Illinois' $1B Credit Push: Where The Money Is Going

Progress Illinois:

One month ago, Illinois Treasurer Alexi Giannoulias announced that the state would extend $1 billion in credit to local banks to help spur lending amid the financial crisis. We checked in with his office on Friday to see who's taken him up on the offer of low-interest loans.

So far, roughly $170 million has been diverted to 30 banks located in all corners of the state -- from Collinsville to Highland Park. Only four banks asked for, and got, the maximum $25 million loan amount. As you see in this more detailed summary, some smaller institutions, like Shiloh's Catholic Community Credit Union, put in for lesser loans. Only four institutions have been turned down.

As far as the treasurer's office is concerned, the program creates a win-win scenario: Businesses and consumers have access to credit and the state earns a higher interest rate than in its normal investments. All of the one-year loans are secured with up-front collateral.

Read the whole story: Progress Illinois