There is a lot of information being shared from Washington D.C. and Springfield. If your like me, all of this info is overwhelming. I’ve gathered different resources from various contacts and wanted to share what I’ve received with the rest of the community. It’s not perfect and I know more information is being released every day. I’ll try my best to update this page as frequently as possible. I encourage you to reach out to the appropriate contacts below if you have any questions.
We’re in this together,
Ethan
This post was last updated on 4/10/2020, 8:30 AM, added:
- City of Lincoln and Logan County will work with Greater Peoria Economic Development Council to submit applications for the Downstate Small Business Stabilization Program, see details under Local
FEDERAL
Programs Available through the federal CARES Act
I received the following information from Andrew Olson, Associate Vice President at Town and Country Bank (TCB) and US Congressman Darin LaHood.
Paycheck Protection Program (PPP)
This program is meant to cover payroll expenses at 250% of your average monthly payroll. The SBA would require your bank to obtain payroll records in order to verify the amount that the business is eligible to receive. Please take a look at the FAQ’s at the bottom of this page regarding this program. A few notes on this:
- An amount equivalent to 8 weeks of payroll expense will be forgiven. The forgiven loan will not be treated as a standard “loan forgiveness” – it will not be taxed as income.
- You’ll need to apply for loan forgiveness through the bank.
- Principal and interest payments will be deferred (nothing due) for 6 months following disbursement.
- Any amount not forgiven will then be termed out at a fixed rate of 4% for 10 years.
- Funds can be used for any short term cash needs including covering payroll, supporting inventory, covering supply chain interruptions, etc.
- If you own several businesses, each separate entity that fits program eligibility standards would be eligible to borrower under a separate credit facility.
TCB has launched its online portal for applications related to the Paycheck Protection Program. Click the following link to register:
https://www.townandcountrybank.com/covid19/sba-paycheck-protection-program-ppp-loan-application/
In addition to the application, you’ll need the following:
- Federal Payroll tax report for 2019 (IRS W-3 but may include IRS 940 or IRS 944)
- Illinois Employer’s Contribution and wage Reports for all of 2019 and the first quarter of 2020
If not providing the first quarter 2020 State Unemployment Report, please provide a detailed transaction report for all payroll during the first quarter of 2020 - Detailed transaction reports for the following:
- Group Health Insurance Premiums paid by the business during 2019
- Retirement benefits paid by the business not included in payroll during 2019
- Year-end balance sheet and income statement for 2019
- Balance sheet and income statement covering January and February 2020
The Small Business Administration was given 30 days to launch and implement the program.
If you have ownership in multiple business entities that you wish to registered for this program, please enter a separate application for each.
If your bank doesn’t have this info or unable to assist, Andrew said that TCB is more than happy to help any business owner navigate this process. If you have questions, Andrew’s contact info is below.
Economic Injury Disaster Loan (EIDL)
Apply directly through the SBA by following this link: https://covid19relief.sba.
You may apply for both an EIDL and the PPP. Details on this program are outlined in the PDF document below.
Note, EIDL applicants are eligible for a $10,000 grant that does not need to be paid back under any circumstances, whether your loan application is approved or denied, or if you ultimately do not accept the terms. If your business is eligible for the program, and you submit an application, you are eligible to receive the grant. The grant is to be provided to you within 3 days of your application. You may use the proceeds for any short term needs, however, you may not “double dip” your proceeds with the use of funds on the PPP loan, if you plan to apply for both.
You must document your use of funds for both programs.
If your bank doesn’t have this info or unable to assist, Andrew said that TCB is more than happy to help any business owner navigate this process. If you have questions, Andrew’s contact info is below:
Employee Retention Credit
The Treasury Department and the Internal Revenue Service launched the Employee Retention Credit, designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19. More information from the Treasury Department here. Consult your tax preparer for more information.
STATE
The Illinois DCEO has launched an emergency program for businesses in the hospitality industries that generated less than $1,000,000 in revenues in 2019. You must apply before Wednesday, April 1 to enter a lottery to receive a grant from the State of Illinois. The lottery will occur on April 4.
Hospitality Emergency Grant Program (Bars, Restaurants & Hotels only)
This can be used for Working Capital – including payroll, accounts payable, rent, and other fixed costs of operation.
https://us.accion.org/news/
Bars & Restaurant:
- Uses – working capital, job training, and technology
- revenue less than $1,000,000 in 2019
- must have valid license to serve food or liquor
- grant up to $10,000 if revenues less than $500,000
- grant up to $25,000 if revenues between $500,000 to $1,000,000
Update from ACCION on 4/6/2020:
Because of the extremely high volume of applications, we are still going through them to check for completeness and verify documents. Our team is working around the clock to get this done as soon as possible. We plan to finalize our process today and notify the winners tomorrow.
If you have questions, please submit them here.
Illinois Small Business Emergency Loan Fund
https://www2.illinois.gov/dceo/SmallBizAssistance/Pages/EmergencySBAIntiatives.aspx
Requirements:
- Businesses outside of the City of Chicago
- Fewer than 50 employees
- Less than $3,000,000 in revenue in 2019
- Loan Amount – up to $50,000
- Loan Repayment – 6 months no payment then payments for 5 years
- Uses – working capital
Help for the Creative Community
Through the newly launched Arts for Illinois Relief Fund, individual artists and artisans – including stage and production members and part-time cultural workers – experiencing an urgent need are able to apply for one-time grants of $1,500 distributed by 3Arts. Grants will be awarded through a lottery system and will be disseminated quickly. Additionally, nonprofit arts and cultural organizations of any size will be able to apply for relief through the Arts Work Fund. Based on their demonstrated financial need, organizations will be awarded grants from $6,000 – $30,000. More information about application guidelines and eligibility can be found here.
LOCAL*
Downstate Small Business Stabilization Program
PRIVATE SECTOR
Facebook is offering $100M in cash grants and ad credits for up to 30,000 eligible small businesses.
Verizon LISC Small Business Recovery Fund
$2.5 million investment from Verizon, LISC is offering grants to help small businesses fill urgent financial gaps until they can resume normal operations or until other more permanent financing becomes available. Approved businesses will receive a $10,000 grant to cover operational expenses (rent, utilities, vendor payments, liability holders, payroll, etc.). Program website is here and the application page can be found here. It’s a relatively straightforward application, with the only document needed for submission being a copy of your business’ Federal ID/Tax Identification Number. Please be sure to note that you were referred by LISC in question 14 and enter “Karen Davis – Peoria” in the “Other” line.
PNC BANK
PNC has put together a comprehensive summary of all federal programs impacting business (of any size) here.
DOCUMENTS & APPLICATIONS
- US Chamber of Commerce CARES Act Guide and Checklist
- Details regarding Paycheck Protection Program and Loan Forgiveness
- CARES Act Small Business Loans FAQs
- CARES Act Overview
- Downstate Small Business Stabilization Program Guidebook and Application
- PPP Application (revised 4/3/2020)
- TCB’s PPP Application Portal
- Verizon LISC Application
This post is for informational use only. Creative Family Products, Inc. dba Guest House Coffee and Pastries, and Ethan Hoinacki, are not making any financial recommendations nor do we endorse any financial institution or give advise. Consult your bank, certified public accountant or business financial advisor for recommendations or advise.
