CHICAGO--(BUSINESS WIRE)--In recognition of Small Business Saturday on November 30, the Federal Home Loan Bank of Chicago (FHLBank Chicago) today announced it has invested over $27 million through its Community First® Accelerate Grants (Accelerate Grants) for Small Business and its Community Small Business Advance throughout 2024. Through these programs, FHLBank Chicago supported more than 700 small businesses throughout Illinois and Wisconsin.
“We are proud to help small businesses within our communities grow and achieve success. Small businesses play an integral role in local communities, from creating jobs to fostering community development,” said Katie Naftzger, Senior Vice President, Community Investment Officer, FHLBank Chicago. “As a leader in the housing and community development space, FHLBank Chicago is committed to ensuring our members’ communities have what they need to thrive, including economic opportunities for the residents and small businesses who call them home.”
Now in its third and largest year, FHLBank Chicago has awarded over $10 million through its Accelerate Grants program for small businesses in 2024. Of the businesses that received grants this year, over 56 percent were diverse-owned, emphasizing FHLBank Chicago’s commitment to fostering inclusivity and equity. These funds aim to increase businesses’ financial stability and provide an immediate boost for small businesses to undertake equipment upgrades, expansions, and new services. As of today, over $15 million in funds have been awarded to small businesses since the program’s inception in 2022.
FHLBank Chicago member, Byline Bank, awarded $15,000 Accelerate Grants to two local small businesses - Mack’s Bike and Goods located in Evanston, Ill. and Taqueria La Placita de Isabel located in the McKinley Park neighborhood of Chicago. Mack’s Bike and Goods, a full-service bicycle shop and community meeting venue, plans to use the grant to enhance its building exterior. Taqueria La Placita de Isabel, a restaurant that is a staple gathering spot for school-age children and families, will use the grant to purchase a cooler for perishable food items, add seating and outdoor signage and hire an additional part-time employee.
“At Mack’s Bike and Goods, we’re more than a bicycle shop; we’re a hub for community connection and sustainable living,” said Kelly Mack, co-owner of Mack’s Bike and Goods. “This grant allows us to make essential upgrades like improving our entrance and signage, creating a safer, more welcoming space for our customers and investing back into our vibrant community in Evanston.”
In addition to Accelerate Grants, this year FHLBank Chicago increased the subsidy available for the Community Small Business Advance to $18 million, up from $10 million in 2023. Through this advance program, FHLBank Chicago member financial institutions originated over $100 million in significantly below-market rate loans to business owners in low-and moderate-income communities as of October 31, 2024. This program offers deeper liquidity support, enabling FHLBank Chicago members to provide low-cost capital to help small businesses make larger strategic investments.
“High interest rates are challenging for any small business to navigate, and we often see this with local farmers in rural, western Wisconsin who face limited access to low-cost capital,” said William Bruegger, CEO of Alliance Bank in Mondovi, Wis. “Through the discounted lending we were able to provide through FHLBank Chicago's Community Small Business Advance, one of our customers, a local farmer, purchased 173 acres of farmland to plant row crops. Products like this allow us to use our deep ties to our communities to drive economic growth where it’s needed most.”
View the full list of 2024 FHLBank Chicago Accelerate Grants recipients here.
About the Federal Home Loan Bank of Chicago
FHLBank Chicago is a regional bank in the Federal Home Loan Bank System. FHLBanks are government-sponsored enterprises created by Congress to ensure access to low-cost funding for their member financial institutions, with a focus on providing solutions that support the housing and community development needs of members’ customers. FHLBank Chicago is a self-capitalizing cooperative, owned by its Illinois and Wisconsin members, including commercial banks, credit unions, insurance companies, savings institutions and community development financial institutions. To learn more about FHLBank Chicago, please visit fhlbc.com.
“Community First” is a registered trademark of the Federal Home Loan Bank of Chicago.
