How Did Small Businesses Fare in This Year’s Budget?

We looked through the 3,703-page bill so that you don’t have to.

June 8, 2026  Aidan Boleyn-Fitzgerald and Shaurya Vohra

The Illinois General Assembly passed a $56 billion budget for FY2027 early Monday morning. You’ve all seen the headlines on the major expenditures, new taxes, and the Chicago Bears. We’re here to provide you with an overview of the appropriations that could prove most beneficial for small businesses.  

$312 million: Small Business Credit Initiative Fund

The largest appropriation for small businesses in this year’s budget is the State Small Business Credit Initiative Fund (SSBCI). The SSBCI funds a suite of lending and investment programs that help small businesses access capital they might not otherwise qualify for, drawing on federal American Rescue Plan funding. Illinois is set to receive $312 million in total federal SSBCI funds administered across five programs:

  • The Advantage Illinois Participation Loan Program, through which the state buys a portion of a small-business loan alongside a lender, thereby lowering the interest rate for the borrower.
  • The Advantage Illinois Loan Guarantee Program, through which the state guarantees partial repayment to lenders if a loan defaults, making it easier for small businesses to get approved.
  • The INVENT Venture Capital Program, through which the state provides direct equity investments in startups, thereby prioritizing businesses with fewer than 10 employees and those owned by socially disadvantaged individuals.
  • The Climate Bank Finance Loan Participation Program, through which the state provides low-interest loans capped at 2% (or 1% for disadvantaged owners) for small businesses in green and clean energy industries.
  • The Technical Assistance Program, through which the state provides free legal, accounting, and financial advisory services to help small business owners navigate capital access programs.

$15.0 million: Reducing Food Insecurity

DCEO will receive a $15 million appropriation to provide technical and financial assistance to grocery stores and small food businesses in food deserts and underserved communities, helping them stay open, expand their offerings, and improve access to healthy food where large chains have not invested.

$10.0 million: Loan Loss Reserve Fund

DCEO will receive a $10 million appropriation to help certain bank lenders recover part of their loss when small businesses default on loans, reducing lender risk and encouraging banks to approve small businesses that would otherwise be turned down.

$6.5 million: Illinois SBIR/STTR Matching Funds Program

DCEO will receive a $6.5 million appropriation to provide state matching funds of up to $250,000 when an Illinois small business wins a federal R&D grant through the federal SBIR or STTR programs. The SBIR and STTR programs help small, innovative companies bridge the gap between early-stage research and bringing products to market.

$3.4 million: Office of Minority Economic Empowerment Small Business Support

DCEO will receive a $3.4 million appropriation to fund its outreach and support for minority-owned small businesses. The appropriation will cover grant awards, technical assistance, and administrative costs to help Small, minority-owned businesses access state programs and grow.

$3.0 million: Innovation Vouchers Program

The Illinois Science and Technology Coalition (ISTC) will administer a $3 million grant program for small businesses that wish to partner with an Illinois university or research institution on an R&D project. Businesses can apply for competitive grants of up to $75,000. The state will cover up to 75% of the cost, and businesses will cover the remaining 25%.

$2.9 million: Business Enterprise Program

The Illinois Commission on Equity and Inclusion will receive a $2.9 million appropriation to provide certification to small businesses owned by minorities, women, and people with disabilities, allowing them to compete for a share of state government contracts. The appropriation will also monitor state agency compliance with MWBE participation goals.

$2.0 million: Illinois Small Business Development Act, Capital Revolving Loan Fund

DCEO will receive a $2 million appropriation to provide direct low-interest loans to small businesses that have difficulty accessing traditional bank financing. Loans will be recycled back into the fund as they are repaid, allowing the program to keep lending to new businesses over time.

$1.9 million: Illinois Small Business Development Act, Illinois Equity Fund

DCEO will receive a $1.9 million appropriation to provide capital to small businesses owned by individuals from underserved communities who face structural barriers in their pursuit of loans or investments, particularly socially and economically disadvantaged individuals.

$1.8 million: Illinois Manufacturing Excellence Center

The Illinois Manufacturing Excellence Center (IMEC) will receive a $1.8 million appropriation to cover its core operating costs and statewide programming, including consulting, workforce training coordination, and operational improvement projects for manufacturers with fewer than 500 employees.

$1.5 million: APEX Accelerators Program

DCEO will receive a $1.5 million appropriation to fund free counseling centers across Illinois that help small businesses bid on and win government contracts at the federal, state, and local levels. Services provided by these counseling centers include one-on-one advising, SAM.gov registration help, bid preparation, certification assistance, and market research.

$1.0 million: Made in Illinois Grant Program

The Illinois Manufacturing Excellence Center (IMEC) will administer a $1 million grant program for small manufacturers looking to scale up production or upgrade equipment. The grant program is part of IMEC’s broader efforts to help small and mid-sized manufacturers modernize and grow.

Shaurya Vohra is a Policy Research Intern at the SBAC and a rising sophomore at the University of Chicago studying Economics and Data Science.