SBA Disaster Loan Program

This information is correct as of 3/23/2020

Anyone interested in applying for this program will apply directly with the SBA. This loan program is NOT being funneled through Banks like the typical SBA 7A or SBA 504 loan programs are.

Click here for the SBA Disaster Loan Program.

Click here to download the presentation from SBA representatives that explains the program and provides some guidance on how to apply. Click here for a quick 3-step overview of the process.

Below is a list of required documents that SBA will ask to be provided with your application for the Disaster Loan Program.

Required Documentation

The following documents are required to process an SBA Disaster Loan Application and reach a loan decision. Your SBA Loan Officer and Case Manager will assist you to ensure that you submit the proper documentation. Approval decision and disbursement of loan funds is dependent on receipt of your documentation.

Businesses

  1. Business Loan Application (SBA Form 5) completed and signed by business applicant.
  2. IRS Form 4506-T completed and signed by Applicant business, each principal owning 20% or more of the applicant business, each general partner or managing member and, for any owner who has more than a 50% ownership in an affiliate business. (Affiliates include business parent, subsidiaries, and/or businesses with common ownership or management).
  3. Complete copies, including all schedules, of the most recent Federal income tax returns for the applicant business; an explanation if not available.
  4. Personal Financial Statement (SBA Form 413) completed, signed and dated by the applicant (if a sole proprietorship), each principal owning 20% or more of the applicant business, each general partner or managing member.
  5. Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used).
  6. Complete copies, including all schedules, of the most recent Federal income tax returns for each principal owning 20% or more of the applicant business, each general partner or managing member, and each affiliate when any owner has more than a 50% ownership in the affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management.
  7. If the most recent Federal income tax return has not been filed, a year-end profit and loss statement and balance sheet for that tax year is acceptable.
  8. A current year-to-date profit and loss statement (typically within 90 days)
  9. Additional Filing Requirements (SBA Form 1368) providing monthly sales figures.

Illinois Unemployment Resources

This information is correct as of 3/23/2020

COVID-19 and Unemployment Benefits

Unemployment benefits may be available to some individuals whose unemployment is attributable to COVID-19. IDES recently adopted emergency rules to try to make the unemployment insurance system as responsive to the current situation as possible.

What is Unemployment Insurance (UI)?

In general, UI provides temporary income maintenance to individuals who have been separated from employment through no fault of their own and who meet all eligibility requirements, including the requirements that they be able and available for work, register with the state employment service and actively seek work. Click here for more information.

For Employers:

If an employee receives unemployment benefits as a result of COVID-19, will the employer’s unemployment contribution rate increase?

At this time, no further guidance has been issued. Until such time, normal procedures will be followed. In general, the contribution rate of an experience rated employer is based, in part, on the amount of unemployment benefits paid to the employer’s former employees.

Potential Closure or Layoff

Rapid Response Services are available to employers who are planning or have gone through a permanent closure or mass layoff at a plant, facility, or enterprise, or a natural or other disaster, that results in mass job dislocation. The State Dislocated Worker Unit coordinates with employers to provide on-site information to workers and employers about employment and retraining services designed to help participants retain employment when feasible, or obtain re-employment as soon as possible. For more information, visit Rapid Response Services for Businesses or contact your local Illinois workNet Center.

Click here to learn more about unemployment benefits during this time.

Illinois Tax News – Providing Emergency Assistance Programs

This information is correct as of 3/25/2020

The Illinois Department of Commerce and Economic Opportunity is working to provide emergency assistance programs for Illinois small businesses. Click here for the current status of the plan initiatives.

IL 2019 Taxes:

The Illinois due date for individuals, trusts, and corporations to file and pay taxes has been extended to match the federal due date of July 15, 2020. This relief is automatic, an extension does not need to be filed. See the attached bulletin for details.

Illinois has not extended first quarter estimated taxes for 2020 for calendar year taxpayers, that due date remains 4/15/2020. The second quarter calendar year estimate is due 6/15/2020.

 

Exercise Care In Shutting Down Leases

With the drop in the price of oil, operators may feel compelled to completely shut down operations as to a particular lease. This could prove to be a risky proposition. An IlJinois Appellate Court decision in 2003 stated as follows with respect to the cessation of operations and the status of the lease:

“One of the reasons offered for the defendants’ failure to run the pumps and produce oil was the depressed price of oil. Though a depressed market may have rendered it unprofitable to operate the lease, it did not prevent the operation of the wells. We have reviewed the lease and have found no provision excusing production and marketing in the event that the oil market becomes depressed. The depressed price of oil was not contracted against. Consequently, it cannot be used to justify nonproduction, and it does not prevent a lapse of the lease where production has been shut down.”

The terms of the operative lease should be carefully reviewed to determine any language that addresses cessation of operations and production. Many of the lease forms provide that if the operations are not resumed within a certain number of days, the lease could terminate.

The fact that the wells on a lease are the subject of temporary abandonment status will not excuse the absence of operations and production for purposes of perpetuating the lease.

Before completely ceasing operations as to a lease, the lease provisions should be carefully reviewed. Do not place yourself in a position where it could be argued that the lease has terminated.

Consult with your attorney as to this issue and be cognizant of the minimal operations and production required to perpetuate your lease.

IOGA Letter to Governor Pritzker – Essential Need for Oil & Gas

IOGA sent the following letter to Governor Pritzker concerning the essential need for oil and gas businesses during this unprecedented time. The product our members produce
is not only vital to our state’s infrastructure but will also help to move and produce the products necessary to keep Illinois’ citizens supplied with the essentials needed for their lives
at home.

This letter encourages the Governor to careful consider the oil and gas industry in any future directives during this time.

