COVID-19 Business Recovery Grant Program

Purpose

This program is open to businesses located within the corporate limits of Belleville and fall under the categories of bar/restaurant, entertainment, and retail/wholesale. An “other” category will be added for those businesses that may not be fall within these traditional categories but have been affected by the COVID-19 pandemic. Funding has been provided by the Illinois Department of Commerce & Economic Opportunity (DCEO) via the Local CURE’s Economic Support Payments Grant Program (“ES Program”) administered by DCEO through the Local Coronavirus Urgent Remediation Emergency Support Program (“Local CURE Program”). The Local CURE Program administers federal funds from the Coronavirus Relief Fund provided to the State of Illinois pursuant to section 5001 of the federal Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) by providing financial support to units of local government. The ES Program is authorized by Public Act 101-636, Public Act 101-637 and Title 14 Illinois Administrative Code Part 700 (14 Ill. Admin. Code Part 700) to reimburse Local Governments for economic support payments made to qualified businesses within their jurisdictions that have experienced interruption of business attributable to the COVID-19 public health emergency.

Eligibility 

Grants of up to $5,000 may be available for businesses that meet the eligibility criteria and scoring criteria as outlined below. Businesses are eligible for one grant through this program.

The eligibility criteria for the program is as follows:

  •  Businesses located within the corporate limits of the City of Belleville, IL.
  • Businesses with 50 or fewer Full Time Equivalent employees. Full Time Equivalent is defined as a combination of 35 hours per week. Example:
    1 Part Time Employee: 25 hours
    + 1 Part Time Employee: 10 hours
     = 1 Full Time Equivalent: 35 hours
  • Revenues reduced >20% by COVID-19 in any months from March-December vs. February 2020.
  • Businesses who have not received federal funding (PPP, EIDL, BIG, etc.) in the past, or businesses that have received federal funding and intend to use the Belleville Business Recovery Grant funding for expenses different than what federal funding was used for.
  • For-profit small businesses only are eligible (non-profit organizations are not eligible). For profit businesses owned by non-profits are eligible, as long as they meet all other requirements. The application must be made through the for-profit business, and not the non-profit parent company.
  • May not have an IRS tax lien or other judgement(s) against it and the business owners or partners may not be currently undergoing bankruptcy proceedings.

Losses in revenue can be shown by comparing February revenue with revenue of the following months of March through November of 2020.

Eligible and Ineligible Use of Funds

Grant funding may be used for payroll, operating expenses, lease/rent payments, modifications required for compliance with reopening guidelines, or inventory and acquisition vital to the business. The combination of eligibility criteria and these eligible expenses demonstrate that the program passes the “reimbursable expenditure test”.

Ineligible costs include expenses reimbursed under any State, local or federal program, capital improvements, taxes, personal expenses, damages covered by insurance, expenditures prohibited by section 5001(b) of the CARES Act, reimbursement to donors for donated items, workforce bonuses other than hazard pay or overtime, severance pay, legal settlements, any other expenses not reasonably incurred due to the COVID-19 emergency. 

Application Requirements

Applicants will be required to submit a completed application, a description of the impact of the COVID19 pandemic on the business (including revenue), 2019 or latest business tax returns, a signed W-9 form, bank statements from 2020 showing losses in revenue, and proof of any previous funding (PPP, EIDL, BIG, etc.) including documentation on the expenses funded through those programs (if applicable).

These requirements will provide evidence of adherence to the U.S. Department of the Treasury’s Coronavirus Relief Fund guidance.

Scoring Criteria

Funding will be distributed based on the following scoring system. A three to five-person panel made up of City staff, and possibly citizens with a background in business and/or finance, will review applications to determine the eligibility and points scored for each applicant business. The number of grants awarded will be determined based on scoring and available funding, until all funding is exhausted. 

Percentage of Revenues Lost
>80%70 pts.
71-80%60 pts.
61-70%50 pts.
51-60%40 pts.
41-50%30 pts.
31-40%20 pts.
20-30%10 pts. 
<20%0 pts.


Duration of Closure
8 months50 pts.
7 months 45 pts.
6 months40 pts.
5 months35 pts.
4 months30 pts.
3 months25 pts.
2 months20 pts
1 month15 pts. 


Years in Business
> 2512 pts.
21-2510 pts.
16-20 8 pts.
11-156 pts.
6-104 pts.
1-52 pts.


