Effingham, IL -(Effingham Radio)- Effingham County Board on Monday agreed to help struggling businesses seeking state grants to cover losses from the business downturn caused by the Coronavirus Pandemic.
The Economic Development Downstate Small Business Stabilization program provides grants up to $25,000 to businesses with 50 or less employees, a number that can include the business owner or owners but also requires at least one full-time employee in addition to an owner. Applicants must demonstrate an “urgent need” caused by the COVID-19 emergency efforts. All businesses facing losses related to the economic shutdown should apply, but there is no guarantee money will be provided.
If businesses misuse the grant money or lie on applications with the Economic Development Downstate Small Business Stabilization program and then default, Effingham County could foot the bill. That possibility did not deter a majority of county board members to vote for helping local businesses apply for the grants. The need for that assistance is already very clear in Effingham County due to the stay-at-home order and mandatory shutdown of non-essential businesses or plummeting sales for many smaller businesses still allowed to continue doing business.
“I don’t want to leave the local businesses high and dry,” said County Board member Rob Arnold before voting for having the board economic development committee work with business applicants as they seek the grant assistance.
“You can’t get money out of a turnip!” Board member Lloyd Foster said in opposition to the prospect of county government and taxpayers paying back any grant money.
The vote on the motion offered by Board vice chairman Dave Campbell had Foster opposed and Arnold, Campbell and Jeff Simpson, John Perry and Doug McCain voting in favor of the measure. Heather Mumma and Joe Thoele were not present for voting – Mumma was participating through a YouTube connection like Foster but decided to leave midway into the meeting due to audio problems making it impossible for her to hear the other members at the board table that afternoon. Thoele was absent during the regular meeting.
Campbell said one advantage of the grant approval process is public hearings for applicants and acceptance of the grant application by the full county board membership. The grant program also requires monthly reports for a year after the money is distributed. Campbell also provided a short list of some criteria for business owners applying.
The application will check on past bankruptcy or financial insolvency history of applicants, lawsuits involving the business and its officers or principal owners, as well as the current bank statement for the business. There will be a check on net income for the last three fiscal years and whether the business has a history of utility shutoff notices, delinquency on billing or denial of loan applications. All applicants must also provide a Certificate of Good Standing from the Illinois Secretary of State and the Illinois Department of Revenue.
The intent of the grant program is to help businesses remain in operation and also retain jobs. The grants will not be awarded to any business entity earning more than 33 percent of its gross revenue from gaming.
Sharing these facts will help businesses have a better chance at getting some grant money, but applications will be submitted from across much of the state and the fund now has $250 million.
If interested in applying you can find the application on the county website co.effingham.il.us. Please return the completed pre-application and required attachments to Effingham County Board 101 N. Fourth St., Suite 301 Effingham, IL 62401 or email at countyboard@co.effingham.il.us. The application materials should be available on the website by Friday. For more information connect by email at the aforementioned address.
(This article was written by Herb Meeker, Effingham County Board Public Information Officer)
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