January 22, 2021 – Governor JB Pritzker today announced new investments by the State of Illinois to help more small businesses access federal COVID-19 emergency programs. The Illinois Department of Commerce and Economic Opportunity (DCEO) will direct a $3.4 million investment to expand community navigator outreach programs and technical assistance services provided through the State’s Small Business Development Centers (SBDCs). These investments are designed to help more businesses take advantage of billions of dollars of financial assistance recently made available through the renewed Paycheck Protection Program (PPP), and with other federal programs set to launch in the coming weeks.
The state’s plans to help more Illinois small businesses will build on the successful community navigator outreach model piloted during the Business Interruption Grants (BIG) program – the largest in the nation business recovery program which directed an historic $275 million to nearly 9,000 small businesses across the state – including a record number of grants for minority-owned businesses.
“Last week, the federal government’s Paycheck Protection Program, or PPP, reopened with another $280 billion in forgivable loans – offering another opportunity for small businesses to unlock emergency funds – but we know from past rounds that the federal PPP has presented tremendous barriers for some businesses,” said Governor JB Pritzker. “I’ve directed my administration to provide community navigators through our Small Business Centers to work directly with our small business owners, helping them access the dollars they deserve – with a special focus on businesses who haven’t received aid from the state, because we know the need is still so great. Even as we focus on vaccine administration and public health mitigations, we must also build toward economic recovery by helping job creators survive and thrive as we work to overcome this pandemic.”
New investments will guide an equity-based approach to reaching small businesses with the greatest needs – with outreach prioritizing minority-owned businesses, businesses in economically-disadvantaged communities, as well as those which have yet to receive financial assistance. These investments will help address unique barriers faced by very small and minority-owned businesses as reported on from earlier rounds of the PPP, including difficulties navigating systems and submitting documents required to quickly unlock emergency aid.
The passage of additional federal COVID-19 stimulus by Congress in December 2020 provides several new and extended financial assistance programs to help small businesses. This includes a $284 billion extension of PPP, which began accepting applications from lenders as of last week. The latest round of funding includes set asides that will benefit minority-owned businesses, rural businesses, and micro-businesses by providing dedicated funds for the smallest businesses, the lending institutions that serve these businesses, and businesses located in low-and moderate-income communities.
Additionally, in the coming weeks, more than $35 billion will be made available to small businesses through the Economic Injury Disaster Loan (EIDL) Advance as well as the new Shuttered Venue Operators (SVO) grant programs. For more on eligibility for these programs, visit the U.S. Small Business Administration website.
