Funding Options For Employers
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. This Small Business Owner's Guide provides information about the major programs and initiatives that are available from the Small Business Administration (SBA) to address these needs, as well as some additional tax provisions that are outside the scope of SBA.
Paycheck Protection Program (PPP) 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.
Learn How the Federal CARES Act Applies to Your Business
Congress has approved $350 billion in emergency loans for small businesses to help them keep workers employed. In fact, if your small business maintains or later restores your payroll, you may not have to repay some - or possibly any - of the loan. Here is a Guide and Checklist to help your small business through the process.
The Illinois Department of Commerce and Economic Opportunity and the Illinois Department of Financial and Professional Regulation (IDFPR) have established 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 employees and less than $3 million in revenue in 2019 are 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. Apply Here by utilizing the “expression of interest” link at the bottom of the page.
- Funds Available Through Local WorkNet Offices
The Department of Commerce & Economic Opportunity has made some funds available for local WorkNet offices throughout Illinois to prevent essential, small businesses from laying off or furloughing employees. They are looking for businesses for whom these potential grant dollars would make the difference between keeping workers on or having to layoff/furlough. There is a very brief application document that companies in need should complete and submit to their local WorkNet office by close of business Wednesday, May 6.
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.
Eligibility: Illinois small businesses facing financial hardship due to COVID-19 crisis. These working capital loans can be used to meet needs including payroll, accounts payable, and fixed debt payments until the situation improves.
Interest rates are 3.75% for small businesses and 2.75% for non-profits. Loans offer repayment options of up to 30 years, as well as deferred payment of one year from the date of disbursement. Apply Here.
- 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.