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The State has allocated $20 million of federally-funded Community Development Block Grants to establish the Downstate Small Business Stabilization program. This opportunity has been established to provide working capital funds to community’s businesses economically impacted by the COVID-19 virus. The program component has a grant ceiling of $25,000 and is available for businesses that employ 50 people or less. Number of employees includes the business owner(s). A brief description of the program.

The Community Development Block Grant (CDBG) Program was established by the federal Housing and Community Development Act of 1974 (Act). Program requirements can be found at 24CFR PART 570.

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The objective of this program is to stabilize small businesses who have been negatively impacted by the COVID-19 pandemic emergency.

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Government Organizations;

Only units of local government recognized by the Illinois Constitution and able to support economic development activities on a sufficient scale are eligible to apply for Economic Development grant funding. This includes cities, villages, and counties. Municipalities must not be a HUD direct Entitlement community or be located in an urban county that receives "entitlement" funds.

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Project Grants

Economic Development

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Under the Grant Accountability & Transparency Act (GATA), all applicants must register with the State of Illinois via the “Grantee Portal” at www.grants.illinois.gov and be pre-qualified prior to application. Failure to register prior to application will result in a determination of “Do Not Fund”. The applicant is required to complete the Internal Controls Questionnaire (ICQ) for Fiscal Year 2020. If the ICQ is not completed prior to application, it must be completed before the grant can be awarded. Applications may be submitted based on the published Guidebook and awarded until the allocated funds are exhausted. The Guidebook and required supporting documentation for the application can be found at: www.Illinois.gov/DCEO. All grant application materials must be: • Typed (except for signatures and preprinted materials such as bank statements) • All application materials requiring a signature from the applicant must be signed by the Chief Elected Official. The complete grant package in the order specified on the Submission Checklist (Application Forms section) must be scanned into one document. The document must be e-mailed as an attachment to: ceo.ocd@illinois.gov with the subject line: SBS Application -Local Government-Business. For example: SBS Application-Whoville-Pop’s Restaurant Application Denial For applications that are not funded, denial reasons may include but are not limited to the following: • No justification of the need for funds; • Projected financial need data, is not documented; • Evidence that program funds replace sources of capital available to the business and/or community; • CDBG Economic Development Small Business Stabilization funding has been exhausted.

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The screening and review process for the program is designed to ensure that limited CDBG program funds are awarded to communities for the use of businesses that demonstrate the need for financial assistance and meet the qualifications. The actual number and types of awards will be subject to funding availability. All recommendations are forwarded to the Director's Office, for final funding decisions. The criteria noted below will be used to evaluate all applications requesting funding under the CDBG Economic Development Downstate Small Business Stabilization component, as well as determine the appropriate level of financial assistance: 1. Project Benefit 2. CDBG National Objectives 3. CDBG Dollars 1. Project Benefit (information to be provided in Project Summary) Three factors will be considered under this criterion: a. Project Need – Project need is defined as the inability of the company to maintain sufficient permanent funding to sustain normal operating working capital needs. Describe in sufficient detail the need for the assistance and the specific role of CDBG funding, including any other options which have been pursued. Evidence of need is demonstrated through a well-developed justification for public financing demonstrating a financial gap argument. The discussion should also address why other financing options could not be obtained or are not feasible and repercussions if funding is denied. b. Financial Feasibility – Determination must be made as to how CDBG funds can address the company’s need to provide adequate permanent working capital in addressing current and future working capital needs, like payroll, operating needs and short-term liabilities. A comparison must be provided as to the existing payroll that existed prior to the outbreak of the COVID-19 virus in January and current payroll. In addition to payroll, the effect of the COVID-19 virus on current and long- term liabilities. c. Commitments for Job Retention - Provide firm assurances from the borrower (employer) regarding the number of permanent jobs to be retained for low-to-moderate income persons, types of positions, not to exceed 12 months. 2. National Objective – Urgent Need The Urgent Need National Objective is defined as assistance to a business designed to alleviate existing conditions. The grant recipient certifies that such conditions pose a serious and immediate threat to the health or welfare of the community, they are of recent origin or recently became urgent, the grant recipient is unable to finance the activity on its own, and other sources of funds are not available. Applicant must demonstrate through information in the Project Summary, financial documentation and employee status that they meet this objective. 3. CDBG Dollars to Full-time Equivalent (FTE) Jobs Ratio Funding will not exceed the grant ceiling and may be less depending on business need. Application Denial For applications that are not funded, denial reasons may include but are not limited to the following: • No justification of the need for funds; • Projected financial need data, is not documented; • Evidence that program funds replace sources of capital available to the business and/or community; • CDBG Economic Development Small Business Stabilization funding has been exhausted.

Units of local government will provide the benefiting business grant funds that may be used funds for working capital expenses (employee salaries, general operating expenses, inventory and advertising/marketing expenses).

Grantees will be responsible to complete multiple reports during the term of the grant, and potentially after the grant has closed. This will include but is not limited to quarterly financial and performance reports, closeout report, and documentation of the project’s impact including job creation. If the unit of local government reaches the single audit threshold including this funding, an audit will be necessary. Community Development Block Grant assistance records must be retained for seven years.

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The program Guidebook and Application will be available at no cost on our website.

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500 East Monroe, Springfield IL 62701

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10/19/2021

FY 2020 : $20,000,000
FY 2021 : $20,000,000