Five months after Chicago announced that small businesses affected by the coronavirus would receive a total of $ 100 million in low-interest loans, only a fraction of those dollars has been distributed.
About $ 17 million from the Chicago Small Business Resiliency Loan Fund has been provided to 625 small businesses across the city, according to Crain’s.
When Mayor Lori Lightfoot announced the fund in March, she said it was intended to provide short-term relief to affected stores and businesses, according to the report. Since the announcement, more than 10,000 small businesses have applied for loans under the program.
Those who received the funds include retailers, restaurants and bars, daycares and lounges. The program was supposed to be an interim measure for companies that had not received money from the first round of the federal payroll protection program.
Chicago’s resilience loan fund included the city’s $ 75 million, according to Crain’s. Goldman Sachs contributed $ 10 million, with private donors, Clayco Construction and Fifth Third Bank loaning the remaining $ 16 million, the report notes.
Chicago says nearly $ 30 million in funding is being approved, which will help 2,000 businesses. According to the report, 2,300 loan applications were turned down.
Some Chicago store owners also say they still haven’t received insurance payments after their businesses were looted in late May, following protests over the murder of George Floyd. Earlier this month, more than 2,500 businesses that were affected by Covid-19 and this looting received $ 46 million in business interruption grants. The state provided the federally funded grants and Governor JB Pritkzer said further aid would be on the way. [Crain’s] – Alexi friedman