CHICAGO (WBBM NEWSRADIO) – Mayor Lightfoot joined CDPH Commissioner Dr. Allison Arwady and other local officials on Thursday to provide an update on COVID-19 and the city’s response.
"We are in the midst of a second surge of COVID-19. There's no question about that. And it is the surge we feared would happen...And as the weather gets colder and people spend more and more time indoors, new cases have reached, unfortunately, record levels. We've put on, I think, about 30,000 cases since the beginning of October. And with the state's recent closure of indoor dining service, our hospitality industry is facing yet another barrier to recovery from this absolutely unprecedented crisis that has hit them probably the most hard of any industry in our city," Lightfoot said.
The Mayor announced four new relief initiatives "to support our neighborhood bars and restaurants during this very difficult time."
First, Mayor Lightfoot announced the Chicago Hospitality Grant Program, which is a $10 million grant program "to assist our city's independent bars and restaurants that have had to shut down indoor service as a result of the state order."
The $10 million program is funded through a reallocation of CARES Act funds from the Chicago Small Business Resiliency Fund.
The Chicago Hospitality Grant Program, which will be administered with the support of World Business Chicago and Accion Serving Illinois and Indiana, will provide businesses with grants of $10,000 each.
The grants will be distributed citywide through a lottery, the Mayor said.
"We will take extra effort to make sure this funding is distributed with an an equity lens, just as we have done throughout this pandemic," she said.
Applications will open the week of November 16; more details will be announced in the coming days. To be eligible, establishments must be a bar or restaurant, as defined by City and State code, with annual revenue of under $3 million, and must have experienced economic distress and loss due to COVID-19 on or after March 1 totaling at least 25 percent of annual net revenue. Regional and/or national chain businesses with more than two total establishments are ineligible, as are adult entertainment facilities.
Funds must be used to cover operational costs including payroll expenses, replenishment of inventory and/or mortgage, rent and utilities payments. Grants will be distributed via lottery to recipients throughout the city, with 60 percent of grants reserved for businesses in low- and moderate-income community areas.
“Chicago’s hospitality industry has been decimated by COVID-19, and we must do everything in our power as a City to support these independent bars and restaurants,” said Rosa Escareno, Commissioner of the Department of Business Affairs and Consumer Protection. “These relief measures represent the latest in the City’s ongoing commitment to lessen the pain for our business community while making sure thousands of hospitality workers receive the support they need.”
The second initiative is a new campaign called Take Out Chicago.
"With the support of Choose Chicago, we will be encouraging residents, with the financial ability to do so, to support our beloved hospitality industry. Our neighborhood restaurants and bars make up the backbone of so many communities across the city. And if we want them to survive, and of course we do, we all need to show them our love and support and particularly patronize them in this difficult time," Lightfoot said.
Residents who order takeout from 10 unique bars and restaurants between Thursday, Nov. 5 and December 15 will be entered into a contest to win a VIP experience at one of Chicago’s premier cultural institutions. Chicagoans can learn more and submit their entry at Chicago.gov/takeout. Recipients will be selected via lottery to win VIP tours for themselves and three family members at a select Chicago destination, including the Art Institute, DuSable Museum, Lincoln Park Zoo, Soldier Field and more. Residents participating in the contest should also post their orders using the hashtag #takeoutchicago.
"Now we are putting you on the honor system. We need to make sure you actually do this, because this is all about supporting our local bars and restaurants. Do the right thing. If you've got the means, order from 10 and then put yourselves in a position to win one of these great, behind-the-scenes tours," Lightfoot said.
Additionally, the Mayor announced that she will introduce legislation to City Council to temporarily cap the fees that third-party companies can charge restaurants for their delivery services.
"To alleviate the added financial strain that the increased reliance on delivery has created, I will be working in concert with a number of aldermen, particularly Tunney, Waguespack, O'Shea, to pursue legislation that will temporarily cap the fees that third-party services can charge restaurants...We just gotta put more money in the hands of these restaurants and bars as they are compelled to go online to really rely upon delivery and pickup," Lightfoot said.
The City recognizes that COVID-19 has had a devastating impact on hospitality workers, many of whom have lost their jobs and can no longer access increased unemployment benefits due to expired federal relief. To support these workers, the City has partnered with The Chicago Cook Workforce Partnership to launch ChiServes.com, a portal that hospitality workers who have lost their jobs can use to access a network of resources through The Partnership.
The Partnership is also launching a new text campaign where registered recipients will receive weekly blasts of current job listings. By texting “ChiServes” (or “ChiSirve” for Spanish-speakers) to 474747, workers will receive texts with information about who is hiring now, upcoming virtual or in-person workshops and hiring events. Additionally, restaurant workers are encouraged to apply for a grant through the Restaurant Employee Relief Fund, created by the Illinois Restaurant Association.
“As we navigate the second surge of COVID-19, I am committed to using every available resource to its maximum potential to protect our residents and support our businesses,” Mayor Lightfoot said. “Our hospitality industry is at a crossroads and we each have a role to play in helping our bars and restaurants survive. This city relief package will help, but we still need all residents to wear a mask, social distance, avoid gathering in large groups and wash their hands. When we all do our part to bring cases down, we not only save lives but also ensure that our businesses can reopen quickly and safely.”
Thursday’s announcement comes as Chicago, the state of Illinois, and the entire Midwest region continue to experience an alarming surge of COVID-19.
Chicago is close to recording 1,400 new cases per day (based on a 7-day rolling average), the test positivity rate has risen above 10 percent and, overall, the city is now close to 110,000 cases since the start of the pandemic.
In response to this rise in cases and hospitalizations, last week the State imposed new mitigation measures designed to minimize the spread of COVID-19. On Friday, Oct. 30, Chicago closed indoor service at bars and restaurants and enacted a new limit of 25 percent capacity or 25 people at events.
“We’re very concerned about the continued rise in COVID cases in the city, but we all know what it takes to bend the curve – we did it once and we can do it again,” Dr. Arwady said. “Until then, we all need to do what we can to support this industry and the vital jobs it provides.”
To help bars and restaurants apply for the new Chicago Hospitality Grant Program, the city will be hosting a series of webinars over the next few weeks. To register and learn more, visit chicago.gov/businesseducation. Additionally, the city is directing businesses to apply for grants through the State of Illinois Business Interruption Grant Program (BIG). Applications are available today at illinois.gov/dceo.