Reminders: All previous bulletins and other resources listed at www.gpcovid.com . Resource requests from our community institutions listed at the end of this bulletin. Send any questions to bizinfo@greaterpeoriaedc.org .

IMPORTANT: Summary of the Paycheck Protection Program (PPP)
For small businesses, the most attractive program built into the CARES Act (the federal coronavirus relief package) is the Paycheck Protection Program (PPP). PPP is funded to the tune of $349 billion through the Small Business Administration (SBA). However, the program differs in significant ways from the currently available Economic Injury Disaster Program. First, businesses will apply through individual banks, not the SBA itself. Second, while technically a loan program, a portion -- and potentially all -- of the loan can be forgiven, making it act more like a grant. Below is a high level summary of PPP:

Eligibility: For profit businesses with less than 500 employees (including hotels and food service businesses that have less than 500 employees per location); 501(c)(3) nonprofit organizations; veterans organizations; eligible self-employed individuals; independent contractors; sole proprietorships

Loan amount: The maximum loan size is equivalent to 250% of the employer’s average monthly payroll costs, not to exceed $10 million. Payroll costs are defined broadly to include wages, salaries, retirement contributions, healthcare benefits, covered leave, and other expenses. Put another way, the size of the loan is equal to the cost of payroll for about 10 weeks.

Loan terms: Up to 10 years at 4% with the ability to defer principal and interest payment for between 6 and 12 months. There are no fees, no requirement to secure the debt with collateral, no requirement of a personal guarantee, and no penalty for early payoff.

Loan forgiveness: This is the important part! A portion of the loan (up to 100%) will be forgiven in an amount equal to how much the business actually paid for payroll costs, salaries, benefits, rent, utilities and mortgage interest during the eight weeks following the loan’s disbursement. If employees are laid off or their salaries are reduced there could be a reduction in the amount forgiven. Borrowers will need to apply through their lender for this forgiveness and provide documentation for all costs. Banks will have 60 days to make the determination.

There is a great deal of information available on the internet regarding PPP including articles published by the Economic Innovation Group , National Law Review , Bench and Forbes .

Business owners interested in PPP should call their banker as soon as possible, ask if they are an approved Small Business Administration 7a lender (most locally are) and request a meeting to discuss this program. Businesses can also get advice from the Small Business Development Center at Bradley University . We will provide more information on this program and other CARES Act provisions as details come available.

DCEO Creates COVID Web Resource Page
The Illinois Department of Commerce and Economic Opportunity (DCEO) has created a helpful webpage that outlines state assistance for businesses, workers and residents. Access it here .

Free Food Composting by Better Earth Logistics
Better Earth Logistics , a custom food recycling service in the area, is offering their services for free to ANY central IL restaurant, cafe, business or supermarket who have an excess of perishable food (that cannot be donated). Their goal is to divert such food waste from a landfill and turn it into compost. For more information or to schedule a service, email them at info@betterearthlogistics.com . 
Reminder: More SBA Webinars Next Week
Click one of the dates below to be taken to the registration page for a webinar hosted by Illinois SBA on the Economic Injury Disaster Program:


RESOURCE REQUESTS
Community Foundation of Central Illinois: Requesting monetary donations for the Central Illinois Disaster Recovery Fund. Information https://communityfoundationci.org/.
 
NEW - UnityPoint Health: UnityPoint is seeking personal protective equipment (PPE) and other medical supplies. They are als in search of medical personnel to help them prepare in the event that there is an influx of sick patients. Information here.  
 
OSF Healthcare: OSF seeking personal protective equipment (PPE), ventilators and other supplies. Information here.
 
Peoria Innovation Alliance: PIA is gathering the maker community to discuss ways individuals and small companies can make supplies like masks. Information here.



Chris Setti
Chief Executive Officer
Greater Peoria Economic Development Council