News: IRA News

Hiring Tax Credits, RRF Depleted - Reach Out to the IL Delegation Now

Friday, July 2, 2021  

RRF Runs Out of Funds, Contact the Illinois Delegation to Urge Action

 

This week, the Small Business Administration (SBA) sent notices to Restaurant Revitalization Fund (RRF) applicants that the program has now closed due to funding being exhausted.

The IRA continues to work with the National Restaurant Association and stakeholders around the country to get RRF replenished as soon as possible.

Before the holiday, please take 5 minutes to support our efforts today. Here's how you can help:

  • Make three phone calls to select Illinois Congressional leaders to urge them to support H.R. 3807, which will infuse RRF with another $60B in funding.

  • If a staff member does not answer your call, please leave a voicemail.

  • Representatives to Contact:

  • Rep. Rodney Davis - (217) 824-5117

  • Rep. Adam Kinzinger - (815) 431-9271

  • Rep. Darin LaHood - (309) 671-7027

  • Script:

  • "Hello, my name is (NAME) and I am a restaurant operator in (CITY), Illinois."

  • "I’m calling to urge the Congressman to cosponsor the Restaurant Revitalization Replenishment Act (H.R. 3807). Independent restaurants and bars are still struggling, and reopening our doors won’t make up for sixteen months of lost revenue and debt. No industry was harder hit than restaurants over the last 16 months - more than 100,000 restaurants closed nationwide, and we are still down 76,000 jobs in Illinois."

  • "Our restaurant, (BUSINESS NAME), did not receive an RRF grant, and we will continue to struggle without it. Furthermore, 3,000 priority applicants - women, veterans, and disadvantaged groups - have lost their promised RRF funding."

  • "We can’t leave hundreds of thousands of restaurants with no help - we need Congress to step up and complete the mission of the RRF, which is to help our industry survive. Thank you for your consideration."

Stay tuned for more ways to get engaged in our campaign to replenish RRF after the holiday. 

 

 

Overview of WOTC - Federal Tax Benefits for Restaurants

 

 

Given the rapidly increasing hiring by restaurants, the National Restaurant Association has developed a new slide deck overview on the federal Work Opportunity Tax Credit (WOTC) hiring incentive. This refresh includes a breakdown of the well-established program, what it can save a restaurant in taxes, and how hiring the long-term unemployed (~7 months) will qualify the hire for WOTC support. 

Click here to read the overview.

 

 

Reminder - New Minimum Wage and Tipped Wage Rates in Chicago, Cook County, State of Illinois

 

As of July 1, 2021, the following minimum wage and tipped wage rates are in effect for the city of Chicago, Cook County, and state of Illinois.

Please review the below information and plan accordingly for your business.

City of Chicago*

  • Current minimum wage as of July 1, 2021 - $15.00

  • Current tipped wage as of July 1, 2021 - $9.00

Click here for more information on the city of Chicago's minimum wage law.

*Effective July 1, 2021, small employers (4-20 employees) in the city of Chicago are required to pay employees a minimum wage of $14.00 and a tipped wage of $8.40.

Cook County**

The minimum wage for employees in Cook County did not increase on July 1, 2021. Cook County’s minimum wage is based on the greatest rate among the Federal minimum wage, Illinois State minimum wage, or on the County’s calculation using the Consumer Price Index (CPI).

Pursuant to the County's Minimum Wage ordinance and rules, the County’s minimum wage calculation may not be used when the unemployment rate in Cook County is 8.5% or greater. The unemployment rate in Cook County for the previous year was equal to or greater than 8.5%. Therefore, the minimum wage remains at $13.00 per hour for non-tipped employees. The minimum wage for tipped workers increased earlier this year to $6.60 per hour, in alignment with the state of Illinois' minimum wage.

Click here for more information on Cook County's minimum wage law.

**More than 100 municipalities within Cook County opted out of Cook County's minimum wage ordinance. Please check with your local authorities to confirm whether or not this law applies to your business. If your municipality has opted out of Cook County's minimum wage ordinance, you must follow the state of Illinois' minimum wage law.

State of Illinois

The state of Illinois' minimum wage and tipped wage rates are not slated to increase until January 1, 2022.

  • Current minimum wage - $11.00

  • Current tipped wage - $6.60

Click here for more information on the state of Illinois' minimum wage law.

 

 

City Council Passes Ordinance to Require Delivery Services to Collect and Remit Chicago Restaurant Tax

 

Last week, the Chicago City Council passed an ordinance that will now require third party delivery services to collect and remit the 0.50% Chicago Restaurant Tax on behalf of restaurants.

The IRA worked with the Department of Finance to address this issue and resolve any confusion over which entities are required to collect and remit the tax when sales are made through a third party delivery services platform.

Click here to read the ordinance. Click here to read more from Chicago Sun-Times.

 

 

Southern Restaurants for Racial Justice Grants Now Available for Chicago-Area Restaurants

 

The Southern Restaurants for Racial Justice at the Lee Initiative Fund exists to get behind Black-owned businesses through grants aimed to support these businesses during the upheaval of the COVID-19 pandemic and beyond. The Fund aims to extend support to Black-owned businesses in our communities who have been left behind by traditional funding sources.

The Chicago-area Restaurant Relief Grant is open to businesses in the Chicago area that are at least 50% Black-owned. Thanks to a generous anonymous donation, the SRRJ Advisory Committee will select up to 15 grant recipients for grants of $15,000. 

Click here to learn more and apply.

 

 

SNAP Benefits at Restaurants Pilot Program

 

A new state of Illinois pilot program for the Restaurant Meals Program will enable participating restaurants to accept SNAP benefits as a form of payment. Restaurants in four Chicago zip codes (60617, 60619, 60620, and 60628) and all of DeWitt County are eligible for the pilot.

Currently, SNAP benefits may only be utilized at authorized retail stores. This pilot will allow older adults, people with disabilities, and people experiencing homelessness to use SNAP benefit at 8 restaurants selected by lottery to participate in the pilot. Click here for more information.

Interested restaurants can sign up to participate in the pilot program here.

 

 

Next Week - Reception for Tom Tunney

 

 

You are invited to join Former IRA Chairman Alderman Tom Tunney on Tuesday, July 6 for his summer reception at Wrigley View Rooftops. Click here to download the invitation.

To RSVP and contribute online, please click here or contact Erica Kelly.


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