Hopefully we’ll be updating this list soon and often with news of new government programs and available funds meant to stem the tide of the financial crisis caused for the hospitality (and hospitality adjacent) businesses by the epidemic. If we are missing resources and you have them to share, please hit us up through the contact page and we’ll get them posted.
At present, here are resources for you:
1. The SBA Disaster Relief:
What’s this about: You can read our previous piece on the SBA Disaster Relief here. Basically all Illinois small businesses can now apply for low-interest disaster loans to help offset the economic impact of the coronavirus pandemic.
Applying: You can apply online.
Additional Info: There are webinars available to educate on how to apply for this relief: http://sbaillinois.eventbrite.com/
Information you’ll want to collect for your loan application:
- SBA Form 5 or SBA Form 5C for sole proprietorships – SBA loan application
- IRS Form 4506T – Tax Information Authorization for the applicant, principals and affiliates
- Complete copies of the most recent Federal Income Tax Return.
- SBA Form 2202 – Schedule of Liabilities
- SBA Form 413 – Personal Financial Statement
- SBA Form 1368 – Monthly sales figures
- Link here to more information on eligibility
Visit sba.gov/coronavirus for updates on the loan program, guidance for businesses and employers, and other SBA resources.
Need to talk to a small business coach or SBA team member? Visit sba.gov/local-assistance to find a resource near you, or e-mail questions to illinois.do@sba.gov.
2. The State of Illinois Small Business COVID-19 Relief Program:
What’s this about: The state has a relief program running through financial institutions – $250 million to provide economic support to small businesses to help overcome the loss of revenue they are experiencing. The program is not up and running yet, but banks and other financial institutions can apply to be part of the program here.
Where to inquire: for now, the state Treasurer website is maintaining a list of approved program participating institutions you can find it here.
Additional Info: Once up and running, we will update, for now, the details on the program are:
- State funds would be deposited with qualified financial institutions for a 1-year term at a near-zero deposit rate of 0.01% (0.0001).
- Deposits could be drawn in $1 or $5 million increments, up to a maximum of $25 million per financial institution.
- Deposited funds would facilitate affordable loans (not to exceed 4.75%) to small businesses and non-profits that could be used to provide bridge funding, pay fixed debts, payroll, accounts payable and other bills.
- Eligible Illinois businesses or non-profits must: (1) have been shut down or limited due to COVID-19; (2) have less than $1 million in liquid assets or $8 million average annual receipts (per SBA standards); and (3) be headquartered in the state of Illinois or agree to use the funds in Illinois.
- Deposits would be renewable as determined by the Treasurer’s Office.
- Financial institutions would be required to provide reports to the Treasurer’s Office regarding the usage of program funds, including the number and types of loans provided and the economic impact of such loans
Should you have any questions, please contact the Invest In Illinois team at (217) 558-6217, (217) 341-0255 or email investinillinois@illinoistreasurer.gov.
3. The City of Chicago relief fund:
What’s this about: Understanding what was happening to Chicago’s hospitality industry before many, Mayor Lightfoot announced last week that the City was putting together a fund to help Chicago’s Businesses struggling in the Covid-19 crisis for small businesses – under 50 employees/$3 million cap.
Applying: A different process, here is the portal for the City of Chicago’s Resiliency Loan Fund that you can fill out and the City will contact you.
Additional Info: From the City’s portal here is information on the program.
- Repayment Term: Low-interest loans for a term of up to five years.
- Loan Amount: Up to $50,000 but sized based on revenues before the COVID-19 outbreak.
- Loan Proceeds: Proceeds are required to be used for working capital. At least 50% of proceeds should be applied toward payroll and commitment to retain the workforce at 50% of pre-COVID-19 levels.
To be eligible, businesses must meet the following requirements:
- Suffered more than 25% revenue decrease due to COVID-19
- Employ fewer than 50 employees and have gross revenues of less than $3 million in 2019
- Provide a City business address or City business license
- No pre-existing tax liens or legal judgments
KEEP US POSTED – As we said, if you’ve got more programs or details, feel free to hit us up so we can post them.
The post A running list of resources for loans and funds for Illinois and Chicago businesses in danger of failing during this crisis. Please let us know what we are missing. appeared first on Libation Law Blog.