Investing in People During COVID-19
June 2020 Treasurer’s Note by Treasurer Michael Frerichs
We hear a lot of talk about the ‘new normal.’
I know people are still hurting and I do not want that to be the ‘new normal.’
I know people are still struggling and I do not want that to be the ‘new normal.’
I know there remains great uncertainty on how to move forward and I do not want that to be the ‘new normal.’
I also know that success will occur when we work together. As the Illinois Treasurer, I know that I do not have all of the answers. However, our office has programs that can help people move forward, regain their confidence, and continue their pursuit of the American Dream.
Bridge Loans: For example, I designated $500 million to be deposited in community banks and local credit unions throughout our state. In turn, these financial institutions make low‑interest loans to small businesses in their communities. Supporting the health and well-being of our residents and our economy includes making sure small-business owners stay solvent so their workers can be paid.
COVID 19 certainly has captured the headlines. However, we provide other programs to help people help themselves.
College Savings: Our Bright Start college savings program is among the best in the country and has received a Gold Medal, the highest achievable, from Morningstar for three consecutive years. Anyone can open an account here. If you use a financial advisor, you might consider a Bright Directions account. Together, more than $6 billion has been invested to pay for thousands of students to attend college across the country.
Ag Invest: This linked-deposit program has assisted family farmers and locally owned financial institutions since 1983. At a time of great uncertainty and reduced commodity prices in the farming industry, Ag Invest can be even more useful today.
Unclaimed Property: We safeguard more than $3 billion in lost money, forgotten investment accounts, and unpaid life insurance benefits. We actively pursue returning these properties to their owner. We do so through advertising, earned media, and special events. Click here to see if we have property that belongs to you, your business, or a relative.
The Illinois Funds: This investment fund enjoys a AAA rating from S&P Global, the highest available. Local government leaders pool investment dollars to access higher-returning investments. The Illinois Funds complements, not replaces, local banking relationships. We know the COVID-19 pandemic has forced cities and towns to face higher costs and decreased revenue from sales taxes. At a time when cities and towns are struggling, greater investment returns will help.
ABLE: The Achieving a Better Life Experience program makes it possible for people with disabilities and their families to save and invest for expenses without losing means-tested benefits such as SSI, SSDI, and Medicaid. Earnings and withdrawals are tax-free when spent on qualified expenses including housing, health and wellness, education and training, therapy, and basic living expenses.
The Community Uplift Program: This linked deposit program helps business owners obtain loans at below-market rates to fund business growth that will lead to more jobs or operational efficiencies. It focuses on struggling communities, especially in small towns in rural Illinois.
Charitable Trust: The Charitable Trust Stabilization Fund invests in housing, workforce development, and food security. It does so through a competitive grant process for non-profit organizations with annual budgets of $1 million or less.
Fallen Heroes: This college scholarship fund assists dependents of members of the Armed Forces as well as police, firefighters, paramedics, and other first responders who have died while serving our state or country.
I do not know what the ‘new normal’ eventually will look like. I do know we must do what we can to help our neighbors. These programs invest money in a manner that supports individual growth and community development. When we work together, we will carry each other forward and find ourselves closer to the ‘old normal.’ Learn more by visiting www.illinoistreasurer.gov.
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