois is a Midwestern state called The Land of Lincoln and The Prairie State. Chicago is the largest city here, though others include Rockford and Peoria. The state has one of the largest gross domestic products in the country and is home to over 12.8 million people. Long known for its industrial sector, Illinois today has much more to offer, including being the home of three elected presidents, beautiful historic and architecturally diverse cities, and numerous natural areas and parks. Chicagoland, the largest Metro area, is home to about 65% of the state’s population, and it’s known for its jazz and blues culture, numerous large business headquarters, and modern lifestyle.

The state of Illinois has long been an important economic producer for the country as a whole. That’s easy to see when you learn how many businesses call this state home. The economy is built on manufacturing, agriculture, and services companies. There is a significant amount of tourism in Chicago as well. Yet, all of those large businesses aside, Illinois also is home to a wide range of small businesses. The U.S. Small Business Administration states there are 1.2 million small businesses in the state. Those businesses employ 2.5 million people and generate a total payroll of $126,948,519.

In order to grow and thrive, small businesses often need access to financial tools and resources. Small business lenders in Illinois help with this need. The latest data from the U.S. Small Business Administration shows there were 5470 active small business loans in the state. Those loans are worth $3,773,251,688. The average small business has a loan of $689,808. Those funds are beneficial in various ways, helping to fund everything from growth and expansion to new product development, hiring of additional employees, and modernizing systems. It’s a critical component of the Illinois economy that these loans are present.

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How small business loans work in Illinois

Small business loans are financial tools used by many types of businesses. Most often, Illinois small business lenders provide capital to borrowers who meet their qualifications. The borrower, often the business itself or the owner, then repays the borrowed funds over time, generally with interest applied to the payments. Most business loans like this have a loan term of 5 to 10 years, though there is some variation available to meet other needs.

Small business lenders offer competitive interest rates on these loans in the hopes of helping to support smaller companies. Yet, they are taking on a significant amount of risk, which is why these lenders often have very specific and strict requirements that borrowers must adhere to in order to obtain funding. At the heart of this is seeing that the business has revenue coming in that can pay for the expected monthly payment.

Small business lenders in Illinois also work closely with companies to understand their industry, their products or services, as well as their overall needs for the money. They base loans on the company’s revenue, history, age, and demand for them within the market. A good way to show business lenders that a company is a solid investment is to have a well-designed business plan that outlines each detail of the company’s operations.

It is not uncommon for lenders to use a business’s credit history to make lending decisions. If the business does not have a strong credit history, lenders typically consider the owner’s financial history and use of credit as an indication of what to expect. With all of this information, the lender will determine the interest rate, the amount the company can borrow, the form of lending provided, as well as the term available. The good news is there are a number of different loan types available, and many companies will qualify for at least one type depending on their financial insights.

For entrepreneurs, you might use your own funds or credit cards to start up your business. After that point, however, many small business owners turn to alternative business financing, grant programs, and other loan options to cover ongoing expenses or to access working capital. Your eligibility for grants for nonprofits, however, is limited to filing requirements with your business, and many of these grants are small, one-time awards.

Business owners may instead pursue financing through federal government loans, business credit cards, and other business loan options. Whether you’re opening up shop in Springfield or the city of Chicago, cash flow may be challenging. Financing options exist, and you deserve to know what you’re eligible for. Visiting your local business development center, community development associations, an assistance program, or even the Illinois Department of Commerce might open your eyes to some economic opportunity grants, but it’s also good to look at the possibilities with business loans.

Some of the loan types you can expect Illinois lenders to offer include:

Bank loan
SBA loan
Business term loan
Business line of credit
Equipment financing

For a small business, having this infusion of capital can help to support the growth and profitability of the company. It may also help with supporting the business’s economic presence in the state, benefiting the employees and their families as well.

10 Biggest small business loan lenders in Illinois

Illinois small business loan lenders ranked by loans issued in the state.

Rank	Bank Name	# of Illinois Loans	Avergage Interest Rate	Average Loan Size
1	The Huntington National Bank	355	5.56%	$217,725
2	Byline Bank	113	5.88%	$1,139,717
3	U.S. Bank	89	5.72%	$236,181
4	Village Bank and Trust	60	4.67%	$701,260
5	First Mid Bank & Trust	48	4.53%	$229,067
6	Live Oak Banking Company	41	5.37%	$1,466,649
7	Newtek Small Business Finance	39	6.19%	$658,897
8	Harvest Small Business Finance	34	5.71%	$818,212
9	First American Bank	32	4.41%	$871,519
10	Merchants Bank of Indiana	29	5.29%	$1,289,083

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1. Huntington National Bank

Founded in 1866 and based out of Columbus, Ohio, with branches in 11 states and $179 billion in assets to meet its customers’ needs, The Huntington National Bank has much to offer. The Huntington National Bank has a number of products and services to meet personal and business banking needs.

We reached out to Huntington National Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:

SBA Preferred Lender
Offers the SBA 7(A) Loan Program, SBA 504 Loan Program and SBA Express.
Loans can be used for working capital, business acquisition, equipment purchases or other purposes.