The Leaders Bank Joins CIC to Unveil $330 Million Affordable Housing Investment Fund

CIC Chas Hall closeupCharles Hall of The Leaders Bank (right) with Jack Markowski of CIC and Tiffany Taylor of Wintrust at a CIC-financed courtyard building in South Shore. 

 

The Leaders Bank is among the 40 area banks financially supporting the Community Investment Corporation $330 million investment pool to finance the acquisition and rehabilitation of 7,000 units of affordable rental housing in the Chicago region over the next five years. 

 “This $330 million commitment to CIC represents a major effort to counter the historic disinvestment in many Chicago communities,” said CIC Chicago President Jack Markowski at a news conference that included Chicago Mayor Lori Lightfoot, Chicago Housing Commissioner Marisa Novara and representatives from the participating banks. “It will preserve our affordable housing stock, invest in communities that are most in need, and build and strengthen the local businesses who own and operate the buildings.”

The news conference was held at a CIC-financed courtyard building in South Shore, a community in which CIC has financed over $60 million to preserve 1,800 units over the past 10 years.

"This major commitment from CIC and its investor banks will ensure that our communities that suffer from housing insecurity will have the resources they need,” said Mayor Lightfoot. “This will ultimately allow us to reinvigorate and preserve the residential infrastructure in these communities for years to come.”

CIC is the leading lender for affordable multifamily housing in Chicago’s low and moderate income communities. Since 1984, CIC has provided $1.5 billion to rehab and preserve 63,000 units of affordable housing throughout the Chicago area.

An active supporter of CIC for many years, The Leaders Bank remains on the roster of CIC’s 40 investors including 31 banks that are renewing their support as well as 9 banks making investments for the first time.

“The Leaders Bank is proud to be partnering with CIC on this important initiative which allows us to support critically needed affordable housing through a very efficient market-based model that has proven very effective for more than 35 years,” said Charles Hall, Executive VP at The Leaders Bank and Chairman of the CIC Multifamily Loan Committee.


How a Community Bank Protects Small Business During a Crisis

In a crisis such as the one the U.S. has experienced over the past months, small businesses are among those most negatively impacted. They often have the fewest resources, like cash flow and capital, upon which to draw in any economic freefall. Their hold on survival is often the most tenuous, their life expectancy in a crisis the briefest. COVID-19 has heaped additional harm on these small enterprises, because many were forced to close during the lockdown. And just as many were reopening, some were hurt by episodes of civil unrest.

In any financial crisis, owners of small businesses depend for stability, and often their very continuance, on the assistance community banks are uniquely able to offer. Community banks are based in the same towns and cities as the small businesses they serve. They get to know business owners in a way other financial institutions can't. In some cases, they know those owners so well they can anticipate their most pressing needs during a crisis.

One community banking institution – Oak Brook, Ill.-based Leaders Bank – helped its small business customers weather the storm unleashed by the pandemic in a big way. The assistance the bank provided came through three critical initiatives: Provision of remote banking services, aid in accessing state and federal financial assistance programs and guidance in identifying and avoiding pandemic-fueled scams and frauds.

Safe, secure remote banking

From the start of the COVID-19 pandemic, Americans came to identify "social distancing" as key to maintaining health, both theirs and that of their loved ones. 20-LB-551 blog whitepaper photo phone

Leaders Bank's array of online, mobile and phone banking services has made it possible for those who wished to avoid physical interaction to do so. "Any customer has the option to use online banking or mobile deposit services with the bank," says Gina R. Phipps, the bank's vice president, treasury management, who notes the bank has "definitely" seen a surge in remote banking use. "[Customers] can sign up online and automatically enroll . . . At least 90 percent of our customers use some form of electronic banking."

Some Leaders Bank customers had long shown a preference for visiting the bank in person almost every business day. Even they are now using remote banking, Phipps says.

In addition, the bank went to extra lengths to protect those who chose to physically visit the institution, and to simultaneously safeguard the health of bank employees.

Plexiglas shields divide the reception area from the tellers. Hand sanitizers are available to all. The staff wears cloth masks. Janitors sanitize door handles and other surfaces every hour, and undertake a deep cleaning each weekend.  To limit exposure, Leaders Bank encouraged employees to work from home a few days a week.

