Chamber Members:
It’s Thursday so that means we have job numbers to report and those numbers have unfortunately jumped up. Additionally, a panel is reviewing the first vaccine for emergency approval today. Also, we have news from Canada that they have move forward with a vaccine approval. Finally, Illinois DCEO has announced a deadline for BIG applications.
*Daily Coronavirus update brought to you by Silver Cross Hospital
The Latest on Federal Aid
As we reported yesterday, momentum has appeared to stall on a COVID-19 relief bill amid differences not only between the parties, but between Senate Republicans and the White House over what should be included in the legislation.
We’ll leave it right there and urge all to reach out to their Congressional representative, as well as our two Senators and let them know that an immediate relief package is needed which includes the reopening of PPP funds. We’re asking that the language includes the ability to deduct expenses paid, auto forgiveness of loans of $150,000 or less, the inclusion of 501c6 organizations, and for additional flexibility on how the funds can be used for forgiveness.
The tax burden without the ability to deduct can be shocking to most, especially with in mind that the original intent was to allow the deduction. The IRS has since shared the opinion that the legislation language did not allow for that.
In Illinois, there were 221,000 PPP loans with a total amount of $23 billion given out. Of that amount more than 1/3 went to less than 2% of participants. There needs to be a sharpened focus on including and aiding more small businesses in this process.
The average loan amount is $104,000 which means a company in the 32% federal tax bracket that adds in the state tax of 4.95% and 1.5% replacement tax would be looking at an additional $40,000 in tax possibilities. So, what does that mean for your business? You may have to look at balancing a purchase to reduce liability or sit on capital by not hiring or making improvements or investments in your company. Thanks to a couple of our CPAs that have shared what situations that this puts businesses into.
Weekly Employment Report
The number of new applications for unemployment insurance surged last week to 853,000, a jump of more than 100,000 from the previous week, amid record-high coronavirus cases that are slowing economic growth.
In the week ending Dec. 5, initial weekly jobless claims rose by 137,000 from a revised total of 716,000 applications. The non-seasonally adjusted number of claims totaled 947,504 last week, rising by 228,982, according to data released Thursday by the Labor Department.
Another 427,609 people applied for Pandemic Unemployment Assistance (PUA), a program created to expand jobless benefits to contractors, gig workers and others who do not typically qualify for traditional unemployment insurance. More than 19 million Americans were on some form of jobless aid as of Nov. 21, according to the Labor Department.
While the weekly jobless claims data can often be distorted by state backlogs, the sharp rise last week appears to be a troubling sign for the U.S. economy as the country suffers through record-breaking coronavirus cases, hospitalizations, and deaths.
The figures COULD give another jolt to talks in Washington on a coronavirus relief package, but that is a big unknown. While the $600 boost unemployment payment ended on July 31, the rest of the unemployment programs are set to expire on Dec. 31. Roughly 12 million people would lose their unemployment benefits by the day after Christmas.
Illinois Business Interruption Grant (BIG) Deadline Announced
The Department of Commerce and Economic Opportunity (DCEO) is informing small businesses and communities that the application period for the Business Interruption Grant (BIG) program will close at 5pm on Tuesday, December 15.
DCEO and its grant administration and outreach partners are reminding small business owners to get their application in if they haven’t already. Applying is easy, and DCEO along with its grant administrators Accion and WBDC have developed a menu of resources and technical assistance to help small businesses in need qualify for grants. Resources and more info are available HERE.
The State of Illinois anticipates that it will award the remainder of the $270 million in funds through this program in the coming weeks. DCEO will continue to follow the funding priorities outlined under the program including reaching heavily impacted industries, businesses located in a disproportionately impacted areas (DIAs) and downstate communities, and small businesses with annual revenues of $5 million or less and/or businesses that have not received other forms of emergency assistance like PPP.
Panel of Experts Convenes to Decide on the OK for Pfizer Vaccine
A U.S. government advisory panel convened today to decide whether to endorse mass use of Pfizer’s COVID-19 vaccine to help conquer the outbreak that has killed close to 300,000 Americans.
