Hospitality Emergency Grant Program

3/25/2020

Hospitality Emergency Grant Program

Under the leadership of Governor JB Pritzker, DCEO is working with partners to launch emergency assistance programs for Illinois small businesses.  These initiatives include:


Hospitality Emergency Grant Program

To help hospitality businesses make ends meet in the midst of the COVID-19 pandemic, DCEO is launching the Hospitality Emergency Grant Program with $14 million drawn from funds originally budgeted for job training, tourism promotion, and other purposes.  Grant funds are available to support working capital like payroll and rent, as well as job training, retraining, and technology to support shifts in operations, like increased pick-up and delivery. Bars and restaurants that generated between $500,000 and $1 million in revenue in 2019 are eligible for up to $25,000, and bars and restaurants that generated less than $500,000 in revenue in 2019 are eligible for up to $10,000.  Hotels that generated less than $8M in revenue in 2019 are eligible for up to $50,000.

Who is eligible?
Bars and restaurants with a valid license to serve food or liquor and who generated revenues of less than $1 million in 2019. Hotels with a valid license (hotels, motels other lodging establishments) and who generated revenues of less than $8 million in 2019.

What can grant funds be used for?
For bars and restaurants, based on the businesses needs identified in the grant application, funds can be used to support working capital (rent, payroll, and other accounts payable), job training (such as new practices related to take out, delivery and sanitation) and technology enabling new operations as well as other costs to implement that technology.  For hotels, funds can be used as working capital to support the retention of employees.

How do businesses apply?
Businesses can submit an application online here: Landing PageEnglish ApplicationSpanish Application. Applications for awards will be accepted until 5:00pm on April 1st.  Winners will be chosen via a lottery within a few days of the deadline, therefore, there is no benefit to submitting an application first as long as a valid, complete application is received by the deadline.

How much money is available?
$14 million is available under this program.

  • Bars and restaurants that generated less than $500,000 in annual revenue last year will be eligible for up to $10,000.
  • Bars and restaurants that generated between $500,000 and $1M in annual revenue last year will be eligible for up to $25,000.
  • Hotels that generated less than $8 million in annual revenue last year will be eligible for up to $50,000.

How soon will businesses receive funds?

Accion will notify businesses on April 4th if they have received an award. Accion and DCEO are striving to make funds available to awarded businesses within two days of receiving the necessary bank information from an awarded grantee.

 
Illinois Small Business Emergency Loan Fund
DCEO and the Illinois Department of Financial and Professional Regulation (IDFPR) are establishing the Illinois Small Business Emergency Loan Fund to offer small businesses low interest loans of up to $50,000.  This fund will be managed by Accion and include lending partners identified by the State in partnership with the IBA and CBAI.  Loans will be supported by at least a $20 million loan loss reserve with the state and IBA and CBAI working to increase this reserve further to leverage a larger overall lending pool. 

Businesses located outside of the City of Chicago with fewer than 50 workers and less than $3 million in revenue in 2019 will be eligible to apply.  Successful applicants will owe nothing for six months and will then begin making fixed payments at a below market interest rate for the remainder of a five-year loan term. Starting this Friday, March 27th, interested businesses will be able to express interest at a form that will be posted here.

Who is eligible?
Small businesses located outside of the City of Chicago with fewer than 50 workers and less than $3 million in revenue in 2019 can apply.  Small businesses within the City of Chicago can apply to a similar loan program here.

What can loan funds be used for?
Loans can be used to support working capital.

How do businesses apply?
Businesses will be able to complete an interest form on this web page on Friday, March 27, 2020.

How much money is available?
Businesses can receive up a low interest loan of up to $50,000 with a 5 year repayment period with no payments due for the first six months.

Sources: SPRISKA, DCEO