Active Members - Illinois Venture Capital Association
Descriptions of COVID-19 Assistance Programs

Descriptions of

COVID-19 Assistance

Programs

April 23, 2020

 

Federal Level Resources

Our friends at NVCA organized a broad national letter asking for clarification to ensure that small businesses with equity investors are eligible for the small business loan facility created by the recently-passed CARES Act. Read Full text - (3/31/2020)

 

7Wire Ventures has built a resource for digital health startups (including their portfolio companies) -- it’s a comprehensive overview of recent legislation due to COVID-19 and points out regulatory changes early stage businesses should pay attention to. Check it out here.

 

Paycheck Protection Program Frequently Asked Questions - (3/31/20)

Small Business Administration Illinois Office (3/23/2020)
Business owners can apply for a loan now at https://disasterloan.sba.gov/ela/  The Illinois Disaster Loan Declaration allows all Illinois small businesses (according to SBA’s size standards) and private non-profits with a substantial economic injury related to COVID-19 to apply for loans of up to $2M. These loans can go toward working capital to meet needs including payroll, accounts payable, and fixed debt payments until the situation improves. Interest rates are 3.75% for small businesses and 2.75% for non-profits. 
  
We expect small business owners and stakeholders will have some questions. The Illinois District Office is hosting twice daily webinars on the Economic Injury Disaster Loans starting Thursday, March 18. You can find details and register for these training events at  https://disasterloan.sba.gov/ela/ 

Add the SBA Illinois District < [email protected]> to your safe-senders list to make sure you’re getting the information. Follow them on Twitter @SBA_Illinois. 
The SBA also arranging one-on-one assistance via telephone (312-353-4528) and email ([email protected]). Phone hold times last between 30 minutes and an hour, he said. The agency also plans to counsel businesses about how to reapply if their applications are rejected.
Tax Day now July 15: Treasury, IRS extend filing deadline and federal tax payments regardless of amount owed - (3/23/2020)
Treasury, IRS and Labor announce plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related leave (3/23/2020)

The IRS has established a special section focused on steps to help taxpayers, businesses and others affected by the coronavirus. This page will be updated as new information is available. For other information about the COVID-19 virus, people should visit the Centers for Disease Control and Prevention (CDC) (https://www.coronavirus.gov) for health information. Other information about actions being taken by the U.S. government is available at  https://www.usa.gov/coronavirus and in Spanish at  https://gobierno.usa.gov/coronavirus. The Department of Treasury also has information available at  Coronavirus: Resources, Updates, and What You Should Know. (3/23/2020)

News Releases

  • IR-2020-58, Tax Day now July 15: Treasury, IRS extend filing deadline and federal tax payments regardless of amount (3/23/2020)
  • IR-2020-57, Treasury, IRS and Labor announce plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related leave (3/23/2020)
  • Treasury News Release: Treasury and IRS Issue Guidance on Deferring Tax Payments Due to COVID-19 Outbreak (3/23/2020)
  • IR-2020-54, IRS: High-deductible health plans can cover coronavirus costs (3/23/2020)
Statements
Guidance
  • Notice 2020-18 (PDF), Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic (3/23/2020)
  • Notice 2020-17 (PDF), Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic (3/23/2020)
  • Notice 2020-15 (PDF), High deductible health plans and expenses related to COVID-19 (3/23/2020)

State Level Resources

Durbin, Duckworth Outline Illinois Priorities Included In Senate-Passed Bipartisan COVID-19 Pandemic Relief Bill - (3/27/20)

Illinois Small Business Emergency Loan Fund - (3/25/2020)

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.

Businesses located outside of the City of Chicago with fewer than 50 workers and less than $3 million in revenue in 2019 will be eligible to apply. 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. Starting this Friday, March 27th, interested businesses will be able to express interest at a form that will be posted here.

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. Small businesses within the City of Chicago can apply to a similar loan program here.

What can loan funds be used for?  Loans can be used to support working capital.

How do businesses apply?  Businesses will be able to complete an interest form on this web page on Friday, March 27, 2020.  The form is available at https://www2.illinois.gov/dceo/SmallBizAssistance/Pages/EmergencySBAIntiatives.aspx

How much money is available?  Businesses can receive up a low interest loan of up to $50,000 with a 5-year repayment period with no payments due for the first six months.

How soon will businesses receive funds?  Eligible businesses will be invited to submit a full application beginning on April 1. Once submitted, we will strive to make a loan decision within 10 days, and make funds available within two days of receiving bank information from a business.

Update from Office of the Governor:  Matching a move at the federal level, Gov. J.B. Pritzker delayed for three months, until July 15, the deadline for filing annual state income-tax returns.  Pritzker said any refunds that are owed still will go out on time. (3/25/2020)

Gov. Pritzker to File for Statewide Eligibility for Small Business Administration Loans – (3/17/2020)


County Level Resources

Cook County Tax Relief (3/23/2020)
The Cook County Department of Revenue is taking measures to support businesses in Cook County who are experiencing slowdowns or financial operational issues during this time of great uncertainty.  We are offering tax relief options by request. If any individual or business needs additional time to file and pay Home Rule Taxes, please email [email protected] and request and extension.

City Level Resources
To further provide relief for businesses over the coming weeks, the City of Chicago is also extending due dates for tax payments until April 30, 2020 for the following City taxes: (3/23/2020)
  • Bottled Water tax 
  • Checkout Bag tax 
  • Amusement tax 
  • Hotel Accommodation tax 
  • Restaurant tax 
  • Parking tax

Other Resources

 

Guidance for Banks:

 

Guidance for Banks from Office of the Comptroller of the Currency (3/24/2020)

 

 

For Lending Institutions – IL State Treasurer (3/23/2020)  Business Invest - Illinois Small Business COVID-19 Relief Program (“Program”). The program is an impact investment loan program under which the Illinois State Treasurer would make up to $250 million in deposits available to financial institutions throughout the state, at near-zero rates, to assist Illinois small business and non-profits negatively affected by the COVID-19 pandemic.  The purpose of this funding is to provide vital economic support to small businesses and non-profits throughout Illinois to help overcome the loss of revenue they are experiencing.  
  
Through this program, the Treasurer's Office would partner with approved financial institutions to provide loans -- either lower rate loans, or loans to a business or non-profit that would not otherwise qualify -- to Illinois small businesses impacted by the COVID-19 pandemic.
https://illinoistreasurer.gov/Invest_in_Illinois/Small_Business_COVID-19_Relief_Program

IVCA correspondence from March 14, 2020