Posted April 2, 2020
Small Business Loan Options
There are various financial loan and grant options available to you and it can be confusing and overwhelming of which best fits your needs and your eligibility. There is much misinformation and the Federal Government is still working out the details of the CARES Paycheck Protection Program (PPP).
Be aware of SCAMS as they come out in time of crisis. Do not share your information with anyone promising to get you a loan fast. Work with your financial institution directly. Check the source of the sites you visit to apply on line. Scammers are very clever of making their site look official. Double check the website, for any slight misspelling or symbols.
To prepare for the PPP application the U.S. Treasurer does have a PDF on-line. Things are changing daily, and the Government may change this form, but it will help guide and prepare you for the application process.
Since the details are still being worked out, you can gather the following list of documents to have ready once the application process opens.
- Current organizational documents – articles of incorporation, bylaws, Board Resolutions for non-profits
- IRS Form 941 for all four quarters of your 2019 payroll
- Health insurance premium information for 2019
- State and Local Payroll Taxes for 2019 assessed on the compensation of employees
- Retirement Plan Contributions
- Most recent profit and loss statement or financial statements
- Most recent Mortgage Statement or Rent Statement (Lease)
- Most recent Utility Bills (Electric, Gas, Telephone, Internet, Water, etc.)
- Recent Tax Returns
- Profit and Loss Statements
- Balance Sheet
- All 20% Owners must Sign
- Addendum if any business owners own other businesses.
Some of this may be more (or less) than needed but having these documents ready will help you navigate the application easier and speed up the process. Throughout the process we would encourage you to work with your legal counsel. First check with your current bank that has your business relationship for guidance. Let your bank know you are interested in applying. They may have an application for you to complete on-line.
The following banks are members of the Chamber and are SBA Preferred lenders:
Bloomingdale Bank and Trust
Itasca Bank and Trust
First American Bank & Trust
Pan American Bank & Trust
Small Business Loan Options
Illinois Small Business Emergency Loan
Paycheck Protection Program (Not final)
Small Business Administration Economic Injury Disaster Loan (EIDL)
Priority outside Chicago, <$3M rev., <50 employees, >500 credit
National, <500 employees, no min. credit score
Small Businesses as determined by the SBA: Standard Size Tool, <500 employees
Oct-Dec 2019 average monthly revenues, up to $50K
Two months of average monthly payroll costs from 2019 plus an additional 25% up to $10M
$10K cash advance, up to $2M
3.75% Small Business
2.75% for non-profit
No payment for 6 mo., fully amortized over 5 years
No payment for 6 mo., fully amortized over 2 yrs
Case by case up to 30 years
- Up to $40M in loans (with $20M for reserves)
- Used for working capital, of which 50% must be for compensation costs
- Requires personal guarantee from borrower
- Must have business license for at least one year before applying
- Must provide zip codes of employees
- For-profits only
- Up to $349B in loans (with unlimited reserves)
- Used for compensation costs, rent/mortgage interests, utilities
- Does not require personal guarantee from borrower
- Must have been in business before 2/15/20
- No documentation on employees
- For profits and 5013c nonprofits
- Forgiveness for up to eight weeks of costs after the loan is made
- Funds are limited and will go quickly
- Work with local SBA Preferred lenders
- Small business applications begin April 3rd, independent contractors, self-employed individuals can apply April 10th
- $10K is forgivable if used for payroll, rent & utilities and if you retain your workforce.
- If only retail partial workforce then loan/grant is prorated.
- Funds are made available in 3 days
- Apply on-line at sba.gov
- You can apply for both the PPP and SBA loans but there can be no duplication of use of funds
Posted March 28, 2020
It can be overwhelming out there with the loans, grants and relief programs available. Use this check list and guide to help you navigate through it all.
US Chamber guide to Emergency Loans - Small Business Guide and Checklist
Posted March 27, 2020
This afternoon Congress passed the CARES Act. Below are several links to provide you information to help you understand the new act.
CARES Act Press Release
Calculate how much you’ll get from the $1,200 checks
FAQ on Stimulus checks, unemployment and the Coronavirus Bill
US Chamber of Commerce Summary of the CARES Act
Please complete the Chamber survey to help us understand your needs and effects from COVID-19: COVID-19 Business Survey
Posted March 25, 2020
Gov. Pritzker Announces Income Tax Filing Extension, More than $90 Million in Small Business Aid
Emergency Small Business Grants and Loans Assistance
Child care for essential workers is being assembled across Illinois, and the process will take some time to unfold. Hotline: 888-228-1146. More information is available online for parents seeking care, for providers wishing to reopen as part of that network, and for qualified volunteers looking to help. Visit: https://www2.illinois.gov/sites/…/Pages/For-Communities.aspx.
