Thank goodness, we still get plain old boring expected news from the IRS once-in-a-while. It’s honestly a relief, and oddly reassuring.
The IRS announced last week that beginning on January 1, 2021, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
56 cents per mile driven for business use, down 1.5 cents from the rate for 2020,
16 cents per mile driven for medical, or moving purposes for qualified active duty members of the Armed Forces, down 1 cent from the rate for 2020, and
14 cents per mile driven in service of charitable organizations, the rate is set by statute and remains unchanged from 2020.
Per the IRS, taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. Taxpayers can use the standard mileage rate, but must opt to use it in the first year the car is available for business use. Then, in later years, they can choose either the standard mileage rate or actual expenses. Leased vehicles must use the standard mileage rate method for the entire lease period (including renewals) if the standard mileage rate is chosen.
Accounting Web explains the reasons for this year’s decrease in the rate.
While it may not feel surprising to see a lower rate in a down economy, this is only the second time in the past decade that there have been two consecutive rate reductions. The rate itself is calculated with data provided by Motus, which uses insights from the world’s largest retained pool of drivers to conduct statistical analysis of data from the prior year in order to inform the IRS about trends in business driving.
Trends from 2020 that affected driving costs include:
Significantly lower fuel prices, which are on pace to finish approximately 17 percent below the national average when compared to 2019
Slowed depreciation rates – caused in part by vehicle inventory shortages associated with the COVID-19 pandemic production stoppages – that have resulted in increased residual vehicle values
Rising insurance premiums that, despite reduced travel and accident rates nationwide, are now 29 percent higher than they were a decade ago
They go on to say “to meet their obligations under federal wage and hour laws, employers do not need to reimburse employees at the IRS standard mileage rate,” and to offer some alternative reimbursement approaches.
In general, for small businesses, reimbursing employees at the standard rate is the easiest approach. However, when calculating reimbursements or deductions on a higher-cost vehicle, the actual cost method tends to be more favorable, though it is more work, since all costs (gas, oil, repairs, tires, insurance, registration fees, licenses, and depreciation or lease payments) must be tracked. Either way, a mileage log is required. I recommend MileIQ to my clients; or a spreadsheet with the date, number of miles, and business destination/purpose.
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The newest Covid-19 financial relief package was finally signed, and one of the big features is that the Employee Retention Tax Credit (ERC or ERTC) was made available to many businesses that previously were not allowed to claim it, most notably those who accepted PPP loans.
To summarize the ERC: • 50% refundable payroll tax credit on qualified wages paid between 3/13/2020 and 12/31/2020 • Claimed on quarterly payroll tax Form 941 • Qualify for quarters with full or partial shutdown due to government order =OR= 50% decline in gross receipts from prior quarter • Maximum qualified wages of $10,000 per employee during tax year 2020 period • For employers with 100 or fewer employees, all wages paid are “qualified wages” (different rules for larger employers) • PPP loan recipients were previously ineligible
Changes retroactive to 3/13/2020: • PPP loan recipients can use the credit for wages not paid for with forgiven PPP loan proceeds (no overlap) • Group health plan expenses are considered qualified wages even if no other wages were paid to employee
And the reason for this post — the employer can elect to treat newly creditable wages as paid in the quarter that includes the date of enactment of the Act (4Q 2020) if employment tax returns for prior quarters were already filed prior to the enactment of the Act.
The ERC is also being extended and expanded — but that’s beyond the scope of this blog post. A quick summary of what’s to come: The credit availability is extended to wages paid through 6/30/2021 and the following changes will apply: • Credit rate increases from 50% to 70% • Maximum creditable wages increases to $10,000 per employee per quarter • For employers with 500 or fewer employees, all wages paid are qualified wages • Qualifying gross receipts decline from prior year quarter reduced to 20% instead of 50% – Employer can elect to compare to immediately preceding quarter – Employers not in existence for all or part of 2019 can use the credit
But the point here is that the old ERC is now available to any qualifying employers who had either a 50% reduction in gross revenue or were fully or partially shut down by government order — even if they received PPP funds. They just can’t double-dip on the payroll costs that were claimed for PPP forgiveness. And so for these employers, any remaining (non-PPP) payroll costs from 3/13-12/31/20 can now be claimed on the fourth-quarter payroll tax Form 941 and 50% of up to $10,000 per employee will be credited back to them. This is not small change for some employers!
