Below is a list of resources to assist business owners during the Coronavirus crisis. Please let the Chamber know if we can assist you. Our email is firstname.lastname@example.org.
Here is the link to the Restore Illinois Phase 3 Guidlines for Reopening Business and Returning People to Work Safely https://www2.illinois.gov/dceo/pages/restoreILP3.aspx
Small Business & Non-Profit Resources Update from Representative Jan Schakowsky’s Office
Current as of April 27, 2020
Knowing of your interest in up-to-date information for local businesses and non-profits navigating the COVID-19 crisis, we wanted to provide you with updated information as it becomes available. Please see below for some notable updates on possible assistance options:
1. General Resources
Small Business Owner Guide to the CARES Act (from the U.S. Senate Committee on Small Business & Entrepreneurship) continues to be a great resource for small businesses & non-profits looking for assistance during this period. This guide has frequently asked questions for each of the programs established or enhanced to support small businesses, and many of its key points are briefly summarized in the guidance below.
Feedback on your Disaster Recovery. Share your organization’s experience navigating the federal resources created to support these organizations during this time of need.
2. Paycheck Protection Program and Health Care Enhancement Act Passes.
The Paycheck Protection Program and Health Care Enhancement Act was passed by Congress and signed into law on 4/24. This package included:
- Paycheck Protection Program: $310 billion in additional funding for the program, which allocated $349 billion in less than two weeks
- $30 billion of that total was set aside for small banks & lending institutions (under $10b in assets) in addition to:
- Community Development Financial Institutions, Minority Depository Institutions, Certified Development Companies, and microlenders
- $30 billion of that total was set aside for ‘medium sized’ lenders between $10 billion and $50 billion in assets
- $30 billion of that total was set aside for small banks & lending institutions (under $10b in assets) in addition to:
- Economic Injury Disaster Loan Program: $50 billion in additional funding for the EIDL program, which has seen strong demand but had (relatively) limited funding provided under the Families First Act.
- Emergency Economic Injury Grant Program: $10 billion in additional funding for these smaller cash advances of up to $10,000 per EIDL applicant, doubling its orginal funding.
3. Paycheck Protection Program Loans – Funds Replenished & Open for Applications as of 4/27/2020, 9:30AM CDT.
General Information: The PPP is designed to help small businesses & non-profits maintain payroll in light of the COVID-19 pandemic. Eligible businesses who enroll in the program will receive a forgivable loan to use for payroll purposes, in addition to helping pay for utilities, rent, mortgage interest payments, and more. Details are included in the links below.
Illinois Numbers So Far: According to the SBA, as of April 16, 69,893 loans had been approved for Illinois, totaling $15.972 billion. The average loan amount was $228,529.
Application Information: PPP applications are to be submitted through participating lenders. (See the PPP Lender Find Tool below)
If you have already submitted your application with a lender, I suggest that you contact that lender ASAP to ensure that they have the documentation they need to process your application as soon as possible.
If you have applied for a PPP loan but have found your lender non-responsive, you may want to consider other avenues to ensure that your application has a great likelihood of being processed and accepted. According my contacts at the SBA, it is not uncommon for organizations to have multiple simultaneous PPP applications filed with different lenders. While I do not have anything in writing, it is my understanding that these simultaneous applications will not harm your attempt to receive PPP funding. Importantly, I want to reiterate that your organization may only receive one PPP loan.
Lenders Accepting New Customers: If you have not yet located a lender willing to take your application, our office has been informed about several lenders that are accepting applications from new customers. These include:
These are lenders that small businesses have indicated are or were receiving applications from new customers, but to be clear: this isn’t an endorsement of any of them. I encourage you to do your due diligence before entering into a relationship with any lender.
PPP Loan Resources: The Small Business Administration has distributed additional guidance from the U.S. Department of the Treasury on how the Paycheck Protection Program is going to be implemented and what both lenders and borrowers need to know. The following documents were provided:
- General Program Overview for the Paycheck Protection Program
- PPP Lender Find Tool (as of 4/27, there are 127, 293 lender results when I used the search tool)
- Department of Treasury PPP Program: Frequently Asked Questions (new as of 4/6)
- PPP: Information for Lenders
- PPP: Information for Borrowers
- Sample Paycheck Protection Program Application (link updated 4/6)
- Small Business Administration’s PPP Page
4. Economic Injury Disaster Loan Program – Funding Replenished
General Information: The SBA’s Economic Injury Disaster Loan (EIDL) program received significant additional funding in the recent bill signed into law on 4/24. These SBA loans provide small businesses with a long-term, low interest loan to help them survive the COVID-19 crisis.
Note that these are loans, not grants like the PPP may turn into. Applicants can apply for both EIDL and PPP loans simultaneously, although the funds cannot be used for the same purpose.
Illinois Numbers So Far: According to the SBA, as of April 24, 38,984 EIDL program loans have been processed nationally, amounting to almost $8 billion. This includes 1,243 loans for Illinois organizations, amounting to about $256 million. Note that there is significant demand for this program, and it is my understanding that there may be millions of applications being processed.
