Running a business is hard and small business owners often do not have time to navigate grants, tax credits, and other funding opportunities. We are excited to help. While we cannot cover everything, we will do our best to keep you current on economic incentives that may be available for your business in 2025!
This page will be updated weekly to the best of our abilities
** It's essential to note that application deadlines for the grants are indicated by dates within the titles of the drop-down menu, ensuring a clear understanding of timelines associated with each opportunity. **
Rolling
The purpose of Community Development Block Grants for Economic Development to assist communities
attract or expand private businesses. The program provides financial assistance in the form of a grant to
the local government for the benefit of private businesses that create or retain jobs primarily for low-to-
moderate income workers. Grants may also be used to support public infrastructure improvements to
support economic development as an indirect benefit to a private business. The Economic Development
component funds are available on an as-needed basis throughout the year to all eligible applicants
meeting program component requirements until all funds allocated to this component have been
distributed.
Learn more about the Community Development Block Grant Economic Development ProgramHERE.
This Notice of Funding Opportunity sets forth the requirements for funding the Returning Residents
Program (20 ILCS 730/5-50), as specified by the Energy Transition Act as part of the Climate and
Equitable Jobs Act, P.A. 102-662 ("CEJA").
Investments in clean energy technology and infrastructure, funded through CEJA and other state and
federal funding sources, will generate significant construction, installation, maintenance, and repair
activity in Illinois. Historically, these investments have not benefited all Illinois communities and workers.
The Returning Residents Program is one of several programs created by CEJA to rectify these historical
inequities.
Learn more about the Illinois Returning Residents Clean Jobs Program HERE.
To address the need to maintain and expand access to care, the Illinois Reproductive Health Facilities
Capital Grant Program will help abortion providers in Illinois address their needs for capital investment.
Grant funds may be used to invest in facility construction or durable equipment. Projects could include:
- New construction, renovation, or major repairs that facilitate expansion or continuation of
pregnancy-related medical services - Investment in new or upgraded equipment that improve care quality or facility capacity,
including medical devices or vehicles for mobile care units - Investment to upgrade or enhance security (barriers, alarm/surveillance systems, etc.)
Award amounts for eligible projects may range from $50,000 to $500,000. Grant recipients must provide a
15% total project cost match.
Learn more about the Illinois Reproductive Health Facilities Capital Grant Program HERE.
The Community Development Block Grant (CDBG) Program was established by the federal Housing and
Community Development Act of 1974 (Act). Administered nationally by the U.S. Department of Housing
and Urban Development (HUD), the Act combined eight existing categorical programs into a single block
grant program. In 1981, Congress amended the Act to allow states to directly administer the block grant
for small cities. At the designation of the Governor, the Department of Commerce and Economic
Opportunity (Department) assumed operation of the State of Illinois CDBG – Small Cities Program in the
same year. Through this program, funds are available to assist Illinois communities to meet their greatest
economic and community development needs, with an emphasis on helping persons of low-to-moderate
income.
The Economic Development grant provides funds year-round to local governments, supporting projects that create or retain permanent jobs and attract private investment. Funding is based on project feasibility, need, and demonstrated benefits to low-to-moderate-income individuals.
Learn more about the CDBG Economic Development Program HERE.
Grants are available for business properties in specific TIF districts
Rollout periods based on TIF districts
Grant provides small businesses with money to property repairs
This is a grant program for black-owned small businesses anywhere in the U.S.
Applicants can receive between $500-$2,000 to help toward business initiatives
Applications do not have a deadline
A skilled workforce is essential to accelerating our economic recovery. Whether you work with one of our training providers, have an existing trainer you like to work with, or conduct internal training using company staff, you may be eligible to receive a 50% reimbursement through this program.
You must be a military veteran to seek funding with Hivers & Strivers Capital. If that is you, tell us about your highly-scalable, game-changing idea.
Federal contracting and training program for experienced small business owners who are socially and economically disadvantaged.
Businesses that participate in the program receive training and technical assistance designed to strengthen their ability to compete effectively in the American economy. Also eligible to participate in the 8(a) program are small businesses owned by Alaska Native corporations, Community Development Corporations, Indian tribes, and Native Hawaiian organizations. Small business development is accomplished by providing various forms of management, technical, financial, and procurement assistance.
Learn more about the 8(a) Business Development program HERE.
