Business Interruption Grants Program
Recently updated on November 18th, 2021 at 04:01 pm
The Business Interruption Grants Program is designed to assist small businesses in America in their quest for capital.
This program is a first-round innovation to help small businesses across Illinois overcome the obstacles specifically designed to prevent and deter new companies.
Five unique programs have been designed to meet the individual needs of Illinois businesses. These businesses can benefit from several grant resources by Website Grant JB
Businesses Across Illinois
The Business Interruption Grants Program will award up to five hundred thousand dollars in non-taxable business interruption grants.
The first round of funding was available last year and awarded to thirty-three businesses across Illinois. The program intends to expand its focus to more Illinois small businesses gradually.
Because Illinois is one of the few states to consider a creditable business loan for funding, the first round of funds will focus on cash flow problems, leading businesses to believe they do not qualify for federal assistance.
This is not true. Illinois is an outstanding state with some of the nation’s most progressive policies for businesses.
It is a fact that local small businesses throughout Illinois are often at a disadvantage due to the current state of the economy.
Illinois government statistics show that ninety-three percent of all companies will experience an interruption in income because of loss of business revenue or clients moving to a different location.
This means that the long-term impact on the U.S. economy will be severe. Even though this is the first step toward a solution, funding the Business Interruption Grants Program is just the first step.
Sixty Million American Families
There are several reasons why the Business Interruption Grants program was created.
It is estimated that about sixty million American families are suffering the consequences of the loss of income or business closings due to economic conditions.
Only about one in five of these households had access to the resources they needed to keep their business afloat during these difficult times.
This is a shocking statistic that clearly defines the need for this first wave of grants.
U.S. Small Business Administration
For many years, the U.S. Small Business Administration has provided support for American families that were having difficulties keeping their businesses afloat.
The SBA was explicitly designed to help America’s struggling small companies maintain at least semi-normal operating conditions.
Over the years, this support has provided millions of dollars to small businesses across the country experiencing difficulty keeping profits.
Unfortunately, not every company that receives this type of assistance can keep its head above water.
As a result, they must seek other means of managing the crisis that has almost crippled their success.
Primary Goals Of SBA
One of the primary goals of the SBA is to prevent this from happening to all Americans.
Through the Business Interruption Grants program, the Administration has provided this critical funding stream to those communities that are seeing a reduction in sales due to the impact of economic conditions.
Two different programs have been designed to combat the problem that has been impacting so many U.S. companies.
These programs are broken down into two main areas, based on the number of U.S. corporations being impacted and the population of the impacted area.
The two programs are:
Minority Business Interruption Grant Program
The first wave of available grants is called the Minority Business Interruption Grant Program (MBIP).
Because there are so few businesses in the majority ethnic community that is severely impacted by the current economic conditions, this grant program has been given the priority status of the first wave.
The goal of the MBIP is to provide a financial incentive to these small businesses to remain in operation.
Because it is a minority business-owned enterprise, businesses that use these funds have a much higher chance of being fully impacted than companies not receiving any assistance from the government.
This makes the MBIP one of the most highly coveted grant programs in the country.
The second wave of Business Interruption Grants is focused on the second largest population of population – cities.
As previously mentioned, because there are so few businesses located in the majority ethnic community severely impacted by the current economic conditions, this grant program has been given the second wave of priority status.
Cities around the country that have experienced incidences that threaten the continued existence of local businesses have applied for and received this funding.
However, the number of applications that cities received in the first wave is much lower than the number of applications that cities are receiving currently.
This has led many cities to heavily restrict the amount of money they are approving to assist local businesses.