Illinois Small Business Recovery After COVID-19

According to the National Federation of Independent Businesses, 92% of small businesses have been negatively impacted by the Coronavirus pandemic.Here in central Illinois, local economies are beginning to reopen but some businesses still need help to adjust to this new normal. At Town and Country Bank and Peoples Prosperity Bank, our business bankers have been hard at work helping local businesses weather these uncertain times. In this article, we’ll cover the current state of business recovery in Illinois and offer some tips for rebuilding.

What is Restore Illinois?

As of the end of June, the entire state is moving into Phase 4 of Governor JB Pritzker’s five-phased Restore Illinois reopening plan. This means a return to work for about 700,000 Illinoisans employed in the retail, office, manufacturing, cosmetology, and hospitality industries. Industry-specific guidelines for reopening can be found here.

Loans and Grants to Help Illinois Businesses and Residents

As part of the State of Illinois’ reopening efforts, private sector businesses have received nearly half a million cloth face masks and licensed daycares are getting thermometers from the state for daily temperature checks.

Illinois has also provided grants and relief money for the following groups:

• $275 million to help Illinois households with rent, utilities, food, medicine, and other essentials
• $270 million in grants for childcare providers
• $11 million in grants to minority-owned businesses and business incubators
• $1.3 million in grants for small businesses in downstate and rural counties.

The Department of Commerce and Economic Opportunity (DCEO) announced it will launch the first round of Business Interruption Grants (BIG). This will provide $60 million to businesses experiencing losses or business interruption as a result of COVID-19 related closures. The BIG Program is available for up to 3,500 businesses that experienced a limited ability to operate due to COVID-19 related closures. The funds will be distributed to qualifying businesses starting in early July.

The SBA has also reopened the Economic Injury Disaster Loan (EIDL) program for any businesses impacted by the pandemic. This program is a loan plus up to a $10,000 grant direct from the SBA. Most businesses may qualify including those in the agriculture industry. It is required that proceeds of the loan be used for working capital.

Additionally, small businesses outside of Chicago with fewer than 50 workers and less than $3 million in 2019 revenue can apply for low-interest loans of up to $50,000 through the Illinois Small Business Emergency Loan Fund.

If your small business is located in an eligible downstate community, you can apply for working capital grants of up to $25,000 through the Downstate Small Business Stabilization Program.

Tips for Rebuilding Your Small Business in Illinois

While the short-term outlook for your business will depend on what industry you’re in and other factors, there are some general steps all business owners can take to set your business up for the “new normal” we find ourselves in.

• Analyze your finances. Update financial statements, such as Profits and Losses and Cash Flow. Compare the current situation with last year’s numbers. Are you up, down, or even? Also look at financial factors such as current staff levels, marketing budgets, and more.
• Reevaluate your business plan. Consider the pivots you may have to make to adjust to reopening conditions such as continued social distancing. For example, a brick-and-mortar retail business may need to expand its online presence to allow for curbside pickup and mail orders. Connect with local business groups and industry peers to see what others are doing to adapt.
• Decide whether to apply for funding. Even businesses with a comfortable cash reserve may have gone through most of it during the shutdown period. If you need working capital to reopen, there are a variety of options available, including the grants and loans mentioned above.
• Adjust your budget. Speaking of working capital, you may need to tweak your budget to account for reopening costs such as new hires and rehires, inventory purchases, advertising, etc.
• Make a plan. The Coronavirus pandemic has created a lot of uncertainty, but business owners can still develop a timeline for rebuilding and a contingency plan to deal with the next big crisis. Make a list of what you need to do now to reopen and then reflect on how you could be better prepared for the next pandemic (or similar crisis).

We are Here for Your Business!

At Town and Country Bank and Peoples Prosperity Bank, we are dedicated to supporting local businesses in the communities we serve. Check out our full menu of business loans, accounts, and Treasury Management services to help with all your reopening needs. For inspiration, read about the local businesses we’ve helped through the pandemic with our “We’re in Good Company” blog series. If you have questions or are ready to learn more about our business products and services, contact our business banking team directly or request a business financial review today!