​In response to the Coronavirus (COVID-19) pandemic and its effect on small businesses, the Village of Schaumburg has created a small business grant program. The objective of this grant is to help businesses retain employees at pre-COVID-19 levels. The village is offering small business owners in Schaumburg a 50% match of operating expenses for two months (up to $10,000 total for each business) to help retain employees. The village has allocated $100,000 to this program, with funds available on a first come, first served basis.
 
Businesses must:

• Be located within the Village of Schaumburg
• Demonstrate that the COVID-19 outbreak caused a decrease in revenue
• Employ between 1-5 employees/contract employees (not including owner/s) in total across all locations
• Have less than $1.5 million in gross annual revenue
• Have been in operation for at least 1 year
• Have no outstanding tax liens or legal judgments
• Not receive, or have received, assistance through other programs intended for this purpose such as the SBA’s Economic Injury Disaster Loan program or PPP

Commit to maintaining pre-COVID-19 employment levels for a minimum of 6 months upon receipt of grant. If commitment is not met, grant must be repaid.

​The village is maintaining a webpage with links to several resources available through federal, state and trade organizations. New resources are being added regularly as they become available. Click on the link below to access the Village of Schaumburg Business Resource Page.

To ensure businesses can reopen safely, the state released a common set of standards expected of all employers, while also outlining industry-specific guidelines using a risk-based approach to support unique operational needs of businesses across the state. Industry guidance will help businesses and residents feel safe in returning to many of these new activities that have been closed for the past several months.

Phase 4 of the Restore Illinois plan creates safety guidelines for the following permitted activities and businesses to resume, with capacity rules in place:

• Meetings and events: Venues and meeting spaces can resume with the lesser of up to 50 people OR 50% of overall room capacity. Multiple groups are permitted given facilities have space to appropriately social distance and can limit interaction between groups. This includes activities such as conferences and weddings.
• Indoor and Outdoor recreation: Revised guidelines to allow select indoor recreation facilities (e.g., bowling alleys, skating rinks), as well as clubhouses to reopen. Indoor recreation to operate at lesser of 50 customers OR 50% of facility capacity with outdoor recreation allowing group sizes of up to 50, and permitting multiple groups given facilities have space to appropriately social distance and can limit interaction between groups; concessions permitted with restrictions.
• Indoor Dining: Indoor dining can reopen with groups of 10 or less, with tables spaced 6-feet apart in seated areas and with standing areas at no more than 25% of capacity.
• Museums: Can reopen with no more than 25% occupancy, and with interactive exhibits and rides closed; guided tours should be limited to 50 people or fewer per group; museums should have a plan to limit congregation via advance ticket sales and timed ticketing; concessions permitted with restrictions.
• Zoos: Can reopen with no more than 25% occupancy, and with interactive exhibits, indoor exhibits, and rides closed; guided tours should be limited to 50 people or fewer per group; zoos should have a plan to limit congregation via advance ticket sales and timed ticketing; concessions permitted with restrictions.
• Cinema and Theatre: Indoor seated theaters, cinemas, and performing arts centers to allow admission of the lesser of up to 50 guests OR 50% of overall theater or performance space capacity (applies to each screening room); outdoor capacity limited to 20% of overall theater or performance space capacity; concessions permitted with restrictions.
• Outdoor seated spectator events: Outdoor spectator sports can resume with no more than 20% of seating capacity; concessions permitted with restrictions.
  Film production: Allow no more than 50% of sound stage or filming location capacity; crowd scenes should be limited to 50 people or fewer.

Industries with revised guidelines in Phase 4:

• Youth and Recreational Sports: Revised guidelines allow competitive gameplay and tournaments; youth and recreational sports venues can operate at 50% of facility capacity, 20% seating capacity for spectators, and group sizes up to 50 with multiple groups permitted during practice and competitive games given venues have space to appropriately social distance and can limit interaction between groups; concessions permitted with restrictions.
• Health and fitness centers: Revised guidelines allow gyms to open at 50% capacity and allow group fitness classes of up to 50 people with new safety guidelines for indoors, with multiple groups permitted given facilities have space to appropriately social distance and can limit interaction between groups.
• Day camps: Water-based activities permitted in accordance with IDPH guidelines; no more than 50% of facility capacity with group size of no more than 15 participants in a group, unless participants changing weekly.

Additionally, retail, service counters, offices, personal care (including salons, barber, nail salons), manufacturing and other industries allowed to reopen in Phase 3 will continue to operate at a reduced capacity.