Accessing assistance

When the federal government announced small business assistance through the CARES Act's Paycheck Protection Program, Leaders Bank did not wait for small enterprises to request aid. "We were collecting information from clients before the program even became available," Phipps says. "We were reaching out to customers to see if they needed help. We collected information [from the businesses] so we were ready to submit applications to the Small Business Administration (SBA) when the program became available.

20-LB-551 blog whitepaper photo"The bank understood what information the SBA required and worked with its customers to ensure they furnished those materials. As a result, 100 percent of qualified small businesses that applied for the Paycheck Protection Program through Leaders Bank were approved.

"Now we are keeping in contact with those customers as new information regarding their loan forgiveness becomes available," says Charles B. Hall, Leaders Bank executive vice president. "Customers are not in this alone. We will help them navigate this uncertain landscape."

Avoiding frauds

Scams are a concern to small businesses in every economic climate. But evidence shows crises like the pandemic bring fraudsters out in even greater numbers. Fraud protection services routinely provided by Leaders Bank are even more valuable in these times.

"Today's environment presents greater challenges," Phipps says. "Customers click on the wrong item in an email, or they get spam and risk a computer takeover. Fraud is everywhere, all the time."

The bank helps its small business customers by monitoring accounts, employing services like positive pay, ACH filters and IP restrictions on log-ins from unauthorized computers, Phipps says. It also uses multiple-factor authentication and a token or app on a phone that can help the bank confirm the customer is who he or she purports to be.

In time, COVID-19 and its associated financial emergency will subside, and life will return to a new normal. When it does, small businesses that managed to carry on will know their partners at community banks nationwide are always there for their customers, even in critical times.

Located at 2001 York Road in Oak Brook, The Leaders Bank is a premier community commercial bank catering to private business owners, their families and other entrepreneurs. The Leaders Bank offers a full spectrum of traditional and customized banking services, Internet-based banking, and online bill payment. To contact The Leaders Bank, call (630) 572-5323 or visit www.leadersbank.com.


The Leaders Bank Acts Quickly to Provide Chicagoland Small Businesses with PPP Funds

Community banks across the U.S. have been in the forefront of arranging critical Paycheck Protection Program (PPP) funding for local small businesses during the pandemic. One prominent Chicagoland example is The Leaders Bank, a community bank headquartered in Oak Brook, IL. 20-LB-022 NR photo1

When the PPP's first phase launched April 3, Leaders moved rapidly to approve their first loan by the next day.  As of April 30, the Bank has received SBA approval of 100% of its qualified applications through the first and second PPP phases.  In addition, it has kept all loan applicants fully informed through the complete process. Although Leaders is not as large as the mega-banks, it has the capacity to fund loans up to the PPP maximum of $10 million per business, says Executive Vice-President Charles B. Hall.

 

PPP defined

As COVID-19 shuttered businesses and caused tens of millions to lose their jobs, the U.S. Congress passed and the president signed into law the Paycheck Protection Program.

Administered by the U.S. Small Business Administration (SBA), the program's first two phases earmarked up to $659 billion in loans for U.S. small businesses, independent contractors, sole proprietors and self-employed. Loans must go to payroll, mortgage, rent and utility costs, and are forgivable if firms use the proceeds to pay eligible expenses in accordance with the terms of the program.

The loans are processed through large and small financial institutions. Community banks have proven an effective arranger of loans for many of the companies applying.

CNBC's Jim Cramer noted community banks are doing a great job with the loans. "Community banks are well ahead" in the program, Cramer says.

 

Personal assistance

The Leaders Bank's success in processing PPP applicants' loan requests stands as the direct result of its trademark personal 20-LB-022 PPP NR photo2 touch, says President Bill Gleason. "We reached out to our customers," he reports. "We didn't just sit back and wait for them to call us. We asked them, 'Do you need us and how can we help?' That's the difference."

The speed of the PPP program's creation and roll-out, as well as its complexities, did not lend themselves to small businesses going it alone. "It's helpful when a community bank can lend its expertise to small businesses," Gleason says. 

