No, we are not aware of any limits on interest rates for commercial loans in Illinois law.

The Illinois Banking Act permits banks to charge fees, interest and other charges agreed to by the borrower, provided that the bank sets these charges based on its “prudent business judgment and safe and sound operating standards.” Additionally, the Interest Act authorizes a bank to collect interest and charges at any rate agreed to by the bank and the borrower.

There are some limited situations for which Illinois law does impose interest rate limits for consumer loans (such as interest rate limits for servicemembers), but at this time these do not apply to business loans.

For resources related to our guidance, please see:

• Illinois Banking Act — 205 ILCS 5/5e (“Notwithstanding the provisions of any other law in connection with extensions of credit,” banks may charge “interest, fees, and other charges . . . subject only to the provisions of subsection (1) of Section 4 of the Interest Act” and the laws applicable to real estate loans, provided that the bank sets fees based on its “prudent business judgment and safe and sound operating standards.”)

• Interest Act — 815 ILCS 205/4(1) (A bank may “receive or contract to receive and collect interest and charges at any rate or rates agreed upon by the bank or branch and the borrower.”)

• Interest Act — 815 ILCS 205/4(1)(l) (A bank may receive and collect interest and charges at any rate on “loans secured by a mortgage on real estate.”)