Small Business Resources

Paycheck Protection Program

The Paycheck Protection Program (PPP) ended on May 31, 2021. Existing borrowers may be eligible for PPP loan forgiveness.

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First Draw PPP Loan Forgiveness

First Draw PPP loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

  • Employee and compensation levels are maintained

  • The loan proceeds are spent on payroll costs and other eligible expenses; and

  • At least 60% of the proceeds are spent on payroll costs

Second Draw PPP Loan Forgiveness

Second Draw PPP loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

  • Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan

  • The loan proceeds are spent on payroll costs and other eligible expenses; and

  • At least 60% of the proceeds are spent on payroll costs

 

How and When to Apply for Loan Forgiveness

A borrower can apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been used. Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.

Additional resources including specific instructions for how to apply for PPP loan forgiveness can be found at the Small Business Administration (SBA) website below: https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program/ppp-loan-forgiveness 

COVID-19 Economic Injury Disaster Loan (EIDL)

This loan provides economic relief to small businesses and nonprofit organizations that are currently experiencing a temporary loss of revenue.

 

Loan Eligibility

  • Small business owners and qualified agricultural businesses in all U.S. states and territories are currently eligible to apply for a low-interest loan due to COVID-19.
  • Agricultural businesses with 500 or fewer employees are now eligible as a result of new authority granted by Congress in response to the pandemic.
    • Agricultural businesses include those businesses engaged in the production of food and fiber, ranching, raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)).

Loan Increases 

Loans approved prior to April 7, 2021 for less than $500,000 are likely eligible for an increase based on new loan maximum amounts announced March 24, 2021. Businesses that received a loan subject to the previous loan limit can submit a request for an increase at this time. SBA is now reaching out directly to loan borrowers via email to provide more details about how businesses can request an increase. Borrowers should expect to receive emails from @sba.gov or @updates.sba.gov addresses.

If an applicant accepted a loan for less than the full amount originally offered, the applicant will have up to two years after the date of the loan promissory note to request additional funds. Applicants may continue to request additional funds even after the application deadline of December 31, 2021.

 

Application Materials and Additional Information

To access the EIDL Application, please visit the following website: https://covid19relief.sba.gov/#/ 

For additional information related to loan grants, terms, collateral requirements, loan maturity, payment details, use of proceeds, and forgiveness, please visit the following website: https://www.sba.gov/funding-programs/loans/covid-19-relief-options/eidl/covid-19-eidl 

 

Targeted EIDL Advance and Supplemental Targeted Advance

Applicants for the COVID-19 Economic Injury Disaster Loan (EIDL) may be eligible to receive up to $15,000 in funding from SBA that does not need to be repaid. These "advances" are similar to a grant, but without the typical requirements that come with a U.S. government grant.

To receive an advance, you must first apply for a COVID-19 Economic Injury Disaster Loan. You do not need to accept the loan or be approved for the loan to receive an advance. Once you apply for the loan, SBA will invite you via email to apply for one of the advance programs if your business is located in a low-income area

 

Targeted EIDL Advance

The Targeted EIDL Advance provides funds of up to $10,000 to applicants who:

  • Are in a low-income community. To help applicants determine if they are in a low-income community as defined in section 45D(e) of the Internal Revenue Code, a mapping tool (sbaeidl.policymap.com/app) is available. The business address must be in a low-income community to qualify so SBA encourages potential applicants to check the map to see if they meet the low-income community eligibility requirement before they apply; and

  • Can demonstrate more than 30% reduction in revenue during an eight-week period beginning on March 2, 2020, or later. If an applicant meets the low-income community criteria, they will be asked to provide gross monthly revenue (all forms of combined monthly earnings received, such as profits or salaries) to confirm the 30% reduction; and

  • Have 300 or fewer employees.

 

Business entities normally eligible for the EIDL program are eligible to apply. This includes sole proprietors, independent contractors, and private, nonprofit organizations. Agricultural enterprises are not eligible.

 

Supplemental Targeted Advance

The Supplemental Targeted Advance provides a supplemental payment of $5,000 that does not have to be repaid. Even if you have previously received the original EIDL Advance in the full amount of $10,000, you may be eligible for the Supplemental Targeted Advance if you meet eligibility criteria. The combined amount of the Supplemental Targeted Advance ($5,000) with any previously received EIDL Advance or Targeted EIDL Advance ($10,000) will not exceed $15,000.

Completing the Targeted EIDL Advance application is a requirement to be considered for the Supplemental Targeted Advance.