To help businesses prepare to reopen and remain in compliance with new guidelines over the next two weeks, DCEO has released a new set of downloadable materials. Business toolkits are complete with signage, training checklists and other resources to help business owners and workers implement safety procedures and adhere to the latest capacity restrictions. Materials for businesses and operators pertaining to Phases 3 and 4 of the Restore Plan, can be found at Illinois.gov/businessguidelines.

​The package includes more than $900 million across more than ten programs and four state agencies to help working families and small businesses who have been hit the hardest by COVID-19’s economic impact, which was compounded by recent property damage and civil unrest. Programs include:

• Emergency Rental Assistance
• Emergency Mortgage Assistance
• New Business Interruption Grants
• Distressed Capital
• Poverty Alleviation Strategies

 
SBA Recovery Programs
The SBA is once again offering the Economic Injury Disaster Loan program and the Paycheck Protection program.

• Economic Injury Disaster Loan Program - Provides an advance of up to $10,000 and is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. This loan advance will not have to be repaid.

 

• Paycheck Protection Program - Provides loans designed to provide a direct incentive for small businesses to keep their workers on the payroll. The SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.

 
Other COVID-19 Resources

• COVID-19 Resource Page: https://www.villageofschaumburg.com/government/general-government/business-resources

 

• Phase III Re-opening Information: https://www.villageofschaumburg.com/government/general-government/phase-3-reopening-information-for-businesses

 

• Reduced Occupancy Calculator: https://schaumburgil.seamlessdocs.com/f/occloadcalc

​The IRS has published this flowchart to help determine if employee retention credits can be used by a company. 

​It also includes a table with some differences between the current credits available for COVID related leave.

​Governor JB Pritzker released industry-specific guidelines that allow for the safe re-opening of businesses as the state progresses into the next phase of the Restore Illinois plan.

All four regions of the state are on track to advance to Phase 3 of the plan in the coming days, allowing thousands of residents to return to work, and the reopening of businesses in the following industries: retail, offices, manufacturing, barbershops and salons, summer programs, various outdoor recreation activities and bars and restaurants for outdoor dining.

Guidelines as well as toolkits for businesses can be found on the Illinois Department of Commerce and Economic Opportunity (DCEO) website, HERE. 

https://www2.illinois.gov/dceo/pages/restoreILP3.aspx

​This is what we have been able to glean so far from SBA and Department of the Treasury notices (along with CPA and Law firm interpretations).
 
The SBA will be relying on banks to gather and submit the required paperwork for PPP Loan forgiveness.  Fully expect some banks to ask for more documentation than others.  Some banks are asking for the PPP funds to go into a separate account.  Keep very good records and be prepared to submit details. 
 
Loan forgiveness will be based upon maintaining headcount, maintaining wages for each employee and payroll cost/other cost ratio. 
 
Headcount reduction is determined by dividing the base FTE headcount during the 8 weeks of the PPP loan by the base FTE headcount during the look back period.  The look back period is either from 1/1/20 to 2/29/20 OR 2/15/19 to 6/30/19 at the borrower’s discretion.  There is no definition yet of full-time equivalent (FTE) employees.  Until that is issued, the best advice is to use 30 hours of part-timers = 1 FTE as that’s been used before by the agencies involved.
 
Forgiveness is reduced for not maintaining wages per employee.  The lookback period for wage level is 1st Q 2020.  If any employee’s salary is reduced by more than 25% during the 8 weeks of the PPP then the forgiveness is reduced dollar-for-dollar by the dollar amount of the portion beyond the 25% reduction.  For employees earning more then $100,000, reductions are only considered if the employee ends up below $100,000 annualized in the more than 25% reduction.  There has been no guidance given yet on how to calculate or compare these periods, for now, best advice is to use a weekly average for both periods.
 
And lastly at least 75% of the forgiveness must be payroll costs.  Payroll costs include wages, commission, tips, paid leave, insurance premiums, retirement contributions, etc.  Wages above $100,000 annualized to any single employee are excluded.  The rest (up to 25%) must be for mortgage, rent or utilities.  If more is spent in non-payroll categories the forgiveness will still cap based upon the 75% / 25% ratio.
 
There is no final guidance on the order of reduction, but everything I have read is presuming that the headcount reduction will be first and then the wage level reduction and then the 75% / 25% calculation will be last.  In most cases this produces the biggest overall reduction in forgiveness so it’s safest for projections.
 
An example: 
A company had 10 FTE employees during the preferred look back period.  During the PPP period they had 6 FTE employees.  They reduced 1 of the employee’s wages by 30% (by reducing their hours average from 30 to 21 but keeping their rate at $11.00 an hour).  During the PPP period they spent $30,000 on payroll, $4,000 on rent and $2,000 on utilities.  They are looking for $36,000 in forgiveness. 
 
