Village of Arlington Heights

CDBG-CV III Small Business Forgivable Loan Program

Summary and Requirements

Introduction

On March 15, 2021, the Village Board of Arlington Heights approved $130,000 in Community Development Block Grant (CDBG) funding to provide financial assistance to small businesses negatively impacted by COVID-19. Regarding these funds, the Village of Arlington Heights will be offering 26 forgivable loans, in the amount of $5,000 each, to eligible businesses.

Requirements

CDBG funding is provided by the U.S. Department of Housing and Urban Development (HUD) and is appropriated via the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The Village of Arlington Heights will accept applications that meet the mandatory criteria and provide the required documentation.

An eligible applicant is a for-profit business that:

Is in current operation within the Village of Arlington Heights corporate boundaries, and has been in operation within Arlington Heights since at least March 1, 2019.
Is in good standing with the Village (i.e. no unpaid fines or fees, code violations, etc.)
Is a brick-and-mortar operation. Preference will be given to sales tax generating retailers, restaurants, and entertainment uses. Restaurants located within the Arlington Alfresco Downtown pedestrian zone are not eligible.
Experienced a 20% or greater decline in sales revenues during the period of April-December 2020 when compared to the same nine-month period in 2019.
Is not part of a national or regional chain, unless the business owner is a franchisee with ownership interest in no more than two total locations of the same brand.
Spent at least $5,000 on COVID-related expenses.
Continually retained at least one full-time or equivalent low-to-moderate income job position for a six-month period dating back to April 2020, or will have done so prior to December 31, 2021. The maximum annualized income of said position is $51,000/year. Combined part-time employees must work at least 20 hours/week.The applicable worker(s) must be a W-2 paying position.
Is not duplicating use of funds already garnered from other State, Federal, or Local programs, such as the SBA’s PPP and EIDL programs. For example, if PPP funds were used towards rent during a three-month period, this forgivable loan program from the Village cannot be put towards rent from the same time period as well.

The Village of Arlington Heights, at its sole discretion, reserves the right to decline applications or withhold loan payments for any reason. Loan availability is contingent upon the Village receiving the funds for this program from HUD, and all loans must conform with HUD regulations and guidelines.

Applicants are to provide accurate information and all required documentation. Loans are subject to federal funding requirements that are intended to benefit low-income and moderate-income persons. Recipients not in compliance with the program’s requirements will be required to refund all, or a portion, of the awarded loan amount.

Submittal and Terms

Completed applications are to be submitted online, and can only be done so once. Please read the entire application before filling it out, and ensure that all required documentation is available to be uploaded (preferably in PDF format). A lottery will be conducted among the eligible applications received. First priority for selection will be given to sales tax generating retail, restaurants, and entertainment uses. If funds remain available, the lottery will be opened to all other eligible applications.

Terms of the loan are 0% interest for up to six months (or expiration of lease, whichever comes first). If the business can verify that they have met all requirements of the loan, including the employee retention provision, the loan may be immediately forgiven. If the business has not yet employed a low-to-moderate income job position, or has not for the mandated six-month period, the loan may be forgiven following complete adherence to this requirement.

The deadline to apply is Friday, July 16 at 5:00pm CST. If demand for funds does not meet or exceed supply, the Village may determine how to use remaining funds at its discretion.

Eligible Use of Funds

A Village of Arlington Heights Small Business Forgivable Loan may be used to reimburse various costs/expenses occurred during the COVID-19 pandemic. Here are examples of potential uses for the forgivable loan:

Payroll/wages for low-to-moderate income employee. The maximum annual income for a full-time job is $51,000/year. Combined part-time employees must work at least 20 hours/week. The applicable worker(s) must be a W-2 paying position.
Mortgage payments or rent for tenant space.
Personal protective equipment (PPE) to operate within State-mandated COVID guidelines.
Other expenses in direct relation to the negative impacts of the pandemic can also be considered on a case-by-case basis.

Expenses incurred that are not directly tied to the impact of COVID-19, or that have already been accounted for via other governmental loans or grants (e.g. SBA PPP program, etc.), will be considered ineligible.

Ineligible Business Types*

The following business types are ineligible for this program:

Arlington Alfresco Restaurants within the Downtown Pedestrian Zone
Adult Businesses
Auction Rooms
Construction Yards
Home-based Businesses
Houses of Worship
Liquor Stores
Medical Offices and Facilities
Not-profit Organizations
Pawn Shops
Tobacco or Cannabis Retailers
Businesses whose revenue increased from April-December 2020 (as compared to the same period in 2019) or whose revenues decreased by less than 20%

Submittal Checklist

In order to be considered for a $5,000 small business forgivable loan, first a completed application must be submitted for review. You will not be able to save your application during submittal. So please carefully review the application prior to completing it, and ensure that you are ready to upload all required attachments, preferably in PDF format, with the application.

The following is a checklist of items you will need to submit with your application:

Completed IRS Form W-9 (attached to this application).

Copy of lease verifying expiration date, or property ownership documentation such as a warranty deed or purchase contact.