Before applying, make sure your small business meets the following eligibility criteria:

  • Is located in a low-income community. Use this mapping tool to see if your business is in a low-income community as defined in section 45D(e) of the Internal Revenue Code. The business address must be in a low-income community to qualify, so SBA encourages you to check the map before you apply; and

  • Can prove more than a 50% economic loss during an eight-week period beginning on March 2, 2020, or later, compared to the same period of the previous year. Applicants need to provide gross monthly revenue (all forms of combined monthly earnings received, such as profits or salaries) from January 2019 to the current month-to-date; and

  • Has 10 or fewer employees.

Supplemental Targeted Advances are available to sole proprietors, independent contractors, private nonprofit organizations, and others that usually qualify for the EIDL program and meet the above criteria. However, agricultural businesses, such as farmers and ranchers, are not eligible for the Supplemental Targeted Advance. Farmers and ranchers may still apply for loan assistance through the COVID-19 EIDL program.

 

Application and Additional Resources

To access the application portal and additional resources, please visit the following website: https://www.sba.gov/funding-programs/loans/covid-19-relief-options/eidl/targeted-eidl-advance-supplemental-targeted-advance 

 

Shuttered Venue Operation Grant

The Shuttered Venue Operators Grant (SVOG) program was established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, and amended by the American Rescue Plan Act. The program includes over $16 billion in grants to shuttered venues, to be administered by SBA’s Office of Disaster Assistance.

Eligible applicants may qualify for 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 is Eligible?

  • Live venue operators or promoters

  • Theatrical producers

  • Live performing arts organization operators

  • Museum operators

  • Motion picture theater operators (including owners)

  • Talent representatives

Additional Requirements

  • Applicants must have been in operation as of February 29, 2020

  • Venue or promoter who received a PPP loan on or after December 27, 2020, will have the SVOG reduced by the PPP loan amount

Grant Amount

  • 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 earned revenue for each full month you were in operation during 2019 multiplied by six (6) OR $10 million, whichever is less.

Application and Additional Information

To access the Shuttered Venue Operators Grant application, please visit the following website: https://www.svograntportal.sba.gov/s/ 

For additional information on the Shuttered Venue Operators Grant, please visit the following website: https://www.sba.gov/funding-programs/loans/covid-19-relief-options/shuttered-venue-operators-grant#section-header-9 

Restaurant Revitalization Fund

The American Rescue Plan Act established the Restaurant Revitalization Fund (RRF) to provide funding to help restaurants and other eligible businesses keep their doors open. This program will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023. Applications for the Restaurant Revitalization Fund are now closed.

 

SBA Debt Relief

SBA offers debt relief to existing SBA loan borrowers whose businesses have been impacted by COVID-19.

7(a), 504, and Microloans

Initial debt relief assistance

As a part of the CARES Act, SBA is authorized to pay six months of principal, interest, and any associated fees that borrowers owe for all 7(a), 504, and Microloans reported in regular servicing status (excluding Paycheck Protection Program loans). This debt relief to borrowers was originally dependent on the loan being fully disbursed prior to September 27, 2020, and does not apply to loans made under the Economic Injury Disaster Loan program.

These original provisions were amended on December 27, 2020, through the Economic Aid to Hard-Hit Small Businesses, Non-Profits and Venues Act (Economic Aid Act). The Economic Aid Act revised the eligibility criteria for assistance to include all 7(a), 504, and Microloans approved up to September 27, 2020, even if not fully disbursed. All other provisions for initial debt relief remained the same.

Borrowers need not apply for this assistance. SBA provides this assistance automatically as provided below:

  • For loans not on deferment, SBA will make monthly payments based on the next payment due on eligible loans for a total amount equivalent to no more than six months of installment payments.

  • For loans currently on deferment, SBA will begin making monthly payments with the first payment due after the deferment period ends for a total amount equivalent to no more than six months of installment payments.

SBA has notified 7(a), 504, and Microloan lenders that it will pay these borrower loan payments. Lenders are to report to SBA periodically on the amounts due once a loan is fully disbursed. Payments collected after March 27, 2020, may be applied to the outstanding loan balance or returned to the borrower at the borrower’s discretion.

 

Additional Debt Relief Assistance

The Economic Aid Act also authorized additional debt relief payments to 7(a), 504, and Microloan borrowers beyond the six-month period prescribed in the CARES Act. The level of assistance varies based on when the loan was approved and will begin on or after February 1, 2021. Please contact your lender for questions on the availability of this assistance for your SBA loan.

 

Disaster Home and Business Loans

Existing SBA disaster loans approved prior to 2020 in regular servicing status as of March 1, 2020, received an automatic deferment of principal and interest payments through December 31, 2020. This initial deferment period was subsequently extended through March 31, 2021. An additional 12-month deferment of principal and interest payments will be automatically granted to these borrowers. Borrowers will resume their regular payment schedule with the payment immediately preceding March 31, 2022, unless the borrower voluntarily continues to make payments while on deferment. It is important to note that the interest will continue to accrue on the outstanding balance of the loan throughout the duration of the deferment.

