Illinois State Treasurer s Office HELPING PEOPLE INVEST IN THEMSELVES

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1 Illinois State Treasurer s Office HELPING PEOPLE INVEST IN THEMSELVES

2 Who is the Illinois State Treasurer?

3 Michael Frerichs was elected Illinois State Treasurer in November Treasurer Frerichs is the Chief Investment and Banking Officer for the State of Illinois. The Treasurer s office is tasked with protecting the state s portfolio, ensuring the liquidity of all investments, and consistently producing earnings at or above industry standards. Treasurer Frerichs believes we can get our best return on investment by investing right here in the people, companies, and local governments of Illinois. Illinois State Treasurer Michael Frerichs

4 Treasurer Frerichs manages approx. $25 billion in assets $12 billion in state funds $8 billion in college savings plans $5 billion in local government funds For every $1 the Treasurers office spends on operations we return $28 to the State. State Investments

5 ILLINOIS STATE TREASURER S OFFICE

6 The Invest in Rural Illinois Program is a collection of linked lending and guarantee programs that are meant to incentivize financial institutions into lending to groups that are being marginalized by limited loans or high interest rates. Community Uplift Program Ag Invest Finally Home Invest in Rural Illinois Program

7 Community Uplift Program

8 A key objective of the Treasurer s Office is to invest State capital in a manner that supports community development efforts. The Community Uplift Program identifies $500 Million for small businesses to help communities struggling with unemployment, poverty and large-scaled business closings. The $500 million will flow through local banking institutions to help individuals obtain loans at below-market rates. Community Uplift Program

9 The Community Uplift Program enables qualified financial institutions that operate in economically depressed areas to access State capital at a lower rate. This capital gives banks, credit unions and savings and loan institutions in struggling areas addition financial resources, which positions them to increase lending activities and fund more local development efforts. Community Uplift Program

10 Ag Invest

11 The Ag Invest program makes loans more affordable for farmers and agricultural professionals Through Ag Invest the Treasurers office provides banks with deposits so they can offer qualified farmers and agriculture professionals with below-market rate loans to start or enhance farm operations In 2016 Treasurer Frerichs worked with farmers and banks to update the 32 year old program to better fit the needs of today s Ag Industry Since 2008, the Ag Invest Program has loaned more than $1 billion Ag Invest

12 Annual Program Loan amounts increased to $400,000 per farmer and $800,000 per farm operation. Annual operating line of credit program will operate on a calendar year instead of the fiscal year. Long Term Program Loan amounts increased to $300,000 Loan terms increased to 3+2, longer loan terms available for expenses up to $300,000 Value added ag may extend out a total of nine years Refinancing of existing loans will be easier Ag Invest

13 Finally Home

14 Through the Finally Home program, the Illinois State Treasurer s Office helps qualified borrowers secure sustainable mortgages. The Finally Home program offers a five year, 10% guarantee to participating lending institutions throughout Illinois. The Finally Home program allows borrowers to purchase a home or refinance due to financial hardship. The goal of the Finally Home program is to help Illinois residents avoid predatory lenders and obtain affordable mortgages. Finally Home

15 Finally Home Eligibility Requirements: Borrowers must be an Illinois resident and documented Illinois income taxpayer. The home must be a one- to two-unit, owner-occupied property in Illinois that will serve as the borrowers primary residence. Borrowers combined household income may not exceed 150% of U.S. Department of Housing and Urban Development s (HUD) median family income for the area in which your home is located. This limit is based on the number of people in your home and is updated annually. The price of a borrowers home cannot exceed the conforming loan size limits as established by the Federal National Mortgage Association (Fannie Mae). This figure is updated annually. If a borrower is purchasing or refinancing a home, the borrower must be unable to meet the lender s conventional mortgage guidelines due to a high debt-to-income ratio, insufficient credit score, or other factors. Borrowers must contribute at least 3.5% toward the down payment of the mortgage. Finally Home

16 Stay Connected! ILTreasurer TreasurerMichaelFrerichs illinoistreasurer.gov