CategoriesIHCC News

Governor JB Pritzker joined members of the Black, Latino and Asian Caucuses of the state legislature and small business owners to announce a package of state grant programs to support communities and businesses impacted by the pandemic and recent civil unrest.

Businesses across every industry sector have faced significant economic strain.

To ensure families and businesses receive ongoing support to maintain their livelihoods, the new package of grant programs operate with equity requirements, ensuring that disproportionately impacted areas (DIAs) receive their fair share of support.

NEW BUSINESS INTERRUPTION GRANTS PROGRAM

The Department of Commerce and Economic Opportunity (DCEO) will launch the first round of Business Interruption Grants (BIG) by providing $60 million to businesses experiencing losses or business interruption as a result of COVID-19 related closures.

The BIG Program is available for up to 3,500 businesses that experienced a limited ability to operate due to COVID-19 related closures.

DCEO will begin distributing funds to qualifying businesses in early July.

The total program funding will amount to at least $540 million in grants for small businesses, $270 of which has been set aside for childcare providers, and is funded by the CARES Act.

In the first wave of grants, priority will be given to small businesses that have been heavily restricted or completely shut down during the pandemic and are located in DIAs.

Businesses eligible for the program must have experienced extreme hardship, demonstrated by eligible costs or losses in excess of the grant amount, since March and may continue to face depressed revenues or closure.

Businesses must also have been in operation for at least three months prior to March 2020.

An emphasis will also be placed on those businesses that are located in areas that have experienced recent property damage due to civil unrest, exacerbating the economic impacts of COVID-19.

Specifically, the program includes support for:

• Businesses in DIAs – $20 million for businesses that are located in a subset of DIAs that have recently experienced significant property damage, providing 1,000 grants of $20,000 each.
• Bars and Restaurants – $20 million for bars and restaurants unable to offer outside service, providing at least 1,000 grants of up to $20,000 each.
• Barbershops and Salons – $10 million for barbershops and salons, providing 1,000 grants of $10,000 each.
• Gyms and Fitness Centers – $10 million for gyms and fitness centers that have lost significant revenue due to COVID-19, providing 500 grants of $20,000 each.

DCEO will make the application for BIG available on Monday, June 22.

DISTRESSED CAPITAL PROGRAM

The Department of Commerce and Economic Opportunity’s new economic recovery program will provide $25 million to support Illinois businesses that have sustained property damage as a result of civil unrest during the recent protests and demonstrations on or after May 25, 2020.

The Distressed Capital Program will reimburse the costs to repair structural damages, including repairs to storefronts and entrances, improving electrical systems, and restoring exterior work.

The program will prioritize small businesses, women and minority-owned businesses, underinsured or uninsured businesses, businesses that have a high community impact – such as grocery stores – and businesses in communities that have experienced historic disinvestment.

The Rebuild Distressed Communities NOFO will solicit applications from regional and local organizations that will perform outreach, coordinate local qualified vendors, and provide funds to cover the cost of repairs and building improvements for businesses in their region.

The Distressed Capital Program also includes provisions to ensure BEP-certified contractors, including minority- and women-owned businesses, are the first in line to do the repair work.

DCEO will invite applications for the Distressed Capital Program with a NOFO made available on Monday, June 22.

Add to cart