The meeting of outside advisers to the Food and Drug Administration represented the next-to-last hurdle before the expected start of the biggest vaccination campaign in U.S. history. Depending on how fast the FDA signs off on the panel’s recommendation, shots could begin within days.
The FDA panel functions like a science court. During the scheduled daylong session, it was expected to debate and pick apart the data — in public — on whether the vaccine is safe and effective enough to be cleared for emergency use. With unprecedented interest in the normally obscure panel, the FDA broadcast the meeting via YouTube, and thousands logged on.
The FDA is not required to follow the committee’s advice but is widely expected to do so. Once that happens, the U.S. will begin shipping millions of doses of the shot.
Later this month, the FDA is expected to pass judgment on another vaccine, developed by Moderna and the National Institutes of Health, that has proved about as protective as Pfizer’s. Vaccine candidates by Johnson & Johnson and AstraZeneca are also in the pipeline.
Canada Authorizes Covid-19 Vaccine from Pfizer and BioNTech
Canada became the third country to authorize use of the Covid-19 vaccine produced by Pfizer Inc. and BioNTech SE, racing ahead of the U.S. Food and Drug Administration and Europe’s main regulator to approve shots for its most vulnerable citizens.
Canada will now begin its immunization rollout as early as next week—a daunting challenge for a sparsely populated country with the world’s second-largest territory. The country is on schedule to begin inoculations next week, with a portfolio of vaccine candidates that it argues is among the most diverse among large economies.
A spokeswoman for Pfizer’s Canadian unit said Wednesday that Pfizer would supply Canada up to 76 million doses of the vaccine. The agreement calls for Canada to buy a minimum of 20 million doses with an option for 56 million more.
On Monday, Canada said it secured early delivery of 249,000 initial doses in anticipation that inoculations could start as early as next week.
As more countries move to authorize the first Covid-19 vaccine developed in the West, the companies behind it are working to meet production targets. Pfizer and BioNTech have presold around 600 million doses across the world but have produced just a fraction of that number so far.
Pfizer and BioNTech said that they would manufacture 50 million doses by the end of this year—a goal they have already hit, according to people familiar with the matter—and up to 1.3 billion by the end of 2021.
About half the existing doses have been produced in Europe, but more are expected to come from the U.S. as Pfizer integrates production lines in a Michigan factory that has been upgraded over the past few months.
While Europe and North America will receive most of the doses, according to people familiar with the companies’ plans, BioNTech Chief Executive Ugur Sahin told The Wall Street Journal last month that doses would be delivered to whatever government authorizes the jab.
The U.S., which has ordered 100 million doses for $1.95 billion, is set to take delivery of around 25 million upon authorization, while the European Union, which purchased 200 million doses, will get over 20 million once it clears the vaccine. The U.K, which bought 30 million doses, is set to receive up to 5 million initially. Japan has ordered 120 million doses, and the Chinese territories of Hong Kong and Macao ordered 10 million.
Program Notices & Reminders
Business Interruption Grant
Funds still remain and the program is still open for application through December 15th. Please visit the link below to get your application in before it closes:
https://www2.illinois.gov/dceo/SmallBizAssistance/Pages/C19DisadvantagedBusGrants.aspx
ComEd Bill Assistance
Small-business customers can visit ComEd.com/SmallBizAssistance or call 1-877-4-COMED-1 (1-877-426-6331) to learn more or apply for the Small Business Assistance Program.
ComEd’s bill-assistance programs also include flexible payment options for residents, financial assistance for past-due balances and usage alerts for current bills. Any customer who is experiencing a hardship or difficulty with their electric bill should call ComEd immediately at 1-800-334-7661 (1-800-EDISON-1), Monday through Friday from 7 a.m. to 7 p.m. to learn more and enroll in a program.
SBA EIDL
Low-interest Economic Injury Disaster Loans (EIDLs) from the U.S. Small Business Administration (SBA) are still available to Illinois small businesses, small agricultural cooperatives, small aquaculture businesses and private nonprofit organizations.
