SALES TAX DEFERRAL FOR BARS AND RESTAURANTS
The Governor has directed the Department of Revenue to defer sales tax payments for more than 24,000 small- and medium-sized bars and restaurants — accounting for nearly 80% of all such entities statewide.
Under the directive, 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. The Department of Revenue estimates this will give relief to nearly 80% of bars and restaurants in Illinois.
Penalties and interest will be automatically waived; however, qualified taxpayers must still file their sales tax return 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. Please view IDOR’s informational bulletin for more information, which is available at tax.illinois.gov.
SBA APPROVES SMALL BUSINESS LOANS IN ILLINOIS
The U.S. Small Business Administration has approved the state’s eligibility for disaster assistance loans 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.gov6