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Advocacy Insights
Endorsed By:
Alderman Anthony Beale
Alderman Felix Cardona
Alderman Peter Chico
Alderwoman Ruth Cruz
Alderman Angela Clay
Alderman Derrick Curtis
Alderwoman Jessie Fuentes
Alderman James Gardiner
Alderwoman Maria Hadden
Alderman William Hall
Alderman Brian Hopkins
Alderman Tim Knudsen
Alderman Bennett Lawson
Alderman Matt Martin
Alderman Carlos Ramirez-Rosa
Alderman Lamont Robinson
Alderman Mike Rodriguez
Alderman Byron Sigcho-Lopez
Alderman Nicholas Sposato
Alderwoman Jeanette Taylor
Alderman Gilbert Villegas
Alderman Andre Vasquez
Alderman Scott Waguespack
Alderman Desmond Yancy
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Do you own a small business struggling to find talent? Are you responsible for hiring employees at your company? Do you want to connect with outstanding students and future industry leaders from DePaul University?
DePaul University is hosting its upcoming Local Business & Part-Time Job Expo on Thursday, September 5th, from 12-5 pm. This event will be held on the Quad of DePaul’s Lincoln Park Campus, offering an excellent opportunity for students and local businesses to connect. Not only will this provide businesses an opportunity to attract talented students for future employment opportunities, they will also be visible to the DePaul University community!
We are thrilled to support this event and help facilitate connections between local businesses and the next generation of talent. Registration for the expo will close on August 26th, so be sure to secure your spot soon. Learn more and register here!
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August 6, 2024
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We are excited to share some updates about the work we are doing to support the small business community! You can visit our website to learn more about all our advocacy efforts.
Enhanced Tax Credit for Hiring Formerly Incarcerated Individuals
Last year we championed a law focused on reducing the costs of health insurance for Illinois small businesses. This was a big win for small businesses.
This year we worked with legislators and stakeholders to enhance the tax credits available to businesses that hire formerly incarcerated individuals. This tax credit was increased from 5% to 15% of qualified wages, and the ceiling was raised from $1,500 to $7,500! These enhanced tax credits can support small businesses struggling to fill positions, foster opportunities for formerly incarcerated individuals, improve public safety, and reduce the costs of recidivism.
The General Assembly allocated $1,000,000.00 to this program so small businesses should start looking into this now! To learn more, click here.
Chicago Small Business Package
The SBAC and a robust, diverse, and impactful coalition are advocating for reforms to eliminate barriers and streamline processes for Chicago small businesses. Some key proposals include streamlining zoning requirements, improving city processes, and ensuring past, far-removed debts do not unreasonably delay entrepreneurs from launching their businesses.
Chicago needs successful small businesses to foster economic development! We already have the support of 18 aldermen/alderwomen and are pushing hard to get all 50 to formally endorse the package! Learn more here.
Burdensome Regulations and Small Businesses
There is no reason overly burdensome regulations should hurt small businesses and have a detrimental impact on local communities. We continue working to fully implement a law that requires state agencies to consider the impact of new regulations on small businesses. We will have additional updates soon.
Stay Connected and Engaged
Our momentum continues to grow and with your support, we will continue making a huge difference for small businesses! Please be sure to check out all the ways you can connect with business owners and advocates on our events flyer. Thank you for supporting the SBAC and small business community!
The SBAC is thrilled to announce an innovative and important program that will support small businesses and revitalize disinvested Chicago communities. Partnering with Allies for Community Business (A4CB), and with support from We Rise Together: For an Equitable & Just Recovery, we have launched a program that will connect the owners of vacant properties with entrepreneurs ready to transition into brick-and-mortar spaces. The program will also provide grants for eligible entrepreneurs aspiring to transition into storefronts or expand their current spaces.
The following neighborhoods will be part of this program: Auburn Gresham, Austin, Back of the Yards, Englewood, Gage Park, North Lawndale, South Lawndale, South Shore, Washington Park, and West Lawn. We will work with local chambers and business organizations to reach eligible entrepreneurs and property owners.
Learn more about the program here!
The Small Business Advocacy Council (SBAC) is gearing up for a crucial visit to the capital on Wednesday, April 10, 2024, as the legislative session commences in our state capital. Building upon the successes of the previous year, we are determined to make significant strides for small businesses in 2024.
Our state agenda for 2024 encompasses several key priorities:
- Property Tax Relief: We aim to advocate for measures that provide much-needed relief in property taxes for small businesses.
