In another effort to provide economic assistance to Illinoisans facing unprecedented challenges due to COVID-19, Governor JB Pritzker announced that his administration will file for statewide eligibility in a federal loan program for small businesses facing financial hardship.
“I have directed my administration to do everything in our power to support our working families, and we are also working expeditiously to mitigate the challenges small businesses are facing,” said Governor JB Pritzker. “My Department of Commerce and Economic Opportunity has secured the necessary documentation to declare a statewide Economic Injury Declaration with the U.S. Small Business Association. The SBA is offering coronavirus disaster assistance loans to help impacted companies get through this period of instability, and this will ensure that all of our counties qualify for assistance.”
“Many businesses are struggling due to the spread of COVID-19 across the state, with small businesses feeling the impact sharply,” said Erin Guthrie, Director of DCEO. “These loans from SBA are among the many tools the administration is pursuing to provide relief for businesses in the near and long term.”
The Department of Commerce and Economic Opportunity has contacted and received responses from over 1,000 businesses in every corner of the state in order to file with the U.S. Small Business Administration.
The low-interest loans offer up to $2 million in assistance per eligible small business or non-profit organization that applies. These loans can be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid due to the impact of the COVID-19 pandemic. The interest rate for businesses without credit available elsewhere is 3.75%, and the non-profit rate is 2.75%. According to the Small Business Administration, loans are available with long-term repayments to keep payments affordable, up to a maximum of 30 years.
Once approved by the federal government, business owners and non-profit leaders can apply for the loans here: https://disasterloan.sba.gov/ela/