COVID-19 Business Assistance Loan Program

Oak Park Business Assistance Loans up to $10,000 each will now be available to registered local businesses with 30 or fewer employees and an average annual gross business receipts of less than $2 million.

To be eligible, businesses must have experienced and be able to prove a 30 percent or more loss in revenue, due to the COVID-19 outbreak, since March 15, 2020. Funds can be used for operating expenses including payroll, utilities, rent, etc. Funds cannot to be used for equipment purchases, construction or expansion-related costs. Businesses that are chains or franchises, with five or more locations are not eligible.

Please be aware this loan program is made available by the U.S. Department of Housing and Urban Development through the CDBG Coronavirus Program. Thus, it has a requirement that one full-time equivalent job must be created or retained, for a period of at least three months, for a low to moderate income person, per every $5,000 in loan assistance. The low to moderate income job verification form or forms, provided by the Village, must be submitted by the business with the application.

The Oak Park Business Assistance Loan Program will have a three-year, interest-free term. A participating business that can prove the retention or hire of at least one low-or-moderate income employee for the first three months after receipt of each $5,000 in loan funds will not be required to repay the loan. The loan repayment for any participating business unable to document the employee retention will be deferred for the first 12 months after the loan is approved. Businesses unable to provide documentation to qualify for loan forgiveness will begin monthly loan repayments on the 13^th month after the loan is approved. After repayment begins, businesses will have two years to complete repayment of the loan.

Participation in the Oak Park Business Assistance Loan Program requires the completion of an application form. All applications must be submitted complete with all required signed and dated documents.

All of the required financial documentation must be submitted with the completed application. Applications will only be considered when fully complete.

Click here to download the application form

Loan applications may be submitted electronically to Business@oak-park.us. Completed applications will be considered on a first-come first-served basis.

Completed applications will be considered on a first-come, first-served basis. 

This loan program and any specific loans are contingent upon the availability of funds.  If at any time this funding source is depleted, this loan program and any commitments to fund specific loans may become null and void.

• Question from potential applicant: The loan information states the following:  "A participating business that can prove retention of at least one low-or-moderate income employee, per each $5,000 in loan funds, for the first three months after receipt of the loan funds will not be required to repay the loan."  What income number are you using for "low-or-moderate" income?

Answer from the Village:  The low or moderate income figures being used by the Village are provided by the U.S. Department of Housing and Urban Development (HUD), which are specific for the Cook County region. These numbers can be found on the “Income Verification Form – For Job Retention” located on the last page of the application form found on this website. Any level of income lower than the dollar amounts indicated, per the various household sizes, would qualify.

• Question from potential applicant: Does the low to moderate income person, being retained or hired for the first three months after receipt of the loan funds, have to be full-time or can they be part-time? 

Answer from the Village:  The position(s) being hired or retained can be part-time or full-time but, the total number of retentions or hires must equal at least one full-time equivalent position for each $5,000 in loan funds.

• Question from potential applicant:  Does the individual being employed, to fulfill the program’s eligibility requirement, have to be retained or can this position be a new hire?

Answer from the Village:  The individual being employed can either be a new hire or current employee who has been retained as long as the low-to-moderate income requirement is met.  

• Question from potential applicant:  The loan information states the following:  “Businesses that are chains or franchises are not eligible.” How are you defining chains or franchises?

Answer from the Village:  Oak Park businesses owned by a corporation, with five or more locations (Example:  Walgreens, Jewel, Target, Etc.) are not eligible.  Individual stores, owned by an independent franchisee, are eligible.  Applicants can make their case for their qualifications within the application submittal.

• Question from potential applicant: The business I manage is actually owned by a non-profit organization.  Can non-profits apply for this program?

Answer from the Village:  No.  Non-profit organizations do not qualify for the Business Assistance Loan Program.

Click here to download a PDF file of a list of Oak Park businesses that have been approved for a Business Assistance Loan. The list is updated monthly.

Call 708.358.5412 or email jprior@oak-park.us with any questions or comments.

Additional COVID-19 coronavirus information and resources are available at www.oak-park.us/covid19.