Small Business Administration (SBA) Loans

On March 4th, Congress passed and the President signed legislation that allows small businesses to apply for SBA disaster loans toward working capital in order to help weather through the coming months. You can find general information about this program here.

Illinois businesses are now eligible to apply for loans and you can apply for loans here.

Details:

• SBA can provide up to $2 million loans on terms as long as 30-years
• Currently, rates are 3.75% for small businesses and 2.75% for non-profits, though my office is strongly advocating the SBA for these to be zero-interest
• Recipients are able to defer first payment for up to one-year
• Approval time average 2-3 weeks, once approved funds can be disbursed within 5 days. As well, we are advocating to accelerating the approval process.
• Applicants must fit SBA’s definition of a small business. This includes most private non-profits, as well as people who are self-employed
  • Businesses applying should be expected to provide the SBA Form 5 (loan application form), the most recent year’s tax returns, completed IRS Form 4506-T, a personal financial statement, and a schedule of liability
• You can also find answers to frequently asked questions about this program

Emergency Paid Leave

The Senate recently passed the House legislation that will provide emergency paid medical and family leave. This legislation requires employers with up to 500 employees to provide paid sick leave and paid family leave, while providing a refundable payroll tax credit to employers to cover 100% of the cost of wages. There is also a refundable income tax credit for self-employed individuals.

While the Executive Branch is now working through the process of administering this program I encourage you to visit the House SmallBusiness Committee’s fact sheet to learn more about how the program is expected to work and how it might apply to your business.

The CDC has put out information specifically for employers.

The Small Business Development Center at the College of Lake County has also put together a “small business survival guide” with helpful information for managing in this time of uncertainty. 

For Our Local Businesses

The U.S. Small Business Administration announced they are working with state governors to provide targeted, low-interest loans to small businesses and non-profits that have been severely impacted by COVID-19. The Illinois Department of Commerce and Economic Opportunity (DCEO) is currently gathering information from small businesses that will be negatively impacted. Please feel welcome to share this information with your local small businesses and have them complete and submit the form available via this link.