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* Crain’s…
The state has run out of money for its Business Interruption Grant program, which aimed to help small businesses walloped by COVID-19, and some restaurant operators are not happy.
The program launched over the summer, and supplies federal funds from the CARES Act. The Illinois Department of Commerce and Economic Opportunity administered the first round of grants in August, and started distributing a second round in the fall. […]
Restaurant operators that were not chosen said they are frustrated with the state. They were encouraged to apply, and some operators said that led them to believe they were likely to receive a grant.
“The communications were utterly, utterly botched,” said Pat Doerr, managing director of the Hospitality Business Association of Chicago. “They kept on saying, ‘Apply, apply, apply,’ especially after the mitigations were ratcheted up statewide in early November.”
* DCEO, however, said they were focused on smaller business and minority-owned businesses…
We worked systematically to review over 50,000 apps received for BIG, using criteria set in statute to address the hardest hit industries and geographies throughout Illinois.
Reviewing on a strictly first-come, first-served basis would have advantaged the larger, more sophisticated businesses, which is why DCEO continued to receive applications through mid-December to ensure that the smallest, most vulnerable businesses were able to access this lifeline as we entered the winter months. This equity centric approach resulted in more than 80% of BIG awards going to businesses with less than $1M in annual revenue, and roughly 40% of awards going to minority-owned businesses - a stark contrast with awards made under PPP.
While we hoped additional federal funding would extend this program, we have worked to maximize every dollar we had. We are proud that the program provided over $130 million in grants to over 3,500 restaurants and taverns across the state.
* Meanwhile, WICS has a story entitled “Local restaurants confused, fear state punishment for opening.” But I’m not sure why they’re confused or why this is labeled by the outlet as “punishment” and “retribution”…
Springfield restaurant owners who have received state grants in the past are now struggling to decide whether they will reopen their indoor dining under Sangamon County’s new guidance, which allows them to do so.
Many of them fear retribution from Gov. JB Pritzker, D-Illinois, because the county’s new guidance directly opposes the governor’s guidance. […]
This left the 36 Springfield restaurants who were awarded the BIG grants with a dilemma: To open, or not to open.
“If the state stepped in to take this grant, we would be bankrupt immediately, and I’m sure we’re not the only ones,” Loukinen’s on 4th Owner Laurie Loukinen said.
Loukinen received $150,000 from the BIG.
Um, BIG stands for Business Interruption Grant. If you’re operating, you’re not interrupted. From the requirements…
Must have been closed or had reduced operations due to government orders, public health guidelines, or depressed consumer demand during the COVID 19 pandemic.
Must have complied with all relevant laws, regulations, and executive orders from the State and federal government, including the social distancing guidelines as promulgated by the Executive Orders of the Illinois Governor.
I love restaurants. Before the troubles, I would usually eat at restaurants more often than I’d cook at home every week. And there is zero doubt that restaurants have been hit extremely hard by the pandemic.
But nobody forced anybody to apply for that BIG money. And it was pretty darned clear what that money was for and what the rules were. I have no problem with restaurant owners pushing the state to reopen because this is America and they have an absolute right to do that. But don’t try to change the rules now after you’ve taken that taxpayer money.
* And, finally…
After being absent from Springfield for over seven months, the Illinois legislature is returning to Springfield this weekend for lame duck session.
Springfield city officials think the legislature coming back into town will benefit the city and the budget’s bottom-line.
Springfield Budget Director Bill McCarty said after going over 200 days without session, the lame duck is a welcome sight to see.
He said the city will see a monetary uptick from legislators going out to local restaurants, visiting local retailers, and staying at hotels, but he says it still is not as helpful as it normally is.
*Sigh*
posted by Rich Miller
Tuesday, Jan 5, 21 @ 2:11 pm
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I’d be curious to know how they vetted multiple ownerships or LLCs. For example, Gene and Georgetti’s has 2 locations and both received $150,000 grants while others were left out.
Comment by City Zen Tuesday, Jan 5, 21 @ 2:50 pm
“Can I ask a question?”
Springfield, with revenue for session, restaurants, all that entails…
Is the plan in Springfield that session folk and such frequent establishments in hopes of, (and planning to), generate revenue, all the while its establishments generating this revenue are also not in compliance with state health orders during a once in a century pandemic?
Is that what we’re discussing, an excited uptick in revenues to decisions on the pandemic that may be counter to health orders?
“I’ll hang up and listen my answer.”
Comment by Oswego Willy Tuesday, Jan 5, 21 @ 2:53 pm
Was McCarty hoping legislators would be enjoying themselves at restaurants, or was he stating the fact that legislators need to sleep in a hotel room, and need to eat and won’t be cooking in their hotel rooms so will utilize take-out?
Comment by Just Me 2 Tuesday, Jan 5, 21 @ 2:54 pm
Dan Caulkins screamed bloody murder about businesses in grant agreements having to follow mitigation rules. I guess we shouldn’t be surprised though since the GOP has long favored unrestricted business and corporate welfare.
Comment by Precinct Captain Tuesday, Jan 5, 21 @ 3:04 pm
It’s pretty simple to understand here. When these establishments applied for these BIG Grants I’m sure hoping they and their Attorney or CPA read the rules. You always read all the rules before signing the papers. So if the owners of Loukinen‘s is worried about opening against the Governor’s mitigation guidelines then they need to follow the rules and not open until the guidelines are changed by the Governor.
Those are the rules. Or pay the money back. Again it’s simple.
Comment by Club J Tuesday, Jan 5, 21 @ 5:29 pm
Open if you got dollars and be outside for pickup of food and booze and have re a tent to serve. Work at it. Improvise and make life better. How about a family clown, tv’s a nad pizza! Work with your fellow competitors and provide for the session of legislature coming up as they need to eat!
Comment by Bear3 Tuesday, Jan 5, 21 @ 5:58 pm
I’m sure the GOP would be ready to pull SNAP bennies from anyone caught just a little out of compliance…
Sorry help sometimes comes with strings attached.
Comment by Cool Papa Bell Tuesday, Jan 5, 21 @ 7:13 pm
Why can’t GA members join at least some state workers and pick up drive-thru fast-food on their way to session? Breakfast, lunch and dinner. There’s several options on West Jefferson or South Grand. McDonalds, Subway, Hardees (how the chain remains in business is a miracle), Burger King, etc. Or get pizza delivery. Doesn’t have to be the downtown Springfield gourmet restaurants (e.g., Maldaners, Saputos, Loukinen’s). Or pick up Casey’s take-out food at their locations on the edge of town–or a hot dog from Qik-n-EZ.
Comment by Essential State Employee Wednesday, Jan 6, 21 @ 8:16 am