Southern Illinois News

While the economic shutdown from the COVID-19 pandemic has resulted in thousands and thousands of Illinois small businesses being ordered to shut down, there are numerous programs available to help them in their time of need. 

According to Metropolis Planet, small business owners in Metropolis and Massac County are able to take advantage of programs to mitigate the damages from this forced closure. 

There are two programs from the U.S. Small Business Administration from the Coronavirus Aid Relief and Economic Security Act. 

The first is the Paycheck Protection Program, which is for business with fewer than 500 employees. The loan can be used to help maintain payroll while the business is not in operation. The loan can be forgiven if it is used to pay salaries for eight weeks after its origination. City National Bank, Banterra Bank and Legence Bank are partaking in this aid program. 

The second is the SBA Economic Injury Disaster Loan for small business owners who need an advance of $10,000. The loan is available for working capital, fixed debt and accounts payable. The loan will incur an interest rate of 3.75% for up to 30 years. Small business owners who have received the Paycheck Protection Program loan are not eligible to receive this option. 

In addition to these two programs, there are also three programs available through the Department of Commerce of Economic Opportunity. 

The Illinois Small Business Emergency Loan Fund is a $60 million fund for low interest loans available to businesses with fewer than 50 employees and $3 million in annual revenue for 2019. The Hospitality Grant Program was an option for restaurants and bars in need of economic assistance. Finally, the Downstate Small Business Stabilization Program — which is a $20 million program from the DCEO’s Office of Community Development for businesses with fewer than 50 employees that would provide up to $25,000 of working capital.