Thus far, The Leaders Bank has helped manufacturers, contractors, professional services firms, retailers, not-for-profits, and sole proprietors. The Bank has arranged PPP funding for companies as large as 193 employees and has made loans up to $6 million per business. “Whether or not a third round of SBA loans becomes available, The Leaders Bank stands ready to help small businesses gain funding to see them through COVID-19,” Hall says.

Located at 2001 York Road in Oak Brook, IL, The Leaders Bank is a premier provider of commercial banking services to private business owners, their families and other entrepreneurs. The Leaders Bank offers a full spectrum of traditional and customized banking services, Internet-based banking, and online bill payment. To contact The Leaders Bank, call (630) 572-5323 or visit www.leadersbank.com.


How Manufacturers Can Work with Community Colleges and High Schools to Train and Recruit

A strong manufacturing sector remains critical to the economic future of Illinois and the nation. Skilled workers are needed to keep manufacturing strong. But great uncertainty surrounds whether there will be sufficient skilled workers to meet employers’ demand.

20-LB-550 stock photoIn a study titled “The Skills Gap in Manufacturing 2015 and Beyond,” Deloitte reported over the decade from 2015 to 2025, 3-1/2 million U.S. manufacturing jobs will have to be filled. The skills gap is expected to mean two million of those jobs will go unfilled.

If Illinois manufacturers are to effectively deal with an anticipated drop in the state labor work force of 337,000 by 2025, they must take fullest advantage of opportunities to partner with community colleges and high schools to train and recruit workers.

This white paper is dived into two sections. In the first, the paper will examine how different courses of study are matched to different manufacturing needs. In the second, the paper probes how manufacturers can work with schools to gain trained workers.

Creating study programs

Joint efforts between schools and manufacturers are a natural, says Jim Nelson, Illinois Manufacturers’ Association (IMA) vice president for education and workforce policy, and executive director of the IMA Education Foundation. Collaboration is based, he says, on “the desire of the community college to serve its constituency, and the desire of manufacturers to create a [recruitment] source of first choice . . . That’s why it behooves manufacturers and community colleges to coalesce in creating programs of study.”

Those programs may be launched either at the behest of a manufacturer or of a school. It works both ways. Whether courses are credit or non-credit depends on the job for which the training is created. For instance, a manufacturer may need only one tool-and-die maker every five years. “It doesn’t make sense for a community college to offer an ongoing program of study in tool-and-die making unless it has a dozen manufacturers in its market area,” Nelson says. Instead, a non-credit course in tool-and-die making is the solution. Creating the course would likely take 30 to 60 days, unless the college had offered it before, and could roll it out with any necessary updates, he adds.

By contrast, credit courses might be created by a community college or high school when a new manufacturing firm moves to the area and needs numerous workers not being trained elsewhere.  Today, given the switch to digital platforms, manufacturers in sectors that don’t employ machinists or welders – the workers traditionally trained in such programs -- are seeking programs of study. Nelson says food processing and packaging, plastic and polymers and electronics “all are now looking at community colleges as well as high schools as training grounds for future employees.”

Introducing a new credit course can take up to a year.  “When you’re offering something for credit toward a degree, there are added steps a local community college must take with the Illinois Community College Board to get that course approved for credit,” Nelson says. “That takes time, because you’re looking at the universal practice standards that course must meet to issue credits toward a college degree.”

Through the state’s ICATT Apprenticeship Program, IMA and the German American Chamber of Commerce partnered with 13 community colleges across the state, from Mount Vernon to Palatine, to create a training pathway for the position of Industrial Maintenance Technician (IMT). IMTs understand not just how to make widgets, but how the hydraulic, pneumatic, mechanical and electrical systems behind the widget-making machinery all work together, Nelson says.

The three-year apprenticeship program results in both an associate’s degree from the community college and internationally-recognized industry credentials.

In Illinois, certified IMTs start at an average salary of $54,000 a year, as compared to machinists’ starting pay of $42,000 to $46,000, and welders’ $32,000 to $40,000. “But any of these occupations can get into six figures quickly with overtime,” Nelson says.

Building relationships

How can manufacturers best leverage the training and recruitment opportunities that community colleges and high schools in their local areas present?

The answer is to meet often with community college and high school vocational program administrators to convey the changing nature of the knowledge and skills they need, Nelson says.  Such meetings can be informal or part of a more structured forum. An example of the latter was a late February “Employer Summit” convened by IMA and Palatine-based Harper College, in which employers were invited to come guide administrators in preparing curricula to train the next generation of manufacturing workers.

