Effingham, IL -(Effingham Radio)- State Rep. Blaine Wilhour (R-Beecher City) is advising the small businesses in his downstate area to consider applying for a ‘Downstate Small Business Stabilization Program Grant’ being made available to businesses with under 50 employees. The Department of Commerce and Economic Opportunity (DCEO) has identified $20 million in Community Development Block Grant (CDBG) funds and are making them available for working capital on a rolling basis. Businesses need to work through their local governments to apply for up to $25,000 grants per business.
“I have heard from small businesses in my district about what is available for them during this economic challenge,” said Rep. Wilhour. “I am working to craft additional relief to small businesses affected by these restrictions. As a small business owner, I realize that we need to do more than just offer loans. In the short term, this program may be what many of our small business job creators need temporarily to make it through this time. I encourage them to check into it with their local cities or villages.”
Local governments can apply on behalf of businesses with 50 employees or less. Units of local government able to support economic development activities on a sufficient scale are eligible to apply for Economic Development grant funding. This includes cities, villages, and counties. Municipalities must not be a HUD direct Entitlement community or be located in an urban county that receives “entitlement” funds.
Businesses in the eligible areas should work with their local governments to submit applications. Application materials will be posted to the DCEO website on Friday, March 27, 2020 here: https://www2.illinois.gov/dceo/CommunityServices/CommunityInfrastructure/Pages/default.aspx
DCEO’s goal is to execute grants within 30 days of application receipt, after which funds will be accessible.
If you have questions about other COVID-19 resources or updates, please check in periodically at Rep. Blaine Wilhour’s online office at: repwilhour.com.
State Treasurer is making up to $250 million available for low-interest loans for small businesses and non-profits impacted by the coronavirus emergency.
“I know many businesses are finding ways to stay open and serve food or provide products that are needed during this crisis,” said Rep. Wilhour. “But for those who find themselves forced to shut their doors because of the ‘Stay at Home’ executive order by the Governor, these low-interest loans may be the answer for short term help they need.”
The state treasurer’s office announced it will make up to $250 million available to Illinois banks and credit unions that wish to participate in an impact investment loan program. The approved financial institutions will determine which small businesses and non-profits are eligible for the loans to help get them through the COVID-19 emergency.
For more about the Illinois Small Business COVID-19 Relief Program: (https://illinoistreasurer.gov/Invest_in_Illinois/Small_Business_COVID-19_Relief_Program)
The purpose of this program is to provide vital economic support to small businesses and non-profits to help overcome the loss of revenue they are experiencing. Through this program, the Treasurer’s Office would partner with approved financial institutions to provide loans — either lower rate loans, or loans to a business or non-profit that would not otherwise qualify — to Illinois small businesses impacted by the COVID-19 pandemic.
- State funds would be deposited with qualified financial institutions for a 1-year term at a near-zero deposit rate of 0.01%
- Deposited funds would facilitate affordable loans (not to exceed 4.75%) to small businesses and non-profits that could be used to provide bridge funding, pay fixed debts, payroll, accounts payable and other bills
- Deposits could be drawn in $1 million or $5 million increments, up to a maximum of $25 million per financial institution
- Eligible Illinois businesses or non-profits must (1) have been shut down or limited due to COVID-19; (2) have less than $1 million in liquid assets or $8 million average annual receipts (per SBA standards); and (3) be headquartered in the State of Illinois or agree to use the funds in Illinois
- Deposits would be renewable as determined by the Treasurer’s Office
- Financial institutions would be required to provide reports to the Treasurer’s Office regarding the usage of program funds, including the number and types of loans provided to small businesses and non-profits and the economic impact of such loans
How to Apply
Step 1: Become an Approved Program Depository
To participate in the Business Invest – Illinois Small Business COVID-19 Relief Program, financial institutions must be or apply to become an approved program depository with the Treasurer’s Office. For more information, please visit: https://illinoistreasurer.gov/Invest_in_Illinois/Small_Business_COVID-19_Relief_Program
Step 2: Review Eligibility and Submit Application
Approved depositories seeking to determine their eligibility and apply for Business Invest –Illinois Small Business COVID-19 Relief Program must review and submit the following document:
The Business Invest Illinois Small Business COVID-19 Relief Program Application:
Should you have any questions, please contact the Invest In Illinois team at (217) 558-6217 or email: investinillinois@illinoistreasurer.gov.
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