​The Paycheck Protection Program (PPP) SBA 7a

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The Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.  

• As of 7/6/20:  The PPP resumed accepting applications after legislation extending the program was signed by the President. 

• New rules announced 6/8/20: Updated rules and guidance, a modified borrower application form and a modified loan forgiveness application will be provided in the near future. In the meantime, a summary of the rule changes is below.

  • Extend the covered period for loan forgiveness from eight weeks after the date of loan disbursement to 24 weeks after the date of loan disbursement, providing substantially greater flexibility for borrowers to qualify for loan forgiveness.  

    • Borrowers who have already received PPP loans retain the option to use an eight-week covered period.

  • Lower the requirements from 75% down to 60% percent of a borrower’s loan proceeds must be used for payroll costs during the 24-week loan forgiveness covered period. 

    • If a borrower uses less than 60% of the loan amount for payroll costs during the forgiveness covered period, the borrower will continue to be eligible for partial loan forgiveness, subject to at least 60% of the loan forgiveness amount having been used for payroll costs.

  • For a full list of updated rules visit the SBA's PPP website.​

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Want to familiarize yourself further with the Paycheck Protection Program?

1. Small business owners must apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating.

   • Check for PPP approved lenders in your area

2. Visit the SBA's PPP website and review the FAQs for Lenders and Borrowers

3. Review the Affiliation Rules for PPP 

4. Review the PPP Interim Final Rule as of 6/12 (and revisions to the First Interim Final Rule)

5. The SBA is also providing informational materials in other languages to assist non-English speakers with completing their applications.  ​

   • Please note: Many SBA programs, including the Paycheck Protection Program, require you to work with a bank, credit union, or other types of lenders that may not be able to accept materials or provide customer support in languages other than English.  Thus, applications must be submitted in English. All documents provided are for informational purposes only.

6. Review these Fact Sheets from the Dept of the Treasury based on your role:

   • How to Calculate PPP Max Loan Amounts by Business Type

   • PPP Overview Fact Sheet

   • PPP for Lenders Fact Sheet

   • PPP for Borrowers Fact Sheet

7. ​Additional information:

   • The SBA has set up a call center for lenders having issues related to PPP: (833)-572-0502.

   • If interested in applying for the PPP loan, you must consult with either your current or a local lender as to whether it is participating in the program.

   • Applications are accepted through local lenders/banks that are SBA 7(a) approved, not the SBA, not the SBDC. ​

8. Review these additional resources:

   • A Description of PPP from the U.S. Chamber of Commerce 

   • Want to compare just PPP and EIDL and see how the EIDL Advance fits into the picture?​

     • Review​ this PPP vs EIDL plus EIDL Advance graphic from the SBA and Illinois District SBDC teams

   • Want to compare and contrast the the PPP to the other four (4) SBA Coronavirus Pandemic Disaster Loan programs?

     • Review the SBA Coronavirus Pandemic Disaster Loans Comparison Table ​

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Ready to Apply for the PPP?

• Access the PPP Borrower Application on the SBA's website - updated 6/24

• Make sure you have reviewed the information and resources listed above. 

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Ready to complete your PPP Loan Forgiveness Application?

• There are two options:

  • PPP Loan Forgiveness Application 

  • PPP EZ Loan Forgiveness Application 

  • Also, check out the PPP Loan Forgiveness Instructions for both Applications 

• To apply for forgiveness of your Paycheck Protection Program (PPP) loan, you (the Borrower) must complete the PPP Loan Forgiveness Application as directed by the SBA, and submit it to your Lender (or the Lender that is servicing your loan).

  • Borrowers may also complete this application electronically through their Lender. 

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Want help understanding how to account for your EIDL or PPP funds? 

• The SBA has provided this Treatment of Payroll and Expenses under PPP Flowchart

• Follow up with your PPP lender or a licensed CPA.

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New: Want to see the summary data on PPP funds issued as of 7/8/20?

• Over 4.8 million PPP loans have been approved totaling over $521 billion in funds.

  • The average loan size is $106,542 with 5,460 lenders participating with the SBA to issue these loans

• For full data as of 7/6/20 and a break down of the loans issued above and below $150,000 by state, visit the SBA's website. 

The SBA Economic Injury Disaster Loans (EIDL)

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The SBA's "Economic Injury Disaster Loan" (EIDL) program provides:

• Low-interest loans of $25,000 to $2 million to small businesses and private non-profits affected by the COVID-19 pandemic.

• These "working capital loans" can be used to meet needs including payroll, accounts payable, and fixed debt payments until the situation improves.

