The Small Business Capital and Infrastructure Grant Program, administered by the Illinois Department of Commerce and Economic Opportunity (DCEO), is a 2024 funding initiative to support small businesses across Illinois. Building on the 2020 Capital Grant Program, this program focuses on helping small businesses overcome financial challenges, modernize operations, and contribute to community and economic development. It prioritizes businesses owned by Socially Economically Disadvantaged Individuals (SEDI) and Very Small Businesses (VSBs), with the goal of driving growth, enhancing operational efficiency, promoting sustainability, and creating or retaining jobs. Projects located in Community Development Financial Institution (CDFI) Investment Areas will receive additional priority due to their importance in addressing local economic needs.

The program funds infrastructure improvements, property acquisitions, and facility expansions for small businesses, allowing them to modernize through new technology, equipment, and processes. Eligible activities include architectural planning, site selection, demolition, utility work, new construction, and asset replacement. The program has a strong equity focus, ensuring that underserved and economically disadvantaged communities benefit directly from these grants. Grantees are required to track performance over 24 months to assess outcomes and ensure long-term sustainability.

Eligible applicants include small businesses with no more than 25 full-time permanent employees and VSBs with fewer than 10 employees. Applicants must register in the Grant Accountability and Transparency Act (GATA) Grantee Portal and submit required documentation, including a Uniform Grant Application, budget, conflict of interest disclosure, and supplemental materials. Applications will be submitted via a Smartsheet platform by the specified deadline in the Notice of Funding Opportunity (NOFO). The application period for FY 2025 runs from January 7, 2025, to April 7, 2025.

Proposals will be evaluated through a merit-based review process, with priority given to businesses in CDFI Investment Areas. Geographic distribution may also be considered in funding decisions. Successful applicants will receive a Notice of State Award (NOSA) to proceed with the grant agreement phase, and funds will be disbursed on a reimbursement basis. Grants range from $10,000 to $245,000, with a total allocation of $10,000,000 for FY 2025.

Recipients are required to provide quarterly financial and performance reports during the project period and semi-annual reports for two years post-project closeout. The program has previously funded diverse projects, including daycares, manufacturing companies, bakeries, and restaurants, contributing to the creation or retention of over 150 jobs by 2024. Appeals related to the merit-based review process can be submitted in writing within 14 days of the grant award notice.

This program exemplifies DCEO’s commitment to fostering equitable economic development by empowering small businesses to strengthen Illinois' communities and economy. For further details, contact Tiffany Hawkins at CEO.OE3Grant@illinois.gov or visit the Grant Opportunities page on the DCEO website.