Posted March 23, 2020
Illinois Chamber of Commerce and the Small Business Administration conference call
I participated in a conference call today with the Illinois Chamber of Commerce and Small Business Administration and I have additional information to share with you and also gather from you. SBA is a national organization. Below is additional information about Illinois Small Business COVID-19 Relief Program.
Links to more information:
Three Step Process SBA Disaster Loan
Economic Injury Disaster Loans (EIDL) Small Business Training
Some Frequently Asked Questions to the SBA. SBA loans are at 3.75% for small business and 2.75% for non-profits 501c3s.
- The terms are 30 years with the first payment moved from 4 months to 12 months out.
- Check the EIDL Small Business Training link above for those who are eligible or the SBA Website
- Businesses still have to quality for a loan. SBA will look at the business’ ability to pay back the loan.
- SBA will pull personal credit reports, so check your credit reports to make sure nothing derogatory is on it and correct it.
- If asking for more than $25,000, SBA will look for collateral.
- The on-line system is running slow, please be patient. SBA is working on increasing capacity.
- The 2-million-dollar cap is based on individual, therefore if you own more than one business you may only apply for 2 million total between all businesses owned.
- Basic filing requirements ask for tax information for any owner of 20% or more of the business. If you haven’t filed 2019, then submit 2018 with the P&L for 2019.
- Applications are based on first in first out. At this time there is no limit on the amount of funds available.
- There are other local and state programs in place (See Tom Cullerton’s note below). If you apply to another program it should not hurt your chances in being accepted by the SBA. If you decline the SBA loan and choose a local option, it will not count against you.
- Anticipated time from application to decision is 21 days, then loan closing to disbursement in an additional 7-9 days.
You have additional questions regarding the SBA Disaster Loan Program?
SBA is asking Chambers to submit questions gathered from their members as there are many duplicate questions and we can save time by submitted them together. Submit your questions to email@example.com with a subject like of SBA Question.I will submit these at 4:00 pm Tuesday, March 24th.Once I receive answers, I will send them out to all members.
From Senator Tom Cullerton’s Office
Please see information from the Illinois Treasurer’s Office on the small business loan program from their office. Please do not hesitate to contact me with any questions or refer businesses to our office at 217.782.9463. Thank you for all you are doing to help our businesses during this unprecedented time.
We wanted to let you know about a small business loan program the State Treasurer's Office is launching in partnership with Illinois financial institutions to assist small businesses and non-profits impacted by the COVID-19 pandemic. Attached is a copy of the press release that was issued today and a two-page flyer describing the program, which is also summarized below.
Business Invest -- Illinois Small Business COVID-19 Relief Program
This is an impact investment loan program under which the State Treasurer would make up to $250 million in deposits available to financial institutions throughout the state, at near-zero rates, to assist Illinois small businesses and non-profits negatively affected by the COVID-19 pandemic. 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
For background, here is a link to the Treasurer's website that explains this program in greater detail: bit.ly/SmallBizRelief.
State Treasure to Make Low-Interest Bridge Loans for Businesses Available as Soon as This Week.
Bloomingdale Chamber launches two new Facebook Groups
Bloomingdale Area Business to Business is a group of just businesses sharing ideas and making connections and partnerships. This is open to any business in the area. Every business is struggling. Together we can connect and form new partnerships to help each other through this disaster.
Bloomingdale Strong is for businesses to connect with the general public. Many neighborhood Facebook groups limit businesses being able to post information about their business. This is where you can share your specials, hours and anything else you are doing differently during the Shelter in Place. Please share this group with your Facebook followers. If all our members shared this group with their followers, think of the new audiences every member will be able to reach! Together we are Stronger! The more businesses successful in Bloomingdale the more customers Bloomingdale will attract.
Bloomingdale Open for Business
During the Shelter in Place many businesses have different hours, or are offering different services.I’m gathering a list of all Bloomingdale Area Businesses and what hours and services or products they are offering.Please email Cindy@bloomingdalechamber.com with a subject line of Bloomingdale Business and include the following information:
Name of Business:
Hours open or taking orders:
Phone or website where to take orders:
What services/products you are offering:
Please get this list to me by Tuesday, March 24 by 4:00 pm.This list will be published on our website with links on local Facebook pages – like the Bloomingdale Strong Group!
