In case you missed the update from yesterday, Governor Pritzker made a big announcement for $900 million worth of grants spread over five programs. Today’s update is going to focus on two of those programs and we will work to get more info out as it becomes available for the application process that is to begin on Monday, June 22. We also get to share more unemployment numbers as it is Thursday.
The Business Interruption Grant (BIG) Program
As part of the FY20 and FY21 DCEO budget the department is appropriated funds from the Coronavirus Urgent Remediation Emergency (CURE) Fund to support expenses associated with economic support in connection with the COVID-19 public health emergency. The Business Interruption Grant (BIG) Program will reimburse costs incurred by businesses due to business interruption caused by required closures. All spending related to this program must be reimbursable by the Federal Coronavirus Relief Fund, as prescribed by 601(a) of the Social
Security Act and added by section 5001 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act including all subsequent federal guidance.
- Program Basics
- Using one or more intermediaries, DCEO will issue grants to businesses to reimburse the costs of business interruption caused by required closures or limited operational capacity under one of
Governor Pritzker’s Executive Orders or public health guidance provided by the Illinois Department of Public Health.
- Businesses which demonstrate an interruption may receive a grant to reimburse expenditures
incurred during periods of limited capacity or closure. The program focuses on reimbursing expenses associated with the business’s operations (“operating costs”) which include, but are not limited to:
- a) payroll & benefit payments on behalf of retained employees;
- b) lease & mortgage payments for business location(s), as well as related utility expenses;
- c) variable costs for the goods or services provided; as well as
- d) expenses related to personal protective equipment (PPE) for employees.
- The period in which businesses may claim eligible expenditures is March 21, 2020 through December 30, 2020.
- From appropriated amounts, 50% of funding will be released to businesses that enable critical
support services such as childcare, day care, and early childhood education.
- From appropriated amounts, a minimum of 30% will be released to businesses with ZIP codes located in the most disproportionately impacted areas (DIAs) of Illinois.
- Awards will be made with the following focuses:
o Funding will be prioritized for industries and businesses most greatly impacted by the COVID-
19 public health emergencies.
o Funding will be prioritized for businesses which did not received assistance from the Federal
Payment Protection Program.
- Awards will be made in accordance with General Assembly appropriations:
o For General Business Interruption Grants
▪ $159 million for areas outside of Chicago, Cook County, and the collar counties
▪ $157 million for statewide distribution
▪ $60 million for disproportionately impacted areas of Illinois
o For Business interruption Grants for Childcare and Daycare providers
▪ $70 million for areas outside of Chicago, Cook County, and the collar counties
▪ $165 million for statewide distribution
▪ $25 million for disproportionately impacted areas (DIA) of Illinois
✓ To meet the 50% Childcare requirement in statute, amounts will be released to Childcare and Daycare provides from “General” appropriations.
✓ To meet the 30% DIA requirement in statute, amounts will be released to DIA regions from the non-DIA related appropriations.
- Qualifying Businesses
As well as meeting the Program’s basic criteria above, a Qualifying Business is:
✓ Eligible for reimbursement as prescribed by 601(a) of the Social Security Act and added by section 5001 of the CARES Act.
✓ Experiencing business interruption due to the COVID-19 public health emergency.
✓ Registered and in good standing with the Illinois Secretary of State.
✓ Licensed to do business within their industry (if applicable).
Qualifying Businesses will be more exactly defined through subsequent funding notices based on
business type, industry, and region.
III. Planned Funding Rounds:
- Disproportionately impacted business, Bars, Restaurants, Barbershops & Salons, and Fitness Centers – $60 million
Eligibility: up to $20,000 per business
▪ $20M for Business located within a disproportionately impacted area and experienced significant business losses as Illinois entered Phase 3 of Restore Illinois.
▪ $20M for Bars & Restaurants with under $3M in revenue in 2019, or pro-rated amount if in business for less than a year. Must have been an operating business for at least three months prior to March 2020. Only bars and restaurants that have not provided outdoor food and beverage service during Phase 3 will be eligible. This could be for any reason including prohibition by local ordinance, lack of access to outdoor space, or financial infeasibility.
▪ $10M for Barbershops & Salons with under $500K in revenue in 2019, or pro-rated amount if in business for less than a year. Must have been an operating business for at least three months prior to March 2020.
