Mom-and-pop businesses in O’Fallon to receive crucial grant funds due to COVID-19

With an eye on mom-and-pop places, the city will provide some financial relief for O’Fallon businesses through a new state grant.

Budget Director Sandy Evans said funds are from the Local CURE Economic Support Payments Grant Program that that their team will distribute this fall from the Illinois Department of Commerce and Economic Opportunity.

This program will assist eligible local governments with providing economic support payments to qualified businesses within their jurisdictions that have experienced interruption of business attributable to the COVID-19 public health emergency.

“We still have not heard what the allocation amount will be. We requested $750,000 to distribute to small businesses but have yet to receive word. We should be receiving it any day,” Evans said.

Her department staff/team is amid establishing the criteria for applications. After they receive the funds, Evans said they will release information about how and when to apply.

“They will have to show the need. They will have to provide their profit and loss statement. We’re still working on the final details,” she said.

“We’re gearing it towards the mom-and-pop places. The big box stores can still apply, but the likelihood of them being awarded anything is slim-to-none,” she said. “We’re talking about the smaller restaurants, the smaller shops, the salons.”

Evans said the state allocation to the metro-east is about $2.2 million.

“We ask for $750,000, and we hope we get it — we’re one of the largest communities in the metro-east,” she said.

Evans explained to aldermen at the O’Fallon City Council meeting Nov. 2 her department will distribute the grants in three tiers, but that is subject to change. She said the amounts would likely be $5,000; $7,500; and $10,000. How many employees the businesses have will be a determining factor on amount.

The businesses receiving priority would be those that bring in tourism and hospitality dollars, such as restaurants, bars, retail and special services.

“We really want to help our small businesses,” Evans said. “We’re looking at what we can do.”

Update: Relief fund providing $750,000

The city sent out a press release Thursday explaining the O’Fallon Small Business Relief Fund will provide a total of $750,000 in direct payments to small businesses that have experienced significant disruption or temporary closure (a “business interruption”) of their business attributable to the COVID-19 public health emergency.

The press release noted grants will be awarded to businesses to help address the cost of business interruption including fixed debts, payroll, accounts payable, lost sales, lost opportunities, and other working capital expenses that could have been recognized had the COVID-19 pandemic not occurred.

Priority will be given to targeted small businesses including restaurants and bars, spas and salons, retail stores, and businesses within the tourism and hospitality industry.

“O’Fallon businesses have been hurt by the impact of COVID-19. With returning state restrictions, many are having to think of new ways to stay in business,” said Mayor Herb Roach. “We want to help O’Fallon small businesses with this small business relief grant program. Our business community is part of what makes this community great.”

More about the program, how to apply

For the purpose of this program, small businesses are considered privately owned or sole proprietor businesses that have a small staff size, according to the press release. A qualifying business includes self‐employed individuals, Non-Profit organizations, and independent contractors.

The city will consider staff size, annual revenue, number of locations within and outside of City boundaries, and the extent and nature of the business interruption directly attributable to the COVID‐19 public health emergency when awarding relief funds. Application to the relief fund does not guarantee payment.

Businesses must meet the following eligibility requirements to apply for the O’Fallon Small Business Relief Fund and be considered for direct payment:

• The business must be a for‐profit enterprise or non-profit organization lawfully conducting business in Illinois.
• Be in good standing with the city of O’Fallon and the state of Illinois (i.e. no tax delinquencies, food/beverage tax and/or hotel/motel tax paid to date and possess valid business registrations and licenses).
• Have been established and possess a valid Business Registration with the city of O’Fallon prior to March 1, 2020.
• Be in compliance 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.

Applications are now available at https://www.ofallonillinois.org/ofallon-small-business-relief-fund/. O’Fallon small businesses have until December 4, 2020, to submit their applications to the city of O’Fallon.

Instructions on how to complete and submit the application are available at https://www.ofallonillinois.org/ofallon-small-business-relief-fund/.

Town Hall Meeting

The city has set a town hall meeting for 6:30 p.m. Wednesday, Nov. 18, at City Hall, which will be carried via the Zoom platform as well. So, attendance can be in person or virtually.

Roach said the agenda will include focusing on how the global pandemic has affected the city finances this fiscal year and the impact on the next fiscal year as well.

“One of the frequent questions that I receive, even more so during the last seven months, is regarding how the city’s finances are doing. With the financial impact of COVID-19, state-imposed restrictions and the loss of business, many want to know how their city is doing,” he said.

Topics on the agenda

The 2019-2020 fiscal year audit will also be discussed, as well as the budget process for the upcoming year.

Evans said she hopes to have the new sales tax figures as well as income tax information.

The mayor said there were no new taxes or fees and no increases to any taxes or fees.

“We have maintained solid reserves which have helped maintain our services to the citizens and businesses of O’Fallon, while many other cities have had to reduce services or increase costs,” he said.

One department impacted by COVID-19 was the park department, Roach said. Park revenue was down $135,000 because of cancellations due to the public health crisis. This was the impact from January to April 30, 2020.

How to sign up

To sign up for the town hall, due to limited space for in-person attendance in the council chambers, we will have a signup sheet at O’Fallon City Hall for those that would like to come in person. They will also have it available by Zoom for those that would rather participate remotely.

People can register in advance for this webinar: https://us02web.zoom.us/webinar/register/WN_tCUwuPVnRbOH5K3eJG_uEg.

After registering, people will receive a confirmation email containing information about joining the webinar.

This story was originally published November 12, 2020 at 6:20 PM.