Download past newsletters below:

• January 2010
• March 2010
• May 2010

What health care reform means for small businesses in Illinois
(information provided by Congresswoman Debbie Halvorson’s office (IL-11)

Small businesses need health care reform

• Health insurance costs for small businesses have increased by 130% since 2000.
• Only 45% of America’s small businesses can currently afford to offer health care to their workers.
• Small business health plans have higher premiums and administrative costs than large companies.
• Nearly 60% of America’s uninsured are small business owners, workers, and their families.

 

Small business exchanges

• Qualifying small businesses will be able to join new state-based Small Business Health Options Program (SHOP) Exchanges.
• Joining these exchanges will give small businesses access to larger risk pools and will lower their administrative costs.
• Small businesses with up to 100 employees will be able to join an exchange and starting in 2017, businesses with over 100 employees will be able to join.
• States will be able to join together to form larger, regional small business exchanges that will further reduce costs for participating small businesses.

 

Tax credits for small businesses

• Small businesses will be eligible for tax credits to the cover cost of providing care to eligible employees.
• Starting in 2010, small businesses with 25 or fewer employees and less than $50,000 in average wages are eligible for a tax credit if they cover at least 50% of the total premium cost for their employees.
• The tax credit is 35% for small businesses with 10 or fewer employees and average annual wages of less than $25,000.
• The amount of the tax credit phases out for small businesses with between 10 and 25 employees and between $25,000 and $50,000 in average wages.
• Starting in 2014, the tax credit will increase to 50% for small businesses with 10 or fewer employees and average wages below $25,000.
• In 2006, approximately 76% of small businesses in Illinois had fewer than 10 employees.

Employer requirements and small business

• Small businesses with 50 or fewer employees will not be required to offer coverage to their workers.
• Small businesses with more than 50 employees that do not offer coverage will have to pay a fee of $2,000 for each full-time employee who receives federal tax credits to purchase individual coverage (excluding the first 30 employees), which is significantly less than the expense of providing full insurance coverage benefits.
• Even though part-timers count towards triggering the employer responsibility, an employer does not pay a penalty for not providing coverage to part-time workers.
• In 2006, over 86% of small businesses in Illinois had fewer than 20 employees.

Calling all businesses! Find out how to become one of the first Illinois green certified businesses:

The Economic Development Council of the Bloomington-Normal Area, Illinois State University and the Illinois Green Business Association (IGBA) are coming together to launch green business certification in McLean County, and we are looking for businesses interested in greening their practices. Through the IGBA’s green business certification program, we and ISU students will provide your business with assistance in becoming a certified Illinois green business. The program reviews nine sections of sustainability, with some measures being required while others are optional. Participating businesses will receive a green consultation, an energy audit, resource assistance, connectivity to incentive dollars for energy efficiency, and a detailed green management practice implementation plan. Please contact Ken Springer at (309) 452-8437  if you are a restaurant or retail/office business and would be available for a consultation with our team between June 14^th-July 8^th. We look forward to working with your business to become Illinois green business certified!

About the IGBA

The Illinois Green Business Association is a 501(C)3 non-profit organization that assists businesses in reducing their ecological foot-print by attaining our green certification. We assess a business’ current environmental performance and guide them towards certification through nine areas of sustainability. We utilize applicable grants and incentive packages to aid businesses through the certification process. The Illinois Green Business Association then promotes and markets a business’ successful efforts to the community in order to build a culture of sustainability and responsible consumerism.  With our partners, we look forward to launching our certification state-wide in June of 2010. To learn more about the IGBA, visit www.illinoisgba.com or call (217) 531-2179.

The City of Bloomington is proposing to cut its investment in the Economic Development Council by 20 percent. Instead of the $80,000 pledged annually in 2006, the proposed reduction will bring the total annual investment down to $64,000. They will be voting on this proposal at their April 12th meeting. (UPDATE: As of 4/6/10, the Bloomington City Council is now considering a 10 percent reduction instead of 20 percent, bringing their annual investment to $72,000. While a 10 percent cut is better than a 20 percent cut, the Economic Development Council still feels this hurts the future growth of the community and breaks the public-private partnership originally entered into between Bloomington, Normal, McLean County and several private investors. Read on to learn why.)

The Executive Committee of the Economic Development Council has taken the stance that any cut by local government goes against the spirit of the public-private partnership entered in 2006 between the City of Bloomington, Town of Normal and McLean County, as well as dozens of private sector companies that made similar five-year pledges. The reason the “public-private partnership” works is that everyone pledges their fair share and participates in the future of McLean County. Each investor pledges with the knowledge that the other investors are sharing in the burden of making this community more prosperous.

In June of 2009, some members of the City Council suggested the EDC offer a “symbolic” cut due to the financial problems the City was having. Some City Council members have suggested the EDC “feel the pain” as other organizations, agencies and city departments have felt. The EDC agreed that a cut would be symbolic, but not in the way that was being suggested. A cut by the City of Bloomington breaks the bond of trust and agreement all the investors have entered into. If a cut were implemented, what prevents others investors, public and private, from doing the same? Should the EDC not also offer this symbolic cut to the Town of Normal? To McLean County? To the other 97 investors who fund the EDC?

