Latest Information to Help Small Businesses During COVID-19

Dear Neighbor,

Last week, the President signed the CARES Act into law. This $2 trillion dollar stimulus package will help our country through this devastating pandemic and is a good first step to deliver relief to people across the country impacted by COVID-19.

Below are links for small business owners to help you quickly access these programs.

Small Business Grants for Bar and Restaurants: DEADLINE Wednesday, APRIL 1, 2020

The Hospitality Emergency Grant Program is accepting applications until April 1, 2020 at 5PM. This grant is open to bars, restaurants and hotels who meet certain criteria. Funds are available to support payroll and rent, job training, retraining, technology to support shifts in operations and increased pick-up and delivery.

Bars and restaurants that have generated between $500,000 and $1 million in 2019 are eligible for up to $25,000 in relief

Bars and restaurants that generated less than $500,000 in revenue in 2019 will be eligible for up to $10,000 in relief

Hotels that generated up to $8 million in revenue in 2019 will be eligible for up to $50,000 in relief

Businesses can submit an application here. If you have questions about this program, call (312) 275-3000.

CARES SBA Paycheck Protection Program
(for ALL businesses with less than 500 employees)

The CARES Act SBA Paycheck Protection Program (PPP) supports all businesses with less than 500 employees. Businesses with both W-2 and 10-99 employees, as well as 501(c)3s are eligible and should apply through local banks.

These are 100% federally guaranteed loans intended to provide relief for payroll costs for businesses impacted by COVID-19. Beginning Tuesday, March 31st, banks will be ready to start processing loan applications. We encourage you to contact your financial institution immediately to confirm if they are working with PPP loans.

NOTE: If you already went online to apply for an SBA Economic Injury Disaster Loan (EIDL) loan before the CARES Act passed and were rejected, or didn’t hear back, it is important that you apply for the PPP loan. Many businesses that did not previously qualify for the EIDL loan will be eligible for the PPP loan.

These loans are 100% federally guaranteed to small businesses and non-profit 501(c)3s.

They can be used for payroll expenses, as well as other business-related expenses such as:

Salary and wages

Rent and mortgage payments

Health insurance costs and retirement contributions

Parental, family, medical and sick leave

State and local taxes

Remember, borrowers will be eligible to have their loans partially forgiven. Businesses must demonstrate a 25% loss in sales. Your loan limit is calculated on your average monthly payroll multiplied by 2.5. The 500 employee limit includes all employees: full-time, part-time, and contractual, including 10-99 employees.

Make sure to read the U.S. Chamber of Commerce’s Coronavirus Emergency Loans Guide here to see what documents you will need to prepare and contact your bank today to begin processing your loan application.

Treasurer’s Office “Bridge Loans”

Treasurer Mike Frerichs office is implementing a “bridge loan” program with $250 million available to banks and credit unions. The program’s aim is to support small businesses, non-profits, and faith-based organizations.

Eligible Illinois businesses or nonprofits must be headquartered in Illinois and have been shut down because of COVID-19. Applicants are required to have less than $1 million in liquid assets or $8 million average annual receipts (per SBA standards).

Click here to learn more about these loans and call your financial institution to see if they are participating in this program.

Chicago Small Business Resiliency Fund

As a direct response to COVID-19, the City of Chicago is establishing a $100 million Chicago Small Business Resiliency Fund. This program will provide small businesses with emergency cash flow during this immediate health crisis. Funds will be provided to businesses at low-interest loans.

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

Applications will open on March 31, 2020 and will be administered through the City’s Community Development Financial Institution (CDFI) partners. To apply, visit the City’s Small Business Resiliency website here.

As always, our office stands ready to answer any questions that you may have. We will continue to keep you up-to-date with the latest resources and make sure to follow us on Facebook and Twitter for live updates.

Very truly yours,

Sara Feigenholtz
State Senator, 6th District

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