MBDA funds third-party organizations that provide services in support of the Agency’s mission to promote the growth and global competitiveness of minority business enterprises (MBEs). We often publish funding opportunity announcements to invite applications for grants, cooperative agreements, and other funding sources. Read on to learn about federal grants currently available
The Awesome Foundation is a global network that provides $1,000 micro-grants to support innovative and impactful projects. Each chapter operates independently, usually awarding grants monthly. For small business owners and entrepreneurs, these grants offer a valuable boost to help launch new ideas or bring creative ventures to life. The foundation empowers individuals to turn their visions into reality by providing the resources needed to get their projects started
Founded in 2015, is a nonprofit dedicated to turning veterans into successful entrepreneurs, or “Vetrepreneurs.” Through strategic business partnerships and a network of professionals, the organization provides veterans with remote learning, mentorship, and grants. Their goal is to create 100 veteran-owned million-dollar businesses by 2024.
The Federal Grant Match Program by the Illinois Department of Commerce and Economic Opportunity (DCEO) allocates $15 million to support Illinois-based businesses and organizations pursuing competitive federal grants. This matching initiative aims to stimulate greater participation in federal grant applications, offering essential aid to meet minimum match eligibility criteria, enhance application competitiveness, and underscore the State of Illinois’ strong commitment and support for projects aligned with its economic development objectives and priorities.
America’s Seed Fund, a program within the National Science Foundation’s Directorate for Technology, Innovation, and Partnerships, is dedicated to turning scientific and engineering breakthroughs into products and services that have both commercial and societal impact. Each year, the program awards over $200 million in research and development (R&D) funding to approximately 400 startups across the U.S., helping them bring innovative ideas closer to market success.
The COVID-19 pandemic has led to a significant rise in vacancy rates in commercial corridors across the city, especially affecting brick-and-mortar businesses reliant on foot traffic. In response, community and economic development organizations can receive grants under the Small Business Storefront Activation Program. These organizations will collaborate with small business owners and landlords to swiftly transform vacant storefronts into vibrant business spaces. The program aims to provide rapid relief to small businesses, increase local spending, and attract more foot traffic to commercial corridors citywide.
Learn more about the Small Business Storefront Activations HERE.
With more than $6 million available, this initiative assists communities in meeting inventory requirements outlined in the LSLRNA. Grants range from $20,000 to $50,000 per applicant and will be awarded on a first-come, first-served basis until funds are expended. Please note that this grant is solely for lead service line inventorying purposes; lead service line replacement costs are ineligible.
Learn more about the Lead Service Line Inventory Grant Opportunity HERE.
The Cook County Department of Environment and Sustainability (DES) has launched the Businesses Reducing Impact on the Environment (BRITE) program. This free initiative aids businesses in lessening their environmental impact and promoting a healthier environment for their employees, customers, and community through on-site assessments focused on pollution reduction. Upon completing the assessment, eligible businesses may apply for grant funding.
The Manufacturing Reinvented grant is a fully-funded opportunity tailored for Cook County manufacturers to enhance their production and sales, develop leadership, and train their workforce. It offers reimbursement for projects that focus on operational improvements, leadership and strategy development, sales and marketing growth, and workforce training.
Learn more about the Cook County Illinois Manufacturing Reinvented Grant HERE.
Large grants exceeding $5 million are intended to support eligible commercial, cultural, industrial, institutional, social service and mixed-use projects. Grants are intended to support approximately 25% of total project costs involving new construction, rehabilitation or both.
Private and non-profit developers, tenants and property owners are eligible to apply individually or jointly during competitive, semi-annual funding rounds.
Learn more about the Community Development Grant - Large HERE.
One Fair Wage, in partnership with the City of Chicago, has launched the High Road Kitchens program, offering grants between $10,000 and $30,000 to Chicago restaurants. Eligible restaurants must be located in Chicago, have an annual revenue of under $3 million, and have experienced financial losses due to COVID-19 totaling 25% of their annual revenue.
Application Deadline: Rolling basis
Learn more about The High Road Kitchens program and apply HERE
Every month, a business owner in the U.S. is selected as a Freed Fellow. Each Fellow receives a $500 grant to invest in their existing business. Additionally, these recipients are eligible for a $2,500 small business grant. To qualify, recipients must announce their selection on social media and commit to being an active participant in the Freed Fellows community. These grants are designed to support eligible small businesses across various industries, providing financial assistance for operational needs, growth initiatives, or other business-related expenses.
Deadline: Rolling
This program offers $2,500 quarterly micro grants, providing non-dilutive funding to help businesses cover essential expenses, invest in growth opportunities, and achieve stability and success. Eligible businesses must be active U.S.-based companies, in operation for at least two years, with an annual income of $50,000 or more, and have 1-2 employees, including the owner. Grant funds can be used for utilities, commercial rent, inventory, professional development, software, marketing, and bookkeeping services.