▪ $10M for Fitness centers with under $2M in revenue in 2019, or pro-rated amount if in business for less than a year. Must have been an operating business for at least three months prior to March 2020.
- Child Care Restoration Grants – $270 million
The Child Care Restoration grant program will dedicate at least $270 million of the state’s Coronavirus Urgent Remediation Emergency (CURE) Fund to support the economic health of childcare providers as the state’s economy continues to reopen in the coming weeks and months. As part of CURE, the Business Interruption Grants (BIG) Program is specifically designed to support businesses who endure lost revenue due to the COVID-19 public health emergency. The first program of its kind in the nation, supporting Illinois’ vast network of childcare providers as they continue to provide care to children across the state through the COVID-19 pandemic.
- Future Funding Rounds:
- Future funding rounds of the BIG program are being planned and the main industries of consideration are ones which will not re-open to full capacity until phases four or five of Governor Pritzker’s Restore Illinois plan. Examples of these industries are:
o Theaters, concert halls, event venues & event industries
o Indoor amusements and other arts
o Neighborhood-oriented independent retail
o Independently owned/operated personal services
o Additional industries as identified by DCEO
**All of this information is attached as a PDF document
Rebuild Distressed Communities
Rebuild Distressed Communities is a $25 million economic recovery program to support Illinois businesses that have sustained property damage as a result of civil unrest during protest and demonstrations on or after May 25th, 2020. The program will identify Grantees to solicit applications, administer subgrants and coordinate qualified vendors to make repairs for impacted businesses.
Program Design: The Rebuild Distressed Communities NOFO will solicit applications from eligible applicants (“Administrator”) to administer $25 million in Rebuild Illinois capital funds for businesses that have sustained property damage as a result of recent civil unrest. Administrators will solicit, evaluate, and select project applications from eligible Illinois businesses in their region, coordinate qualified vendors to make the repairs or perform new construction (with a priority for BEP vendors), and oversee these projects for completion. A portion of the funds will be allocated to reimburse businesses for costs incurred for work performed since May 25, and the remainder will fund new projects to perform repairs or new construction.
Funding Sources: This opportunity will have two funding components:
- Administrative expenses incurred by the Administrator Grantees will be funded from
Community Development Grants, funded by Public Act 101-0637.
- Funding to support capital repairs for businesses will be from the Rebuild Illinois Program,
funded by Public Act 101-0638.
Eligible Administrators will include non-profit organizations; chambers of commerce; county, local, or regional economic development organizations; community development financial institutions; or organizations or associations that have demonstrated experience administering grants of this kind.
Grant Specifics: Grants to administrators will be competitive. DCEO will make multiple awards under this program. Each administrator grantee will be required to propose a region they will cover. Administrators will be expected to begin receiving applications from businesses within two weeks of executing a grant agreement with the state.
Business Eligibility: Eligible businesses must have sustained property damage as a result of civil unrest during protests or demonstrations on or after May 25, 2020. Eligible businesses include but are not limited to: grocery, pharmacy, personal and professional services, restaurant/taverns, retail, and others.
Additional priority will be given to businesses with fewer than 50 employees, 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 a history of disinvestment.
Eligible Uses for Property Repair Funds: Capital funds will be used to fund property repair and are subject to bondability guidelines. Eligible project expenses include major and durable repair of an asset, including:
Repair of structural damages, including signs, awning, storefronts, entrances, doors, brickwork, total roof repair/replacement, and window replacement; installation of security shutters; reconstruction or improvement of existing buildings or structure (walls, floors, ceilings, interior finishes, and demolition of previous); lighting and electrical systems; building additions; and exterior work which will extend the building’s useful life.
Routine or reoccurring operational or maintenance costs, restocking of inventory, or expenses that have been reimbursed through a separate grant program or insurance claim are not eligible expenses.
Weekly jobless claims stayed above 1 million for the 13th consecutive week. First-time claims totaled 1.5 million last week, higher than the 1.3 million that economists had been expecting. The government report’s total was 58,000 lower than the previous weeks.
Joliet Region Chamber of Commerce & Industry Staff and Board of Directors
Vice President – Government Affairs
Joliet Region Chamber of Commerce & Industry
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