• View full details on SBA's Disaster Loan website 

• IMPORTANT:

  • As of 6/15, the SBA has begun accepting new Economic Injury Disaster Loan (EIDL) and EIDL Advance applications from qualified small businesses and U.S. agricultural businesses.

    • SBA has resumed processing EIDL applications that were submitted before the portal stopped accepting new applications on April 15 and will be processing these applications on a first-come, first-served basis.

  • Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.

    • For agricultural businesses that submitted an EIDL application through the streamlined application portal prior to the legislative change, SBA will process these applications without the need for re-applying.

  • Agricultural businesses includes those businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)).

  • SBA is encouraging all eligible agricultural businesses with 500 or fewer employees wishing to apply to begin preparing their business financial information needed for their application. 

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EIDL Advance of up to $10,000

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On March 29th, following the passage of the CARES Act, the SBA provided small business owners and non-profits impacted by COVID-19 with the opportunity to obtain up to $10,000 Advance on their Economic Injury Disaster Loan (EIDL).

• To ensure the greatest number of applicants can receive assistance during this challenging time, the amount of the Advance will be determined by the number of the small business' pre-disaster (as of January 31, 2020) employees.

• The Advance will provide $1,000 per employee up to a maximum of $10,000. 

• The Advance is available as part of the full EIDL application (a check box on the EIDL application) and will be transferred into the account the applicant provides shortly after submitting the EIDL application. 

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Interested in applying for a SBA Economic Injury Disaster Loan?  

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1. Familiarize yourself with the process, requirements, criteria, and application itself FIRST via the below resources BEFORE starting the application or contacting our center.

• Applicants MUST ensure they have ALL required documentation submitted to the SBA for consideration when submitting an application. 

• View the SBA Disaster Assistance Loan Website

• View the SBA Disaster Loan Fact Sheet

• View the Three Steps of the Disaster Loan Process 

• Want to compare just PPP and EIDL and see how the EIDL Advance fits into the picture?​

  • Review​ this PPP vs EIDL plus EIDL Advance graphic from the SBA and Illinois District SBDC teams

• Want to compare and contrast the the EIDL and EIDL Advance  to the other three (3) SBA Coronavirus Pandemic Disaster Loan programs?

  • Review the SBA Coronavirus Pandemic Disaster Loans Comparison Table ​

• IMPORTANT: 

  • Incomplete submissions will delay the application process.​

  • If you do not already have a login, you can register to create an account. You will then be directed to the required application form.

  • Businesses will receive an app number once someone in the loan center enters your documents into the system.

  • If you started using the old system, upload a cover page and then complete and upload the unfinished documents noting the application number you were previously given on each page.

  • The disaster loan center will send out email notifications when the status changes on your application. 

  • Chrome browser seems to work best if you are having technical difficulties. ​​

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2. Assemble the Required Forms and apply

• The EIDL and EIDL Advance application can be accessed via the SBA's Disaster Loan website

• If you have questions regarding the EIDL program, application, or status of your application questions: contact the SBA at 1-800-659-2955 or disastercustomerservice@sba.gov 

 

3. Want to check the status of your EIDL application?

• You can check the status of your EIDL application on the SBA's website by clicking the green "Check Application Status" button 

• Note: You  must have your username, password, and EIDL application # to login. 

Illinois Emergency Small Business Grant and Loan Assistant Initiatives

 

Under the leadership of Governor JB Pritzker, The Illinois Department of Commerce & Economic Opportunity (DCEO) is working with partners to launch emergency assistance programs for Illinois small businesses. 

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New as of 6/17: Business Interruption Grant (BIG) Program

The Department of Commerce and Economic Opportunity (DCEO) will launch the first round of Business Interruption Grants (BIG) on Monday, June 22 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.

  • 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

• Visit the IL DCEO website for updates and the application will be made available on Monday, June 22.

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New as of 6/17: Distressed Capital Program

The Department of Commerce and Economic Opportunity (DCEO) Distressed Capital 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 host a webinar and other outreach to make eligible businesses aware of funding available to them.

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

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​Illinois Small Business Emergency Loan Fund

• DCEO and the Illinois Department of Financial and Professional Regulation (IDFPR) are establishing the Illinois Small Business Emergency Loan Fund to offer small businesses low interest loans of up to $50,000.

• Businesses located outside of the City of Chicago with fewer than 50 workers and less than $3 million in revenue in 2019 will be eligible to apply. 

• Successful applicants will owe nothing for six months, and will then begin making fixed payments at a below market interest rate for the remainder of a five-year loan term. 