 

What does an “automatic deferral” mean to borrowers?

  • Interest will continue to accrue on the loan.

  • The automatic deferment will be reflected on the March 2021 monthly payment notice (SBA Form 1201);

  • Borrowers will not receive monthly payment notices (SBA Form 1201) during the deferment period;

  • Borrowers will be contacted via the SBA’s automated dialing system using the telephone number associated with the SBA loan approximately one month before the automatic deferment ends. This correspondence will serve as a reminder to borrowers of their upcoming Next Installment Due date in place of the monthly payment notice (SBA Form 1201);

  • Borrowers are strongly encouraged to create an account in SBA’s Capital Access Financial System (CAFS) to monitor their loan status. Get account enrollment instructions;

  • The deferment will not stop any established Pre-Authorized Debit (PAD) or recurring payment on the loan.  Borrowers with an SBA established PAD will have to contact their SBA servicing center to stop recurring payments during the deferment period. Borrowers that have established a PAD through Pay.Gov or any other bill pay service are responsible for terminating recurring payments during the deferment period;

  • Borrowers preferring to continue making regular payments during the deferment period may continue remitting payments during the deferment period. SBA will apply those payments normally as if there was no deferment;

  • After the automatic deferment period ends, borrowers will be required to resume making regular principal and interest payments.

  • For SBA disaster home and business loans covered under the previous Procedural Notices authorizing automatic deferments, borrowers will be required to resume making regular principal and interest payments after the automatic deferment period ends March 31, 2022;

  • For eligible SBA disaster home and business loans approved in 2020, borrowers will be required to resume making regular principal and interest payments 12-months from their Next Installment Due Date pursuant to the terms of the Loan Authorization; and

  • Upon request, SBA will evaluate borrower circumstances on a case-by-case basis to determine the nature and extent of further relief that may be appropriate for each situation.

 

 

 

 

Bank Resources

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:

FDIC:  https://www.fdic.gov/coronavirus/index.html

NUCA: https://www.ncua.gov/coronavirus

IBA: https://www.ilbanker.com/COVID-19-Information​ 

Other commercial banks have posted resources:

·        Bank of America: https://about.bankofamerica.com/promo/assistance/latest-updates-from-bank-of-america-coronavirus

·        BMO Harris: https://www.bmoharris.com/main/personal/bmo-branches-coronavirus-update/

·        Capital One: https://www.capitalone.com/coronavirus/

·        Chase: https://www.chase.com/digital/resources/coronavirus

·        Citibank: https://online.citi.com/US/JRS/pands/detail.do?ID=covid19

·        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

·        PNC: https://www.pnc.com/en/customer-service/coronavirus-update.html

·        TCF: https://www.tcfbank.com/about-us/covid-19​

·        US Bank: https://www.usbank.com/splash/covid-19.html

·        Wells Fargo: https://www.wellsfargo.com/com/focus/coronavirus-updates/

The State of Illinois has received its statewide Economic Injury Declaration which means small businesses in all 102 Illinois counties may be eligible for low-interest, economic injury disaster loans up to $2M per business.

Businesses can access additional information and apply for the loan online here. Eligibility requirements are determined by SBA and can be found here.

DCEO is working with federal and local partners, like yourselves, to ensure assistance is available for small businesses seeking loans, counseling and preparedness planning. If you are not yet working with our Regional Economic Development Team, please feel free to reach out to them for any questions you may have. Their contact information can be found below. If you have questions about your region, please refer to the map provided following the contact list. 

 

 

 

In addition, business advisors at our Illinois Small Business Development Centers (SBDCs) are available to assist small businesses with the loan application process and are currently operating remotely. Businesses can locate their nearest Small Business Development Center here. Should they have any issues finding their direct contact information, below is a list for their reference. 

 

 

For businesses owned by minorities, women, veterans, or persons with disabilities, the Office of Minority Economic Empowerment (OMEE) Business Development Managers are also available to assist and provide them with information. Their contact information can be found below.

 

 

Please note: This site is being continuously updated with COVID-19 information for small businesses which you can refer to at any time. 

Should any businesses reach out to you regarding questions about DCEO programs, resources or incentives you can feel free to refer them to our First Stop Business Information Center. They can email ceo.support@illinois.gov or call our toll-free helpline at 1.800.252.2923.

 

 

The latest, up-to-date info is available at Coronavirus.Illinois.Gov and at CDC.gov/coronavirus