Key Programs that Support Business

Wow!  How things have changed since our last The Current Update!  As soon as COVID-19 began to impact our businesses community, federal, state and local officials began creating resources to help our businesses and not-for-profit agencies keep their doors open.  Below are key programs that could provide significant support for our Members and the business community.

Federal CARES Act

Coronavirus Aid, Relief, and Economic Security (CARES) was enacted in response to the COVID-19 pandemic. A key intent of this over two trillion- dollar package is to help businesses stay open and keep their employees working. There is extensive support for a wide variety of industries. Click Here to review the U.S. Chamber of Commerce’s summary of the CARES Act.

The final rules from the CARES Act were released to financial institutions April 2nd.  The interest rate is set at 1% with a 2-year loan period. Click here to review the “interim” final rules from SBA. 

In addition, you can Click here for a link to the PPP application.  The actual application may vary a bit among lenders but reviewing this application will help you in preparing your application.

We have highlighted the components of the CARES Act that are of the most interest to Members:

New Loan Program for Small Business: Paycheck Protection Program (PPP)

This $349 billion lending program was modeled on the existing SBA 7(a) program with a 100% government guarantee (as opposed to a 75% guarantee for 7(a) loans).


  • Small businesses as defined by SBA size standards (generally up to 500 employees, but up to 1,500 employees depending on the sector and certain sectors are based on revenue).
  • Businesses in the Accommodation and Food Services Sector (NAICS Code 72) are eligible with up to 500 employees at each location.
  • 501 (c)(3) not-for-profits with fewer than 500 employees.
  • Sole proprietors, the self-employed, and independent contractors.

These loans will be disbursed through local banks.  These will be 10- year loans at 4% interest and 8-weeks of payroll will be forgiven as part of this program.

Expansion of SBA Disaster Loans

 SBA Disaster Loans became available within a few days following the onset of the COVID-19 crisis and were expanded under the CARES Act – infusing $562 million for the Small Business Administration (SBA) to provide additional funding for administrative expenses and program subsidy for the SBA’s Disaster Loans Program.

Here are some additions to expedite access to these funds:

  • Loans can be made based solely on credit scores.
  • Loans available to all not-for-profits, including 501(c )(6)s.
  • Loans below $200,000 can be approved without a personal guarantee.
  • Borrowers can receive $10,000 cash advances that are forgiven if spent on paid leave, maintaining payroll, increased costs due to supply chain disruption, mortgage or lease payments, or repaying obligations that cannot be met due to revenue losses.

Business Tax Provisions through the CARES Act:

  • Employee retention credit for employers subject to closure due to COVID-19 (permits fully refundable 50% tax credit applicable to the employer’s share of payroll taxes on wages up to $10,000 per employee; widely available with special rules for small employers.
  • Delay of payment of employer payroll taxes (defer payment of the employer share of the Social Security tax due between now and January 1, 2021 to December 31, 2021 (50% due) and December 31, 2020 (remaining due).
  • Modifications for net operating losses (for 2018, 2019, 2020, the loss can be carried back 5 years, temporarily suspends 80% limitation; extends to pass-throughs, sole proprietors.
  • Modification of limitation on business interest (for 2019, 2020, increases 30% limitation to 50%).

State Support

The Illinois Department of Commerce and Economic Opportunity (DCEO) and the Illinois Department of Financial and Professional Regulation (IDFPR) have established the Illinois Small Business Emergency Loan Fund to offer small businesses low-interest loans of up to $50,000. 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.

Small Business COVID-19 Relief Program

These funds are designed in part to provide bridge funding until more extensive funding can be secured through other resources, like PPP through the CARES Act.  They are anticipating a 3-day turn around to receive your funds once the application is made through local community banks. These funds can be used for small businesses and not-for-profits to provide bridge funding, pay fixed debts, payroll, accounts payable and other bills. Visit the DCEO website for local community banks offering this program.

I am always available to answer any questions you may have and look forward to hearing from you.  Now more than ever, NACC is resolute in being your advocate and resource connecting our Members to the support they need to navigate these uncertain times.

Reba Osborne, Director of Government Affairs

(630) 544-3387

Back to: Government Affairs Blog