Small Business Resources
March 2021 Update:
In order to reach the smallest businesses, SBA will offer PPP loans to businesses with fewer than 20 employees and sole proprietors only from Wednesday, February 24 through Tuesday, March 9, 2021 at 5pm ET. President Biden has also announced additional program changes to make access to PPP loans more equitable.
U.S. Small Business Administration (SBA) Webinars with Illinois District Director, Robert Steiner
On March 24th, Rep. Casten hosted the first webinar which featured guidance on how local businesses and non-profit organizations can apply for Economic Impact Disaster Loans offered by SBA. Full video can be found ">here or below.
Paycheck Protection Program
The Paycheck Protection Program (PPP) provides loans to help businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. SBA is currently offering:
- First Draw PPP Loans for first time program participants
- Second Draw PPP Loans beginning January 13, 2021 for certain businesses who have previously received a PPP loan
SBA, in consultation with the U.S. Treasury Department, reopened the Paycheck Protection Program (PPP) for First Draw Loans the week of January 11, 2021. SBA is currently accepting First Draw PPP loan applications from participating lenders. Lender Match can help connect you with a lender. You can also view all lenders near you on a map.
First Draw PPP Loans
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on payroll. First Draw PPP Loans can be used to help fund payroll costs, including benefits, and may also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.
- PPP loans have an interest rate of 1%.
- Loans issued prior to June 5, 2020 have a maturity of two years. Loans issued after June 5, 2020 have a maturity of five years.
- Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower's loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (either 8 weeks or 24 weeks).
- No collateral or personal guarantees are required.
- Neither the government nor lenders will charge small businesses any fees.
Who May Qualify?
The following entities affected by Coronavirus (COVID-19) may be eligible:
- Sole proprietors, independent contractors, and self-employed persons
- Any small business concern that meets SBA’s size standards (either the industry size standard or the alternative size standard)
- Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of:
- 500 employees, or
- That meets the SBA industry size standard if more than 500
- Any business with a NAICS code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location
How and When to Apply?
You can apply for a First Draw PPP Loan until March 31, 2021. SBA is currently accepting First Draw PPP loan applications from participating lenders. Lender Match can help connect you with a lender. You can also view all lenders near you on a map. All new First Draw PPP Loans will have the same terms regardless of lender or borrower.
Second Draw PPP Loans
The Paycheck Protection Program (PPP) now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan.
Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
Maximum loan amount and increased assistance for accommodation and food services businesses
For most borrowers, the maximum loan amount of a Second Draw PPP Loan is 2.5x average monthly 2019 or 2020 payroll costs up to $2 million. For borrowers in the Accommodation and Food Services sector (use NAICS 72 to confirm), the maximum loan amount for a Second Draw PPP Loan is 3.5x average monthly 2019 or 2020 payroll costs up to $2 million.
Who May Qualify?
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
- Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses
- Has no more than 300 employees; and
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020
Shuttered Venue Operators Grant
The Shuttered Venue Operators (SVO) Grant program was established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, signed into law on December 27, 2020. The program includes $15 billion in grants to shuttered venues, to be administered by the SBA’s Office of Disaster Assistance.
Eligible applicants may qualify for SVO Grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. $2 billion is reserved for eligible applications with up to 50 full-time employees.
Who Can Apply?
Eligible entities include:
- Live venue operators or promoters
- Theatrical producers
- Live performing arts organization operators
- Relevant museum operators, zoos and aquariums who meet specific criteria
- Motion picture theater operators
- Talent representatives, and
- Each business entity owned by an eligible entity that also meets the eligibility requirements
Other requirements of note:
- Must have been in operation as of February 29, 2020
- Venue or promoter must not have received a PPP loan on or after December 27, 2020
Amount of SVO Grant
Grant amount will be either:
- For an eligible entity in operation on January 1, 2019, grants will be for an amount equal to 45% of their 2019 gross earned revenue OR $10 million, whichever is less.
- For an eligible entity that began operation after January 1, 2019, grants will be for the average monthly gross revenue for each full month you were in operation during 2019 multiplied by six (6) OR $10 million, whichever is less.
Shuttered Venue Operators (SVO) Grant Program - Shuttered Venue Operators Grant (sba.gov)
SVO Grant Program Webinar - Archived Webinar: Shuttered Venue Operators Grant Overview - YouTube
How and When to Apply?
You can apply for a Second Draw PPP Loan from January 13, 2021, until March 31, 2021. SBA is currently accepting Second Draw PPP loan applications from participating lenders. Lender Match can help connect you with a lender. You can also view all lenders near you on a map. All Second Draw PPP Loans will have the same terms regardless of lender or borrower.
Targeted EIDL Advance Program
SBA initiated the Targeted EIDL Advance program yesterday, February 1 and has started sending email invitations to the priority group. This group consists of applicants that received a previous EIDL Advance in an amount less than $10,000 and are in a low-income community. These applicants will have the opportunity to provide additional documentation to establish their eligibility for this program.
Eligibility criteria to participate in the Targeted EIDL include businesses that have 300 or fewer employees, are located in federally identified low-income communities and can demonstrate a reduction in revenue of more than 30 percent during an 8- week period beginning on March 2, 2020 or later. This includes small business entities normally eligible for the SBA EIDL program, including non-farm businesses and corporations, sole proprietors, independent contractors, and private nonprofit organizations.
Targeted EIDL Advance Program - https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/covid-19-economic-injury-disaster-loans#section-header-6
Targeted EIDL Advance Program FAQ - Targeted EIDL Frequently Asked Questions (sba.gov)
Many banks have setup support lines and resources to work with individuals and businesses impacted by the coronavirus. The below list is not comprehensive – if a bank is not listed, reach out to them to see if they are offering support to those impacted. The Federal Deposit Insurance Corporation (FDIC), National Credit Union Association (NCUA), and Illinois Bankers Association (IBA) have posted resources for banks, businesses, and consumers:
Other commercial banks have posted resources:
· Capital One: https://www.capitalone.com/coronavirus/
· Discover: https://www.discover.com/coronavirus/
· DuPage Credit Union: https://www.dupagecu.com/blog/covid-19/
· Fifth Third Bank: https://www.53.com/content/fifth-third/en/alerts/covid-support.html
· First Midwest Bank: https://www.firstmidwest.com/covid-19/
· Marcus at Goldman Sachs: https://www.marcus.com/us/en/media/blogs/info-on-covid19
· Oxford Bank: https://www.oxford.bank/
· US Bank: https://www.usbank.com/splash/covid-19.html
· Wells Fargo: https://www.wellsfargo.com/com/focus/coronavirus-updates/
· Wintrust Bank: https://www.wintrust.com/lp/2020/coronavirus-readiness-update.html