How are required knowledge and skills changing?

In metal forming and joining, for instance, workers once needed to possess knowledge of algebra and geometry, Nelson says.

“Today, the move to digital manufacturing means they must have statistics and quantitative analysis skills, so they can analyze the data the machine is providing and make adjustments to assure quality is maintained on every piece -- every time.”

Located at 2001 York Road in Oak Brook, Leaders Bank is a premier commercial bank catering to private business owners, their families and other entrepreneurs. Leaders Bank offers a full spectrum of traditional and customized banking services, Internet-based banking, and online bill payment. To contact Leaders Bank, call (630) 572-5323 or visit www.leadersbank.com


Chicagoland Agency Empowers Women for Success

    

20-LB-013 NAMI DuPage Ucorked Uncapped_Poised for Success
Donations and volunteers at Poised For Success® help women seeking employment find work apparel.


     Poised For Success® is dedicated to helping women who are on assistance, including veterans having served our country and transitioning to the civilian workforce, domestic violence survivors, and single moms. This nonprofit agency provides, at no charge, quality interview and work-attire clothing to women striving to obtain employment. What the women share is a desire to be self-sufficient and financially independent through employment. The services go beyond the clothing, giving them an enormous boost of self-confidence and self-worth that empowers them to take on the challenges that await them.

     The agency, having provided services since 1998, relies on community contributions and a strong base of volunteers to deliver its unique and personalized service. Located in Lombard, PFS works one-on-one with clients to help select outfits, from head to toe, for job interviews and serves over 200 women yearly.

     Clients are referred by social service agencies for visits by appointment, says Gail Foster, Executive Director. "There is an amazing transformation that takes place when we find the right clothes for the right person.”

     Among area companies supporting the organization is Oak Brook's Leaders Bank. Bank Executive Vice President Kathy Hardy has been volunteering for over 12 years. "It's really moving to hear the women share the successes they've achieved through our services," Hardy says.

     Clothing donations are accepted on the second Saturday of every month, from 10:00am to 1:00pm. For more information, visit poisedforsuccess.org. 

 


Lessons Learned from Financial Fraud Can Prevent Your Company from Falling Victim

Company owners and managers attempt to be laser focused on all aspects of their businesses. However, financial fraud
prevention can take a back seat to other issues. Few have the time or assets to adhere to every precaution, from network 19-LB-561 Stop Fraud Whitepaper photosecurity to routing and account number protection. Moreover, most aren’t aware of the profoundly negative ramifications of financial fraud on business fortunes. Combine these factors, and we have a recipe for the steadily increasing incidence of financial fraud afflicting U.S. companies.


Just one means of perpetrating fraud, business email compromise (BEC) led to $1.3 billion in business losses in 2018, according to the FBI’s Internet Crime Report.

How swiftly has that crime grown? The 2018 losses were twice those recorded in 2017, when BEC generated $676 million in losses.

However, there’s good news. By implementing the correct proactive systems to combat financial fraud, companies can help avoid becoming fraud victims.

 

Criminal acts

Theft of checks remains a common way check and ACH debit fraud occurs, says Mary M. Schuh, vice president of operations at Leaders Bank in Oak Brook, Ill. Checks sent through the mail for companies’ business use can be stolen.  Before the companies are aware their checks have not arrived at the correct address, the fraudsters have altered these checks by means of a procedure known as “check washing.” The altered checks bear new names but identical account numbers, and are used to drain those accounts.

“One thing we’ve noticed about check fraud is that more and more of the fraudsters are able to remotely deposit checks, making it easier to get paid on them,” Schuh says.

“Right now, customers do not want to walk into the bank. They want to take a picture of the check with their phone. The teller doesn’t have a chance to physically handle a check to determine whether it’s authentic.”

Routing and account number theft can lead to another increasingly prevalent scam, ACH debit fraud, says Gina Phipps, Leaders’ vice president of treasury management. “Someone has your routing number and account number, and they put through a payment from that account to themselves,” she says. “Or fraudsters act as legitimate business customers of the bank and request money be wired to them.”