- Economic Incentives: We're pushing for the allocation of 50% of economic incentives to small businesses, fostering growth and sustainability within our entrepreneurial community.
- Healthcare Cost Reduction: Addressing the soaring costs of healthcare, particularly in terms of excessive drug costs, is a focal point. Our efforts are directed toward reducing health insurance premiums for small business owners.
- SAFER Communities Act: We are actively working towards the passage of the SAFER Communities Act, which is designed to offer resources to businesses hiring formerly incarcerated individuals. This initiative not only provides opportunities to returning citizens but also contributes to enhancing public safety and reducing recidivism rates.
This highlights some of the work we will be doing in Springfield this session. To learn more about our legislative agenda, visit our Advocacy Initiatives page on our website here.
The best way for the small business community to have a seat at the table is to be in the room! Look for updates from Springfield on our website and social media this Wednesday.
WGN News Highlights Policy Change for Vacant Storefronts
Vacant storefronts litter neighborhood business districts in disinvested communities, causing blight, impacting safety, and depressing economic activity. Because of the negative impact of vacant properties in neighborhoods across the city, a robust coalition of chambers and place-based organizations worked with the Cook County Assessor to put guardrails around a tax break property owners can receive when their property is vacant. Fueled by the support of The Chicago Community Trust, these efforts have resulted in a significant policy change that can reduce vacancies and revitalize neighborhood business districts by transforming vacant spaces into thriving small businesses.
We are thankful to WGN for covering the new policy change. You can watch it here!
We look forward to further advancing policies that support local businesses and commercial corridors.
Proposed Updates to Chicago's Retailer and Food Vendor Rules
The Department of Business and Consumer Affairs (BACP) has published proposed updates to the City of Chicago's Retailer Rules. The Department has also introduced certain rules for food vendors.
BACP is accepting public comments until February 26, 2024, regarding the proposed updates for Retailer Rules and introduced rules for food vendors. Please click here to learn how to make public comments or ask questions.
The only way to have a seat at the table is to be in the room. Be part of the discussion and make your voice heard!
Here is a consolidated list of proposed rules that the SBAC considers important for small businesses. However, please note that this is not an exhaustive list. For a comprehensive view, refer to both the Proposed Updates for Retailer Rules and the Proposed Rules for Food Vendors.
SBAC City of Chicago - Food & Retail Vendor Updates:
Definitions
- Added a 5th item to the section, Consumer commodities do not include ”prepared food and beverages (including liquor), intended for human consumption and which prepared at or consumed at a “restaurant” as defined in these rules.”
- Defines “food vendor” as any establishment required to be licensed whose sales of prepared food to order, or alcohol sold by the drink, or a combination of both comprise at least 90% of the establishment’s annual sales. This includes restaurants, bars/taverns, catering, and mobile food trucks.
- Defines “sale items” as merchandise sold for less than regular price.
- Defines “Sales dates” as the beginning and ending dates of any sales advertisement.
- Defines “Service fee” and “surcharge” as fees charged to pay for services related to the purchase of prepared food and beverages at a food vendor. The charge is typically added at the time of the transaction and covers services rendered to a consumer or administrative and/or processing costs of the food vendor.
Section I. APS – Certification
Rule 1 – Application for Certification
- Under A) added, “Each application must include samples of all the following: the establishment’s sales signs, shelf tags, receipts, return policies, check, debit card, and credit card policies, and media advertisements.”
Rule 9 – APS Certification Application Inspection Fees
- Fee amounts have been omitted. It is unclear if inspections are still subject to fees, and at what cost.
Section II APS – Pricing
Rule 13 – Receipt Requirements
- Adds “The receipt can be offered via paper or electronic methods. Examples of acceptable electronic delivery methods are email, text message, or smartphone applications.
Rule 15 – Shelf Labels
- Changes (A) from a label being required for all items offered for sale to “Unless an exception applies, all items offered for sale placed on a shelf must have a shelf label.”
Adds to Rule 15a: Acceptable shelf labeling includes the use of an “electronic screen” to display items for sale.
- Adds Rule 15d: Allows APS establishments offering non-consumer commodity merchandise (unpackaged fresh produce, very small and inexpensive items, prepared food, and prepared beverages) behind a counter to display a list of products and their prices in lieu of individual shelf tag labels. The sign must be clearly and legibly hand-printed, typewritten, computer-generated, or displayed on an electronic screen and include the name of the item and its selling price.