They have a 60% reduction due to headcount, therefor $21,600 is eligible for forgiveness. 
 
The wage reduction beyond a 25% reduction is $132 for the 8 weeks, therefor $21,468 is eligible for forgiveness. 
 
Their payroll was 83% of the total, so the rent/utilities forgiveness is not reduced, therefor $21,468 is eligible for forgiveness. 
 
The remaining $14,532 becomes a loan at 1% to be paid back over 2 years.
 
I don’t think I quite made the 1 sheet reference target, and even still this misses a lot of the finer details. 
 
There are a couple of ways that employers could not keep headcount or wage levels during the 8 weeks of PPP but restore them by 6/30/20 and still get forgiveness, but there are no details at all on how that works or how long after 6/30/20 they’d have to keep those levels restored so I’ve left that off.
 
Future guidance may change everything here.  Feel free to reach out to me if you have any questions, and I’ll do my best to help.

My Friend and Business Associate found this great information online. I wanted to pass it along.

Please consider talking with Katie about Human Resources issues, including payroll.COVID-19 Response Funds

Statewide
Announced Funds
Illinois COVID-19 Response Fund
For the People Collective Artists of Color Emergency Grants
America's Food Fund (National with Illinois Partners)

Accepting Applications
Arts for Illinois Relief Fund
Illinois Council on Developmental Disabilities Relief Fund
Illinois Humanities COVID-19 Emergency Relief Grants
Blue Cross Blue Shield of Illinois COVID-19 Community Collaboration Fund
Illinois Arts Council Agency Emergency Relief Fund

Other Resources
Serve Illinois Commission on Volunteerism and Community Service

​ChicagoAnnounced Funds
Archdiocese of Chicago
Chicago Federation of Musicians Relief Fund
Big Shoulders Fund
The Resurrection Project Rapid Relief Fund
Cook County's Community Recovery Initiative

Accepting Applications
A Better Chicago Emergency Relief Fund
City of Chicago Small Business Resiliency Fund
Chicago Theatre Workers Relief Fund
Chicago COVID-19 Journalism Fund
Chicago Community COVID-19 Response Fund

Other Resources
3Arts Artist Resources
Brave Space Alliance Crisis Pantry and Mutual Aid
#LetUsBreathe Collective's Stimulus Package for Humanity City of Chicago COVID-19 Artist Relief Information Page
Open Door Advisor's COVID-19 Emergency Relief Funding Opportunities Guide

DuPage County
DuPage Foundation Fund
Community Memorial Foundation COVID-19 Urgent Response Fund

Evanston
Evanston Community Foundation Rapid Response Fund

Fox Valley
Fox Valley Grantmakers COVID-19 Response Fund

Freeport
United Way of Northwest Illinois COVID-19 Response Fund

Grundy County
Community Foundation of Grundy County Disaster Fund

Kankakee
Community Foundation of Kankakee River Valley Emergency Response Fund

Knox and Warren County
Galesburg Community Foundation Rapid Response Fund

Lake County
United Way of Lake County, Lake County Government, Lake County Community Foundation, and the Lake County Municipal League COVID-19 Response Fund

McHenry County
Community Foundation for McHenry County and United Way of Greater McHenry County COVID-19 Response Fund

Morton
Morton Community Foundation Disaster Relief Fund

Oak Park River Forest
Oak Park-River Forest Rapid Response and Recovery Fund

Quad Cities
Quad Cities Community Foundation Disaster Relief Fund
United Way of Quad Cities Actions & Info

Quincy
Community Foundation of the Quincy Area COVID-19 Nonprofit Response Fund

Southeastern Illinois
Southeastern Illinois COVID-19 Relief Fund

Springfield
Community Foundation for the Land of Lincoln and United Way of Central Illinois COVID-19 Response Fund

Will County
United Way of Will County COVID-19 Response Fund

​1.  IRS launches tool to help non-filers register for Economic Impact Payments

To help millions of people, the Treasury Department and the IRS launched a new web tool allowing quick registration for Economic Impact Payments for those who don’t normally file a tax return. The non-filer tool, developed in partnership between the IRS and the Free File Alliance, provides a free and easy option designed for people who don't have a return filing obligation, including those with too little income to file. The feature is available only on IRS.gov, and users should look for Non-filers: Enter Payment Info Here to take them directly to the tool.

"People who don't have a return filing obligation can use this tool to give us basic information so they can receive their Economic Impact Payments as soon as possible," said IRS Commissioner Chuck Rettig. "The IRS and Free File Alliance have been working around the clock to deliver this new tool to help people."

