Illinois’ congressional delegation pushes feds to approve loan assistance for small businesses affected by new coronavirus

The entire Illinois congressional delegation has asked the Small Business Administration to support the state’s effort for an economic injury declaration amid the new coronavirus pandemic.

The letter, signed by the state’s two senators and 18 House members, asks that Small Business Administration Administrator Jovita Carranza approve Illinois’ request as soon as possible.

If approved, the low-interest loans will offer up to $2 million in assistance per eligible small business or nonprofit that applies. Loans can be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid due to the pandemic.

“The economic impact the pandemic is having on Illinois businesses and the local communities they serve is dire, and there is extraordinary demand for state and local government resources for emergency response,” the letter said. “Assisting small businesses in recovery is of the utmost importance to these communities.”

The state’s request comes as Illinois has mandated the closure of all bars and dine-in restaurants for at least two weeks to combat the spread of COVID-19.

In a statement Wednesday, the SBA said they are relaxing the criteria to make it easier for states and territories to formally request an economic injury declaration.

“Our goal is to ensure that credit is available to any and all small businesses that need credit but are unable to access it on reasonable terms through traditional lending channels,” Carranza said.

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