Deadline: rolling deadlines
May
Grant money can be used in whatever way Founders need to use it - like seeking professional assistance with preparing documents to qualify for funding
Complete full application which includes information about your business and a short pitch video
Learn more about the Kitty Fund Mompreneur Business Grant HERE.
This program provides hands-on assistance to SBA’s E2G eligible small manufacturing firms in industries, including timber, energy, aluminum, steel, digital technology manufacturing, digital services, and automotive. Eligible participants include public and state-controlled institutions of higher education, for-profit organizations (other than small businesses), nonprofits with 501(c)(3) status (other than institutions of higher education), small businesses, and private institutions of higher education.
Deadline: May 27th 2025
June
This program aims to support businesses undertaking large-scale capital investment projects that pledge to create significant job opportunities for Illinois residents during their relocation or expansion within the state. The Business Attraction Prime Sites grants cover a variety of economic development initiatives, including infrastructure improvements and capital equipment purchases, all designed to foster job creation in Illinois.
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are competitive federal grants that offer funding opportunities for small businesses to conduct research and development (R&D) on innovative technologies relevant to federal agencies. These grants support the exploration of cutting-edge products with high commercialization potential. Our program provides a state match for businesses that have already received SBIR or STTR awards, helping them further develop and bring their high-tech innovations to market.
This program supports businesses making substantial capital investments and creating jobs in Illinois through relocation or expansion. Eligible applicants must be expanding in Illinois, qualify for EDGE, HIB, REV, or MICRO credits, and commit to hiring at least 40 new Illinois residents with a $40M investment, or 100 residents with a $20M investment. Priority is given to businesses in key industries like Agribusiness, Energy, IT, Healthcare, Manufacturing, and Transportation.
Learn more about the Clean Jobs Workforce Network Program HERE.
This small business grant program provides select new stores with $5,000 to use on Faire to stock their shelves with high-quality products. The grant is open to independent retail stores based in the U.S. or Canada that started their business in 2024 or plan to open soon. To apply, interested businesses must submit required forms and a short video.
Deadline: June 30th 2025
July
Sengo and Honeycomb Credit have teamed up to award $5,000 in non-dilutive grant funding to early-stage entrepreneurs building bold businesses. This grant aims to make funding more equitable, accessible, and founder-first. To be eligible for the $3,000 grant, applicants must be subscribed to a paid subscription. However, all individuals, regardless of subscription status, are eligible to receive the $1,000 grants.
Deadline: 11:59 PM on July 8, 2025.
August
Small grants up to $250,000 are intended to support eligible commercial, mixed-use and light manufacturing projects. Grants provide funding for up to 75% of total eligible project costs involving new construction, rehabilitation or both.
Priority is given to projects with strong local impacts that leverage local talents, capacities and institutions and contribute to community vitality. Private and non-profit developers, property owners and businesses are eligible to apply.
Learn more about the Community Development Grant - Small HERE.
Medium grants from $300,001 to $5 million are intended to support eligible commercial, cultural, industrial, institutional, social service and mixed-use projects. Grants are intended to support up to 50% of total project costs involving new construction, rehabilitation or both.
Private and non-profit developers, tenants and property owners are eligible to apply individually or jointly during competitive, semi-annual funding rounds.
Learn more about the Community Development Grant - Medium HERE.
December
The Illinois Grocery Initiative Equipment Upgrades Program, authorized by Public Act 103-0561, will
provide grants for new energy-efficient equipment upgrades for existing independently-owned for-profit
grocery stores, cooperative grocery stores, or not-for-profit grocery stores.
While the Illinois Grocery Initiative is intended to reduce or eliminate the existence of "food deserts" in
Illinois and will prioritize stores located in food deserts, the Equipment Upgrades Program is not limited to
establishments located in food deserts. These grants are intended, however, to facilitate energy-efficient
equipment investment and sustainability for stores located in food deserts, areas that could become food
deserts, and other areas that are underserved to a lesser degree. These grants will reimburse costs for
the purchase and installation of new energy-efficient equipment.
This Notice of Funding Opportunity invites eligible United States small business concerns (SBCs) to submit Small Business Innovation Research (SBIR) grant applications that propose to develop a product, process or service for commercialization with the aim of improving health access for all health and/or reducing and ultimately eliminating health disparities in one or more populations that experience health disparities. Appropriate technologies should be effective, affordable, and culturally acceptable.
Deadline: Dec 09, 2026
Still curious about how to get approved for a Small Business Grant?
Investopedia has a great article on the ins and outs of applying for and qualifying for a small business grant!
