Terms and Requirements

Loan Terms

• Loan Amount: 3 months average monthly revenues before the COVID-19 outbreak, up to $50,000
• Interest Rate: The fixed annual interest rate on the loan will be 1% for the first 18 months. After 18 months, the rate will increase to 5.75% for the duration of the loan
• Repayment: For months 1 – 6: $10 monthly payment of principal for account maintenance purposes; interest accrues but is not payable. For months 7 – 12: Interest-only monthly payments. Month 13 and thereafter: Monthly principal and interest payments
• Term: Up to 5 years (60 months)
• Proceeds: Proceeds are required to be used for working capital with at least 50% of proceeds being applied toward payroll. The applicant must also make a commitment to maintain its workforce at 50% or more of pre-COVID-19 levels for at least 6 months

Business Requirements

To be eligible for a Resiliency Fund loan, a small business must meet the requirements detailed below. Please note that the application must be completed and submitted by the owner of the business with the largest ownership interest. (Note: if two or more owners have equal ownership of the business, one of the owners with equal ownership will be required to fill out the online application.)

• Employ fewer than 50 employees, 50% of whom are Chicago residents
• Have realized gross annual revenues of less than $3 million pre-COVID-19
• Have suffered a revenue decrease of at least 25% due to COVID-19
• Be located in the City of Chicago and have been in business for at least 1 year as of the date of application

Application Information Requirements

As part of the application, the loan applicant must provide the following documentation:

• A valid business address within the City of Chicago
• A valid City business license, if applicable
• Business bank statements from October 2019 to February 2020
• The most recently filed tax return
• A photo ID (may include CityKey, consular ID, passport, or other forms) of the loan applicant business owner
• The applicant business owner will be required to provide a personal guarantee and be subject to a credit check (Note: if two or more owners have equal ownership of the business, then each owner with that ownership share is subject to the credit check and personal guarantee)

Applicants and businesses will also be subject to a City of Chicago debt check, with the opportunity to get on a payment plan and move forward with the loan in the event the applicant or business has existing City debt.

Should the submission be approved, a participating lender will reach out to the loan applicant to collect the required documentation, conduct the credit check, and finalize the application review process.

Required Attestations

The loan applicant must be prepared to comply with and attest to the following at closing:

• A decline in revenues of at least 25% due to COVID-19
• That the business has annual gross revenues of less than $3 million and less than 50 employees
• That no other beneficial owners(s) has applied for a Resiliency Fund loan
• That 50% of the proceeds of the loan will be applied to payroll
• That the business will maintain its workforce at 50% or more of pre-COVID-19 levels for at least 6 months
• That at least 50% of the employees of the business reside in Chicago
• That the business has been in operation for at least 1 year from the date of application

Equity Reserve

The City of Chicago is committed to providing Resiliency Fund loans to businesses from every industry, background, and community area in the City. Applications will be reviewed on a first come first serve basis, however the City will set aside a portion of the loan pool to ensure an equitable distribution of loans with consideration for the following:

• Geography: Loans will be allocated across all Chicago’s communities
• Income: Loans will be available to small businesses serving low- and moderate-income residents
• Industry Type: Loans will be available across all industry areas impacted by COVID-19

Due to the high demand, the number of Resiliency Fund loans  will be limited. Applications for loans through the Chicago Small Business Resiliency Fund have closed and will be reviewed on a rolling first-come, first-served basis with criteria in place to ensure equitable distributions.