The Business Interruption Grant (BIG), a program available through the Illinois Department of Commerce and Economic Opportunity (IDCEO), continues to actively seek applicants, in order to effectively disburse the full amount awarded to the state program. It leverages federal funding provided by the CARES Act to provide economic relief for small businesses hit hardest by COVID-19. The state received $540 million for BIG from the federal Coronavirus Aid, Relief & Economic Security Act, of which $270 million was earmarked for small businesses, according to Lauren Huffman, a spokeswoman for the Illinois Department of Commerce & Economic Opportunity. Applications are live now.
The first round of BIGs provided $49 million to businesses such as restaurants, personal care services, gyms and fitness clubs, and businesses located in “Disproportionately Impacted Areas” (DIAs). A list of awardees is available here.
The second round of BIGs will provide $220 million to “businesses downstate, in disproportionately impacted areas (DIAs), and for heavily impacted industry and regions – representing businesses that have been unable to reopen or operating at a severely diminished capacity since the spring.” A discussion of the program, outlining the various types of prioritized and eligible businesses, as well as eligible costs, is in an earlier blog post, here.
To summarize, Round 2 includes:
– $60 million for heavily impacted industries, such as movie theaters, performing arts & concert venues, indoor recreation, amusement parks.*
– $70 million for disproportionately impacted areas, defined by zip code for communities that are most economically distressed and vulnerable to COVID-19.
– More than $100 million for downstate communities.
– $5 million for livestock production disruptions. (Applications available from the Illinois Department of Agriculture.)
– Loan Forgiveness for Illinois small business emergency loan recipients.
*In addition to the $60 million for heavily impacted industries, the following types of businesses are being prioritized:
- Businesses directly affected by regional mitigations implemented by state or local governments.
- Independently owned retail.
- Tourism- and hospitality-related industries.
(Businesses outside the categories listed above are also eligible to apply and receive funding under the program but may be reviewed later than priority businesses. Assistance with applications is available at no cost.)
A list of awardees for Round 2 (those granted so far, on a rolling award basis), is here.
However, as I started to see media coverage touting the benefits to independent retail, and promoting the program, trying to drum up applications, I began to be concerned for my own clients — many of them have received grants, to be sure, for which we are immensely thankful — but they were all in the hospitality industry, or in a DIA. To-date, not a single retail client has received any BIG funds. And since the program says that all businesses will receive a decision on their grant application within four to six weeks of application submission, I was frustrated to see that many of my clients had not heard anything, and yet new articles such as this were frequently coming my way, where my own state rep, Will Guzzardi, was saying the program did not have enough applicants. (Block Club was reporting the same story.) I reached out to colleagues in accounting, bookkeeping, law, and to chambers of commerce and heard the same story — small retailers were not receiving Business Interruption Grants.
So I contacted Rep. Guzzardi to find out what the story was, and he was, as usual, interested in the discrepancy between what he had been told and the actual experiences of small business owners. He took my questions to the state and came back with some solid explanations and more encouragement.
For starters, the state is reviewing applications in three categories: DIAs, downstate Illinois applicants, and disproportionately impacted industries — restaurants, bars, venues, etc. If an application doesn’t fall into one of those categories, it’s probably being moved further down the queue. But that doesn’t mean anything about their likelihood of getting a grant. It just means that they’ll be reviewed later in the process.
They evaluate every application first on the basis of whether or not they meet the basic eligibility criteria, and then based on how many of these criteria they meet:
- Directly impacted by regional mitigation to prevent the spread of COVID 19, based on applicant industry and county
- Has not received any other emergency funding, e.g. in the form of PPP or other state or local grants
- Has under $5 million in annual revenue
- Located in a disproportionately impacted area (DIA)
- Located in a “downstate” county
- Operate in a priority industry, including the following: ○ Independently-Owned Retail ○ Restaurant ○ Bar or Tavern ○ Gym or Fitness Center ○ Tourism and Travel ○ Support Service of Arts or Events
Then they conduct separate lotteries based on how many of those criteria you met. So if you meet 6/6, you’re in a lottery group with very good odds. If you only meet one or two, your lottery is less likely.
If you don’t win your lottery, your application is held over into the next lottery batch.
BIG Round 1 didn’t go to retailers at all. In Round 2, retail is in a pretty large pool with bars, restaurants, gyms, museums, etc., and so they’re just facing slightly longer odds, especially if they’re not in a DIA or downstate.
The message to retail folks is: if you applied, your application is still in the lottery — just because it hasn’t come up doesn’t mean it won’t. I expect the state is just trying to make sure those who are hardest hit have the best chance at the grants, and then they’ll turn their attention to independently-owned retail and the other eligible business types.
It is not too late to apply!
Join the Illinois Department of Commerce & Economic Opportunity (DCEO) for an informational webinar regarding the Business Interruption Grant (BIG). Attendees will learn about eligibility criteria, required documentation and step-by-step instructions for the online application. DCEO representatives will be available to answer your questions and all attendees will receive a copy of the presentation materials with direct links to the BIG program portal, FAQs and contact information for DCEO representatives who are available for 1-to-1 technical assistance, if needed.
Wednesday, December 2 at 10am
Event address for attendees: https://illinois.webex.com/illinois/onstage/g.php?MTID=e84aa07e4dc9ede92fa8a13fa268fa538
Friday, December 4 at 9am
Event address for attendees: https://illinois.webex.com/illinois/onstage/g.php?MTID=eb884f11ff20cb4fcc9394b7081fe49fd
Thursday, December 10 at 2pm
Event address for attendees: https://illinois.webex.com/illinois/onstage/g.php?MTID=eb0276e6285a6954875c46d7da4555053
And I know I’ve shared this link countless times by now, but honestly, it is an amazing source of information on applications, evaluation criteria, assistance, eligible costs, and so much more.
For the clients who have received this grant, it has been a lifeline. It’s much more flexible than the PPP, it’s a grant rather than a loan like the EIDL, and it’s built for small business. The application is not a particularly challenging one. If you are a small business struggling due to the pandemic, you owe to to yourself to give this one a try.
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