The Village recognizes the significant contributions to the regional economy that are made by local enterprise. We are working to understand how the Covid-19 novel coronavirus is affecting the economic drivers of our community and collaborating with local, State and Federal governments to provide businesses with assistance during this challenging time. The Village has compiled the following business assistance programs below.
Illinois Downstate Small Business Stabilization Grant Program
The Illinois Department of Commerce and the Village of Machesney Park have teamed up to establish the Downstate Small Business Stabilization program to provide working capital funds to community’s businesses economically impacted by the COVID-19 virus. This program provides grants for 60 days of verifiable working capital up to a grant ceiling of $25,000 and is available for non-essential businesses with three years of previous tax returns that employ 50 people or less. These funds may be used to assist private for-profit small retail and service businesses, or businesses considered non-essential by the Governor’s Executive Order without the ability for employees to work remotely. Click here to apply.
Northern Illinois CDC Covid-19 Small Business Emergency Loan Fund
The Rockford Local Development Corporation is administering the NICDC Covid-19 Small Business Emergency Loan Program for businesses in Winnebago County that provides bridge loans ranging from $5,000-$25,000 that can be used for working capital during the Covid-19 pandemic. This fund is expected to operate as a financial bridge while small businesses await funding from the Small Business Administration Disaster Relief Fund. As of April 22, 2020, $1M out of the $2M in funding is available, however, fund-raising efforts are on-going. Loans will be awarded on a first-come, first-served basis and with the goal of providing funding to as many businesses as possible.
This program is open to for-profit businesses located in Winnebago County that have less than 100 employees who are experiencing a business interruption or cash flow issue due to COVID-19. Eligible businesses must also have a credit score of at least 660 and have at least one full-year of operations or other financial information available.
Federal SBA Paycheck Protection Program
This is a forgivable SBA loan that helps businesses keep their workforce employed during the Coronavirus crisis. The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
Any small business (under 500 employees) can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.
4/27/2020 update: Due to the unprecedented demand for Paycheck Protection Program loans by the nation’s small businesses and to ensure equitable access and system integrity, SBA and Treasury are taking prudent and reasonable steps to protect SBA’s loan systems for the next phase of PPP loan processing.
SBA and Treasury are implementing the following measures as of 4/27/2020:
- Pacing the number of loans processed in the E-Tran system for participating lenders when processing resumed on Monday, April 27, 2020 at 9:30 am CDT;
- Instituting a maximum dollar amount at 10% of PPP funding authority that any lending institution will be able to originate, exclusive of the additional $60 billion preserved for lenders with assets under $50 billion (i.e. $60 billion cap);
- Implementing operational standards to ensure that lenders access PPP funds based on their asset size;
- Ensuring the Paycheck Protection Program continues to operate on a first-come, first-serve basis so that every small business has access to PPP loans to sustain their business and retain their employees; and
- Issuing the following guidance for lenders who have received a significant amount of loan applications.
Illinois Small Business Emergency Loan Fund
The State of Illinois Small Business Emergency Loan Fund has been established to offer small businesses low interest loans of up to $50,000. Businesses 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. The State of Illinois is taking “Interest Forms” and soon thereafter, applicants will be contacted by lending partners to commence the application process.
Federal SBA Disaster Assistance Low Interest Loan Program
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000 from the Small Business Association (SBA).
The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not need to be repaid.
Federal SBA Express Bridge Loan Pilot Program
The Small Business Administration’s Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for decision and disbursement on Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan. You can find an Express Bridge Loan Lender by connecting with your local SBA District Office.
Federal SBA Debt Relief Program
The SBA Debt Relief program will provide a reprieve to small businesses as they overcome the challenges created by this health crisis. Under this program, the SBA will pay the principal and interest of current 7(a) loans for a period of six months. Additionally, the SBA will pay the principal and interest of new 7(a) loans issued prior to September 27, 2020. Contact your lender for additional information regarding these debt relief programs.