The EDC has already reduced spending and eliminated two of our seven staff positions in response to a reduction in funding because a few private sector investors have been unable to fulfill their pledge commitments over the past couple years due to the economic hardships their businesses have faced. We are at present down to the bare minimum it takes to operate an effective economic development organization in a community our size. With hard work by our employees and effective use of our time, combined with some grant funding for specific programs, we are still able to provide quality economic development programming. However, continued erosion of our base funding would put our future effectiveness into serious jeopardy.

We recognize and empathize with the difficulties faced by the City of Bloomington and other businesses in regards to reduced revenue due to the recession. However, economic development cannot and should not be treated like a water faucet—turned on and off when convenient. In fact, there is strong evidence that additional investment in economic development is necessary when there is a downturn in the local economy. It has taken us five years to get the current economic development program up to competitive levels with other communities; to cut funding today will only push us – and the future economic performance of McLean County – backwards.

The City’s proposed cut of $16,000 (20 percent) of their annual investment in the EDC represents a tiny fraction of the City’s $68 million budget. The cut, however, is not strategic. Bloomington’s administrators have lumped the 20 percent cut in our program with other semi-related programs such as the Convention and Visitors Bureau and the Downtown Bloomington Association. The difference between the EDC and these organizations is that neither the DBA nor the CVB depend on an intermeshed matrix of equally-committed stakeholders like the EDC does. The CVB receives all of their City funding from a specific source – the hotel/motel tax – and the DBA is almost wholly dependent on the City for its funding. While Bloomington’s total investment comprises only 13 percent of the EDC’s total budget, it represents a commitment beyond mere dollars. Like load-bearing bricks in a supporting structure, Bloomington’s investment is dependent upon other investments, and other investments are dependent upon Bloomington’s.

Now is not the time to weaken the structure of economic development in our community. Please let the City know that further cuts and reneging on their pledge is not acceptable. Yes, many municipalities and businesses are suffering from economic downturn, but what kind of message is the City sending when they quit investing in the one thing that can assure a greater future for their citizens? Maintaining an investment in the EDC sends the message that Bloomington cares about the community and wants to see it prosper. It shows that Bloomington wants to see new jobs and new capital investment; they want to see new entrepreneurs given a head start; they want to see federal tax dollars returning to the community; they want to see companies expand; they want to see new wind farms and a cleaner, healthier community; they want to see access to capital and micro-enterprise prosper. This is the message that should be sent, and this is the pledge that must be fulfilled.

Please call or email a Bloomington City Council member today, and let him/her know, using the information above, why Bloomington’s investment in the EDC is so important. Thank you.

One Voice, under the leadership of the EDC, is a pro-community campaign that has brought together leaders from the City of Bloomington, the Town of Normal, McLean County, labor, local educational institutions and local private businesses. These groups have formed the One Voice Task Force. The goal of the campaign is to make McLean County a stronger economic force and a better place to live.

Each year, the One Voice Task Force chooses local projects to support in their quests for federal funding. Each spring, the One Voice Task Force travels to Washington, D.C. to meet with our congressional delegation and show them our community stands united in support of the projects. Click here to learn about the 2010 Priority Projects.

The 2010 One Voice Washington, D.C. Fly-in will take place:

Tuesday, March 9th – Thursday, March 11th

Cost per person is $1450. This includes hotel, receptions, some cab fares and most meals. (Note: Airfare is not included and must be booked on your own.)

To Register:

Registration is now closed.

The New Leadership Board (NLB) is an advisory group of people ages 17-39 who work with the EDC leadership to establish an additional set of priorities for the economic future of the Bloomington-Normal area. The goal is to create a generational dialogue and provide ongoing input to our business, economic and political leadership regarding these emerging generations’ concerns, bringing a voice to this untapped resource.

The NLB recently finished the development of a final whitepaper based on four topics of discussion over the past year: The Future of the Workplace, Who’s the Boss?, Quality of Life and the Value of Technology. The whitepaper includes several recommendations for local municipalities, employers and the EDC to consider when planning for the future.

If you’re interested in having the NLB present its findings to your organization, please contact Brooke Weishaupt at (309) 452-8437 or brooke@bnbiz.org.

Read the final whitepaper. Watch the video.

The Community Development Corporation of Bloomington-Normal (CDC) is a sister organization to the EDC that houses all of the EDC’s financing programs for businesses. Businesses of any size in need of financing options for growth can participate in one of the CDC’s four main financing programs.

The CDC has three financing programs:

• Microloans that range from $1,000 to $8,000
• Revolving Loan Fund I, which ranges from $50,000 to $250,000
• Angel Capital, which can reach upwards of $3 million

Participation in any of these loan programs is contingent upon each project’s potential for success. CDC financing is not a replacement for traditional borrowing. The EDC recommends that in every circumstance, businesses looking for financing should approach their local banker first before contacting the EDC. Also, please note that some CDC programs require application prior to starting the project, so it is important to involve the CDC as early as possible in the process.

To set up an appointment to discuss financing options, please contact Ken Springer at (309) 452-8437 or ken@bnbiz.org.

Jeff Finkle, president and CEO of the International Economic Development Council, gives a great synopsis of the importance of the One Voice trip and program. This message is reiterated by Mike Matejka of Great Plains Laborers District Council and Dick Eikenberg, chair of the EDC board of directors.