In an effort to help small businesses and non-profits impacted by the COVID-19 pandemic, the State Treasurer’s Office has announced the creation of the Illinois Small Business COVID-19 Relief Program.
Under this program, the State Treasurer would make deposits of up to $250 million to approved financial institutions throughout the state to assist Illinois small business and non-profits negatively affected by the COVID-19 pandemic.
State funds would be deposited with qualified financial institutions for a 1-year term at a near-zero deposit rate of 0.01 percent. These deposits would be drawn in $1 or $5 million increments, up to a maximum of $25 million per financial institution.
Deposited funds would facilitate affordable loans to small businesses and non-profits that could be used to provide bridge funding, pay fixed debts, payroll, accounts payable and other bills.
Eligible Illinois businesses or non-profits must meet the following qualifications:
- Have been shut down or limited due to COVID-19;
- Have less than $1 million in liquid assets or $8 million average annual receipts (per SBA standards);
- Be headquartered in the state of Illinois or agree to use the funds in Illinois.
More information about the Illinois Small Business COVID-19 Relief Program, and how to apply, is available at https://illinoistreasurergovprod.blob.core.usgovcloudapi.net/twocms/media/doc/march2020_smallbizreliefprogram.pdf