On March 19, 2020, Chicago Mayor Lori Lightfoot announced the creation of a $100 million Chicago Small Business Resiliency Fund ("Fund"), which is intended to help small businesses with emergency cash flow during the current COVID-19 (coronavirus) crisis. Funds will be provided to eligible businesses as low-interest loans that can be repaid over a term of up to five years, and are seeded through a joint public-private partnership.
Chicago Small Business Resiliency Fund Guidelines
Loan applications will be administered through the City’s Community Development Financial Institution (CDFI) partners. The Fund will begin accepting applications on March 31, 2020.
As currently outlined, loans will be structured using the following guidelines:
- Repayment Term. Low-interest loans for a term of up to five years.
- Loan Amount. Up to $50,000, but amount based on revenues before the COVID-19 outbreak.
- Loan Proceeds. Must be used for working capital. At least 50% of proceeds should be applied toward payroll, and a commitment to retain the workforce at 50% of pre-COVID-19 levels.
Eligible businesses must:
- Attest to a revenue decrease of over 25% due to COVID-19;
- Employ fewer than 50 employees;
- Have gross revenues of less than $3 million in 2019;
- Provide a Chicago business address or business license; and
- Have no pre-existing tax liens or legal judgments.
To obtain a loan, a business will be required to provide bank statements dating back to October 2019, and its most recent tax return.
Any business interested in applying for a loan should complete the application form at: https://www.surveymonkey.com/r/COVID19Chicago
We Can Help You
We have been on the forefront of dealing with COVID-19 for our clients. Please contact us if you would like to discuss any of these issues, or if we can otherwise be of assistance.
We strongly recommend you evaluate the following pandemic-related business and legal considerations that we have been discussing with our clients in the following Client Alerts:
- COVID-19 – New Employer Obligations & Considerations
- Top 10 Considerations For Pandemic Responsiveness
- COVID-19 Insurance Coverage Considerations
- 10 Steps For Following Regulators’ COVID-19 Guidance
- Webinar: Is Your Bank's Pandemic Contingency Plan Ready For Implementation?
- Financial Institutions Urged To Work With Borrowers Impacted By COVID-19