 

Email peril

Business email compromise, perpetrated through viruses, ransomware attacks, phishing or other nefarious means, is another increasingl
employed scam. Cyber security.jpg


A July 2019 report by the Financial Crimes Enforcement Network (FinCEN) found BEC has grown dramatically. Suspicious activity reports describing BEC soared from 500 a month in 2016 to more than 1,100 a month in 2018. Manufacturing and construction were the most targeted industries for BEC in both 2017 and 2018.

The use of fraudulent vendor or client invoices increased from 30 percent of FinCEN sampled incidents in 2017 to more than 39 percent last year, the report stated.

 

Prevention pays

Because some of the methods that fraudsters use are virtually impossible for their targets to stop on their own, many businesses partner with their financial institutions to protect their accounts.

The steps companies should take to combat financial fraud include check positive pay, ACH blocks or filters and updating anti-virus software.

To implement check positive pay, customers upload to their bank all information about check recipients, check amounts and payment dates, Phipps says. “The bank can confirm transactions are legitimate,” she adds.

ACH blocks or filters protect customers from ACH debit fraud. “The customer tells us who is allowed to debit their account,” Phipps says. “If a request for an ACH transfer comes from someone other than those on the list, the bank checks electronically and automatically to learn if the customer wants to pay or return that exception item. “

On the email side, updating anti-virus software and confirming customer wishes before automatically approving emailed requests are key precautionary steps, Schuh says.

Frequently, companies won’t institute protections until they become targets, Phipps says. “By then, they may have suffered financial losses,” she adds. “Implement check positive pay, ACH filters and review bank accounts daily to avoid financial loss.”

 

In summary, when companies conduct the correct proactive procedures, they can greatly reduce their chances of being victims of financial fraud.

Originally published in Illinois Manufacturer magazine: https://ima-net.org/wp-content/uploads/2020/01/2020.Q1.TIM_.pdf


Chicago High School Students Earn While They Learn

Leaders Bank
Students in the Corporate Work Study Program at Christ the King Jesuit College Prep High School gain valuable experience working at local area businesses, such as Leaders Bank.

    Question: What's more valuable than a great education? Answer: A great education that includes experience in real-world work settings. That's the lesson enjoyed by student workers at Christ the King Jesuit College Prep (CTK), a high school on Chicago's West Side.

   More than 200 Chicago-area employers participate in the school's Corporate Work Study Program (CWSP), shared with Cristo Rey Jesuit High School. Each student is matched with an employer, serving as a reliable, affordable and productive employee one day each week in the employer's workplace. CTK students earn the majority of their tuition through their participation in the Corporate Work Study Program.    

   "Think of that! You're in high school, yet interacting with adults and learning about the work world," says Bill Gleason, president of Oak Brook, Ill.-based Leaders Bank, a corporate participant in CWSP.

    Leaders Bank pays to have a student at work every day, even though the 41-employee bank doesn't have enough tasks to keep students busy more than two days weekly. "We pay for students to work elsewhere on the other days, so they are still getting experience at non-profits, tutoring or working at food banks," Gleason says.

    Leaders Bank's CWSP students perform important duties. "The students use our imaging system, purging images associated with accounts from past years that have been closed." says Bob Hamaker, senior vice president of operations. "We’ve never done anything like that in the past. The students working for us are allowing us to catch up."

     Students do more than work. They get to know the full-time Leaders Bank employees, as mentors and on a social level by taking part in days when the bank brings in pizza or stages potluck lunches. "The students gain good experience about the social aspect of working in an office," Gleason says.

     What’s ahead? “We would love to expand the program, having the CTK students work here Monday through Friday as we grow,” Hamaker says. “giving more opportunity for these young men and women.”


Leaders Bank Helps Chicago Start-up Moon Meals Eclipse Expectations

Moon Meals 2adjust

Nicholl Doggett, assistant vice president of mortgage lending at Oak Brook-based Leaders Bank, poses with Chicago-based Moon Meals’ founder and CEO LaForce Baker.

           

When LaForce Baker, 30, founder of Chicago start-up Moon Meals, needed financing to promote his food product, he turned to Oak Brook-based Leaders Bank. In July, Leaders Bank furnished the company a loan through its Small Business Microloan Program. “The Leaders loan was a working capital loan that . . . enabled us to appear at trade shows, which can be rather costly,” Baker says.

