Members of the Greater Galesburg business community,
The COVID-19 crisis and its resultant shutdown is impacting every single business in our region. The Galesburg Area Chamber of Commerce and the Knox County Area Partnership share your concerns and frustrations over this situation.
Multiple new financial assistance programs have been created at both the State and Federal level to help businesses through this period. Some of these programs are cumbersome and complex and all of them require considerable effort to apply. To that end, KCAP’s staff are now working one-on-one with businesses and assisting them with the application process. This assistance is free to anyone in the community – simply email npostin@galesburg.org to set up an appointment. Below you will find information on the financial programs currently available.
Another resource available to businesses during this time period is a free provisional membership from the Galesburg Area Chamber of Commerce for new members. The Chamber will help keep your business connected and informed throughout the crisis and beyond. To sign up, please call 309-343-1194 or email chamber@galesburg.org. To learn more, visit https://www.galesburg.org/coronavirus/.
For more information on programs, please stay tuned to the Facebook pages of both organizations: https://www.facebook.com/GalesburgAreaChamber/https://www.facebook.com/KnoxPartnership/
Illinois Small Business Emergency Loan Fund
About the program: 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. 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. Who is eligible?: Small businesses located outside of the City of Chicago with fewer than 50 workers and less than $3 million in revenue in 2019 can apply. What can the funds be used for?: Loans can be used to support working capital. TO APPLY: Eligible businesses can submit an application here beginning April 1st, 2020: https://www2.illinois.gov/dceo/SmallBizAssistance/Pages/EmergencySBAIntiatives.aspx. Once submitted, a loan decision will be made within about 10 days, and make funds available within two days of receiving bank information.
US Small Business Administration Economic Injury Disaster Loan
About the program: Borrowers can borrow up to $25,000 unsecured at a 3.75% interest rate. Businesses with adequate collateral can borrow up to $2 million. Repayment terms will be worked out on a case-by-case basis. Who is eligible: All small businesses or nonprofits in Illinois can apply now. TO APPLY: Go to https://disasterloan.sba.gov to fill out the online application.
Coronavirus Aid, Relief, and Economic Securities (CARES) Act
About the program: The CARES Act has allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program (PPP), the initiative provides 100% federally guaranteed loans to small businesses. Who is eligible: All small businesses, sole proprietor, or nonprofits with less than 500 employees in Illinois can apply. What can the funds be used for?: For certain expenses inquired during the 8 week period of COVID-19. Can be used for payroll costs, interest on mortgage obligations, rent on leasing agreement, utility payments. Funds can also be used to cover the average amount of tips for tipped employees (waitresses, delivery drivers, etc). TO APPLY: To apply for the Paycheck Protection Program you can contact any lending institution that is approved to participate in existing SBA lending programs and additional lenders approved by the Department of Treasury. Deadline to apply is June 30th, 2020.
Downstate Small Business Stabilization Program
About the program: The Economic Development Downstate Small Business Stabilization component has been established to provide working capital funds to community’s businesses economically impacted by the COVID-19 virus. Funds are for 60 days of verifiable working capital up to a grant ceiling of $25,000. Businesses need to employ 50 people or less. Who is eligible: Any for-profit business located in a non-entitled community – Knox County is a non-entitled county. Any for-profit business in Knox County can and should apply. What can the funds be used for?: For incurring losses in mortgages, payroll, lease payments, etc. In order to receive the grant, losses must be documented. TO APPLY: The full application can be found HERE.
***Report Courtesy of the Galesburg Area Chamber of Commerce***
