pexels karolina grabowska 4475523SPRINGFIELD – With Illinois small businesses still reeling from COVID-19’s economic impact, State Senator Sara Feigenholtz (D-Chicago) is sponsoring a measure that will permit local municipalities to use TIF funding to help struggling businesses.

“Every day, we see another small business closing its doors,” Feigenholtz said. “This bill provides local government with one more lever to keep independent small businesses alive.”

Senate Bill 188 would allow tax increment financing (TIF) funds to be spent on businesses that have experienced interruption due to COVID-19. It would permit local municipalities to use TIF funds to establish loans, grants, or subsidies to local businesses for costs associated with COVID-19-related interruption, provided that the business is located within the TIF district. Businesses that have seen decreases in revenue caused by either closing or reduced capacity limits in compliance with mitigation efforts or a decrease in customer demand would qualify under the legislation’s definitions. Municipalities would be required to approve procedures for the payment costs and include accountability measures for grant or loan agreements.

The bill, which is an initiative of the Illinois Municipal League, passed the Senate Revenue Committee and will be sent to the full Senate.