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Chicago, IL Business Licensing & Operations: Pawnbrokers (2026)

Significant Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified August 2026

Key Facts

Annual license fee
$5,280
Licensing agency
Dept. of Business Affairs & Consumer Protection
Fine range
$2,000–$10,000 per offense
Dual license
Barred with junk peddler/secondhand license
Interest rate cap
Set by state Pawnbroker Regulation Act

Summary

Chicago requires a $5,280/year city license to operate as a pawnbroker, with a good-moral-character investigation before issuance.

No person shall engage in the business of a pawnbroker within the city without a license. ... The fee for a pawnshop license shall be as set forth in Section 4-5-010 ... Any person violating any of the provisions of this chapter ... shall be fined not less than $2,000.00 nor more than $10,000.00 for each offense.

Source: Illinois Pawnbroker Regulation Act 205 ILCS 510View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-74: Current through Council Journal of June 17, 2026).

Full Breakdown

No one may engage in the pawnbroking business in Chicago without a license, and a licensed junk peddler, junk facility, or secondhand dealer cannot also hold a pawnbroker license at the same time. Applicants go through an investigation by the Commissioner of Business Affairs and Consumer Protection to confirm good moral character before a license is granted. The annual license fee is $5,280. Interest charges and fees a pawnbroker assesses must comply with the Illinois Pawnbroker Regulation Act, and the rate schedule must be posted in English, framed, in a conspicuous spot in the shop.

Violations & Fines

Fines of $2,000 to $10,000 per offense; each pledge transaction violated counts as a separate offense, and licenses can be suspended or revoked for repeat violations.

Frequently Asked Questions

Can a secondhand dealer also run a pawnshop in Chicago?
No. A licensed junk peddler, junk facility, or secondhand dealer cannot hold a pawnbroker license during that same licensing period.
How much does a Chicago pawnbroker license cost?
$5,280 per year, set in the city's license fee schedule under MCC Chapter 4-240.
What happens if a pawnbroker violates the rules?
Fines run $2,000 to $10,000 per offense, with each pledge transaction treated as a separate violation, plus possible license revocation.

Sources & Official References

Other rules in Chicago

All Chicago rules

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