The SBAC championed legislation in 2017 reducing the fees for forming an LLC (limited liability corporation) from $500 to $150, the annual renewal fee from $250.00 to $75.00, and other LLC fees, which were among the highest in the nation. Prior to this law, small business owners, who make up 98% of all businesses in the state of Illinois, were being disincentivized from forming LLCs due to the excessive cost to form as a corporation or filing in other states. By lowering LLC filing fees for forming from $500 to $150 and annual report fees to $75 from $250, small entrepreneurs are more likely to launch new businesses, creating new growth opportunities for the state.

Hear SBAC President Elliot Richardson’s comments about the legislation below or learn more about the bill here. Small businesses have been crushed by the escalating costs of health insurance. The SBAC championed legislation focused on reducing premiums for small businesses and increasing transparency so policymakers and the public can better understand what drives the costs of health insurance. This legislation will apply to health insurance plans in 2026, providing ample time to implement the process for prior approval. This is a big win for small businesses that want to provide affordable, quality health insurance to employees! Learn more here!

A law has been enacted to support the recovery of Illinois chambers of commerce, many of which were hard-hit by the pandemic but continued to provide vital support to local businesses. With $5 million in funding, it will help chambers recover from revenue losses and continue their essential work. Through a grant program established by the Illinois Department of Commerce and Economic Opportunity, eligible chambers can receive up to one-sixth of their 2019–2020 revenue loss. If any funds remain after these initial grants, additional awards will be given to qualifying chambers. The law applies to chambers with annual revenues up to $1 million, marking a major victory for small businesses. Thank you to the chambers and legislators who championed this initiative, this is a significant win for the small business community! Learn more here!

The Illinois General Assembly has enacted a new law to support small businesses, create opportunities for formerly incarcerated individuals, enhance public safety, and lower recidivism costs. The law increases the tax credit for businesses hiring formerly incarcerated individuals from 5% to 15% of qualified wages and raises the incentive cap from $1,500 to $7,500. By facilitating stable employment for these individuals, the risk of recidivism drops by 62%, thereby improving public safety. This initiative not only aids the Illinois economy by reducing reincarceration costs but also generates long-term revenue through taxes paid by these employees. The General Assembly has allocated $1,000,000 to this program, encouraging small businesses to take advantage of this opportunity. Learn more here!

At the start of Summer 2021, Mayor Lori Lightfoot introduced a package of ordinances into Chicago City Council known as the Chi Biz Strong recovery package. The package contained small business-centered policies among which were reforms the SBAC had long been fighting for including the elimination of full city council approval for public way use permits.

Chicago Alderman narrowly voted to remove the other public way use permit reform contained in the Chi Biz Strong package and put it up for a separate vote in the July City Council meeting. The SBAC spent the weeks ahead of the July meeting rallying Chicago business organizations behind the cause to eliminate full city council approval for public way use permits. With 36 business organizations and chambers of commerce formally endorsing our letter to Chicago Alderman - on July 21st, Chicago City Council stood with small businesses by eliminating full city council approval for the public way use permits.

When the CARES Act was originally passed in March of 2020, Congress intended to make PPP loans deductible. However, in April, the IRS published Notice 2020-32 saying that under section 265 of the Internal Revenue Code business expenses paid for from a class of tax-exempt income – a forgiven PPP loan – are taxable. This would have been absolutely devastating for small businesses that were already struggling to stay afloat. Urgently, with the aid of our members and Chamber partners, we used our voice in the nationwide effort demanding a legislative solution. That solution was reached with Section 276 of The Consolidated Appropriations Act 2021. This amended the original CARES Act to clarify that PPP loans are in fact tax-deductible – a major victory for the grassroots effort to save small businesses.

Each year Illinois awards government contracts to businesses. These contracts cover everything from construction projects to professional services. Small businesses that drive our economy often have difficulty competing for these government contracts. The same is true for minority and women-owned businesses. Recognizing the important role that small, minority, and women-owned businesses play in the economy, the Illinois legislature has set goals for state agencies. This legislation will require each state agency to provide important information about how much money they spent on government contracts and the amounts awarded to small, minority, and women-owned businesses. As well as require this information be made public so that Illinoisans can see how their tax dollars are being spent. A state contact can help a small, minority, and women-owned business grow and flourish. This legislation will provide transparency and that will ensure eligible and qualified small, minority, and women-owned businesses receive government contracts. Learn more here!