Economic Impact Payments will be distributed automatically to most people starting next week. Eligible taxpayers who filed tax returns for 2019 or 2018 will receive the payments automatically. Automatic payments will also go in the near future to those receiving Social Security retirement or disability benefits and Railroad Retirement benefits.
For more information and additional updates, visit IRS.gov/coronavirus.


2.  IRS extends more tax deadlines to cover individuals, trusts and estates

The Department of Treasury and the Internal Revenue Service this week announced extensions of additional key tax deadlines for individuals and businesses.

Last month, the IRS announced that taxpayers generally have until July 15, 2020, to file and pay federal income taxes originally due on April 15. No late-filing penalty, late-payment penalty or interest will be due.
Notice 2020-23 expands this relief to additional returns, tax payments and other actions. As a result, the extensions generally now apply to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020. Individuals, trusts, estates, corporations and other non-corporate tax filers qualify for the extra time. This means that anyone, including Americans who live and work abroad, can now wait until July 15 to file their 2019 federal income tax return and pay any tax due.
More information on tax relief is available at IRS.gov/coronavirus.


3.  CARES Act: Guidance available on net operating losses

The Internal Revenue Service this week issued guidance providing tax relief under the CARES Act for taxpayers with net operating losses, in addition the agency issued tax relief for partnerships filing amended returns.
 
COVID Relief for taxpayers claiming NOLs
Revenue Procedure 2020-24 provides guidance to taxpayers with net operating losses that are carried back under the CARES Act by providing procedures for:

• Waiving the carryback period in the case of a net operating loss arising in a taxable year beginning after Dec. 31, 2017, and before Jan. 1, 2020,
• Disregarding certain amounts of foreign income subject to transition tax that would normally have been included as income during the five-year carryback period, and
• Waiving a carryback period, reducing a carryback period, or revoking an election to waive a carryback period for a taxable year that began before Jan. 1, 2018, and ended after Dec. 31, 2017.

Six month extension of time for filing NOL forms
In Notice 2020-26, the IRS grants a six-month extension of time to file Form 1045 or Form 1139, as applicable, with respect to the carryback of a net operating loss that arose in any taxable year that began during calendar year 2018 and that ended on or before June 30, 2019.  Individuals, trusts, and estates would file Form 1045, and corporations would file Form 1139.
 
COVID relief for partnerships with NOLs
The IRS also issued Revenue Procedure 2020-23, allowing eligible partnerships to file amended partnership returns using a Form 1065, U.S. Return of Partnership Income, by checking the “Amended Return” box and issuing amended Schedules K-1, Partner’s Share of Income, Deductions, Credits, to each of its partners. Partnerships filing these amended returns should write “FILED PURSUANT TO REV PROC 2020-23” at the top of the amended return.

​The Treasury Department and the Internal Revenue Service today announced that distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. However, some seniors and others who typically do not file returns will need to submit a simple tax return to receive the stimulus payment.

Who is eligible for the economic impact payment?
Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible.
Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples. Parents also receive $500 for each qualifying child.

How will the IRS know where to send my payment?
The vast majority of people do not need to take any action. The IRS will calculate and automatically send the economic impact payment to those eligible.
For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. For those who have not yet filed their return for 2019, the IRS will use information from their 2018 tax filing to calculate the payment. The economic impact payment will be deposited directly into the same banking account reflected on the return filed.

The IRS does not have my direct deposit information. What can I do?
In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail.

I am not typically required to file a tax return. Can I still receive my payment?
Yes. People who typically do not file a tax return will need to file a simple tax return to receive an economic impact payment. Low-income taxpayers, senior citizens, Social Security recipients, some veterans and individuals with disabilities who are otherwise not required to file a tax return will not owe tax.

How can I file the tax return needed to receive my economic impact payment?
IRS.gov/coronavirus will soon provide information instructing people in these groups on how to file a 2019 tax return with simple, but necessary, information including their filing status, number of dependents and direct deposit bank account information.

I have not filed my tax return for 2018 or 2019. Can I still receive an economic impact payment?
Yes. The IRS urges anyone with a tax filing obligation who has not yet filed a tax return for 2018 or 2019 to file as soon as they can to receive an economic impact payment. Taxpayers should include direct deposit banking information on the return.

I need to file a tax return. How long are the economic impact payments available?
For those concerned about visiting a tax professional or local community organization in person to get help with a tax return, these economic impact payments will be available throughout the rest of 2020.

Where can I get more information?
The IRS will post all key information on IRS.gov/coronavirus as soon as it becomes available.
The IRS has a reduced staff in many of its offices but remains committed to helping eligible individuals receive their payments expeditiously. Check for updated information on IRS.gov/coronavirus rather than calling IRS assistors who are helping process 2019 returns.