Illinois Small Businesses Can Again Apply For Coronavirus Relief

CHICAGO — Illinois small businesses owners who have so far missed out on the nearly $350 billion in emergency loans offered through the Paycheck Protection Program are set to get another chance to apply for federal economic relief during the coronavirus crisis.

Following last week's passage of more than $320 billion in additional funding to businesses harmed during the COVID-19 pandemic, the U.S. Small Business Administration, or SBA, is scheduled to resume accepting loan applications for forgivable loans through the program at 10:30 a.m. Monday.

The program offers funding small businesses to use for payroll, utilities, interest on mortgage and rent and certain other expenses. Loan forgiveness is available if operators meet certain criteria, like continuing to pay their employees for eight weeks.

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SBA Administrator Jovita Carranza and Treasury Secretary Steve Mnuchin more than 5,000 lenders, including community banks and credit unions, took part in the first phase of the program.

"The [Paycheck Protection Program] has supported more than 1.66 million small businesses and protected over 30 million jobs for hardworking Americans. With the additional funds appropriated by Congress, tens of millions of additional workers will benefit from this critical relief," Carranza and Mnuchin said Friday in a joint statement.

Almost 20 percent of the loans were processed by lenders with less than $1 billion in assets and 60 percent by banks with under $10 billion in assets, they said. Nearly three quarters of the loans were for amounts less than $150,000, they said.

"We encourage all approved lenders to process loan applications previously submitted by eligible borrowers and disburse funds expeditiously," they said. "All eligible borrowers who need these funds should work with an approved lender to apply. Borrowers should carefully review PPP regulations and guidance and the certifications required to obtain a loan."

Data released by the SBA shows 4,400 of the approved loans exceeded $5 million, according to The Associated Press. The AP reported 95 public companies or their subsidiaries received a combined $365 million in taxpayer-backed loans through the program.

A survey by the National Federation of Independent Businesses found slightly more than half of those who have applied for loans through the program expect to be able to rehire all their workers and get the entire loan amount forgiven, according to the AP.

More information about the Paycheck Protection Program — including a list of eligible vendors is — available from the SBA's website or by calling 833-572-0502.

In Illinois, the Department of Commerce and Economic Opportunity, the Department of Financial and Professional Regulation and the office of Gov. J.B. Pritzker have established the Illinois Small Business Emergency Loan Fund to offer loans of up to $50,000 to businesses with fewer than 50 workers and less than $3 million 2019 revenue. More information for small businesses is available from the state agency.