The Governmental Affairs Committee of the Elmhurst Chamber of Commerce & Industry is sharing information from today’s Illinois Chamber of Commerce-sponsored United States Small Business Administration (SBA) and U.S. Chamber of Commerce conference call briefing on federal business assistance related to COVID-19, as follows:
Featured speakers were Robert “Bo” Steiner, SBA Regional Director, and Allison Dembeck, Executive Director Congressional and Public Affairs for the U.S. Chamber, along with Illinois Chamber President and CEO Todd Maish.
Steiner reported on the SBA’s Economic Disaster Injury Loans (EDIL) of up to $2 million per applicant that are now available to both small businesses and not-for-profit organizations in all 102 counties across the State of Illinois. Click on the following to view the SBA’ three-step Disaster Loan process sheet and to apply online.
EDIL funds are designed to provide small businesses and NFPs with “working capital” to pay business expenses—fixed debit, rent, payroll, account receivables, etc.—that can no longer be paid due to the conoravirus-related loss of business revenue. The interest rate is 3.75 percent, terms can run as long as 30 years and the repayment start can be delayed for the first 12 months.
Aside from documenting their financial damages as a direct result of COVID-19, applicants will need to have their credit history verified, show an ability to make loan repayments under normal conditions. On loans of more than $25K, collateral such as real estate or inventory is required. A weak credit history is not an automatic reason for declining an application.
EDIL is a direct-lending SBA program funded through the U.S. Department of the Treasury, as opposed to other SBA funding programs operated through local banks and financial institutions. Small businesses that are currently participating in an SBA assistance program and/or already have another disaster-related loan are still eligible to apply for EDIL assistance.
Dembeck reported that the third major piece of federal COVID-19 relief legislation—which is expected to exceed $1 trillion—is at a standstill in the U.S. Senate over partisan political differences over how much funding will be appropriated for laid-off employees (Democrats) versus their employers (Republicans).
Nearly $1 trillion has already been appropriated in the first two pieces of relief legislation, including $8 billion in the initial Coronavirus Relief Bill and an estimated $184 billion for the Families First Coronavirus Response Act. Families First includes expansions to Paid Sick Leave and Paid Family Leave, and state Unemployment Insurance (UI) compensation assistance.
In addition, Illinois Treasurer Michael Frerichs announced today that small business and NFPs can apply for low-interest bridge loans through the $250 million Business Invest – Illinois Small Business COVID-19 Relief Fund, as early as the end of this week. Click HERE to apply.