The problem, of course, is that we have to act fast — the fourth-quarter 941 forms will be filed in a matter of a week or so, depending on your payroll company. They are all scrambling to find a way for us to report which wages are eligible… but in the meantime we need to get our clients ready.
The first step is to determine which clients are already taking the credit.
There are many fine payroll companies out there (actually, there aren’t), and Gusto is hands-down my favorite, and that of many of my colleagues. (And if you use my referral link you’ll get a $100 gift card when you run your first payroll by January 31. If you’re a bookkeeper or accountant wanting to switch your clients to Gusto, this referral link will get you a $500 gift card.)
So I’ve written up instructions with screen shots on how to look up which clients of yours using this system are already claiming the ERC. Once you know this, you can then 1) reach out to them to let them know they can now apply for the PPP, and 2) reach out to the ones who haven’t to let them know they might qualify.
Step One: log into your Gusto Accountant dashboard. Step Two: click on “Clients” in the upper-left to see a list of your clients. Step Three: you’ll need to click into each client and perform the following steps.
Click “Covid-19” in the upper-left.
Scroll past the new notice about the Consolidated Appropriations Act (see screenshot at top of blog post).
There are a bunch of blocks of info on the different programs for which the client might be eligible. Click the “Claim credit” button for the Employee Retention Tax Credit.
4. You will see one of two screens — either it will say “You’re currently receiving the employee retention tax credit” or it won’t.
This is what it looks like if your client is already receiving it:
And this is what it looks like if they’re not:
If they’re not, and you’ve determined that they qualify (50% reduction of gross revenues over the same quarter in the prior year =OR= full/partial shutdown by the government), then click the button at the bottom of the screen to claim the credit and you’ll come to this screen next.
You’ll need to know the quarter in which they became eligible and had wages that qualified for the credit.
Once gross revenues climb back up to 80% of what the same-quarter prior-year revenues were, the client ceases to qualify and must stop taking the credit.
Again, remember that this is to claim wages paid from 3/13-12/31/20 (that were not paid for with PPP funds) on your fourth-quarter payroll tax Form 941. We do not yet know how Gusto (or any of the other payroll companies) will process this information, but given how soon they will need to be filed, it’s essential that we get our clients ready as quickly as possible, and this is Step Two — finding out if they’re already claiming it or not.
(In case it’s not obvious: Step One is determining if they qualify. We’re going through all our clients’ QuickBooks files to review for a 50% drop in gross revenue and then reaching out to clients accordingly, after determining whether they have taken the ERC already or not.)
Good luck!
If this or any other posts on the website were useful to you, and your financial situation permits it, please consider contributing to my tip jar. This allows me to continue to provide free accounting resources to small businesses who do not have the funds available to hire a CPA.
Chicago businesses have a few extra items to make sure are in order before year-end.
In a year of unbelievable stress, overwhelming work, and terrifying outlooks, we can rest easy that our city has small businesses in mind — by making sure we continue to meet all the obligations that were put in place before the pandemic, without any exceptions. Yay!
To be fair, the Chicago Department of Business Affairs & Consumer Protection (BACP) was designed to “license businesses and public vehicles, provide business education and access to resources, enforce the Municipal Code, and protect consumers from fraud,” and none of those things magically stops just because we’re all struggling to stay alive (figuratively and literally).
With that in mind, here are some things you’ll need to make sure get taken care of before ringing in the new year.
