Funding Options For Employers
New Funding Opportunities
State announces Child Care Restoration Grants to support the economic health of child care providers as the economy reopens.
New Main Street Grant Opportunity for businesses with a brick-and-mortar location operating in an older or historic main street, downtown or commercial district are eligible for grants of $5,000 to $15,000.
Small Business Owner's Guide to The CARES Act
The programs and initiatives in the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was passed by Congress are intended to assist business owners with whatever needs they have right now. The U.S. Department of the Treasury and the U.S. Small Business Administration (SBA) are responsible for updating the application form and instructions for loan forgiveness. Small business owners can find the most up-to-date information by clicking here. Below is information about major funding programs.
Paycheck Protection Program
Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for businesses with 500 or fewer employees to keep their workers on the payroll. Originally the loans could be forgiven if all employees were kept on payroll (75% of loan used for payroll) for eight weeks and the remaining money (25%) was used for payroll, rent, mortgage interest, or utilities.
On June 5, 2020, The Paycheck Protection Program Flexibility Act of 2020, was signed into law by President Trump. The new law amends the Paycheck Protection Program (PPP) to give borrowers more freedom regarding how and when loan funds are spent while retaining the possibility of full forgiveness. The link provides key takeaways from the PPP Flexibility Act and the changes it includes.
SBA Releases Revised Applications for PPP Loan Forgiveness
The U.S. Small Business Administration (SBA), in concert with the Treasury Department, unveiled a revised Paycheck Protection Program (PPP) loan forgiveness application. This application is smaller and easier to navigate and implements the PPP Flexibility Act of 2020 that was signed into law by President Trump. Additionally, SBA published a new EZ version of the forgiveness application that applies to borrowers that:
- Are self-employed or have no employees; or
- Did not reduce the salaries or wages of their employees by more than 25 percent, and did not reduce the number or hours of their employees; or
- Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25 percent.
Both applications give borrowers the option of using the original 8-week covered period (if their loan was made before June 5, 2020) or an extended 24-week covered period. These changes will result in a more efficient process and make it easier for businesses to realize full forgiveness of their PPP loan.
The EZ forgiveness application information can be found here - instructions and application. The full forgiveness application information can be found here - instructions and application. The Interim Final Rules can be found here.
SBA webinar recordings regarding funding programs
US Small Business Administration hosted two webinars on June 18 to provide the most up-to-date information on the Paycheck Protection Program, Economic Injury Disaster Loans, and other relief for small businesses impacted by COVID-19. The webinar recordings are linked below.
Economic Injury Disaster Loan (EIDL)
To further meet the needs of U.S. small businesses and non-profits, the U.S. Small Business Administration reopened the Economic Injury Disaster Loan (EIDL) and EIDL Advance program portal to all eligible applicants experiencing economic impacts due to COVID-19 on June 16.
SBA’s EIDL program offers long-term, low interest assistance for a small business or non-profit. These loans can provide vital economic support to help alleviate temporary loss of revenue. EIDL assistance can be used to cover payroll and inventory, pay debt or fund other expenses. Additionally, the EIDL Advance will provide up to $10,000 ($1,000 per employee) of emergency economic relief to businesses that are currently experiencing temporary difficulties, and these emergency grants do not have to be repaid.
If businesses need assistance or have questions on this program, they can contact their local Small Business Development Center or contact our First Stop Business Center at 800-252-2923. Click HERE to find your closest SBDC office.
Business Interruption Grants Program
The Department of Commerce and Economic Opportunity (DCEO) will launch the first round of Business Interruption Grants (BIG) by providing $60 million to businesses experiencing losses or business interruption as a result of COVID-19 related closures. The BIG Program is available for up to 3,500 businesses that experienced a limited ability to operate due to COVID-19 related closures.
Distressed Capital Program
In addition to the Business Interruption Grants, the Governor also announced DCEO's new economic recovery program will provide $25 million to support Illinois businesses that have sustained property damage as a result of civil unrest during the protests and demonstrations on or after May 25, 2020. The Distressed Capital Program will reimburse the costs to repair structural damages, including repairs to storefronts and entrances, improving electrical systems, and restoring exterior work.
The applications for both programs will be available from DCEO starting Monday, June 22. For more information, CLICK HERE.
IL State Treasurer Small Business COVID-19 Relief Program
The Business Invest - Illinois Small Business COVID-19 Relief Program is an impact investment loan program under which the State Treasurer has made up to $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. Through this program, the Treasurer's Office partners with approved financial institutions to provide loans -- either lower rate loans, or loans to a business or non-profit that would not otherwise qualify -- to Illinois small businesses impacted by the COVID-19 pandemic.
U.S. Chamber of Commerce
- U.S. Chamber’s Updated Guide to PPP Loan Forgiveness
- Small Business Guide and Checklist for Emergency Loans
- The U.S. Department of Labor has provided information for employers on the new federal law regarding paid sick leave and expanded FMLA due to COVID-19. The new federal law applies to employers of 500 employees and less.