Payroll documents verifying retention of a full-time equivalent job position earning less than $51,000 annually. Examples of acceptable documents may include: Form W-3, Verified Payroll Statements, Other legal documentation verifying retention of low-to-middle income job position, to be accepted per the Village's discretion

Documents verifying a decline in revenues of at least 20% from March-December 2020, as compared to March-December 2019. Examples of acceptable documents may include: Schedule C, Annual or Quarterly Balance Sheet, Profit & Loss Statement, Other legal documentation verifying decline in revenues, to be accepted per the Village's discretion

Completed FORM A (attached to this application) with copies of documentation confirming receipt of funds from other grant or loan program

Completed FORM B (attached to this application) with copies of documentation verifying COVID-related costs (receipts, invoices, etc.).

Completed FORM C, to be filled out and returned to Village Staff by a low-to-moderate income employee (will be provided to applicant following submittal of application)

Application

Part I: Business Information

Business Name (Legal)

Attach Completed IRS Form W-9

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Business Name (DBA)

Business Phone Number

Business Contact Phone Number

Business Contact E-mail

DUNS Number

EIN Number

Business Type (Restaurants within Arlington Alfresco pedestrian zone are not eligible)

Retail

Restaurant

Entertainment

Other

Was your business open in Arlington Heights prior to March 1, 2019? Note, if "no" then your business is not eligible for this program

Yes

Do you own or lease your tenant space?

Own

Lease

If "lease", what lease's expiration date?

Attach copy of lease or ownership documentation.

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Part II: Employment Information

Including yourself, how many full-time employees did you have last year on March 15, 2020?

Including yourself, how many part-time employees did you have last year on March 15, 2020?

Including yourself, how many full-time employees do you currently have?

Including yourself, how many part-time employees do you currently have?

The business must have retained one W-2 eligible full-time job, or full-time equivalent positions, since November 1, 2020. Annualized income cannot exceed $51,000. Attach payroll documentation verifying retention of job position.

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Part III: Financial Information

Verify your revenue decline from March-December 2020 compared to April-December 2019:

Pre-Pandemic Total Sales (April-December 2019): $

Pandemic Total Sales (April-December 2019): $

Percentage Decrease: %

Attach documentation verifying decline in sales

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Do you have any delinquent costs (fees, fines, loans, unpaid business license, etc.) still unpaid to the Village of Arlington Heights? Note: if "yes" then your business is not eligible for this program.

Yes

Part IV: Use of Funds

Part IV: Form A

Provide an itemized list of public financial assistance received, either in the form of grants or loans, and explain what the funding was used for. For programs that do not apply, please put N/A:

SBA PPP Program: Paycheck Protection Program

SBA PPP Program Amount $

SBA PPP Use of Funds

SBA EIDL Program: COVID-19 Economic Injury Disaster Loan :

SBA EIDL Program Amount $

SBA EIDL Use of Funds

State of Illinois BIG Program: Business Interruption Grants

State of Illinois BIG Program Amount $

State of Illinois BIG Program Use of Funds

Village of Arlington Heights COVID-19 Relief 0% Interest Loan

Village of Arlington Heights COVID-19 Relief 0% Interest Loan Program Amount $

Village of Arlington Heights COVID-19 Relief 0% Interest Loan Use of Funds

Other Grants/Loans Received (Please Explain)

Attach documentation confirming receipt of funds from other grant or loan programs.

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Part IV: Form B

Provide an itemized list of COVID-related expenses in total value of at least $5,000, for which you are applying for this loan. Please note, expenses cannot overlap those for which funds from FORM A were received. Please state the reason for request and how the funds were used. In additional, please state how much has already been expended ($) and how much is still unpaid ($).

In total- of the expenses listed above, how much has already been paid/expended?

In total- of the expenses listed above, how much is still unpaid?

Attach receipts, invoices, or other documents verifying eligible costs.

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Part V: Certification

Sign Here

First Name

Last Name

Choose how to sign

Draw Type

The submitted application, including attachments, is subject to disclosure under Illinois public records law subject to limited applicable exemptions. Applicant acknowledges, understands, and agrees that, except as noted below, all information in its application and attachments will be disclosed, without any notice to Applicant, if a public records request is made for such information, and the Village of Arlington Heights will not be liable to Applicant for such disclosure. All Social Security/FEIN/DUNS numbers are collected, maintained, and reported by the Village of Arlington Heights to be in compliance with IRDS reporting requirements and are exempt from public records. I certify that I am authorized to submit this application on behalf of the business, the information provided in this application is true and accurate to the best of my ability, and no false or misleading statements have been made in order to secure approval of this application. The Village of Arlington Heights are authorized to make all the inquired deemed necessary to verify the accuracy of the information contained herein. Additionally, Applicant agrees that, in the evening funds are provided pursuance to this application, the Village of Arlington Heights or its agent shall be entitled to access and audit such records as may be necessary to prevent fraud in this process tor ensure compliance with federal requirements. I certify that the funding will be used for business purposes only and not for household, personal, or consumer usage. I understand that I may be asked to provide additional information in order to process this application. I understand that eligibility does not guarantee aid, and that funding is limited. I understand that any willful misrepresentation on this statement could result in disqualification from program funding. Under penalties of perjury, I declare that I have read the foregoing application and that the facts stated in it are true. I certify any funds requested/received will not be a duplication of benefits. I certify I have not received any public sources of funds to cover expenses for which I am requesting funds. I understand that if there is a duplication of benefits, I will be required to repay all CDBG funds received immediately to the Village of Arlington Heights and I understand that any willful misrepresentation on this statement could result in a fine and/or imprisonment under provision of the United States Criminal Code U.S.C. Title 18, Section 1001.