Illinois Department of Human Rights Sexual Harassment Training For the record, this one is state-mandated, not just city-wide. The Illinois Workplace Transparency Act requires all employers to comply with the sexual harassment prevention training by December 31, 2020, and thereafter must provide annual training to all employees. As of July 1, 2020, the Illinois Human Rights Act defines “employers” as those having one or more employees (replacing the prior threshold of 15 or more employees in Illinois for most types of discrimination). This means that every employer in Illinois must comply with this sexual harassment training requirement, for all employees working in Illinois, regardless of their status as part-time, intern, or temporary. There is no requirement to train independent contractors, though it is recommended.
Chicago Minimum Wage Back in 2014, the city implemented a gradual increase of the minimum wage. It applies to any employee who works at least two hours in any two-week period. As of July 1, 2020 the minimum wage in Chicago is $13.50 per hour for employers with 4 to 20 workers, and $14 per hour for employers with 21 or more workers. Tipped workers have a minimum wage of $8.10 for employers with 4 to 20 workers, and $8.40 for employers with 21 or more workers. If a tipped worker’s wages plus tips do not equal at least the full minimum wage, the employer must make up the difference. The FAQ is here. BACP also offers a one-hour-long free webinar on the ordinance.
Chicago Paid Sick Leave This ordinance went into effect on July 1, 2017, and was so poorly-written that folks are still confused. It applies to any business or individual that employs at least one “employee” and has a facility within Chicago’s city limits (though Cook County followed suit a few months later and has a similar requirement). The term “employee” covers anyone who works at least 80 hours within a 120-day period (20 hours a month). – For hourly employees, paid sick leave accrues at one-hour for every 40 hours worked. Salaried-exempt employees are presumed to have worked 40 hours/week. – Employees are capped at accruing a total of 40 hours of sick leave each year, unless the employer opts to set a higher limit. – Employers must permit employees to carry over half of their accrued leave, to a maximum of 20 hours of unused sick leave each year (40 for employers with 50 or more employees). – Employers are not required to pay out any accrued but unused sick leave upon employment termination.
If this or any other posts on the website were useful to you, and your financial situation permits it, please consider contributing to my tip jar. This allows me to continue to provide free accounting resources to small businesses who do not have the funds available to hire a CPA.
I will be spending the afternoon in webinars learning the details of the recent financial relief package that will become law soon, including “PPP2”, and will share what I learn in a post here later today. In the meantime, the National Association of Tax Professionals has prepared a summary for its members — it’s the clearest, most succinct explanation of “what you need to know” that I’ve read in the past two days. Many thanks to them for allowing us to pass along this info to clients.
Both houses of Congress voted to pass the latest COVID relief legislation and all indications are that the president will sign it into law. We know that more guidance will be provided as this rolls out, but here are the highlights as we know them:
PPP and small business support: New COVID-19 relief package provides much needed support for small businesses. Business expenses paid for with the proceeds of PPP loans are tax deductible, consistent with Congressional intent in the CARES Act. In addition, the loan forgiveness process is simplified for borrowers with PPP loans of $150,000 or less. Unspent funds totaling $138 billion will be reinvested in the PPP program.
Economic impact payments (EIP): The bill includes a second round of EIPs for qualifying Americans.
The IRS will use the data it already has in its system to begin making payments at the end of December through the first two weeks of January. If the IRS has your direct deposit information, you will receive a payment that way. If it does not, you will receive your payment as a check or debit card in the mail. If you are eligible but don’t receive your check for any reason, you can claim the payment when you file your 2020 taxes in the spring of 2021.
In regards to eligibility, any person who has a valid work-eligible Social Security number (SSN), is not considered as a dependent of someone else and whose adjusted gross income (AGI) does not exceed certain thresholds (see below) is eligible to receive the credit. This means workers, those receiving veterans’ benefits, Social Security beneficiaries and others are all eligible.