View the press release here.

Small businesses are a vital part of Illinois' economy. Ensuring these businesses have greater access to state procurement contracts is crucial for job creation and their ongoing success. This law will significantly enhance opportunities for small, minority, and women-owned businesses to secure government contracts. This law mandates that if a bidder has been unsuccessful in winning a contract from the Department of Innovation and Technology, the Department of Transportation, the Capital Development Board, or the Illinois State Toll Highway Authority after four consecutive attempts for the same services, they will receive an explanation for the rejections. This transparency is essential for small, minority, and women-owned businesses navigating the procurement process. Learn more here!

Occupational licenses have long created unnecessary barriers for Illinois residents seeking to start new jobs and roadblocks for entrepreneurs aiming to launch new businesses. With the enactment of House Bill 5576, this law enhances the current licensing review process by gathering critical information about the requirements for obtaining various licenses, enabling a more comprehensive review by the General Assembly. By providing this essential information, legislators can better evaluate and modify or eliminate overly burdensome or restrictive occupational licenses when appropriate. These adjustments will support small businesses facing hiring challenges, remove outdated obstacles for entrepreneurs, and help drive economic growth. We extend our gratitude to our partners at the IJ Clinic on Entrepreneurship for their collaboration and thank Representative Ammons and Senator Koehler for their leadership in advancing this important legislation.

Ordinance SO2021-332 expands the limit on home based business operational space to 300 square feet or to 25 percent of the total floor area in any single-family residence, and more than 15 percent of the floor area of a unit in a building containing multiple dwellings. This allows business owners to unleash their productivity and work from home during the pandemic. The ordinance represents a successful collaboration of partnerships between Elliot Richardson, Co-Founder and President of the Small Business Advocacy Council;  Beth Kregor, the Director of the IJ Clinic on Entrepreneurship at the University of Chicago Law School; and the Departments of Business Affairs and Consumer Protection, Buildings, and Planning and Development.

Illinois has taken a significant step forward by becoming the 12th state in the nation to implement a Child Tax Credit. This new law provides essential tax relief to working families with low to moderate incomes, especially those with young children. Beginning in 2024, taxpayers who qualify for the Illinois Earned Income Tax Credit (EITC) and have at least one child under 12 will receive a Child Tax Credit worth 20% of their EITC. The credit amount will increase to 40% for the 2025 tax year and beyond, delivering ongoing support to help offset the high costs of raising children. Learn more here!

Chicago’s City Council passed an ordinance that reinstates policies that expand outdoor dining in Chicago. This ordinance will permit restaurants and taverns to serve customers near the curb, on the sidewalks of adjacent buildings, and in parking areas in proper situations. The ordinance also permits street closures to support local restaurants and taverns should various conditions be satisfied. Learn more here!

The Small Business Advocacy Council and various city chambers supported ordinance 02018-7001. The ordinance made conforming changes to the previously enacted state legislation, SB2436, which grants localities the authority to issue exemptions to the 1934 Illinois Liquor Control Law prohibiting restaurants located within a 100 feet of a church, school, hospital and certain other building from serving alcohol to their guests. The ordinance grants authority and sets forth a process for the Local Liquor Control Commissioner to issue a liquor license to the applicant restaurant.  While also leaving an outlet for aldermanic objections. The adoption of the ordinance has made it easier for restaurants and bars to make a profit in areas previously prohibited from serving alcohol.

The SBAC has fought arduously for the legalization of sandwich signs (sometimes referred to as "A-frame signs"). After 7 years, the SBAC's tenacity paid off with a BIG win for the small business community. In June 2021, Aldermen voted to adopt a new policy on sandwich signs - effective March 2022 Chicago businesses can use sandwich signs to drive foot traffic into their stores!