We hope you are getting your week off to a great start. This will be the last week of Congressional vacation before getting back to work. We are anticipating a lot of action and hopeful resolve on numerous topics that we have covered now for what seems like months. Watch as well for possible new campaigns popping up to urge (more) mask wearing and enforcement of policies as Illinois hit three days with 1,000+ cases and companies being put in the middle of enforcing un-uniform policies across regions.
SBA’s EIDL Advance Program Ends
The U.S. Small Business Administration announced the conclusion and success of the Economic Injury Disaster Loan (EIDL) Advance program, which provided U.S. small businesses, non-profits, and agricultural businesses a total of $20 billion in emergency funding. In order to assist the greatest number of small businesses, the EIDL Advance provided $1,000 per employee up to a maximum of $10,000. Recipients did not have to be approved for a loan to receive the Advance, and the Advance provided an interim but vital source of funds while applicants awaited a decision on their loan application.
“Following the enactment of COVID-19 emergency legislation, the SBA provided nearly six million small businesses employing 30.5 million people with $20 billion through the unprecedented EIDL Advance program,” Administrator Jovita Carranza said. “This program, built from the ground up in less than two weeks, assisted millions of small businesses, including non-profit organizations, sole proprietors and independent contractors, from a wide array of industries and business sectors.”
Having allocated the full $20 billion that was appropriated by Congress, SBA will discontinue making EIDL Advances to new applicants. By law, the SBA is not permitted to issue new EIDL Advances once all program funding has been obligated.
EIDL loan applications will still be processed even though the Advance is no longer available. As a reminder, the loan portion of the EIDL program continues to have funds available at very affordable terms, including a 3.75% interest rate for small businesses and 2.75% for non-profit organizations, a 30-year maturity, and an automatic deferment of one year before monthly payments begin. Every eligible small business and non-profit is encouraged to apply to get the resources they need.
Federal Reserve Bank of Chicago Survey Optimism
The latest survey of business conditions by the Federal Reserve Bank of Chicago shows business leaders here are surprisingly upbeat about recovering from the COVID-19 pandemic.
The survey asks business leaders to rate the local economy on a point scale ranging from +3 to -3. Those findings are then combined into an index, with anything above 0 considered above historical growth rates and anything below that slower than normal. In the June survey, the comeback on the manufacturing side was particularly notable, continuing a trend that began in May. From a rating of -95 in April and -21 in May, the index popped to +31 in June. Sectors other than manufacturing had a smaller bounce: -10 in June, improved from -61 in April and -37 in May.
The overall regional index in June was +3, improved from -72 in April and -32 in May. The index had been flat to declining since early 2018 and was only briefly above 0 one month in the latter part of that year. “Respondents’ outlooks for the U.S. economy for the next 12 months improved and remained optimistic on balance,” the Chicago Fed said in its report, with 44 percent expecting an increase in economic activity over the next quarter, and 48 percent expecting activity to return to its pre-pandemic level by the end of 2021.
Relief to Healthcare Industry
HHS on Friday announced it will send safety net hospitals and rural health providers an additional $4 billion from the $175 billion Provider Relief Fund Congress established to stem industry losses amid the pandemic.
COVID-19 Close Contact Guidance
As has come to be expected, the guidance regarding COVID-19 has changed again. This time the CDC narrowed the definition of who constitutes a “close contact” for purposes of tracing people with potential exposure to someone who has COVID-19.
While a “close contact” is still defined as someone who was within 6 feet of an infected person for at least 15 minutes, what has changed is when the exposure occurred during the ill person’s sickness. The relevant time is now from two days before illness onset (or, for asymptomatic patients, two days prior to specimen collection) until the time the patient is isolated.
Invite to Conversation with Dr. Fauci
Path Forward Special Edition: A Conversation with Dr. Anthony Fauci
Hosted by the U.S. Chamber of Commerce Foundation
When: Friday, July 17, 2020 at 10:00 AM
What: A dialogue led by U.S. Chamber president Suzanne Clark on helping America prepare to restart the economy and get millions of people back to work.
Who: Next week’s special edition of Path Forward with National Institute of Allergy and Infectious Diseases director Dr. Anthony Fauci will focus on protecting employees and customers from COVID-19, the barriers to a successful reopening of the economy, where employees can get access to testing and personal protective equipment, and much more.
Click here to register for the special edition Path Forward event with Dr. Anthony Fauci.
State of the Illinois Budget with Comptroller Mendoza
All are invited to join a live webcast with Illinois State Comptroller Susana A. Mendoza. In a conversation moderated by Crain’s Politics and Government Reporter A.D. Quig, Comptroller Mendoza will discuss how the Illinois state budget is shaping up and exactly how big of a toll the coronavirus pandemic will take on Illinois.
Tue, Jul 14, 2020 12:00 PM
Featured Speaker: Susana A. Mendoza, Illinois State Comptroller
Moderator: A.D. Quig, Politics and Government Reporter, Crain’s Chicago Business
Register to participate here: https://register.gotowebinar.com/register/6755841852348077068
Finally, you may have seen reports and conversations starting to circulate about the number of companies, the amounts, and more regarding those who received PPP funds. Some may jump to conclusion about fraud and that may be true in a small percentage, but let’s not forget that these loans (whether ultimately forgivable or not) kept the doors open for many and retained more employees than without the PPP.
Here is a quick breakdown for our region zip codes of both loans up to $150,000 and those above that amount. Data is pulled for Joliet, Crest Hill, Shorewood, and the Plainfield zip that is mostly in Joliet city limits (60431,32,33,35,36, 60403,60404, and 60586).
Number of loans up to $150,000
1,121 between 60431,32,33,35, and 36
388 between 60403 and 60404
302 in 60586
That is a total of 1,811 loans that saved at least 8,800 jobs as not all companies reported their amount saved.
Number of loans above $150,000
226 between 60431,32,33,35, and 36
64 between 60403 and 60404
18 in 60586
That is a total of 308 loans that saved at least 13,500 jobs as not all companies reported their amount saved.
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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