IL Coronavirus: More emergency aid for small businesses
ILLINOIS – As the death toll from coronaviruses in Illinois rose to 19 and Governor JB Pritzker announced the extension of Illinois’ tax filing deadline – now July 15 instead of April 15 – he also announced additional help for small businesses across the state.
A new $ 90 million emergency assistance fund aims to help small business owners affected by the statewide law enforcement order. Illinois businesses can apply for these programs on the website of the Ministry of Trade and Economic Opportunities (DCEO).
“Our ministry is leveraging all the resources we have at our disposal to support small businesses in these difficult times,” said Erin Guthrie, director of the Ministry of Trade and Economic Opportunities. “These funds will provide small businesses on the brink of collapse with the much-needed working capital to keep paying their payroll and paying other bills while our administration continues to advocate for additional resources from the federal government. . “
A $ 60 million Illinois Small Business Emergency Loan Fund will also support low-interest loans of up to $ 50,000 for small businesses in all industries outside of Chicago.
The DCEO and the Illinois Department of Financial and Professional Regulation (IDFPR) are partnering with Accion, the Illinois Bankers Association and the Community Bankers Alliance of Illinois to create this fund. The loans will be backed by a $ 30 million loan loss reserve, made up of $ 20 million of DCEO funds and $ 10 million of funds guaranteed by the partnership with the Illinois banking community.
Businesses with less than 50 employees and less than $ 3 million in revenue in 2019 are eligible. Businesses that receive loans will have six months to start repaying and then make fixed payments at 3% interest for the remainder of the five-year loan term.
Applications will be available on the DCEO website by Friday March 27.
Help for bars, restaurants
Another new program, the $ 14 million Hospitality Emergency Grant Program, aims to help small hotel businesses make ends meet, providing up to $ 25,000 to eligible bars and restaurants and up to $ 50,000 to eligible hotels.
These grants are available to support working capital – like payroll and rent – skills training and technology to support changes in operations, like increased pickup and delivery.
Bars and restaurants that generated between $ 500,000 and $ 1 million in revenue in 2019 are eligible up to $ 25,000, and bars and restaurants that generated less than $ 500,000 in revenue in 2019 are eligible up to to $ 10,000. Hotels that generated less than $ 8 million in revenue in 2019 are eligible up to $ 50,000. The program reallocates vocational training and tourism promotion funds to provide this emergency assistance.
DCEO has partnered with Accion Serving Illinois and Indiana to administer the grant program and distribute the grants on behalf of DCEO.
Applications are available now on the DCEO website and are due by April 1 at 5 p.m. All valid and eligible applications received within the five-day window will be entered into a lottery and grant winners will be notified on April 4.
“The Illinois Restaurant Association appreciates DCEO’s program to bring immediate relief to smaller independent restaurants and bars,” Sam Toia, president and CEO of the Illinois Restaurant Association said in a press release. “These grants will provide assistance to the smaller operations of the hospitality segment, and every dollar helps during this time of crisis. We applaud this effort and will continue to advocate at the federal level for widespread economic relief for the more than 25,000 people. government and drinking establishments and their employees.
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