Oswego businesses impacted by the coronavirus pandemic can apply for state grant money through the village.
Village officials recently announced applications are available for Oswego businesses for Illinois Downstate Small Business Stabilization Grants.
The state-managed program offers up to $25,000 to small businesses with 50 or fewer employees classified as non-essential workers during Gov. J.B. Pritzker’s stay at home order, village officials said.
The program is administered through Housing and Urban Development Community Development Block Grant funds and subsequently requires local governments to apply for the grants on behalf of businesses, Oswego Economic Development Director Corinna Cole said in her report to village trustees.
The application process requires multiple steps to process, she said.
Trustee James Marter was interested in knowing how many businesses potentially would be interested in the program.
“There are so many businesses out there that could benefit from the grant,” Cole said. “From that perspective it’s very attractive.”
What makes it less attractive to businesses is the time and public hearings involved to process the applications, she said.
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“I think it is a worthwhile program,” Cole told trustees. “We have assurances for what they are worth from the state that they are not trying to play ‘gotcha.’ This is to help businesses get going and help restore the economy.”
Municipalities are required to hold a public hearing for each applicant and authorize a resolution in support of each request. The applications are submitted to the Illinois Department of Commerce and Economic Opportunity for review.
The state disburses funds to the village and then the village releases the funds to the businesses. The village is required to report on the compliance of the applicants to the provisions of the grant program.
If a business fails to either open or closes within a year of receiving a grant through the program, then the village must repay the state for the value of the grant if it cannot recover it from the business, Cole said.
The Kendall County Board has indicated it will make its revolving loan fund available to municipalities as a “backstop” against a loan default, village officials said.
The village’s decision to pursue the program was contingent on the county’s willingness to backup the loans, Oswego Village Administrator Dan Di Santo said.
Village trustees recently decided to authorize the program.
“It’s probably time for us to hustle forward on this,” Trustee Luis Perez said.
The state-funded program has several strict eligibility and documentation requirements, and businesses must apply through the village to be considered for the grants.
A full list of eligibility and documentation requirements is available at http://www.oswegoil.org/economic-development/downstate-stabilization.aspx, where business owners can also download the application.
Applications will be accepted on a first-come, first-served basis. For questions about applying for the Downstate Small Business Stabilization Program, contact Oswego Economic Development Director Corinna Cole at 630-551-2334 or [email protected].
Linda Girardi is a freelance reporter for The Beacon-News.