Applications for the Chicago Small Business Resiliency Fund are now open.
The City of Chicago has established the $100 million Chicago Small Business Resiliency Fund (the Resiliency Fund), which will provide small businesses and non-profits with emergency cash flow during this health crisis. Funds will be provided to eligible businesses as low-interest loans available on a first-come, first-serve basis.
Due to the recently passed federal stimulus package, your business may be eligible for aid from the federal government.
- Paycheck Protection Program – The U.S. Small Business Administration (SBA) will provide $349 billion in loans through the Paycheck Protection Program to small businesses and non-profits. Portions of these loans will be forgiven to the extent that recipients maintain their existing workforce or rehire. Learn More>>.
- Economic Injury Disaster Loan – The program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. Borrowers can request an emergency advance of $10,000 within 3 days of submitting the application and do not have to repay the advance if they are denied a loan. Learn More>>
- Subsidy for Current Loan Payments – The SBA will cover up to 6 months of principal and interest payments that are owed on most existing SBA loans. Learn More>>
- Aid to Midsize Businesses and Nonprofits – $454 billion will be available from the U.S. Treasury to provide financial assistance through loan programs established by the Federal Reserve. As part of that, a special fund is dedicated to midsize businesses and nonprofits with 500-10,000 employees to provide financing to banks and other lenders to make direct loans to these entities. The interest rate on those loans would be capped at 2%, with no payments due for the first six months. These loans cannot be forgiven.
Significant restrictions will be placed on the midsize business and nonprofit assistance, such as prohibiting paying out dividends while the loan is outstanding. More guidance will be forthcoming from the U.S. Treasury on additional criteria and funding access.
To mitigate immediate economic fall-out:
- The City of Chicago is extending the due date to April 30 for City taxes, including the Amusement tax, Hotel Accommodation tax, Restaurant Tax and the Parking Tax.
- Governor Pritzker has directed the Department of Revenue to defer sales tax payments for more than 24,000 small- and medium-sized bars and restaurants through May.
- Governor Pritzker said Illinois will move its state income tax deadline back three months to July 15, aligning it with the extended federal tax deadline.
Governor Pritzker has launched a website to update the public on the state's evolving response to COVID-19:
- Governor Pritzker is directing healthy citizens to a state website to match their skills with organizations that work with the homeless or seniors, or deliver meals.
- Governor Pritzker started the Illinois COVID-19 Response Fund to support nonprofits and other groups that work with "those hit hardest by COVID-19," providing emergency food and basic supplies, interim housing, health care services, assisting with utility costs and supporting children and families.
- Governor Pritzker outlined supply concerns across the state. He said ventilators, masks, hospital gowns, hand sanitizer and other supplies are badly needed. Have items to donate? Email PPE.firstname.lastname@example.org.
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We salute our district's first responders.