June 19, 2020
COVID-19 Government Relations Daily Summary
The following includes updates on the Illinois Department of Commerce and Economic Opportunity and Governor Pritzker's announcement of the New Business Interruption Grants Program and the Distressed Capitol Program. The Federal Reserve Board expanded the Municipal Liquidity Facility eligibility for state and local governments.
STATE AND LOCAL UPDATES
Illinois Department of Commerce and Economic Opportunity
New Business Interruption Grants Program
This is a new grant program announced by the Governor as a part of the $900 Million Package of Equity-Driven Community and Business Grant Programs. The launching of the first round of Business Interruptions Grants of $60 million to businesses experiencing losses or businesses interruption as a result of COVID-19 related closures. Priority will be given to small businesses that have been heavily restricted or completely shut down during the pandemic located in DIAs. Priority will also be placed on businesses located in areas that have experienced recent property damage due to civil unrest, exacerbating the economic impacts of COVID-19. See DECO link below for more information.
Distressed Capital Program
DECO will provide $25 million to support Illinois businesses that have sustained property damage as a result of civil unrest during the recent protests and demonstrations on or after May 25, 2020. This program will reimburse the costs to repair structural damage, including repairs to storefronts and entrances, improving electrical systems and restoring exterior work. DECO will prioritize small businesses, women and minority owned businesses, underinsured or uninsured businesses, businesses that have high impact--such as grocery stores--and businesses in communities that have experienced historic disinvestment.
DECO will make the application(s) for BIG and NOFO on Monday, June 22nd. SEE DECO.
The Federal Reserve
Municipal Liquidity Facility Eligibility
The Federal Reserve has expanded the number and type of government entities that may utilize the Municipal Liquidity Facility (MLF) that was established to help state and local governments manage cash flow caused by COVID-19. The revisions will allow states to have at least two cities or counties that are eligible to use the MLF, regardless of population. State governors may designate two governmental issuers of revenue bonds within their states to be eligible to use the MLF.
See Federal Reserve.
Main Street Lending Program
The Federal Reserve Bank recently launched the Main Street Lending Program inviting lenders to resister to offer loans to for-profit entities. This program is authorized to lend up to $600 million through September 30, 2020 unless extended.
See Fed Release.