Spouses of military members are eligible without an SSN
An adopted child can use an Adoption Tax Identification Number to be eligible
Under the CARES Act, joint returns of couples where only one member of the couple had an SSN were ineligible for a rebate. This latest round of relief changes that provision. These families will now be eligible to receive payments for the members of the family who have SSNs. This change is retroactive, meaning those who fall under this category who missed out on the first round of EIPs can claim that money when filing 2020 tax returns in the spring of 2021.
The full credit amount is $600 per individual, $1,200 per couple and $600 for children. It is available for individuals with AGI at or below $75,000 ($112,500 for heads of household), and couples with AGI at or below $150,000. If you have children, you will receive an additional $600 per child.
For those above this income level, your tax rebate amount will be reduced by $5 for each $100 your AGI exceeds the above thresholds.
This means:
An individual without children will not receive any rebate if their AGI exceeds $87,000.
A couple without children will not receive any rebate if their AGI exceeds $174,000.
A family of four will not receive any rebate if their AGI exceeds $198,000.
The IRS will use the same methodology for calculating payments as it did for the first round of economic impact payments.
Unless obtained by fraud, rebate checks do not need to be repaid. If an individual experienced an income loss in 2020, or if they have an increase in family size, they may be able to claim an additional credit of the difference when the individual files their 2020 tax federal income tax return in spring of 2021.
If you are eligible and the IRS does not have your direct deposit information, you will receive your payment as a paper check or a debit card as long as the IRS has your address. If the IRS does not have updated contact information for you, you can claim the payment when you file a tax return in spring 2021.
Someone who is claimed as a dependent on another taxpayer’s tax return is not eligible to receive the $600 refund check themselves. Children 17 and older are not eligible for the $600 per child tax credit.
For those with taxable income, you will need to file a tax return for the 2020 tax year, which you can do during the coming filing season that is expected to begin in late January and end on April 15, 2021. Those with little or no taxable income are encouraged to use the IRS’ free file program.
Other than Social Security beneficiaries (retirement and disability), railroad retirees and those receiving veterans’ benefits, individuals with no taxable income will be able to file a simple form provided by the IRS specifically for the purpose of receiving the rebate check.
Social Security retirement and disability beneficiaries, railroad retirees and those receiving veterans’ benefits do not need to file to receive their rebate. The IRS has worked directly with the Social Security Administration, Railroad Retirement Board and the Veterans Administration to obtain information needed to send out the rebate checks the same way benefits are paid.
The credit is not taxable, consistent with other refundable tax credits.
The rebate is considered a tax refund and is not counted towards eligibility for federal programs for both income and asset test purposes. The rebate checks are not subject to the majority of offsets, including student debt and state debts. The only administrative offset that will be enforced applies to those who are subject to a child support garnishment court order.
A family with a child born in 2020 is eligible for the $600 per child rebate amount (assuming all other requirements are satisfied). The IRS will calculate the payment based on the most recent tax data in its system. If a child was born since the family’s last filing, the family will not automatically receive the $600 rebate amount for the child born in 2020. To receive the credit the family can claim the $600 credit on their 2020 tax return filing made in spring 2021.
If you believe you are eligible for an economic impact payment but did not receive a round one or round two payment, you will have the opportunity to claim the payment on your 2020 tax return. This year’s tax forms will provide a place for individuals to claim the payments. If you don’t normally file taxes and are eligible for a payment, make sure to file a return this spring to claim the payments.
The IRS has not announced the exact date the coming filing season will begin, but it typically begins near the end of January. If you need to update your information by filing your tax return, keep an eye out for an IRS announcement about the start of the filing season.
Individuals can claim the payment by filing a simple tax return when the tax filing season opens in late January 2021.
Unemployment assistance: For those who are unemployed, the pandemic unemployment insurance program will be extended by 16 weeks. Supplemental federal unemployment benefits of $300 per week will continue into April 2021 instead of ending in December.