The SBA has opened a Virtual Business Recovery Center to apply online using the Electronic Loan Application via the SBA’s secure website at https://DisasterLoanAssistance.sba.gov/. Business owners and residents should contact the SBA Customer Service Representatives at
(800) 659-2955 for assistance in completing their applications. Requests for SBA disaster loan program information may be obtained by emailing FOCE-Help@sba.gov.
Tell Congress to Make PPP Loans Deductible – Call to Action
The Paycheck Protection Program Flexibility Act of 2020, or PPP, was passed in order to provide small businesses across the United States crucial relief during widespread government shutdowns due to the COVID-19 pandemic. These loans can be forgivable when proceeds are used for payroll, rent, mortgage interest and utilities. Congressional leaders intended for PPP funded expenses to be deductible like other business expenses.
Despite the intent of Congressional leaders, additional legislation is needed to make PPP funds used to pay business expenses deductible. The failure to allow these deductions will have a devastating impact on small businesses struggling to keep their doors open and retain their employees.
Are you a small business owner who thought salary and expenses paid by PPP loans would be deductible? In partnership with the Small Business Advocacy Council (SBAC), we’re asking you to please contact your Congressional leaders and ask them to sponsor and strongly advocate for legislation that makes salary and other businesses expenses paid for by a PPP loan deductible!
You can contact your Senators and House Representative here: https://oneclickpolitics.global.ssl.fastly.net/messages/edit?promo_id=10057
See below for two articles for further information / aid on PPP forgiveness and deductibility
7 Resources for PPP Loan Forgiveness Help
https://www.uschamber.com/co/run/business-financing/ppp-loan-forgiveness-resources?utm_medium=Email&utm_source=SFMC&utm_campaign=MO_Newsletter&utm_content=2020_11_25
Will You Owe Taxes on Your Paycheck Protection Loan?
https://www.uschamber.com/co/run/finance/tax-implications-of-paycheck-protection-loans
SBDC at JJC Update
Here is a list of upcoming programs delivered from the Small Business Development Center through Joliet Junior College:
Website Development
Date: 12/15/20
Time: 3:00 PM – 4:00 PM (CST)
A website is more than just a placeholder to occupy property in cyberspace. Your website should be the central point that your social media, SEO, email marketing, pay per click ads, content, CRM…. orbit around to generate business for your business. Join Jason McCoy from WSI to discuss how to develop a website that meets your needs. https://ilsbdc.ecenterdirect.com/events/33652
21 Topics in 21 Minutes for 2021 Growth
Date: Scheduled one-on-one session
In less than 30 minutes, the Illinois Small Business Development Center at Joliet Junior College will help you prioritize key 2021 business plans whether it is for your people, your product, your marketing, your sales, your money, or the impact of this crisis. In this short, one-on-one exercise, we will help you determine up to three of the biggest opportunities for growth in the year ahead. We will offer no-cost tools to develop your strategy for success in those areas. Email us at SBDC@JJC.edu and we will send you a link for registration.
Finally, for decades the Jacob Henry Mansion Estate has welcomed us into their home for the holidays! This year let’s keep the tradition alive by supporting them and bring their food into our homes! Place a LUNCH or DINNER order by Wednesday, December 16th and the Chamber Staff will be there to wish you a HAPPY HOLIDAYS on Thursday, December 17, 2020.
Lunch pick up will be from 11:00 a.m. – 1:00 p.m.
Dinner pick up will be from 4:00 p.m. – 6:00 p.m.
Holiday Chicken: $12.00 per person
Boneless breast of chicken dressed with a delicate cranberry-orange sauce garnished with crushed walnuts served alongside wild rice and steamed vegetables. Salad and rolls included.
To choose to add:
Bottle of Wine (white or red): $10.00 each
Santa’s Sangria (16 oz mason jar): $8.00 each
Place your order with the Jacob Henry Mansion Estate by calling (815) 722-1420 or emailing anna@jacobhenrymansion.com
Stay well,
Joliet Region Chamber of Commerce & Industry Staff and Board of Directors
Mike Paone
Vice President – Government Affairs
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct