Earlier this week, State Representative Mike Murphy (R-Springfield) sent a letter to Gov. Pritzker urging the consideration of several proposals to help small businesses and their employees weather the damaging economic impact of the current COVID-19 situation. Today, Pritzker announced that two new measures sought by Murphy will be going into effect to defer sales taxes and provide disaster assistance loans.
“As a former small business owner, I understand all too well how the current COVID-19 situation will impact small businesses and the men and women who work for them,” said Murphy. “I am very pleased that the Governor recognizes this as well and has taken these additional steps to provide relief to minimize this devastating economic impact.”
Under the sales tax measure announced by the Governor today, the Department of Revenue will defer sales tax payments for more than 24,000 small- and medium-sized bars and restaurants. Eating and drinking establishments that incurred less than $75,000 in sales tax liabilities last year will not be charged penalties or interest on payments due in March, April or May made late. Qualified taxpayers must still file their sales tax returns even if they are unable to make a payment. Any taxpayers taking advantage of this relief will be required to pay their sales tax liabilities due in March, April and May in four installments starting on May 20 and extending through August 20. For more information, please view IDOR’s informational bulletin available at tax.illinois.gov.
The other measure announced today was that the U.S. Small Business Administration has approved the state’s eligibility for disaster assistance loans through the Economic Injury Disaster Loan (EIDL) program for small businesses facing financial hardship in all 102 counties due to COVID-19. Eligible businesses can apply for up to $2 million in low-interest loans at https://disasterloan.sba.gov.
The measures announced today are in addition to some measures suggested by Murphy that were included in Gov. Pritzker’s Executive Order 2020-07 on Monday, such as waiving the waiting period for unemployment benefits. That order also made it clear that customers will be able to obtain food from restaurants via drive-thru, curbside, delivery or take-out/carry-out by entering an establishment.
“More still needs to be done to help our small business community survive the current crisis, but these measures are important steps in the right direction,” Murphy concluded.
The complete letter sent by Murphy to the Governor early this week with small business support proposals is available on RepMurpy.com. Murphy has also added an updated “COVID-19” resources tab to his website with comprehensive information to help constituents stay up to date and find answers to questions as information about the response to COVID-19 is constantly changing. Click here to access the page.