• View full details and apply, go to the DCEO application website. 

• IMPORTANT:

  • As of 6/1 update from the DCEO office: "DCEO and our lending partners are continuing to review the large number of submitted loan applications we have received.  To allow us to process received applications as quickly as possible, we are temporarily suspending the acceptance of applications from businesses. Please refer back to the DCEO website and follow us on social media, and subscribe to our newsletter to stay updated on upcoming opportunities.

  • Review the Frequently Asked Questions before applying.

  • For assistance with additional questions, please email CEO.Support@Illinois.gov

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Downstate Small Business Stabilization Program

• To support small businesses in downstate and rural counties across Illinois, DCEO is re-purposing $20 million in CDBG funds to stand up the Downstate Small Business Stabilization Program. 

• This fund will offer small businesses of up to 50 employees the opportunity to partner with their local governments to obtain grants of up to $25,000 in working capital. These grants will be offered on a rolling basis.​

• View full details (which includes a downloadable guidebook and FAQs) on the DCEO application website.

• IMPORTANT:

  • As of 6/1 update from the DCEO office: "DCEO and our lending partners are continuing to review the large number of submitted loan applications we have received.  To allow us to process received applications as quickly as possible, we are temporarily suspending the acceptance of applications from businesses. Please refer back to the DCEO website and follow us on social media, and subscribe to our newsletter to stay updated on upcoming opportunities.

  • For technical assistance, please reach out to the grant manager in your area via email ceo.ocd@illinois.gov, or call the Office of Community Development at (217)785-6174.

  • A webinar recording covering the Downstate Small Business Stabilization Program Guidebook and Application was added to the DCEO website. 

  • A webinar recording specifically for local governments was also added to the DCEO website. 

• IMPORTANT:

  • Local governments can apply on behalf of businesses with 50 employees or less.

  • Only units of local government recognized by the Illinois Constitution and able to support economic development activities on a sufficient scale are eligible to apply for Economic Development grant funding.  This includes cities, villages, and counties.  Municipalities must not be a HUD direct Entitlement community or be located in an urban county that receives "entitlement" funds. 

  • A map of eligible areas of the state can be accessed on the DCEO website, see “Staff Contact Information.”

  • Businesses in the eligible areas should work with their local governments to submit applications. 

  • Application materials are posted here. 

  • Unfortunately, Bloomington and Normal are NOT eligible​​.

  • Rural communities of McLean County that ARE eligible

    • Chenoa,El Paso, LeRoy, Lexington, Anchor, Arrowsmith, Bellflower, Carlock, Colfax, Cooksville, Danvers, Downs, Ellsworth, Gridley, Heyworth, Hudson, McLean, Saybrook, Stanford, Towanda

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The Families First Coronavirus Response Act (FFCRA)

 

The FFCRA provides small and midsize employers refundable tax credits that reimburse them, dollar-for-dollar, for the cost of providing paid sick and family leave wages to their employees for leave related to COVID-19.

• The FFCRA gives businesses with fewer than 500 employees (referred to throughout these FAQs as "Eligible Employers") funds to provide employees with paid sick and family and medical leave for reasons related to COVID-19, either for the employee's own health needs or to care for family members.

• Workers may receive up to 80 hours of paid sick leave for their own health needs or to care for others and up to an additional ten weeks of paid family leave to care for a child whose school or place of care is closed or child care provider is closed or unavailable due to COVID-19 precautions.

• The FFCRA covers the costs of this paid leave by providing small businesses with refundable tax credits. Certain self-employed individuals in similar circumstances are entitled to similar credits.

• For a more detailed overview of FFCRA:

  • See the see Overview of COVID-19-Related Tax Credits for Small and Midsize Businesses page on the IRS website.

  • See Basic FAQs, which will be updated to address changes in the law or additional questions as they are raised.

Personal Protective Equipment (PPE) - Can your business donate, make, or sell PPE? 

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Under the leadership of Erin Guthrie, Director, the Department of Commerce & Economic Opportunity (DCEO) recognizes the tremendous impact that the COVID-19 pandemic is having, not only on businesses, but our communities and families as well. Not surprisingly, during this challenge Illinoisans are stepping up and pulling together. Many businesses and organizations have already reached out to DCEO to offer support, donations and assistance in any way they can. Their contributions are much appreciated by us all.

 

DCEO is asking for your support on their DCEO website in providing our hospitals, Illinois doctors and first responders that are in desperate need of items. For donations of personal protective equipment, please email: PPE.donations@illinois.gov.