Rental assistance: The current CDC eviction moratorium will be extended until Jan. 31, 2021.
Student loans: Extension of student loan forbearance provisions created in CARES and extended by executive order, from the current expiration date of Jan. 31, 2021 through April 1, 2021.
If this or any other posts on the website were useful to you, and your financial situation permits it, please consider contributing to my tip jar. This allows me to continue to provide free accounting resources to small businesses who do not have the funds available to hire a CPA.
For the past few weeks, we’ve been hearing in the news that Congress is coming closer to an agreement on another round of stimulus. It will be a more narrowly-targeted package than prior relief, but it will contain (at least the draft does) funding for the most important items: vaccine distribution; unemployment extension & federal supplement; stimulus checks; emergency food, rent & loan assistance; PPP loan forgiveness simplification; and our main topic here: another chance at PPP funding.
At this week’s AICPATown Hall (free recording here), Lisa Simpson and Mark Peterson walked us through what is included in the current round of proposed legislation, and what it would mean for the next PPP program (popularly dubbed “PPP2”). They have encouraged us to share their slides and other resources.
Some of the notable elements are that 501(c)(6) organizations — including Chambers of Commerce — will be eligible for PPP this time, providing their lobbying efforts don’t exceed a certain threshold (10% as of now but that could change); and hospitality-industry chains will yet again be allowed to each apply for PPP as if they were independent hotels and restaurants (surprising after the negative press from the first round, but they have a loud voice in politics). Thankfully, the IRS and Congressional representatives are working together to include a provision for expenses paid for with PPP funds to be deductible — the current biggest obstacle for small businesses who receive(d) aid.
In addition, Lisa went through what we know so far about how the new PPP program will be structured and what eligibility requirements might look like. Keep in mind that this is all in draft at this point.
The idea is that if the gross revenues for any quarter in 2020 are down 30% or more over the same quarter in 2019, the business would be eligible for a second application for PPP funds, as long as they have 300 or fewer employees (per location, if in the hospitality industry). EIDL and PPP funds would not be included in this calculation, but no word yet on whether other aid, such as state, local or industry grants, would.
You do not have to apply for forgiveness for PPP1 before applying for PPP2 — in fact, we are still recommending that you hold off on your forgiveness application until Congress passes forgiveness simplification and tax deductibility of related expenses.
Nothing has been finalized yet and we don’t know all the details. But the AICPA has been meeting with politicians on both sides of the aisle and says that something is certainly going to be passed — it’s just a question of when, not if — and what the exact details will be.
It’s likely we’ll have news soon, and as such, it’s important that small business owners begin anticipating their next decision here, since time will likely be a factor — there is less capital in PPP2 than there was in the first round (which was exhausted in 6 days), so being prepared is key.
With that in mind — tips to consider if you might want to pursue additional PPP funding:
1) Have your books up-to-date and reconciled so you and your accountant can begin preparing your application the second the legislation drops. 2) There will be an eligibility hurdle for second-time PPP applicants. You will need to prove a 30% (as of now) drop in revenue — not profit, but gross revenue — in any quarter of 2020 compared to the same quarter in 2019. (If you didn’t get PPP funds in the first round and you want to this time, this rule does not apply.) The first round of PPP/EIDL does not count toward income for this purpose. No word yet on whether other grants may. Otherwise the calculations will be the same as in the first round. 3) I’m asking my interested clients to reach out to me to get their file set up in my CPA Business Funding Portal now, before legislation is passed, so we can just hit “submit” when the program opens, to try to get them in the first tranche of applicants.
