UPDATE 6/11/2020: The deadline to apply to this program has passed. The following applications are currently being considered for submission and are being made available for review per program guidelines:
A public hearing will be held during the Village Board meeting on Tuesday, June 23. To provide comment without being physically present, submit your comment by email to firstname.lastname@example.org.
The State of Illinois' Downstate Small Business Stabilization program has been established to provide working capital funds to businesses economically impacted by the COVID-19 virus.
The program makes funds available for 60 days of verifiable working capital up to a grant ceiling of $25,000 and is available for businesses with at least one full-time equivalent (FTE) employee other than the owner(s) and up to 50 employees (total number of people employed) including the business owner(s). These funds may be used to assist private for-profit small retail and service businesses, or businesses considered non-essential by the Governor’s Executive Order without the ability for employees to work remotely.
The application process is lengthy. The Village will impose deadlines yet to be determined that will require the applicant business to quickly collaborate with the Village to complete application materials. The Village will advertise and hold a public hearing during which an applicant's submitted documentation will be available to the public for review. Following the hearing, the Village Board must approve a resolution in support of the application. The application will then be sent to the State for review and approval. If successful, the State will provide funds to the Village, which will then disburse money to applicants as expenses are incurred.
Businesses in the Village of Oswego must apply through the Village for access to these grants. Our Economic Development team is here to assist you in determining eligibility and preparing your application. Please read through the below information, including eligibility and required documentation. If you have questions, contact Economic Development Director Corinna Cole at 630-551-2334 or email@example.com.
Disclaimer: This information is subject to update and clarification, and new information will be posted as it becomes available from the State. Business owners applying for the program are advised to check back for updates regularly prior to submitting their applications.
General information about this program
The Village would like to highlight the following information about this grant program:
- The grant makes funds available for 60 days of verifiable working capital up to a grant ceiling of $25,000. Businesses may use funds for working capital expenses (employee salaries, general operating expenses, inventory, and advertising/marketing expenses).
- Certain financial information about your business may be made public as a part of the review and hearing process. Our staff will work with you to help you understand the requirements so that you may decide whether this is acceptable for your business.
- A financial review will be conducted to ensure that grant funds are not being substituted for available private debt financing or equity capital.
- Costs incurred prior to the date of grant award are not reimbursable under this grant program.
- Businesses that have multiple locations can apply for each location if each business has its own FEIN and operates independently of the other. If the same FEIN is used for multiple locations, the business can only apply once, utilizing the address on record with the Secretary of State.
- Village staff cannot make eligibility or other exceptions to this State-run program as rules are laid out by the State. Our staff may be able to help you determine other programs for which you might be eligible if this program does not apply to your business.
- Businesses must have been operating continuously with the same ownership since January 1, 2017 (at a minimum) and provide documentation on the financial health of the business in 2017, 2018, 2019, and currently. Benefiting businesses should have solid commitments to remain open or reopen, and retain or re-employ permanent jobs.
The information on this page contains a brief overview of the program and its requirements. Businesses are encouraged to review all information on this page and in the application checklist before applying. State issued grant information can be found in the Guidebook, the FAQ. All applications should be submitted using the downloadable application on the Village of Oswego's web page, below. Do NOT use the State application found in the Guidebook.
- CDBG Economic Development Downstate Small Business Stabilization funds may be used to assist private for-profit small businesses considered non-essential by the Governor’s Executive Order without the ability for employees to work remotely.
- If you operate a restaurant and the dining room has been closed during the Stay-at-Home order, you may still be eligible for this grant. Please contact Corinna Cole at firstname.lastname@example.org
- Businesses must have been operating continuously with the same ownership since January 1, 2017 (at a minimum) and provide documentation on the financial health of the business in 2017, 2018, 2019, and currently.
- Benefiting businesses should have solid commitments to remain open or reopen, and retain or re-employ permanent jobs
- Businesses must have at least one full-time equivalent (FTE) employee other than the owner(s) but must not exceed 50 employees (total number of people employed) including the business owner(s).
