The City of Chicago recognizes that COVID-19 has put a difficult burden on our business and non-profit community. As a response to this challenge, the City of Chicago has established the $100 million Chicago Small Business Resiliency Fund (the Resiliency Fund), which will provide small businesses and non-profits with emergency cash flow during this health crisis. Funds will be provided to eligible businesses as low-interest loans.
The Resiliency Fund is structured to complement the new federal Paycheck Protection Program that the Small Business Administration (SBA) will launch shortly. The City and its partners will seek to provide all Resiliency Fund loan applicants with the best offer available, including from the SBA's new program. All loan applications will be administered through lending partners, including Accion Serving Illinois and Indiana and the Community Reinvestment Fund, USA (CRF). The Fund continues to build partnerships with additional lenders to help provide loans to small businesses and non-profits all over Chicago.
LOAN TERMS
The loan terms are as follows:
·
Loan Amount
: 3 months average monthly revenues before the COVID-19 outbreak, up to $50,000
·
Interest Rate
: The fixed annual interest rate on the loan will be 1% for the first 18 months. After 18 months, the rate will increase to 5.75% for the duration of the loan.
·
Repayment:
For months 1 - 6: $10 monthly payment of principal; Interest accrues but is not payable. For months 7 - 12: Interest-only monthly payments. Month 13 and thereafter: Monthly principal and interest payments.
·
Term
: Up to 5 years (60 months).
·
Proceeds
: Proceeds are required to be used for working capital with at least 50% of proceeds being applied toward payroll. The applicant must also make a commitment to maintain its workforce at 50% or more of pre-COVID-19 levels for at least 6 months.
BUSINESS REQUIREMENTS
To be eligible for a Resiliency Fund loan, a small business must meet the requirements detailed below. Please note that the application must be completed and submitted by the owner of the business with the largest ownership interest. (Note: if two or more owners have equal ownership of the business, one of the owners with equal ownership will be required to fill out the online application.)
·
Employ fewer than 50 employees, 50% of whom are Chicago residents
·
Have realized gross annual revenues of less than $3 million pre-COVID-19
·
Have suffered a revenue decrease of at least 25% due to COVID-19
·
Be located in the City of Chicago and have been in business for at least 1 year at of the date of application