Application Process: The SBA has established a streamlined application process that is available here. Important: if your eligible business or non-profit needs short term assistance, and you applied prior to March 29, you must re-submit your application to request the EEIG cash advance.
If you have already applied for funds through EIDL and do not need the loan advance (discussed below), your application should continue to be processed without additional steps.
Application Status: You may check on the status of your application by calling 800-659-2955.
5. Emergency Economic Injury Grants (advance on EIDL loans)
General Information: Businesses that need an infusion of capital in the short term and are applying for a loan through the EIDL program also have the opportunity to apply for an Emergency Economic Injury Grant. The purpose of the EEIG program is to receive an advance of up to $10,000 from the requested EIDL amount, and to receive this amount quickly while the EIDL application is being processed. This process can be started from the EIDL application, available here. This program’s original $10 billion appropriation was recently doubled to $20 billion.
Illinois Numbers So Far: According to the SBA, as of April 24, 1,192,519 EEIG advances had been processed, totaling about $4.8 billion. Of these, 42,381 Illinois organizations had received the advance amounting to about $176 million.
6. SBA Express Bridge Loans
The SBA has announced the availability of a new SBA Express Bridge Loan program, that is available to small businesses who already have an established relationship with a SBA Express Lender.
- SBA Express Bridge Loan Program Homepage
- SBA Express Bridge Program Guide
- List of SBA Express Lenders (noted with a “SX” in the Program Authority column)
General Information: SBA Express Bridge loans are being offered to act as a bridge for businesses who need short term funding in order to stay afloat until they receive EIDL funds they have previously applied for. These funds are available in amounts of up to $25,000 and have a fast turnaround time. These loans will be repaid in full or in part by proceeds from the EIDL loan once the process is completed.
7. SBA Small Business Debt Relief Program
The Small Business Administration is providing a program to assist small businesses who have non-disaster SBA loans – namely 7(a) loans, 504 loans, and microloans.
Program Benefits: The SBA will cover payments (on principal and interest) in addition to fees for six months.
Program Applicability: This program will apply to preexisting loans in these categories, in addition to new borrowers who take out these loans within six months of the CARES Act becoming law.
Loan Program Details: Please see the below links if you think that your business could benefit from these options:
- 7(a) Loan Program Information
- 7(a) loans max out at $5 million are targeted towards borrowers who lack credit elsewhere and need access to flexible capital. These loans are offered through approved 7(a) lenders (a list is available here)
- 504 Loan Program Information
- 504 Loans max out at $5.5 million and provide long-term fixed-rate financing and may be a good option for businesses looking to purchase property or large equipment
- SBA Microloan Program Information
- The SBA’s microloan program offers loans of up to $50,000 to help small businesses start up or expand.
8. Employee Retention Tax Credit
General Information: The CARES Act includes a Employee Retention Tax Credit, designed to encourage employers to retain their employees during the COVID-19 crisis. The IRS describes the credit as a “fully refundable tax credit for employers equal to 50 percent of qualified wages (including allocable qualified health plan expenses) that Eligible Employers pay their employees. This applies to wages paid between March 12, 2020 and January 1, 2021, with a maximum credit for any employee amounting to $5,000. Additional IRS guidance is available here.
Key Caveat: This credit is not available to employers receiving assistance via the Paycheck Protection Program.
9. Employer Payroll Tax Deferral
General Information: According to the Guide, a provision in the CARES Act allows for the deferral of the employer portion of certain payroll taxes through the end of 2020. These deferred amounts are due in two installments – one at the end of 2021, the other at the end of 2022. Included deferrable taxes include the employer portion of FICA taxes and half of SECA tax liability. Additional IRS guidance is available here.
Key Caveat: Deferral is not available to employers receiving assistance via the Paycheck Protection Program.
10. Business Counseling (+ Assistance with Applications)
General Information: In addition to direct financial assistance to small businesses and non-profits, the recent stimulus packages have included significant funding for enhanced small business counseling services. These organizations are well versed in how to help small businesses succeed and stand ready and willing to help your organization navigate these difficult times. Counseling resources include:
- Illinois Small Business Development Center at West Side Forward
- Contact is Curtis Roeschley, 773-473-4774 / email@example.com
- Women’s Business Development Center
- Minority Business Development Agency Business Center
- Illinois Department of Commerce & Economic Opportunity
11. Congresswoman Schakowsky’s E-Newsletter
Congresswoman Schakowsky has been putting out frequent newsletters with developments and resources for those impacted by the COVID-19 pandemic. You can sign up for the newsletter by clicking this link.–
Hopefully this information is helpful. I again encourage potential applicants to familiarize themselves with the Senate’s Small Business Owner Guide, which was the source of much of my information and goes into greater detail than I can do in this email.
Complimentary 15-minute Legal Consultation for Small Businesses
Attorney Kevin Zibolski from the legal firm Leinenweber Baroni & Daffada LLC is offering small businesses a complimentary 15-minute legal consultation to assist them with accessing resources from the CARES act. Kevin has studied the act, and is thoroughly knowledgeable. If you are interested, email Kevin at firstname.lastname@example.org to set up an appointment.