The following businesses are specifically ineligible for assistance:
- Businesses that have both essential and non-essential activities
- Not-for-profit businesses
- Independent contractors
- Franchises or chain businesses
- As this grant is federally funded, businesses that involve the use of cannabis for medical and/or recreational purposes are not eligible to apply
- Private clubs or businesses that limit membership for reasons other than capacity
- Businesses that derive at least 33% of gross annual revenue from legal gambling activities, unless, subject to the Department’s approval, the business is a restaurant with gaming terminals
- Businesses engaged in manufacturing or selling at wholesale, tobacco products, vaping, liquor, or sexually explicit materials, or in the business of manufacturing or selling firearms at wholesale or retail.
- Liquor stores, adult bookstores, non-therapeutic massage parlors, strip clubs, or nightclubs
- Storage facilities, trailer-storage yards, or junkyards
- Businesses owned by public officials or state employees who are paid at least 60% of the governor’s salary; their spouses, and their minor children.
- An establishment similar to any enumerated above; or
- Any other business subsequently deemed ineligible by the U.S. Department of Housing and Urban Development.
Some exceptions to the essential business requirement may be made if other social-distancing directives make it impossible for the business to continue, it has subsequently closed and that situation is satisfactorily demonstrated in the application. Exceptions will be made on a case-by-case basis; all decisions are final.
The list below includes some, but not all, of the required documentation the Village will solicit from an applicant business.
- Complete application and Grant Accountability and Transparency Act (GATA) Budget
- Net income for the last three fiscal years beginning January 1, 2017, and ending December 31, 2019. Net income can be obtained from the Profit and Loss statement, generally the last item on that statement. If the Profit and Loss statements are not available, net income can be derived from total sales minus total expenses. End-of-year cash balances must also be provided. This will be either the first line item on the balance sheet or bank statements as of the last day of each fiscal year. Three years of ending cash balances must be provided for each fiscal year, as well as the current cash balance.
- A copy of the most current bank statement for the business
- Other forms of documentation to demonstrate the lack of permanent working capital in support of operating expenses, if available. Such evidence may include shutoff utility notices, delinquent bills, denied loan applications, etc.
- A listing of all employees as of January 1, 2020, employees hired since then, and their status.
- A copy of the current FEMA FIRMette obtained from FEMA’s Map Service Center https://msc.fema.gov/portal/home with the proposed business’s location clearly marked. If the business is located in a denoted prohibited Floodway, then the business would be ineligible for assistance unless the business is a functionally dependent use of the floodway (e.g., a riverside marina or boat repair shop).
- A Certificate of Good Standing from the Illinois Secretary of State for the local business (does not apply to sole proprietorships) should accompany the application. The certificate can be printed from https://www.ilsos.gov/corporatellc/ In addition, an ITR-1 verification that the business has no tax liability with the Illinois Department of Revenue must be provided prior to grant closeout. This may be obtained at http://tax.illinois.gov/taxforms/misc/clearance/ITR-1.pdf
- Participation Agreement. The businesses must enter into a financial assistance agreement, referred to as the “Participation Agreement," at agreed-upon terms with the local government making the application and receiving the grant award.
The grant requires a lengthy process that will take many weeks before an applicant will know whether it has received a grant award. Additional information on the process, including an application deadline, will be posted here as it is made available. The deadline is anticipated to be short. Email email@example.com to be added to our email list to be notified of deadlines and other updates regarding this and other small business programs.
To begin your application:
- Review the above eligibility requirements.
- Review the checklist to ensure you have all components of the application you are required to submit.
- Complete the DOWNSTATE SMALL BUSINESS STABILIZATION PROGRAM APPLICATION and email your application to Economic Development Director Corinna Cole at firstname.lastname@example.org.
- Review Downstate Stabilization Guidebook, and the FAQ.
Contact Economic Development Director Corinna Cole, 630-551-2334 or email@example.com with questions about this and other COVID-19 business relief programs.