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 “As businesses across Illinois grapple with the
devastating financial impact of COVID-19, my administration
continues to look for ways to help provide relief that will allow
small businesses, the backbone of our economy, rebuild and thrive,”
said Governor JB Pritzker. “The Downstate Small Business
Stabilization fund will help respond to the needs of our rural and
downstate communities and address the impact COVID-19 has had across
Illinois so that together we can start to rebuild our economy.”
The first $1.3 million in grants have been allocated to 65
businesses spanning 28 downstate communities. To support small
businesses in downstate and rural counties across Illinois, DCEO
repurposed $20 million in Community Development Block Grant (CDBG)
funds to create the Downstate Small Business Stabilization Program.
Through the program, small businesses of up to 50 employees can
partner with their local governments to obtain grants of up to
$25,000 in working capital.
“While COVID-19 has been extremely challenging for many businesses
around our state, the Downstate Small Business Stabilization program
specifically targets business in downstate and rural communities who
are in need a life-line,” said Michael Negron, Acting Director of
DCEO. “This program, like many other COVID-19 relief initiatives,
recognizes the burden facing our small businesses, and puts
much-needed capital into the hands of small business owners so that
they can continue making payroll and meeting other urgent
operational needs in order to protect their workers and their
livelihood.”
Grantees include restaurants and cafes, salons, furniture stores,
florists, pet stores and other specialty retail stores. Many of the
grantees are multi-generation family-owned and operated proprietors.
For a full list of grant recipients, visit DCEO’s website.
"Word that we received the grant was a huge relief as it allows us
to pay overhead costs, utilities and payroll," said Pam Shanley,
co-owner of Clarks Run Antiques of North Utica. "I truly believe
there will be a positive effect within the community as employees
can be paid, we can order to restock merchandise, resume marketing,
and defer rent for our committed antique dealers who lease their
space in the building. All were impacted by the closures."
Grants will be offered on an on-going basis, with funding made
available to small businesses with operations impacted by COVID-19
and where the business has a demonstrated financial need, a
commitment to retaining employees, and an analysis of how working
capital can support short- and long-term liabilities. All funds must
be used exclusively for working capital costs - including but not
limited to salaries, wages, rent, utilities and other overhead costs
associated with running the business. “We
were excited to get the award as it will help close the gap on
paying our fixed expenses such as insurance, property taxes and
utilities,” said Dan Russell, fifth generation owner of Russell
Furniture and Floor Coverings, which opened in 1872. Staunton is a
small town and being able to open and support our employees will
benefit the local community and economy. Now we are looking forward
to moving on beyond the pandemic and staying open for generations to
come.”
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The Downstate fund represents a creative solution for
addressing the distinct needs of smaller downstate communities, who
do not receive a direct allocation of CDBG funds. All funding will
be prioritized for businesses in small rural communities, including
those forced to temporarily close or adapt operations significantly
due to the ongoing pandemic. While funding will directly benefit
small businesses, applications must be submitted by a unit of local
government, such as cities, villages, and counties.
“Illinois Main Street businesses have been severely impacted by the
pandemic, and, even with the ability to safely reopen, the financial
challenges for downtown mom and pop shops will continue,” said Kelly
Humrichouser, Manager of Education & Illinois Coordinating Program
at the National Main Street Center. “The Downstate Small Business
Stabilization program provides a much-needed lifeline to support
businesses. And, ultimately, keeping downtown businesses open keeps
our Main Street districts thriving.”
Based on criteria including demonstration of project need, financial
feasibility, and job retention, DCEO awards grants to the applying
local government who then administer the grants to businesses.
Specifically, Coles County has submitted applications on behalf of
21 businesses which employ 213 people in the county.
“All states receive CDBG funds from the federal Department of
Housing and Urban Development, but not all states have made those
funds available to businesses struggling in the wake of the COVID-19
pandemic” said Angela Griffin, President of Coles Together, the
county’s economic development organization. “We appreciate the
foresight and leadership at the state level to help downstate
communities like ours withstand the economic downturn by introducing
the Downstate Revitalization Grant Program.”
Upon execution of the grant, DCEO will release 25 percent of the
funding to the business. DCEO estimates businesses will receive
money within 10 days of their application being approved. Businesses
are required to apply to DCEO to receive the remainder of the funds.
“We are an organizational fundraising company that supports schools,
clubs, sports teams, and community organizations. When the pandemic
became reality and schools and businesses closed, we literally lost
every single customer we had in one day, said Scott Westhaus, owner
of V.W. Fundraising in Quincy. “I wasn’t sure if we would ever be
able to reopen. When I learned we received the grant, it was a huge
sense of relief knowing I don’t have to worry about how to come up
with money to bridge the gap from our time closed. It was a
blessing.”
Since the beginning of the COVID-19 pandemic, the Pritzker
administration has put in place a menu of new programming and
policies geared toward residents and communities hit hardest by the
virus – including small businesses. Over the past several weeks, the
administration has launched nearly $100 million in small business
relief and assistance programs - including the Downstate Small
Business Stabilization Program, the Emergency Small Business Loan
Fund, the Emergency Hospitality Grant Program, and more.
The application for the downstate small business fund remains open.
For more on how to apply for the grants, please visit DCEO’s page
at: https://bit.ly/2QLY8MH
[Illinois Office of Communication and
Information] |