At the time, Moon Meals’ all-vegan grab-and-go Fiesta Wraps were already sold in deli sections of all 189 Jewel supermarkets The company’s goals are even more ambitious – and national in scope. Before revealing them, let’s trace the humble origins of this innovative food manufacturer.

 

Plant-based pioneer

Growing up in a “food desert” on Chicago’s South Side, Baker discovered at around age 15 he could prepare healthy vegan versions of his grandmother’s tasty specialties. Several years later, as a late-night food industry worker, he found few healthy options. He began selling his healthy items to people working late evenings, spawning the name Moon Meals.

“I started wholesaling to mom-and-pop coffee shops, and got it up to 10 shops,” he recalls. “From there, I had the data to go to my first major retailer, Jewel.”

 Jewel opted to give Moon Meals a tryout in three Chicagoland supermarkets. The product sold well, leading Jewel to roll it out to all locations. “We offer the Fiesta Wrap, which retails for $6.99,” Baker says. “It has a meaty-cheesy, spicy profile, but it’s all vegan. Featuring our own meat alternative, it offers 22 grams of protein.”

 

Accelerating growth

Baker is a past participant in Family Farms’ Good Food Accelerator. This educational program trains people to enter food manufacturing, connecting them to wholesalers and distributors. Leaders Bank is a corporate participant in the program.

“That’s where we met LaForce, at the most recent class in the spring of 2019,” recalls Nicholl Doggett, Leaders Bank assistant vice president of mortgage lending.

Backed by a Leaders Bank Microloan, Moon Meals is on its way. Says Baker: “The big dream is over the next two years, to be in at least 3,000 locations nationwide, with four items: Fiesta Wraps and three new products under development.” 

 

Read more from our Blog:

Business Academy Helps Make Chicagoland Entrepreneurs' Outlooks a Bit Sunnier

Latest Trends in Performance, Pay and Employee Benefits


What R&D Extension and Apprenticeship Tax Credit Means for Illinois

Manufacturers face substantial expense when they invest in research and development progra 19-LB-560 Blog photo2ms.


Yet it’s a necessary cost in
introducing new and improved products. Training new employees represents another costly venture for manufacturers. In an era marked by a steadily shrinking labor force, however, it is an expense that must be borne.

Illinois-based manufacturers confronting the harsh reality of these daunting expenses were cheered in May, during the final week of the 101st Illinois General Assembly. That's when the legislature passed, and Illinois Governor J.B. Pritzker signed into law, the Research & Development Extension and Apprenticeship Tax Credit.

The new law will extend the sunset date on the Research & Development (R&D) Tax Credit for an additional five years, from tax year 2022 to tax year 2027. The law’s second component establishes a new apprenticeship tax credit, inte
nded to provide a much-needed tax break to manufacturers investing in their current and future workforce.

 

R&D Extension

“Rationale for extending the tax credit was to bring more stability to any entity involved in research and development activities in Illinois,” says Jim Nelson, vice president, education and workforce policy, with the Oak Brook-based Illinois Manufacturers Association (IMA). The final bill, SB 1591, passed both the Illinois House and Senate unanimously. Passage is an indication legislators recognize R&D helps expand work activities and supports continuation of current employment levels, he adds.

19-LB-560 Blog photo1The extension of the R&D tax credit means manufacturers will be able to reclaim a portion of the dollars they have expended on research and development activities to ensure new and improved products continue to come to market, Nelson says. “It's really expensive for manufacturers to engage in R&D activities because there's no separate revenue source for those activities,” he reports.


“It takes a lot of planning, and the R&D tax credit takes some of the burden of those activities off manufacturers' shoulders.”

The R&D credit is often viewed as among the more complicated credits available to manufacturers, Nelson says. But multiple studies have confirmed when the credit is available to offset the costs of new product development, 80 cents of every dollar spent on R&D is spent by manufacturers. “The legislation will promote new product development by Illinois manufacturers well into the next decade.”

 

New Apprenticeship Tax Credit

Slated to go into effect with the start of the new tax year on January 1, 2020, the new apprenticeship tax credit will allow manufacturers that participate in registered apprenticeship programs to claim a tax credit against funds spent on Related Technical Instruction (RTI) for their apprentices, Nelson explains.

