ROCKFORD, Ill. (WIFR) – The City of Rockford is offering grants to restaurants still struggling with the effects of the COVID-19 pandemic.

The Restaurant Relief Grant provides restaurants with help dealing with the fallout from the pandemic and helps them recoup some of the money they lost through increased unemployment insurance payments from the state. The pandemic brought many hardships, but restaurants were hit particularly hard with layoffs and declines in business. There were regulations that required restaurants to close to a certain degree, whether by closing a dining room and switching to takeout and delivery or using a drive-thru.

John Groh, president and CEO of the Rockford Area Convention & Visitors Bureau, says, “Some restaurants have switched to takeout or delivery and have been able to keep some of their staff employed, while others have had to close completely. So these programs are actually intended for restaurants in the county that had to make layoffs due to the regulations. Because they complied, they now have to make higher insurance payments to the state.”

Earlier this year, the first wave of grants was awarded in May. 33 restaurants in Rockford and Winnebago County received a grant. These restaurants met all the criteria and had paid more than $60,000 into the unemployment system. The first round included $469,000 in payments, which were divided among the restaurants. The maximum amount a restaurant can receive, set by the state of Illinois, is $100,000. $1.5 million has been secured for this grant program. This is the total amount that can be awarded in all three rounds.

“All restaurants in Winnebago County are encouraged to look at the eligibility requirements to see if they qualify for the program. We will be looking at all applications from existing restaurants that received awards back in May, as well as restaurants that didn’t even apply. Maybe they didn’t even know about the program, maybe they thought they weren’t eligible. We would encourage any restaurant to apply that believes they have followed all guidelines during the COVID-19 pandemic, have laid off employees, have received unemployment insurance increases since then, and if they can submit their paperwork, they will be considered eligible and should receive awards sometime in mid-September.”

Some of the criteria for participating in this program are:

• The restaurant must continue to operate
• Must be located in Winnebago County
• Comply with all COVID government regulations (particularly regarding indoor dining) during the pandemic and in the first and second quarters of 2021
• Higher unemployment insurance contributions paid to the state of Illinois

“The grant is designed to help restaurant owners. In some cases, they have to pay back small loans or business loans to be able to make these higher payments to the state. Maybe they have to maintain their buildings differently. Maybe they haven’t reinvested in their business technology. All of the restaurants we awarded money to in the spring or early summer used those dollars in different ways, depending on their individual business needs. The Restaurant Relief Grant is designed to help one restaurant. Restaurants enrich and improve a community because they provide jobs, culinary excellence and delicious food to all of us, and the grant program is designed to really help them get through the tough times they’re still going through as they comply with government regulations imposed on them due to the demands of the pandemic.”

A third and final round is scheduled to open in early 2025. This is because they will have to wait for the Q1 and Q2 payments, so about six months, before they can reopen the portal for the third round. Rockford also needs to make sure that restaurants have made those payments to the state so that the City of Rockford can work to return those funds to restaurant owners through the program.

For more information, visit the grants section on their website. The portal will be open for the second round from August 13th until 5pm on August 30th for restaurants to apply for this grant program. Make sure the application is complete. There will be a review panel to make sure restaurants meet all the criteria to receive the grant. Announcements for the second wave will be made in mid to late September.

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