Rule 16 – Non-Shelved Item Signage
- A non-shelved, end cap, or other type of display sign is no longer excluded from shelf label and unit price requirements.
Section III APS – Inspection Procedures
21 – Inspections Pursuant to Application for Certification or Renewal of Certification
- Adds a new rule by adding a new letter, (B). (B) states, “An establishment must apply to the Commissioner by letter requesting that it be designated a specialty establishment under these rules and in that request must submit documentation sufficient to establish that the establishment’s annual sales of consumer commodities are 10% less of its annual sales.
Designation as a specialty establishment exempts a retail establishment from Rule 5 only.”
Section IV APS - Revocation of Certification; Other Actions
Section V – Non-APS Retailers
Rule 32 – Cash Registers and other non-APS devices
- Adds a new rule that allows for a receipt to be offered physically [paper] or electronically [through e-mail, text message, or smartphone application].
Section VII – BPA Rules
- Changed section title to exclude “(Bisphenol A)” and “regulations.”
Definitions
- Changed to exclude terms “BPA” (Bisphenol A) and “Child Container” and their respective
- Changed language to “BPA” free to include Section 7-28-637(a) of the Municipal Code of Chicago, which defines items that do not include Bisphenol A in their composition.
Rule 44 – Signage
- In (A) Changed to replace term “Child Container” with “Containers” and include Sectionv7-28-637(a) of the Municipal Code of Chicago.
- In i., changed to replace term “Child Container” with “Containers.”
- In ii., changed to replace term “Child Container” with “Containers.”
Section X – Penalties
Rule 50 – Penalties
- Changed to include “Chapters” to enhance concision and clarity.
Section XI – Fees for Inspecting and Sealing
Rule 51 – Fees *Rule 52 in previous version
- Fee for inspecting and sealing scales of a capacity of 6,000 pounds up to 24,000 pounds, each, has decreased from $25.00 to $15.00.
- Fee for inspecting and sealing scales of a capacity of 2,500 pounds up to 6,000 pounds, each, has decreased from $25.00 to $10.00.
- Fee for inspecting and sealing scales of a capacity up to 2,500 pounds, each, have decreased from$25.00 to $5.00.
- Fee for inspecting and sealing hopper scales of the capacity of 0 to 500 pounds, each, has increased from $0.00 to $6.00.
- Fee for inspecting and sealing hopper scales of the capacity of 501 pounds to 2,000 pounds, each, has increased from $0.00 to $14.00.
- Fee for inspecting and sealing hopper scales of the capacity of 2,001 to 10,000 pounds, each, has increased from $0.00 to $34.00.
- Fee for inspecting and sealing hopper scales of the capacity of 10,001 pounds and upwards, each, has increased from $0.00 to $75.00.
- Fee for inspecting and sealing two-bushel, one-bushel, and half-bushel measures, each, has increased from $0.00 to $1.50.
- Fee for inspecting and sealing any other dry measure, each, has increased from $0.00 to $1.50.
- Fee for inspecting and sealing every automatic weighing machine or other similar device of a capacity of less than three tons, used for weighing, each, has increased from $0.00 to $5.00.
- Fee for inspecting and sealing liquids measures of a capacity up to and including five gallons, each, has increased from $0.00 to $2.00.
- Fee for inspecting and sealing liquids measures of a capacity over five gallons, for each five-gallon capacity or part thereof, has increased from $0.00 to $5.00.
- Fee for inspecting and sealing any automatic machines used for measuring liquids, each unit, has increased from $0.00 to $5.00.
- Fee for inspecting and sealing yard measures, each, has increased from $0.00 to $5.00.
- Fee for inspecting and sealing any linear measure, for each three feet, has increased from $0.00to $2.00.
- Fee for inspecting and sealing any tape line exceeding 50 feet in length, has increased from$0.00 to $5.00.
- Fee for inspecting and sealing any automatic machine used for lineal measuring, has increased from $0.00 to $5.00.
- Fee for inspecting and sealing any automatic pump used for measuring gasoline, oils, etc., each, has decreased from $41.00 to $7.00.
- Fee for measuring a quantity of coal or wood and issuing a certificate of approximate measure or weight of same has increased from $0.00 to $14.00.
- Fee for inspecting and sealing gasoline and fuel oil tank trucks, wagons, or trailers of a capacity of 1,000 gallons or less, has increased from $0.00 to $34.00.
