Issue Position: Jobs & the Economy

Issue Position

As State Treasurer, Mike Frerichs will work day and night to be a responsible steward of Illinois' investments, keeping Illinois economically competitive and providing opportunities for the middle class to get ahead. There are programs that the State Treasurer can target to help create good paying jobs throughout Illinois. They include:

LINKED DEPOSIT PROGRAM

The State Treasurer lends money to banks at below market rates in return for the banks putting that money to use benefiting targeted industries. Already widely used in the agricultural sector throughout Illinois, Linked-Deposits should be expanded to help grow our economy throughout Illinois by engaging small businesses, first time business owners, and environmentally friendly enterprises.

Linked-Deposits, for example, could be used to lower the costs of financing renewable development projects, which would have the double benefit of creating jobs, and improving the environment. As your State Treasurer, Mike will reach out to small businesses and entrepreneurs throughout Illinois to help spur the growth of our local economy by providing early-stage businesses help so they can expand and create jobs through lower-rate interest loans via Linked-Deposits from local banks.

EMPLOY ILLINOIS

As your State Treasurer, Mike would revive, improve and expand the Employ Illinois program, which helps provide lower rate interest loans to businesses looking to create jobs via Linked Deposits. Employ Illinois utilizes the advantages provided through the authority of the State Treasurer's Office to issue Linked-Deposits combined with strategic partnerships such as those made with the SBA to create enhancements to better help those businesses looking to create jobs.

Increasing awareness in low-income areas about this program can help expand access to the capital that many small businesses can't always find, especially in an era where banks and traditional financial institutions have sharply curtailed their lending practices.

VENTURE CAPITAL FUNDS

Since 2004, the Illinois Treasurer has been allowed to invest a portion of its portfolio into venture capital funds. 1,200 jobs were created from the $75 million used for technology development back when the Treasurer was only allowed to invest up to 1% of its portfolio.

Now, the Treasurer is allowed to invest 3% of the state's investment portfolio into venture capital funds. This amounts to upwards of $150 million dollars annually that can be pushed into growing Illinois' share of jobs in sectors like green energy, data storage, and technology development. The current Republican Treasurer has chosen to not invest tens of millions of dollars in Illinois venture capital funds, which has been a huge missed opportunity for Illinois businesses, families, and communities.

Mike will work to direct these funds to prioritize opportunities in underserved communities and growing sectors within our state, creating good jobs for our residents. Providing responsible access to funding will help Illinois remain competitive with surrounding states that are competing for start-ups in emerging sectors of our economy.

Targeting communities that have a lack of good paying jobs with solid businesses looking to expand into high growth sectors will be Mike's priority when reviewing investments the Treasurer's office can make each year. Underserved communities with an abundance of vacant or post-industrial land could be targeted for companies looking to re-locate or expand, helping bring needed development and jobs to struggling communities.

MIKE'S RECORD ON CREATING JOBS AND GROWING OUR ECONOMY

One of Mike's top priorities is helping Illinois businesses thrive. In 2012, Mike co-chaired the bi-partisan committee that extended the state's Enterprise Zone Program. This innovative program has been credited with creating or retaining over 900,000 jobs in the state over the past 30 years. As your State Treasurer, Mike will continue supporting similar programs that make sure Illinois working families have the good paying jobs that maintain
a stable and thriving middle class.

Mike was also the lead sponsor of legislation (SB 2897) creating Benefit Corporations, or B-Corps, in Illinois. To be eligible for B-Corp status, a company must provide an environmental benefit or engage in community development. This innovative legislation would make Illinois one of only eight states in the nation to provide common sense legal protections for businesses that not only will create jobs, but will be stewards of their environment and community.
As Treasurer, Mike will continue to drive innovative ideas to make Illinois a dynamic and competitive state where businesses want to locate and grow.

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