(Note to other CPAs and accounting colleagues: this time around I am using AICPA-developed PPP application and forgiveness software, CPALoanPortal.com, so as to make the process for getting client funding less haphazard, more reliable, and more efficient. It’s free at the basic level, which allows you to apply for funding and forgiveness all in one portal, with a client dashboard. I’ve decided to pay to upgrade so I can use the payroll company reporting and AICPA FTE-calculator integrations. Their partner, Biz2Credit, was directly approved by SBA to lend money to small businesses; it’s not a third-party (like so many of the services we used first-time around who brokered loans as a middle-man). Looking forward to same-day PPP2 loan approvals, and disbursements within days. No I am not paid a cent to say any of this.)
Sincerely hoping the process goes more smoothly this time than it did in April!
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The IRS has released — or technically, re-released — a new form for Non-Employee Compensation called the 1099-NEC for use starting early 2021 for Tax Year 2020.
It’s actually an old form that hasn’t been in use since 1982 that was redesigned — originally it was for reporting fees, commissions and other compensation, but in 1983 it was retired and we’ve been reporting these types of income on Form 1099-MISC ever since.
Moving forward, instead of using 1099-MISC Box 7 to report Non-Employee Compensation, we’ll all use 1099-NEC Box 1. Box 4 is to report any federal withholding in relation to the compensation. Boxes 5, 6, and 7 are for reporting state tax withheld, state ID numbers, and state income, respectively. IRS instructions can be found on their website.
To clarify: the requirements for reporting nonemployee compensation have not changed — only the form on which it is reported.
Forms 1099-NEC must be filed with the IRS by January 31 of the year following the calendar year to which the return relates. For tax year 2020, the deadline is February 1, 2021, since January 31 falls on a Sunday. The deadline applies whether filing the form electronically or on paper. Unfortunately, unlike Form 1099-MISC, the IRS will not forward data to states for Form 1099-NEC, so processes for filing these will be determined by each state.
Items such as rent payments, royalties, attorney settlements (not payments for services), and medical healthcare payments will still be reported on Form 1099-MISC, though the form has been redesigned and the boxes renumbered. For tax year 2020, the deadline for filing 1099-MISC is February 28, 2021 if filing on paper, and March 31, 2021 if filing electronically.
If this or any other posts on the website were useful to you, and your financial situation permits it, please consider contributing to my tip jar. This allows me to continue to provide free accounting resources to small businesses who do not have the funds available to hire a CPA.
The Business Interruption Grant (BIG), a program available through the Illinois Department of Commerce and Economic Opportunity (IDCEO), continues to actively seek applicants, in order to effectively disburse the full amount awarded to the state program. It leverages federal funding provided by the CARES Act to provide economic relief for small businesses hit hardest by COVID-19. The state received $540 million for BIG from the federal Coronavirus Aid, Relief & Economic Security Act, of which $270 million was earmarked for small businesses, according to Lauren Huffman, a spokeswoman for the Illinois Department of Commerce & Economic Opportunity. Applications are live now.
The first round of BIGs provided $49 million to businesses such as restaurants, personal care services, gyms and fitness clubs, and businesses located in “Disproportionately Impacted Areas” (DIAs). A list of awardees is available here.
The second round of BIGs will provide $220 million to “businesses downstate, in disproportionately impacted areas (DIAs), and for heavily impacted industry and regions – representing businesses that have been unable to reopen or operating at a severely diminished capacity since the spring.” A discussion of the program, outlining the various types of prioritized and eligible businesses, as well as eligible costs, is in an earlier blog post, here.
To summarize, Round 2 includes: – $60 million for heavily impacted industries, such as movie theaters, performing arts & concert venues, indoor recreation, amusement parks.* – $70 million for disproportionately impacted areas, defined by zip code for communities that are most economically distressed and vulnerable to COVID-19. – More than $100 million for downstate communities. – $5 million for livestock production disruptions. (Applications available from the Illinois Department of Agriculture.) – Loan Forgiveness for Illinois small business emergency loan recipients.
*In addition to the $60 million for heavily impacted industries, the following types of businesses are being prioritized:
Businesses directly affected by regional mitigations implemented by state or local governments.
Independently owned retail.