- Fee for inspecting and sealing gasoline and fuel tank trucks, wagons, or trailers of a capacity of over 1,000 gallons, for each 500-gallon capacity or part thereof, has increased from $0.00 to $34.00.
- Fee for inspecting and sealing any meter used for measuring gasoline, oils, etc., each, has decreased from $41.00 to $34.00.
- Excluded previously mentioned re-inspection fee of $100.00 [per site], which would be charged in addition to above fees [per device] if any inspected or tested device is condemned or rejected.
Rule 52 – Calculation of Fees *Rule 53 in previous version
- Changed to clarify that Section 4-276-020(b) is a part of the Municipal Code of Chicago.
Section XII – Food Vendor Requirements *Added
Rule 53 – Disclosure of Food Vendor Prices, Service Fees, and Surcharges
- Added that item prices, service fees, and surcharges including credit card fees, split order or bill charge and large group charges must be clearly displayed at the beginning of a customer’s ordering or sales process. Service fees and surcharges must be displayed on all menus, including online menus, restaurant signage, mobile apps and payment.
Rule 54 – Intended use of Food Vendor Services Fees and Surcharges
- Added that wherever service fees and surcharges are listed, their intended use must also be listed and described. Food vendors must explain service fees, surcharges, and their purpose at the request of a consumer. Food vendors must indicate what percentage if any of a service fee or surcharge is a mandatory versus optional charge. Food vendors must indicate what percentage of any service fee or surcharge will be paid to employees in general or specifically waitstaff.
Rule 55 – Food Vendor Receipt Requirements
- Added that a food vendor must always give a customer a receipt. However, the food vendor may offer the customer the option to elect to receive a paper receipt, an electronic receipt, or no receipt at customer's request.
Rule 56 – Food Vendor Price Marking
- Added to include exemptions on food vendor price-marking, instead requiring that “to-go "sections and non-consumer commodity merchandise vendors offer clear and legible signage. Underlines use of hand printed, typewritten, computer-generated, or electronically displayed posting. At minimum, it must include the name of the item and selling price.
The Debate Over The Chicago Real Estate Transfer Tax
Chicago is a tremendous city with a proud tradition. Our great city, however, faces multiple challenges, including persistent economic headwinds and an increase in homelessness. Economic development and enacting programs to alleviate homelessness are crucial. There are different philosophies about how to move Chicago forward, and an important vote is coming.
The enactment of a real estate transfer tax is on the ballot in March. This ballot initiative would create a graduated real estate transfer tax, which is paid by buyers who purchase commercial buildings or homes. Chicago currently has a 0.75% one-time tax on all estate sales. If passed, the ballot initiative does the following:
- Reduces the transfer tax for property sales under $1 million to 0.6%.
- Increases the transfer tax to 2.0% on the portion of property sales between $1 million to $1.5 million.
- Increases the transfer tax to 3.0% on the portion of property sales over 1.5 million, while maintaining the rates above.
Arguments Against the Ballot Initiative: These arguments have been raised by opponents of changing the real estate transfer tax:
- This proposal will hurt homeowners, renters, union workers, and businesses throughout the city.
- Chicago's businesses already struggle with the highest commercial property taxes in the country. Quadrupling transfer taxes will reduce investment and downtown property tax revenue, which the neighborhoods will make up for with higher property taxes.
- This tax will increase the development cost of all housing—including affordable housing—and worsen Chicago's housing shortage.
- Combined with high-interest rates and rising property taxes, it will cause commercial and residential rents to go up and make housing more expensive.
- A yes vote would give the City a blank check with no accountability for spending, even as it has failed to transparently manage the migrant shelter crisis.
Arguments for the Ballot Initiative: These arguments have been made by supporters of changing the Chicago real estate transfer tax:
- Most purchases will have less transfer taxes.
- Proponents estimate that 100 million dollars of revenue will be raised to alleviate homelessness.
- Funds will be spent primarily on building, rehabbing, or subsidizing permanent housing with wraparound services such as support with health, mental health, job training, and education. Permanent housing with supportive services is a model that is proven to end homelessness.
- Rents will not increase because should the initiative pass, any concerns about increased rents are overstated.
- The city has spent or dedicated all funds for homelessness, but some programs have a longer lead time, so it appears that funds are still unspent.
Additional arguments in favor of this ballot initiative can be found here: Bring Chicago Home FAQ
Additional arguments opposing this ballot initiative can be found here: www.protectchicagohomes.com
We are glad to put you in touch with advocates on both sides of this issue. Contact us at emma@sbacil.org with questions!