Customarily, RTI is provided by community colleges. This tax credit will offset some of the cost of the tuition paid by the employer for the RTI.

Apprenticeships are a blend of on-the-job training that is aligned to RTI. “There's an on-the-job training component that features skills, and the RTI teaches the theories behind the skills,” Nelson says. “Not only would apprentices learn pneumatic or electrical engineering in an on-the-job setting, but they would absorb the Related Technical Instruction in the community college setting. The two are provided simultaneously. Most apprenticeships operate with three days on the job, two days in the classroom. The classroom instruction is immediately put into practice on the job.”

Manufacturers are justifiably concerned about training expense, because each registered apprentice can cost an employer between $25,000 and $35,000 a year, including salaries, benefits and lost production time. The new law permits Illinois employers to claim a $3,500 income tax credit to help offset the educational costs of an apprentice that the employer has paid to a community college on behalf of its apprentice.  

“Once employers recognized they were already spending significant dollars in their existing employee training, they understood the value of the apprenticeship programs,” Nelson says. “Sometimes, apprenticeships are viewed as a ‘shiny new bauble’ since they had not been used as a workforce model since the 1950s. However, more and more employers are looking to registered apprenticeship as a means of improving their talent pipeline at a time when the total labor force is shrinking, not only in Illinois but nationally.”

The establishment of the new apprenticeship tax credit, he adds, is well timed given the Prairie State is projected to have 335,000 fewer workers by 2025 than it does today.

“We thank the Governor for his support of the manufacturing sector,” says IMA President and CEO Mark Denzler, “and further applaud his commitment to workforce development.”

###

Located at 2001 York Road in Oak Brook, Leaders Bank is a premier commercial bank catering to private business owners, their families and other entrepreneurs. Leaders Bank offers a full spectrum of traditional and customized banking services, Internet-based banking, and online bill payment. To contact Leaders Bank, call (630) 572-5323 or visit www.leadersbank.com.


Business Academy Helps Make Chicagoland Entrepreneurs' Outlooks a Bit Sunnier

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Leaders Bank assistant vice president Nicholl Doggett discusses the bank’s microloan program for entrepreneurs with Skye Frank, MBA, of Sunshine Enterprises’ Community Business Academy.

 

Skills and capital

    In underserved Chicago-area communities, residents frequently struggle to find goods and services they need. Entrepreneurs in these communities want to fill that void and provide jobs, helping make their neighborhoods safer, brighter places to live. But they often lack access to both the business skills and working capital their start-ups require.

    The Community Business Academy (CBA) from Sunshine Enterprises strives to help these entrepreneurs and revitalize their communities. The Woodlawn-based academy provides a 12-week course featuring weekly three-hour training classes in business fundamentals, including budgeting, marketing, bookkeeping and cash flow analysis. Classes are held on Chicago's South Side, the West Side and in west Evanston.

    “The academy serves the needs of entrepreneurs who need a leg up,” says Joel Hamernick, Sunshine Enterprises executive director. “Many don’t otherwise have access to business skills development. They really profit from Community Business Academy’s education.”

 

Microloans, major benefits

     With the help of Oak Brook-based Leaders Bank, CBA addresses the entrepreneurs' need for cash infusions. Leaders Bank provides microloans of up to $25,000 to entrepreneurs involved in the Community Business Academy.

     "When businesses are just starting out, they often don't have the collateral or experience to get larger loans," explains Nicholl E. Doggett, Leaders Bank assistant vice president of mortgage lending.

    "But they still need money to create inventory and opportunities to grow their businesses. They require facilities, staff and raw materials. The microloans we provide are smaller-scale loans that allow them to do these things. In a microloan, we don't require as much financial background from the borrower."

    Leaders Bank provides two microloan products: a three-year fully-amortizing loan, and a five-year fully amortizing loan, Doggett says.

    Leaders Bank has provided microloans to start-up bakeries, software firms and pest control operations, among others in the program. "I really enjoy meeting the different business owners, hearing their dreams and watching them grow with the microloans we supply,” she adds. “One pest control company needed a small loan. That loan allowed them to expand. They generated so much revenue, they paid off the loan early."