Share
Small businesses are the backbone of Illinois' economy, driving innovation, creating jobs, and contributing to the community's vibrancy. To support the growth and sustainability of these enterprises, Illinois offers a variety of grants specifically aimed at small businesses.
Types of Grants & Subsidies Offered in Illinois
Illinois provides a diverse array of grants catering to different needs and industries within the small business sector. These grants can be broadly categorized into startup grants, development grants, innovation and technology grants, and community-specific grants.
Startup Grants
Designed to help new businesses get off the ground, these grants often provide initial funding for business planning, operational setup, and early-stage marketing. Programs such as the Illinois Small Business Development Center (SBDC) provide resources and financial assistance to startups. The DCEO also offers the Small Business COVID-19 Relief Program, which supports new businesses affected by the pandemic.
Development Grants
Aimed at established small businesses looking to expand, these grants can fund activities such as market expansion, workforce development, and infrastructure improvements. The Business Interruption Grant (BIG) program, for instance, supports businesses that experienced significant interruptions due to COVID-19, providing critical funding to help them recover and grow.
Innovation and Technology Grants
Targeted at businesses engaged in technological advancements and innovation, these grants support research and development, prototyping, and commercialization of new products or services. The Innovate Illinois program, managed by the Illinois Science & Technology Coalition, encourages innovation and technology development by offering substantial funding to tech-focused small businesses.
Community-Specific Grants
These grants focus on revitalizing specific communities or supporting businesses that contribute to local economic development, often prioritizing underserved or economically disadvantaged areas. Local municipalities and development agencies frequently offer grants like the Local Community Business Grant to aid businesses that drive local economic growth.
Identifying and Applying for Grants & Subsidies in Illinois
Identifying the right grants and subsidies requires thorough research. Small business owners should start by visiting state and local government websites, as well as organizations dedicated to supporting small businesses, such as the Illinois Department of Commerce and Economic Opportunity (DCEO) and local Small Business Development Centers (SBDCs). Subsidies aren't just handed out, they are thoughtful programs developed to achieve a certain type of economic development. So before selecting the right subsidy for your company, make sure you know how your business matches the desired outcome the granting authority is looking to achieve.
Application Steps:
- Research and Identify Grants: Use online databases and resources to find grants that match your business's needs and goals. For a comprehensive list, the Illinois DCEO website is an excellent starting point.
- Prepare Documentation: Gather necessary documents such as business plans, financial statements, and legal documents.
- Write a Strong Proposal: Tailor your proposal to meet the specific requirements and goals of the grant program.
- Submit Application: Follow the submission guidelines carefully, ensuring all required information and documentation are included.
Table of Small Business Grants in Illinois
| Program/Grant Name | Description | Target Audience | Application Period | Granting Authority |
|---|---|---|---|---|
| Illinois Small Business COVID-19 Relief Program | Provides financial assistance to small businesses affected by the COVID-19 pandemic | Small businesses impacted by COVID-19 | Varies based on funding rounds | Illinois Department of Commerce and Economic Opportunity (DCEO) |
| Business Interruption Grant (BIG) | Supports businesses that experienced significant interruptions due to COVID-19 | Small businesses across various sectors | Open during specific funding periods | Illinois DCEO |
| Innovate Illinois | Encourages innovation and technology development | Startups and tech-focused small businesses | Annual | Illinois Science & Technology Coalition |
| Local Community Business Grant | Aids businesses contributing to local economic development | Small businesses in underserved communities | Varies | Local municipalities and development agencies |
Local Grants in Specific Illinois Cities
In addition to state-wide grants, several Illinois cities offer local grants tailored to support small businesses in their specific communities. These grants focus on local economic development, revitalization projects, and supporting underserved areas.
Chicago offers numerous grant programs aimed at fostering small business growth. The Neighborhood Opportunity Fund provides grants to business owners in designated areas of the city to support new construction, rehabilitation, and the expansion of existing businesses. Additionally, the City of Chicago’s Small Business Improvement Fund (SBIF) offers matching grants to commercial and industrial businesses for building improvements and property upgrades.
Springfield’s Office of Planning and Economic Development administers the Economic Development Assistance Program, which provides grants and low-interest loans to small businesses looking to expand or improve their operations. This program focuses on job creation and enhancing the city’s economic base.
Peoria offers the Downtown Development Grant to encourage business development in the downtown area. This grant supports projects that include building renovations, façade improvements, and infrastructure upgrades. The city also provides the Small Business Development Loan Program, offering low-interest loans to support business expansion and new startups.
Rockford’s Economic Development Office provides the Enterprise Zone Program, which offers tax incentives and grants for businesses located in designated enterprise zones. These grants support capital investment, infrastructure improvements, and job creation.
Aurora’s Small Business Development Center collaborates with local authorities to provide grants and funding opportunities for small businesses. The city’s Invest Aurora initiative offers financial assistance for business development, including grants for façade improvements, property development, and workforce training.
By taking advantage of these local grant programs, small business owners in specific Illinois cities can access additional funding sources tailored to their community’s unique needs and economic goals.
Additional Insights
Securing a grant can significantly boost your business, providing the necessary funds to expand operations, hire additional staff, or invest in new technology. In Illinois, understanding the specific requirements of various grants and tailoring your application accordingly is crucial for success. Leveraging local resources like Small Business Development Centers (SBDCs) can provide invaluable assistance throughout the application process.
FAQs on Small Business Grants in Illinois
Q: What types of businesses are eligible for grants in Illinois?
A: Eligibility varies by grant, but generally, small businesses across various sectors including startups, technology firms, and community-focused enterprises can apply. Specific grants may target businesses in underserved areas, those involved in innovative technologies, or those contributing to local economic development.
Q: How often are grant opportunities available?
A: Grant availability varies; some are annual while others may open during specific funding rounds or in response to economic events. For example, the Business Interruption Grant (BIG) was specifically created to support businesses affected by the COVID-19 pandemic and had multiple funding rounds based on the evolving economic impact.
Q: What documentation is typically required for grant applications?
A: Common requirements include a business plan, financial statements, legal documents, and a detailed project proposal. Depending on the grant, you may also need to provide proof of your business’s impact on the community, plans for job creation, or specific project milestones.
Getting Support
Numerous organizations in Illinois provide free assistance to small business owners throughout the grant application process. These resources can help you identify grants, prepare your application, and improve your chances of success:
- Small Business Development Centers (SBDCs): Offer free counseling, workshops, and resources tailored to small business owners.
- Illinois Department of Commerce and Economic Opportunity (DCEO): Provides information on state-funded grants and economic development programs.
- Local Chambers of Commerce: Offer networking opportunities and can provide insights into local grant opportunities.
- Business Associations and Networks: Joining these can provide access to exclusive resources, mentorship, and firsthand information about upcoming grants and funding opportunities.
How Scout Can Help Companies Apply for and Win Grants/Incentives
Scout provides expert guidance to businesses seeking grants, helping them identify suitable opportunities, prepare compelling applications, and comply with grant requirements. With a deep understanding of the grant landscape in Illinois, Scout can streamline the application process and increase the chances of success. Reach out to Scout to learn more and maximize your funding opportunities.
For more information and resources on small business grants in Illinois, visit the Illinois Department of Commerce and Economic Opportunity (DCEO) website or contact your local Small Business Development Center (SBDC).
For help getting grants and subsidies, click the red button below.
