Small businesses throughout Illinois are facing a drop in customer demand and increased costs due to the COVID-19 pandemic. Many have been seeking a financial boost from loan programs through the federal government’s Small Business Administration (SBA). For many who have attempted to apply for such a loan, the assistance has been slow in coming because of heavy demand.

The average small business has about 26 days worth of cash on hand. The purpose of these loan programs is to extend that period of time on liquidity.

Both the state of Illinois and Cook County have made recent attempts to supplement the SBA programs with loan programs of their own.

State of Illinois Loan Program

The Business Invest – Illinois Small Business COVID-19 Relief Program is an impact investment loan program under which the Illinois treasurer’s office has made up to $500 million in deposits available to banks and credit unions throughout the state, at near-zero rates, to assist Illinois small business and non-profits negatively affected by the COVID-19 pandemic. The purpose of this funding is to provide vital economic support to small businesses and non-profits throughout Illinois to help overcome the loss of revenue they are experiencing.

This program is administered through the office of Illinois State Treasurer Michael Frerichs. It was initially funded in late March with an allocation of $250 million. That amount has been almost entirely distributed. On April 27, another $250 million has been set aside for this special bridge loan program.

For more information, visit: Illinoistreasurer.gov/Invest_in_Illinois/Small_Business_COVID-19_Relief_Program

Cook County Community Recovery Fund

This Cook County program is intended to provide rapid relief loans for small businesses, gig workers and independent contractors.

In mid-April, Cook County Board President Toni Preckwinkle signed an Executive Order creating the Community Recovery Initiative, which creates an emergency relief fund for businesses and 1099 workers in suburban Cook County. The county will seed an initial $10 million for the fund, which will grant zero-interest loans of up to $20,000 to independent contractors and small businesses to weather the COVID-19 pandemic. This fund comprises part of the comprehensive Cook County Community Recovery Initiative.

Cook County’s Bureau of Economic Development has launched The Community Recovery Fund as part of the Community Recovery Initiative. This loan fund offers one-time, zero-interest loans of up to $20,000 for small businesses and $10,000 for independent contractors in suburban Cook County. Loans will be administered by the Chicago Community Loan Fund and provided by a network of community lenders.

To apply, businesses and independent contractors in suburban Cook County must meet these requirements:

• Small Businesses
• Fewer than 25 employees
• Less than $3 million in revenue
• Gig Workers
• At least half of income from 1099 contract work
• Less than $100,000 in gross annual income

For more information on this program, visit: www.cookcountyil.gov/recovery

Chicago’s Microbusiness Recovery Grant Program

On April 28, Chicago Mayor Lori Lightfoot announced this new program, designed to give $1,000 grants to businesses in low-to-moderate-income areas. To qualify, the business must have four or fewer employees and less than $250,000 in annual revenue. Applications will be open until May 4. This program is being administered by the city of Chicago’s Department of Business Affairs & Consumer Protection.

For more information on this program, go to: www.chicago.gov/city/en/depts/bacp/supp_info/smallbusinessresiliencyfundgrantprogram.html