As states continue to offer tax return filing, payment deferrals and other assistance measures in light of the COVID-19 pandemic, we take a closer look at Illinois.
>> Learn more about relief efforts identified in other states in which our firm is located in our easy-to-use spreadsheet tracker
Relief: Chicago has established the Chicago Small Business Resiliency Fund. It will provide $100 million to the city’s eligible businesses as low-interest loans.
Who this Impacts: Small businesses and nonprofits in the city of Chicago
Qualified businesses must:
Small businesses that meet the criteria above may be eligible for a loan of up to $50,000. Loan proceeds are required to be used for working capital, and at least 50% must be applied to payroll costs. The borrower must also commit to retaining or rehiring a workforce of at least 50% of its pre-COVID-19 level for at least six months following the loan disbursement.
The application process for the Resiliency Fund program is now open. Applications will be reviewed on a first-come, first-served basis; interested businesses should apply as soon as possible.
Relief: Illinois has established the Illinois Small Business Emergency Loan Fund to offer small businesses in the state low interest loans of up to $50,000.
Who this Impacts: Small businesses in Illinois outside the City of Chicago.
Qualified businesses must:
Small businesses that meet the criteria above may be eligible for a loan of up to $50,000. Loan proceeds are required to be used for working capital, and at least 50% must be applied to payroll costs or other eligible compensation, including salaries, wages, tips, paid leave and group healthcare benefits. The borrower must also commit to retaining or rehiring a workforce of at least 50% of its pre-COVID-19 level for at least six months following the loan disbursement.
The application process for the Emergency Loan Fund program is now open. The Illinois Department of Commerce and Economic Opportunity is partnering with Accion Serving Illinois and Indiana to facilitate lending. Applications should be submitted with Accion as soon as possible.
Relief: The Illinois State Treasurer’s Office has partnered with approved financial institutions to provide loans to small businesses struggling with the COVID-19 pandemic through the Business Invest – Illinois Small Business COVID-19 Relief Program. The program is an impact investment loan program through which the state treasurer has made up to $250 million in deposits available to financial institutions for customer loans at favorable rates.
Who this Impacts: Businesses and nonprofits that may not otherwise have qualified for comparably priced loans.
Qualified financial institutions that receive state funds will facilitate affordable lending to small businesses and nonprofits. Interest rates charged to small businesses through the Relief Program are not to exceed 4.75%. Funds obtained by small businesses can be used to provide bridge funding, pay fixed debt, payroll, accounts payable and other similar bills.
Small businesses interested in obtaining funds through the program must:
Small businesses who wish to obtain funding via the program should apply directly with an Approved Program Depository. Find a list of participating financial institutions who currently qualify for the Relief Program.
Financial institutions interested in participating in the Relief Program are required to be an Approved Program Depository with the Illinois Treasurer’s Office. Apply to become an Approved Program Depository.
Additionally, interest accruals on unpaid liabilities of the previously mentioned taxes are being halted through April 30, 2020. Learn more.
Contact Hannah Prengler at firstname.lastname@example.org or a member of your service team to discuss this topic further.
Cohen & Company is not rendering legal, accounting or other professional advice. Information contained in this post is considered accurate as of the date of publishing. Any action taken based on information in this blog should be taken only after a detailed review of the specific facts, circumstances and current law.
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