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0.4 percent of Business Interruption Grants cash went to officially “dissolved” companies

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A review of state records shows the Department of Commerce and Economic Opportunity sent at least $1.1 million in Business Interruption Grants to 72 companies the state considers “dissolved.”

In order to qualify for the Coronavirus relief funding, state application forms show the businesses had to attest that they were open on March 1st, 2020, they would try to stay open all year, and would use the money “exclusively for costs and losses incurred due to the business interruption” caused by Covid-19.

Business registration records kept at the Secretary of State’s office showed at least 72 of the companies that won grant funding were considered dissolved or terminated long before the pandemic began. […]

The Illinois Department of Revenue found as many as 17 of those 72 still have active accounts open with the state, another sign the entities are collecting sales taxes or withholding income taxes.

However, the tax agency confirmed it had no records of 19 of the companies who won grants, and 33 others had closed their doors. […]

Lauren Huffman, a spokeswoman with DCEO, said any company that won grant money that is later found to be in “violation of their agreement will put their grant status in jeopardy and could result in the state pursuing a return of funds.”

The total was never mentioned in the online text version of the story (it was mentioned in the actual on-air story) to provide some context, but the BIG program handed out over $275 million in funding before closing in January. So, $1.1 million would be 0.4 percent. And some of those businesses appear to have just not renewed their state paperwork.

* ILGOP…

Pritzker’s schtick in running for this office was to be responsible and get back to the basics of governing. Whether it’s been the disaster at IDES, the tragic death of over 30 veterans at a state-run facility, or this colossal waste of taxpayer money - the Pritzker administration has been a complete failure at running state government.

posted by Rich Miller
Thursday, Mar 11, 21 @ 11:06 am

Comments

My S corporation was listed as dissolved for about a year a few years ago. My accountant accidentally submitted the annual fee a few weeks late, and it took that long to straighten everything out.

That’s a different problem, of course. SoS may take credit cards or EFTs now, and if it doesn’t it should.

Comment by Lefty Lefty Thursday, Mar 11, 21 @ 11:17 am
===And some of those businesses appear to have just not renewed their state paperwork.===

1990s IL GOP would have been all about using this as an example of how burdensome and difficult it could be for a mom and pop small business to navigate a complicated web of state regulations and registrations.

I’ll be surprised if they take that angle when the alternative is to attack Governor Pritzker over a program that appears to have doled out 99.6% of funds with no issues, and the legislation or DCEO might actually prevent them from excluding a business for a late tax return or expired corporate paperwork.

Comment by Candy Dogood Thursday, Mar 11, 21 @ 11:18 am
Honestly what atrocious reporting. There’s plenty to criticize the state about, but reporting like this, which is prevalent, makes it harder to wade through what’s a legitimate gripe and what’s not. Makes working for the state a challenge.

Comment by JJJJJJJJJJ Thursday, Mar 11, 21 @ 11:23 am
Dear ILGOP,

Bruce Rauner.

Comment by Cheryl44 Thursday, Mar 11, 21 @ 11:23 am
So what has the GOP done in the last year to support businesses? Because none of them actually voted for this program.

Comment by hmmm Thursday, Mar 11, 21 @ 11:26 am
===the tragic death of over 30 veterans at a state-run facility===

I dunno if I go after any governor with veterans and deaths … as a state party owned by a governor… who had veterans home deaths.

A candidate? They may be able to go “there”, not Rauner’s state party. Nope.

Comment by Oswego Willy Thursday, Mar 11, 21 @ 11:26 am
ILGOP==the Pritzker administration has been a complete failure at running state government.==

Coming from the ILGOP this is a real hoot. I guess part of being bought by Raunerbucks requires a complete lack of self awareness and complete amnesia of their time in power from 2014-2018.

Comment by don the legend Thursday, Mar 11, 21 @ 11:27 am
I wish there was a spreadsheet to go with WCIA’s report so you could check how many of the companies really went out business or are simply behind on paperwork/fees with the IL secretary of state’s office to be in “dissolved” status.

It is not uncommon for a business owner to keep operating even when they have let their corporate status lapse, even though this is not recommended.

Comment by hisgirlfriday Thursday, Mar 11, 21 @ 11:29 am
Uh-oh.

This means that making sure that payments are made only to active companies is likely not part of the standard operating procedure at DCEO. It’s a good follow-up inquiry.

I am sure we will hear about the “hollowing out” excuse from from the apologist punditry in due course.

My response is: We are in Year Three of the Pritzker administration. If he is not yet responsible, please let me know when he will be so I can mark my calendar.

And I know, we might hear “they just forgot to file their paper work.” That’s usually a sign that the business is not being well managed, which raises questions about how they will manage to spend the funds.

Comment by Ferris Wheeler Thursday, Mar 11, 21 @ 11:30 am
I’m guessing most any large program would take an error rate of .4%

Comment by Cool Papa Bell Thursday, Mar 11, 21 @ 11:31 am
0.4% is an extremely good error rate for any program, let alone a program that people may intentionally try to defraud. If anything, that is something to be proud of.

That being said, I can’t take anything the ILGOP says about good governance seriously, given what they did to the state the last time they were in charge of anything. It is like an arsonist critiquing the new fire chief.

Comment by Homebody Thursday, Mar 11, 21 @ 11:43 am
===please let me know when he will be so I can mark my calendar.===

If we’re actually discussing dates or projections, I think a realistic expectation is that the State of Illinois can expect to be plagued by structural issues so long as a significant number of employees in managerial roles continue to be people who got their start at the State of Illinois by knowingly participating in an illegal hiring scheme.

So we’ve got a few years yet.

Comment by Candy Dogood Thursday, Mar 11, 21 @ 11:46 am
Cool Papa Bell with a reasoned, rational response. Any large institution with that level of error is doing very well. Should we strive for perfect? Of course. Will we reach it? Never, we’re human. We don’t contain perfection other than glancing moments when our kind can touch it for a fleeting second.

Comment by Lt Guv Thursday, Mar 11, 21 @ 12:23 pm
I guess I don’t see what the problem is as long as the state can claw the money back.

Comment by cermak_rd Thursday, Mar 11, 21 @ 12:26 pm
Failed Governor- that’s the campaign line.
They’re missing JB’s 2018 hook of failed governor combined with think big. So far the GOP doesn’t have a solution just a tag line of failed governor. Policy will have to go along with it or else it only rallies your base but doesn’t get crossover. Can’t win without crossover.

Comment by Frank talks Thursday, Mar 11, 21 @ 12:39 pm
=== Failed Governor- that’s the campaign line.===

What Raunerite/Trumpkin will be carrying it?

It can be good, or not, but Bailey or Schimpf saying it won’t offset the onslaught those two could face to their politics.

We’ll see

Comment by Oswego Willy Thursday, Mar 11, 21 @ 12:42 pm
“I’m guessing most any large program would take an error rate of .4%”

Yup. Rauner would have killed for that kind of error rate on an emergency program. “this colossal waste of taxpayer money”? Umm, good luck with that. The Administration will be more than happy to put some of the 99.6% who received this state aid without an issue up to discuss this “colossal waste of taxpayer money.”

Comment by Chicago Cynic Thursday, Mar 11, 21 @ 12:49 pm
So yes Rauner a dead horse that ran the race backwards and failed as a sire, shall we keep pummeling anyway? I guess so. As for the BIG program - more good than bad clearly. Though if the $1.1 million went to non-existent biz and not to 70 or more that could have benefitted, its a serious loss for those businesses, employees, and their communities.

Comment by Jo Jo Monkeyboy Thursday, Mar 11, 21 @ 1:26 pm