Tourism- and hospitality-related industries.
(Businesses outside the categories listed above are also eligible to apply and receive funding under the program but may be reviewed later than priority businesses. Assistance with applications is available at no cost.)
However, as I started to see media coverage touting the benefits to independent retail, and promoting the program, trying to drum up applications, I began to be concerned for my own clients — many of them have received grants, to be sure, for which we are immensely thankful — but they were all in the hospitality industry, or in a DIA. To-date, not a single retail client has received any BIG funds. And since the program says that all businesses will receive a decision on their grant application within four to six weeks of application submission, I was frustrated to see that many of my clients had not heard anything, and yet new articles such as this were frequently coming my way, where my own state rep, Will Guzzardi, was saying the program did not have enough applicants. (Block Club was reporting the same story.) I reached out to colleagues in accounting, bookkeeping, law, and to chambers of commerce and heard the same story — small retailers were not receiving Business Interruption Grants.
So I contacted Rep. Guzzardi to find out what the story was, and he was, as usual, interested in the discrepancy between what he had been told and the actual experiences of small business owners. He took my questions to the state and came back with some solid explanations and more encouragement.
For starters, the state is reviewing applications in three categories: DIAs, downstate Illinois applicants, and disproportionately impacted industries — restaurants, bars, venues, etc. If an application doesn’t fall into one of those categories, it’s probably being moved further down the queue. But that doesn’t mean anything about their likelihood of getting a grant. It just means that they’ll be reviewed later in the process.
They evaluate every application first on the basis of whether or not they meet the basic eligibility criteria, and then based on how many of these criteria they meet:
Directly impacted by regional mitigation to prevent the spread of COVID 19, based on applicant industry and county
Has not received any other emergency funding, e.g. in the form of PPP or other state or local grants
Has under $5 million in annual revenue
Located in a disproportionately impacted area (DIA)
Located in a “downstate” county
Operate in a priority industry, including the following: ○ Independently-Owned Retail ○ Restaurant ○ Bar or Tavern ○ Gym or Fitness Center ○ Tourism and Travel ○ Support Service of Arts or Events
Then they conduct separate lotteries based on how many of those criteria you met. So if you meet 6/6, you’re in a lottery group with very good odds. If you only meet one or two, your lottery is less likely. If you don’t win your lottery, your application is held over into the next lottery batch.
BIG Round 1 didn’t go to retailers at all. In Round 2, retail is in a pretty large pool with bars, restaurants, gyms, museums, etc., and so they’re just facing slightly longer odds, especially if they’re not in a DIA or downstate.
The message to retail folks is: if you applied, your application is still in the lottery — just because it hasn’t come up doesn’t mean it won’t. I expect the state is just trying to make sure those who are hardest hit have the best chance at the grants, and then they’ll turn their attention to independently-owned retail and the other eligible business types.
It is not too late to apply!
Join the Illinois Department of Commerce & Economic Opportunity (DCEO) for an informational webinar regarding the Business Interruption Grant (BIG). Attendees will learn about eligibility criteria, required documentation and step-by-step instructions for the online application. DCEO representatives will be available to answer your questions and all attendees will receive a copy of the presentation materials with direct links to the BIG program portal, FAQs and contact information for DCEO representatives who are available for 1-to-1 technical assistance, if needed.
And I know I’ve shared this link countless times by now, but honestly, it is an amazing source of information on applications, evaluation criteria, assistance, eligible costs, and so much more.
For the clients who have received this grant, it has been a lifeline. It’s much more flexible than the PPP, it’s a grant rather than a loan like the EIDL, and it’s built for small business. The application is not a particularly challenging one. If you are a small business struggling due to the pandemic, you owe to to yourself to give this one a try.
If this or any other posts on the website were useful to you, and your financial situation permits it, please consider contributing to my tip jar. This allows me to continue to provide free accounting resources to small businesses who do not have the funds available to hire a CPA.