Read the letter here. 

COVID-19

Governor Pritzker ordered a stay at home mandate except for essential services until at least April 7.  According to the Governor’s Downstate Liaison, Oil and Gas operations are deemed Essential Services.

Illinois reported its first three deaths connected to the coronavirus this week.

Governor Pritzker unveiled a comprehensive website to share resources and state announcements.

The Illinois Department of Employment Security received over 41,000 unemployment benefit claims on Monday and Tuesday of this week. That same two-day period last year saw less than 4,500 claims.

The Secretary of State has closed all offices and motor vehicle facilities.

The state is applying for a statewide Economic Injury Declaration with the US Small Business Administration to receive disaster assistance low-interest loans for small businesses and non-profit organizations.

The Department of Labor is allowing employees to work seven days per calendar week during the outbreak. Employers must submit an application to the Department of Labor, but the application will be deemed approved once it is filed. Illinois currently requires 24 consecutive hours of rest in every calendar week.

The Governor said in a press conference this week that he is assuring Illinoisans that essential services will always remain open, including but not limited to grocery stores, pharmacies, and gas stations.

Illinois Legislature Canceled Session

The General Assembly canceled the session again for the week of March 23 due to the coronavirus crisis. Leadership noted that members should be prepared to return to Springfield to address “urgent matters.” The committee deadline for bills moving from a standing committee in the first chamber has been delayed to April 3, but these deadlines will be reviewed and extended when needed.  The General Assembly is scheduled to be in district for the spring holidays from April 4-21, but lawmakers were told to reevaluate travel plans made for those weeks.

We continue to hear that the hospital assessment for Medicaid funding is being negotiated and remains a top priority for passage in April to be submitted to federal HHS for approval by July 1. Speaker Madigan, however, believes the federal government will provide leniency on that deadline. We wait to see if the General Assembly will meet in the next couple of weeks to pass a bill.

The emergency issues and the budget make it seem unlikely that we will see any of the legislative battles we faced the last few years during this legislative session.

COVID-19 Executive Order

In response to the COVID-19 pandemic, Governor Pritzker has issued a shelter-in-place Executive Order effective at 5pm, Saturday, March 21st through April 7.

However, Representatives of the Governor’s office have indicated that the Oil and Gas industry is deemed an Essential Industry under Section 12.

You can see the entire Executive Order here.

Executive Vice President Job Opening

The IOGA is an Illinois not-for-profit corporation that represents over 400 members of the oil and gas industry as to issues that directly affect the development and production of oil and gas in Illinois. The Executive VP works for and at the direction of a Board of Directors but primarily through its Executive Committee, both of which are elected by the membership.

Link to the full job description here.

ESSENTIAL CORE QUALIFICATIONS:

  1. Knowledge of oil & gas industry or other petroleum-related industry such as midstream services, refining, or petroleum purchasing/marketing is preferred
  2. Strong communication & advocacy skills including
    a. Written & oral communications
    b. Interpersonal and large/small-group communications
    c. Ability to prepare and make presentations
    d. Communication utilizing social-media platforms
  3. Demonstrated executive and organizational management experience
  4. Proficiency with Microsoft Excel, Word, & PowerPoint
  5. Knowledge of basic financial management, including budget preparation and reporting of financial data
  6. Knowledge and experience with legislative, political, and governmental processes
  7. Availability to travel to regional and national industry meetings
  8. Ability to work remotely subject to the positions travel requirements

DUTIES AND EXPECTATIONS:
The Executive VP will work and strive to protect, preserve and advance the common interest of the IOGA membership. This will include but not be limited to the following:

  • Monitor and advocate Industry positions as to state/federal legislation and regulations.
  • Work collaboratively with state and federal agencies that regulate the Industry.
  • Promote industry safety through workshops and seminar.
  • Conduct association meetings with exhibitors and technical programs.
  • Respond to members’ inquiries and requests.
  • Manage finances including budget preparation and quarterly reports.
  • Monitor and facilitate liability/worker’ s compensation insurance program.
  • Engage in public and member outreach to promote the importance of the Industry.
  • Keep members advised of all relevant issues affecting the Industry and how to protect, implement and maximize their business practices in considering governmental requirements, global pricing issues and other forces that affect their ability to operate and conduct their businesses.
  • Maintain relationships with various associations and commissions including Independent Petroleum Association of America (IPAA); Oil & Gas Advisory Board; Domestic Energy Producers Alliance (DEPA); National Stripper Well Association (NSWA); Interstate Oil & Gas Compact Commission (IOGCC); Illinois Task Force on Hydraulic Fracturing; and Prairie Research Institute Advisory Board; and other state oil and gas associations including Indiana (INOGA) and Kentucky (KOGA); and,
    • Attend annual and other meetings of the foregoing organizations to demonstrate solidarity and support and to engage in information sharing as to Industry issues.
  • Prepare, edit, and publish a monthly news bulletin for members and the public.
  • Serve as the IOGA’ s lobbyist in all matters before local, state or federal regulatory or legislative entities.
  • Establish, implement, and manage sound organizational structure for IOGA’s office and its day to day operations.
  • Maintain a sound relationship with the Executive Committee and carry out all general responsibilities as may be delegated or directed by the Executive Committee.

For additional information, contact the IOGA President as follows:
Bryan T. Hood
Shakespeare Oil Company, Inc.
202 West Main St.
Salem, Illinois 62881
Telephone: 618-548-1585
Email: bryan@shakespeare-oil.com

 

NOTES:

Additional Salary Information: Compensation is to be commensurate with experience and qualifications and will include salary; pension; health insurance; and travel reimbursement.