 

All donated items should be in the manufacture's original packaging and unopened. When emailing items available for donation to PPE.donations@illinois.gov it is essential to list the items’ current location and exact quantity in an “each” type standard as opposed to boxes/pallet, etc. We will then be in touch about the next logistical steps. Please note that if you have smaller quantities of these items, you may redirect or donate to your nearby police, fire, and ambulance services in order to minimize your travel and other logistical steps with your donation.
 
For non-PPE items, tangible or financial - please email: CEO.BusinessDonations@illinois.gov.

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“Make”: Manufacturers who are ramping up or altering their operations to provide more essential items should contact the Illinois Manufacturers Association (IMA) at: https://ima-net.org/covid-19/supplies/

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“Sell”: Wholesalers, suppliers, or manufacturers that already have items on hand to sell or will in the future, should contact: COVID.procurement@illinois.gov.

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The following items are in greatest need:

• Masks: N-95, ear loop, procedural, or surgical

• Gloves: Nitrile, sterile, or surgical

• Gowns (impermeable)

• Eye Protection: Face shields and goggles

• Infection Control Kits

• Hand Sanitizer: Any size

• Disinfectant Wipes: Any size

• Sanitizing wipes

• Purple-top wipes

• Hand sanitizers

• Digital thermometers (forehead only) 

• PAPR hoods

• Ventilators – LTV1200 Vyaire/ReVel Carefusion or BiPAP v60 Phillips Respironics​

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Additional Financial Assistance Programs 

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• The Arts for Illinois Relief Fund

  • https://artsforillinois.org/donate-and-apply

  • This fund will provide financial assistance to artists, artisans and cultural organizations impacted by COVID-19.

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• LISC of Central Illinois - Small Business Rescue Fund:

  • The Local Initiatives Support Corporation (LISC) of Central Illinois created a fund that will enable both loans to be deployed to small businesses, nonprofits and CDFIs supporting small businesses for their most urgent needs, including operational costs like paying employees, vendors, and rent. The Fund will target the following entities:

    • Women, minority, and veteran-led small businesses that provide vital goods, services, and jobs in communities most in danger of permanent closure;

    • Nonprofit social enterprises with revenues of less than $5 million, and;

    • Smaller CDFIs with missions to support small businesses.

  • Loans will range from $75,000-$250,000 to rapidly inject working capital into businesses where they need it most, with real estate loans up to $500,000.

    • This product will be 2% Interest-Only for the initial 12 months, then principal & interest (up to 6.75%) for the remainder of term (up to 48 months).

    • Funds can be used for working capital, equipment, inventory, tenant improvements, real estate purchases, debt financing, etc..

    • Borrowers need to have been in operation for at least three years and must provide basic documentation such as tax returns and a plan of how proceeds will address the impact of     COVID-19.

  • Learn more about LISC of Central Illinois at their website: www.LISC.org/central-il

  • Learn more about the program requirements and submit an application via their website: https://www.lisc.org/central-il/covid-19/small-business-rescue-fund/

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Advice for small business owners on how to "Pivot and Plan" during times of change.

PIVOT - Rethink your strategies of how you operate:

• Do you have any services that may be especially helpful to people now? (ie. delivery, meals to go etc.) 

• Can you telecommunicate? Phone, Zoom, Google Meet, Face Time etc.  

• Do you sell gift certificates? If not, would you like to? (If you do sell gift certificates, how can people purchase them?) 

• What forms of payment do you currently accept? (ie. cash, card, Venmo, Apple Pay etc.) 

• Communicate about your operation changes (like hours or products/service changes) regularly with your employees, partners, and customers. 

• Use social media or email to engage with customers virtually and keep the business brand vibrant and "top of mind.

• Communicate with your vendors and suppliers often and early. 

• Continue to monitor official communications from the CDC and McLean County Health Department. 

 
PLAN – Prepare for future needs and restoration of service:

• Watch your business and personal spending;  set aside reserves. 

• Analyze budget to identify cost efficiencies, and ways to maximize cash flow. 

• Update slate of financial statements including cash flow, balance sheet, and income statement in preparation for potential financing applications and emergency subsidies. 

• Consider forming or joining with other small businesses in a mutual aid peer support association. 

• Review and confirm your business continuity plan, or create one if you don’t have on

• Contact your business insurance agent if you have "interruption coverage" on your business insurance policy. 

• Contact additional business professionals (such as attorney, banker, and accountant) to evaluate options (such as applying for a SBA Disaster Loan) to mitigate financial losses or hardship.

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