Treasury, IRS and Labor announce plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses
March 20, 2020 the U.S. Treasury Department, Internal Revenue Service (IRS), and the U.S. Department of Labor (Labor) announced that small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees.
The Act will help the United States combat and defeat COVID-19 by giving all American businesses with fewer than 500 employees funds to provide employees with paid leave, either for the employee's own health needs or to care for family members. The legislation will enable employers to keep their workers on their payrolls, while at the same time ensuring that workers are not forced to choose between their paychecks and the public health measures needed to combat the virus.
The Bloomingdale Chamber of Commerce is here to help you through this crisis. If you receive information you feel would be helpful to others, forward to me for sharing. If you have any ideas of how to help each other or our community, please let me know. I am open to your feedback. I’ve had more member asking about eblasts. I cannot offer all our members a free eblast at this time. We have over 250 members, and no one wants me to be sending out 250 eblasts. Share your information in the above resources – the Bloomingdale Open for Business list and the Facebook groups. These are excellent ways to share information. Now more than ever Social Media is our friend.
CARES ACT S3548
The Bloomingdale Chamber is working with other local and Illinois State Chamber to advocate for you. The S.3548 CARES Act includes a federal stimulus package and other programs has not yet been approved. We are confident that a compromise will be found between the parties. We support the U.S. Chamber’s ongoing efforts on behalf of the business community and will continue to update you.
Posted March 20, 2020
Governor Pritzker Executive Order – March 20, 2020 – Shelter in Place
You are not alone is this situation. I created a new Facebook group for businesses to connect with other businesses. It is open to any business in the area. Bloomingdale Area Business to Business. Join and start sharing.
To help you share with the community on what you are doing during the pandemic there is a Facebook group open to the public. Bloomingdale Strong.
Restaurants – Liquor Control Commission
Village of Bloomingdale has granted permission for Bloomingdale businesses to sell liquor for off premise consumption until the dine-in ban is lifted.
Crisis also brings out the worst in people. New inventive Scams have become popular, more sophisticated and bolder. Beware of fake employer emails to click on important information or to register for a telephonic seminar on COVID-19. Just be careful before you open or click.
U.S. Small Business Administration (SBA)
News Release – March 19, 2020 – SBA Offers Disaster Assistance to Illinois Small Businesses Economically Impacted by the Coronavirus (COVID-19 )
SPANISH - News Release – March 19, 2020 – SBA Offers Disaster Assistance to Illinois Small Businesses Economically Impacted by the Coronavirus (COVID-19 )
Frequently Asked Questions – Economic Injury Disaster Loans (EIDL)
SBA EIDL Front Line Staff Information
Disaster Business Loan Application
SBA Disaster Assistance in Response to the Coronavirus
SBA Webinar on EIDL
Governor Pritzker Announces Series of New Measures to Help Illinoisans Affected by COVID-19 – March 19, 2020
Posted March 18, 2020
State of Illinois created a new website: Coronavirus (COVID-19) Response.
Always make sure you are getting your information from a trusted source. This state site provides the latest News, Prevention, Preparation, FAQ, Resources and information on the virus itself. Refer to it often for the most update correct information.
Forefront COVID-19 Survey - Make Your Voice Heard
Dear Forefront community,
Forefront is gathering needed information from Illinois’ nonprofit organizations about the impact of COVID-19. Your participation and input are critical – please click the button below and complete our brief survey.
Please fill out the survey by Thursday, March 19 at noon.
Forefront will then aggregate and analyze responses. This will result in informed recommendations to be shared with Illinois elected officials and grantmaking organizations. Responses will be kept anonymous, but organizations have the option to share their information if they choose.
Complete Survey HERE.
Posted March 16, 2020
From Senator Tom Cullerton:
For any residents whose employment may be affected please have refer them to https://www2.illinois.gov/ides/Pages/COVID-19-and-Unemployment-Benefits.aspx. They may also reach Nick or Jenna in my office at 217.782.9463 or via email at firstname.lastname@example.org.
As always, we will continue to provide you with updated information as soon as we receive it. If you have any questions or concerns, please call me directly at 773.213.5461.