Business Interruption Grant
Table of Contents
Introduction:
The Business Interruption Grant a vital stimulus program for Illinois small businesses hardest hit by the ongoing pandemic. The first round of money released $ 49 million in August to 2,655 small businesses statewide. The grants averaged $ 17,000 and were used to cover expenses such as payroll, rent. And other operating costs for small businesses in economically disadvantaged areas.
The Department of Trade and Economic Opportunities (DCEO) has pledged that at least half of all remaining funds, totaling more than $ 100 million, will be earmarked for businesses in rural and northern communities. The state of Illinois.
The business Interruption Grant Program
The Illinois Department of Commerce and Economic Opportunities in the process of finalizing its disruption grant program. $ 275 million in funding was awarded to 9,000 small businesses statewide in its second round.
Many businesses have resisted over the past year due to the pandemic. The ministry told News 3 $ 5 million in grants.
The state of Illinois has worked by local selected business owners and chambers to help the 15 counties in our region hardest hit by COVID-19.
The Illinois Department of Commerce director says companies earned an average of $ 25,000, with some receiving $ 5 to $ 150,000.
The DCEO says that 40% of grants went to minority-owned businesses, and women own 37% of those assisted statewide.
Program Updates
Applications for the second round of funding are expect to go live on September 17th. A total of $ 220 million will made available to small businesses of all types in Illinois. More details on the latest funding round and how to apply can found below.
Program Status
Round 1
In August, the first round of funding was given to restaurants, personal care services, gyms and fitness clubs, and businesses locate in the DIA. BIG’s first-round provided a $ 49 million boost to companies in all corners of Illinois, with grant funds deployed to approximately 2,800 businesses in 400 cities and 78 counties across the state.
Grants averaged $ 17,000, and the majority of funds went to
To businesses in carefully distressed communities. As a result of the equity-centric method to the program, more than half of the first-round grants went to minority-owned businesses.
Round 2
A $220 million second round of BIG aims to provide relief for all types of small businesses. But with a particular focus on businesses downstate, in disproportionately impacted areas (DIAs). And for heavily influenced industry and regions – representing companies that have been unable to reopen or operating at a severely diminished capacity since the spring.
Funding Impacts on Business Interruption Grant Eligibility
Funds provided by the CARES Act. Purchasing power parity loans, BIG grants, and some other loan grant programs cannot be use to cover the exact costs twice. In other words, combined, these grants and loans cannot exceed the total eligible costs that your business has incurred since March 2020 under each respective program.
If a company has exhausted Purchasing power parity funds within the specified. Period in which it requested Purchasing power parity use. Then it can use BIG to cover payroll for a period other than March 2020. A company cannot “Make a double investment” and use BIG to cover expenses previously covered by other state or federal funds.
If you have received previous grants, regardless of the amount. The fact that you received some assistance will decrease its value. DCEO knows small businesses haven’t received anything, so they want to make sure those businesses get priority.
The funds can help businesses meet their working capital expenses, including salary costs, rent; public services; and other operational costs defined in the eligible costs available here. See page 3 or read a breakdown below. For the Business Interruption Grant program, costs incurred during a business interruption can be classified as costs related to COVID-19. Eligible use of BIG program funds limited to costs and losses incurred due to the COVID-19 pandemic. Therefore, profits of the grant can be use for:
