COVID-19 ECONOMIC INJURY DISASTER LOANS
The U.S. Small Business Administration (SBA) is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19).
The SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%.
The SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
Applicants will apply directly to the SBA, which is estimating it will take about 21 days to process the applications. Once approved, they are expecting about another five to seven days to disperse the funds directly from the U.S. Treasury to the applicant.
You can find out more information in the SBA's Three-Step Disaster Loan Process Sheet, one pager, presentation and the governor's press release
For questions, please contact the SBA disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail email@example.com.
The Small Business Administration works with different organizations to provide federal financial assistance (grants) community resources for certain small businesses.
Paycheck Protections Program
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
The Paycheck Protection Program will be available through June 30, 2020. For more information click here. Click here to view a sample application.
Employee Retention Credit
To encourage employers to keep employees on their payroll, despite experiencing economic hardship related to COVID-19, the CARES Act includes an employee retention tax credit (Employee Retention Credit). Employee Retention Credit, designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19. You can find out more information here.
The federal stimulus package passed in March provides emergency assistance and health care response for individuals, families and businesses affected by the 2020 coronavirus pandemic. You can read the bill in entirety here.
Senator McConnell’s summary is here.
U.S. Chamber information on how businesses can benefit from the CARE Act here.
The legislation contains numerous programs and we will continue to update the site as more information becomes available.
The U.S. Chamber has created Coronavirus Emergency Loans and Small Business Guide and Checklist to help small businesses, independent contractors, gig economy workers and other qualifying individuals prepare to file for a coronavirus relief loan under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Click here to download the guide, and click here for the Spanish version.
CO—has created a Coronavirus Small Business Guide to help you navigate the pandemic with new stories daily—including a detailed breakdown of federal stimulus aid programs, information about managing financial difficulties, keeping your team engaged, supporting and retaining your customers, and more.
- United States Senator Dick Durbin
As the United States continues to address the coronavirus pandemic, I’m focused on ensuring the federal government is doing everything it can to support the health and safety of Illinoisans. Addressing the spread of the virus will take a whole-of-government approach and coordination with the State of Illinois as preventive measures are implemented. We also must support working families during this difficult time and provide health care professionals and scientists with every resource they need for treatments and research into COVID-19. For more information click here.
State of Illinois COVID-19 Response
Protecting the health, safety, and wellbeing of Illinoisans is Governor Pritzker’s top priority. The administration continues to work closely with local health departments, county officials and federal partners to put systems in place to respond to COVID-19. This website will provide the latest news releases related to coronavirus, resources, FAQs, video archives of press conferences and tips from leading experts to keep you and your family safe. For more information click here.
Illinois Small Business Emergency Loan Fund
Under the leadership of Governor JB Pritzker, DCEO and the Illinois Department of Financial and Professional Regulation (IDFPR) are establishing the Illinois Small Business Emergency Loan Fund to offer small businesses low interest loans of up to $50,000.
Businesses located outside of the City of Chicago with fewer than 50 workers and less than $3 million in revenue in 2019 will be eligible to apply. Successful applicants will pay nothing for six months and will then begin making fixed payments at a below market interest rate for the remainder of a five-year loan term.
Loan funds must be used for working capital, and at least 50% of loans proceeds must be applied toward payroll or other eligible compensation including salaries, wages, tips, paid leave, and group healthcare benefits. Eligible uses will exclude compensation in excess of $100,000. Apply here.
Illinois Small Business Emergency Loan Fund
DCEO and the Illinois Department of Financial and Professional Regulation (IDFPR) are establishing the Illinois Small Business Emergency Loan Fund to offer small businesses low interest loans of up to $50,000.
Businesses located outside of the City of Chicago with fewer than 50 workers and less than $3 million in revenue in 2019 will be eligible to apply. Successful applicants will owe nothing for six months and will then begin making fixed payments at a below market interest rate for the remainder of a five-year loan term.
Businesses can express interest and learn more about loan guidelines and eligibility here.
Downstate Small Business Stabilization Program
To support small businesses in downstate and rural counties across Illinois, DCEO is re purposing $20 million in CDBG funds to stand up the Downstate Small Business Stabilization Program. This Fund will offer small businesses of up to 50 employees the opportunity to partner with their local governments to obtain grants of up to $25,000 in working capital. These grants will be offered on a rolling basis. Communities can learn more about the Notice of Funding Opportunity (NOFO) and eligibility requirements here.
Treasurer Frerich's Illinois Small Business COVID-19 Relief Program
The Illinois Small Business COVID-19 Relief Program is an impact investment loan program to provide vital economic support to small businesses and non-profits throughout Illinois to help overcome the loss of revenue they are experiencing.
Treasurer Frerichs's office will make $250 million in deposits available to financial institutions throughout the state, at near-zero rates, to assist Illinois small business and non-profits negatively affected by the COVID-19 pandemic.
The Treasurer's Office is partnering with approved financial institutions to provide lower rate loans, or loans to a business or non-profit that would not otherwise qualify, to small businesses impacted by the COVID-19 pandemic.
State funds will be deposited with qualified financial institutions for a 1-year term at a near-zero deposit rate of 0.01 percent. Deposits can be drawn in $1 or $5 million increments, up to a maximum of $25 million per financial institution.
To participate in the program, financial institutions must be or apply to become an approved program depository with the Illinois Treasurer's Office.
Visit the Community Development Linked Deposit page to view the applicable impact investment deposit rates.
Click to listen to the conference call with the Treasurer's office and the Illinois Chamber of Commerce on March 27, 2020
State of Illinois COVID-19 Response
Governor Pritzker’s administration makes constant daily updates on the COVID-19 crisis in Illinois on their Covid-19 Response website here.
Chicago Small Business Resiliency Fund
The City of Chicago recognizes that coronavirus disease (COVID-19) has put a difficult burden on our small business community. As a response to this challenge, the City is establishing a $100 million Chicago Small Business Resiliency Fund, which will help to provide small businesses with emergency cash flow during this immediate health crisis. Funds will be provided to eligible businesses as low-interest loans. Click here for more information or to apply.
The Greater Springfield Chamber of Commerce Disaster Assistance
The Greater Springfield Chamber of Commerce (GSCC) has created the Chamber Business Relief Fund to provide timely and meaningful financial resources to businesses significantly impacted by the COVID-19 crisis. You can apply for funding here.
Illinois Municipal League Memo
Local assistance programs in certain communities and under development. This list will be updated as they come online. Click here for more information.