Applications for the Chicago Small Business Resiliency Fund are now open. The loan application went live yesterday afternoon (March 31st).
The Chicago Small Business Resiliency Fund is designed to provide small businesses and non-profits with emergency cash flow during this health crisis. Funds will be provided to eligible businesses as low-interest loans.
Most importantly, the Resiliency Fund is structured to complement the new federal Paycheck Protection Program that the Small Business Administration (SBA) is launching.
The way it works is that when you apply for Chicago’s fund program, they assign you a community lender who can help you navigate all the options you have as a small business. So it’s worth applying even if you decide not to take the Chicago Fund loan, just for the free assistance in navigating these difficult waters.
The loans are available on first-come, first-served basis, but they will be taking measures to make sure that they are distributing them equitably. See their FAQ here.
This loan program is intended to be a small loan that is a stop-gap measure so you can pay your staff and bills in the short term while you are searching for other options. There is no application fee. Terms are listed here. The fixed annual interest rate on the loan will be 1% for the first 18 months. After 18 months, the rate will increase to 5.75% for the duration of the loan.
You can borrow up to $50k, based on revenue prior to the crisis. Funds are to be used for working capital, with 50% going to payroll. Borrowers must commit to retaining workforce at at least 50% of level prior to crisis, but there will flexibility for closed businesses and other situations that might prevent this.
More requirements to qualify:
– Must have suffered at least 25% revenue decrease due to the crisis.
– 0-50 employees (sole props can apply)
– Gross revenues <$3M
– Located within City of Chicago – show business license or address
– 50% or more of employees must live in Chicago
– Must have been in operation at least one year at time of receiving the loan
– Non-profits are eligible
– If you have multiple businesses, you apply for one loan that covers them all
Required documentation:
– Business address within City of Chicago
– If you have a Chicago business license, provide it
– Bank statements dating back to October 2019
– Most recent tax return (whatever the year)
– Photo ID of at least one of the owners
– You will get a debt check to see if you currently owe the city
For application support, contact your local Neighborhood Business Development Centers (NBDC). The Resiliency Fund staff will also be able to assist in the application.
Supposedly, the lender you are connected with will help you navigate the full landscape of what is available to you: not only this loan, but other SBA loans, PPP loans/forgiveness, grants and other funds and resources.
They suggest you apply regardless, just so you are connected with a neighborhood lender, BACP fund staff, and your local Neighborhood Business Development Fund just to get info on what your options are about all resources that might be available to you.
However, if you have the time and resources, please continue to contact other SBA preferred lenders so you have the opportunity to choose the path that is ultimately most quick, cost-effective, and appropriate for your business.
Other Chicago Resources
Chicago has deferred all tax payments until April 30th — you still must collect restaurant, bag, amusement, etc. taxes from consumers, but the tax payments themselves will not be due until April 30th.
Though the Business Affairs & Consumer Protection (BACP) offices are closed, they are still processing business licenses, but late and renewal fees are deferred until April 30, 2020.
www.chicago.gov/coronavirus
www.chicago.gov/BACPCOVID19
www.chicago.gov/nbdc
www.chibizhub.com/covid19support
www.chicagobusinessdirect.org
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