Percentage of Business Operations Subject to Mandatory Closure
>80%50 pts.
71-80%45 pts.
61-70%40 pts.
51-60%35 pts.
41-50%30 pts.
31-40%25 pts.
20-30%20 pts.
<20%15 pts.


Number of Full-Time Equivalent Employees*
26-5030 pts.
21-2525 pts.
16-2020 pts.
11-1515 pts.
6-1010 pts.
1-55 pts.

*Full-time equivalent employees is a combined total of 35 hours per week.* 


Funding Disbursement

The initial funding source for the program will be the City’s General Fund account in the amount of $150,000. The City’s existing process for disbursement of funding will be used for the Belleville Business Recovery Program. Once a grant request has been determined eligible and valid by Economic Development & Planning Division staff, a check request will be submitted to the City’s Finance Department and be processed through the regular claims cycle. The claims process includes review by the Finance Director and the full City Council. This process is the same used for all City expenses, including incentive payments.


Application & Resources

Applications are due no later than 4:30 p.m. Tuesday, Jan. 5, 2021. For questions, please call 618-233-6810, ext. 1249 or email edpz@belleville.net

Submit applications to:
Belleville COVID-19 Business Recovery Grant Program
c/o Economic Development & Planning Division
407 E. Lincoln St. Belleville, IL 62220 

Or email the materials to edpz@belleville.net edpz@belleville.net.  

Click here to download a copy of the application. 

FAQ

Q: Who is eligible for Belleville COVID-19 Business Recovery Grants?

A: Eligible businesses include:

  • Permanent, year-round Businesses located within the corporate limits of the City of Belleville, IL.
  • Businesses with 50 or fewer Full Time Equivalent employees. Full Time Equivalent is defined as a combination of 35 hours per week.
    Example:
    1 Part Time Employee: 25 hours
    + 1 Part Time Employee: 10 hours
    = 1 Full Time Equivalent: 35 hours
  • Revenues reduced >20% by COVID-19 in any months from March-November vs. February 2020.
  • Businesses who have not received federal funding (PPP, EIDL, BIG, etc.) in the past, or businesses that have received federal funding and intend to use the Belleville COVID-19 Business Recovery Grant funding for expenses different than what federal funding was used for.
  • For-profit small businesses only are eligible (non-profit organizations are not eligible). For profit businesses owned by non-profits are eligible, as long as they meet all other requirements. The application must be made through the for-profit business, and not the non-profit parent company.
  • May not have an IRS tax lien or other judgement(s) against it and the business owners or partners may not be currently undergoing bankruptcy proceedings.
  • Home based businesses are NOT eligible for this program.

Q: How do I demonstrate that I have lost at least 20% of revenue in any month since February, 2020? 

A: This can be shown by comparing February revenue with revenue of the following months of March through November of 2020. If you have lost more than 20% in any one month since February 2020, you meet that qualification criteria. 

Q: What can I use the funding for? 

A: Payments can be used for: 

  • Payroll 
  • Operating expenses
  • Lease or rent payments
  • Modifications that are required for complying with reopening guidelines
  • Inventory and acquisition vital to the business

Q: What are ineligible costs if I receive funding?

A: Ineligible costs include:

  • Expenses reimbursed under any State, local or federal program
  • Capital improvements
  • Taxes
  • Personal expenses
  • Damages covered by insurance
  • Expenditures prohibited by section 5001(b) of the CARES Act
  • Reimbursement to donors for donated items
  • Workforce bonuses other than hazard pay or overtime
  • Severance pay
  • Legal settlements
  • Any other expenses not reasonably incurred due to the COVID-19 emergency

Q: How much funding is available? 

A: Grants of up to $5,000 may be available for businesses that meet the eligibility criteria and scoring criteria as outlined in this document. Businesses are eligible for one grant through this program. The number of grant requests may exceed the amount of available funding. Eligible businesses will be scored using the scoring criteria (see above). 

Q: What documentation do I need to submit with my grant application? 

A: You must submit the following:

  • Completed application
  • Description of the impact of COVID-19 on the business (including revenue)
  • 2019 or latest business tax return
  • Signed W9
  • Bank statement from 2020 showing loss in revenues
  • Documentation of expenditures to be funded (paid invoices, payroll, etc.)
  • Proof of previous Federal funding (PPP, EIDL, BIG, etc.) and documentation of expenses funded through those programs (if applicable)