Incentives and Tax Credits
The new law boosts the tax credit for businesses hiring formerly incarcerated individuals from 5% to 15% of qualified wages, increasing the maximum credit from $1,500 to $7,500. These funds can be used for workforce transition and on-the-job training, supporting the Illinois economy by reducing reincarceration costs and generating long-term revenue through taxes. Stably employed individuals returning from incarceration have a 62% lower risk of recidivism, enhancing public safety. The General Assembly has allocated $1,000,000 to this program, so small businesses should act now to supplement their workforce. Stay tuned for updates on how to apply for the tax credit!
Illinois has taken a significant step forward with the passage of HB4951, becoming the 12th state in the nation to implement a Child Tax Credit. This new measure offers crucial tax relief to working families with low to moderate incomes, particularly those with young children. Starting in 2024, taxpayers who qualify for the Illinois Earned Income Tax Credit (EITC) and have at least one child under 12 will be eligible for a Child Tax Credit worth 20% of their EITC. This amount will increase to 40% for the 2025 tax year and beyond, providing ongoing support to help offset the high costs of raising children.
The Illinois Angel Investment Tax Credit Program encourages investment in innovative, early-stage companies to help obtain the working capital needed to further the growth of their company in Illinois. Investors in companies that are certified as Qualified New Business Ventures (QNBVs) can receive a state tax credit equal to 25% of their investment (up to $2 million).
Learn more about the Illinois Angel Investment Tax Credit Program HERE.
The data center’s investment program provides owners and operators with exemptions from a variety of state and local taxes for qualifying Illinois data centers. The program also provides data center owners and operators with a tax credit of 20% of wages paid for construction workers for projects located in underserved areas.
The Illinois Enterprise Zone Program is designed to stimulate economic growth and neighborhood revitalization in economically depressed areas of the state through state and local tax incentives, regulatory relief, and improved governmental services. Businesses located or expanding in an Illinois enterprise zone may be eligible for the following state and local tax incentives.
The River Edge Redevelopment Zone Program (RERZ) helps revive and redevelop environmentally challenged properties adjacent to rivers in Illinois. The River Edge Redevelopment Zone Act authorizes the Illinois Department of Commerce to designate zones in five cities: Aurora, East St. Louis, Elgin, Peoria, and Rockford.
RERZ provides several incentives authorized by State law. Two of these – sales tax exemption and property tax abatement (if offered in the zone) – are administered by the local zone administrators. The others involve tax incentives that are claimed on your Illinois Income Tax filing forms.
Illinois’ EDGE program provides annual corporate tax credits to qualifying businesses which support job creation, and capital investment and improve the standard of living for all Illinois residents. Initial qualification criteria require certain job creation and project investment.
Learn more about the Economic Development for a Growing Economy Tax Credit Program (EDGE) HERE.
This program supports large-scale economic development activities by providing tax incentives (similar to Enterprise Zones) to companies that make substantial capital investments in operations and create or retain an above-average number of jobs. Businesses may qualify for: investment tax credits, potential High Impact Business construction jobs credit, a state sales tax exemption on building materials and/or utilities, a state sales tax exemption on purchases of personal property used or consumed in the manufacturing process or in the operation of a pollution control facility.
Learn more about the High Impact Business Program (HIB) HERE.
Created as part of the Tax Cuts and Jobs Acts of 2017, Opportunity Zones provide an incentive for investors to invest in Opportunity Zones for a temporary tax deferral. Opportunity Zones are areas in Illinois that need investment to help create jobs and investment in areas that need it most. Opportunity Zones were created in 2018 through an analysis that included poverty rates, unemployment rates, the total number of children in poverty, violent crime rate, and population.
The Business Attraction Prime Sites Capital Grant Program assists companies with large-scale capital investment projects that commit to significant job creation for Illinois residents as they relocate or expand operations within Illinois. Prime Sites grants can encompass a wide range of economic development projects that will result in job creation in the state of Illinois.
Award amounts for eligible projects will be formula-based, and an applicant may apply for a grant of up to $10,000 per new job created. Grants will range from $250,000 to $25 million. This grant opportunity also includes a 4:1 match requirement, meaning grant funds can only cover 20% of the total eligible capital expenses for the proposed project.
Learn more about the Business Attraction Prime Sites Capital Grant Program HERE.
Employers are allowed a tax credit for qualified educational expenses associated with qualifying apprentices. Employers may receive a credit of up to $3,500 per apprentice against the taxes imposed by subsections (a) and (b) of Section 201 of the Illinois Income Tax Act, and an additional credit of up to $1,500 for each apprentice if (1) the apprentice resides in an underserved area or (2) the employer's principal place of business is located in an underserved area.
Learn more about the Illinois Apprenticeship Education Expense Tax Credit Program HERE.
WOTC (Work Opportunity Tax Credit) is a federal tax credit available to employers who hire and retain veterans and/or individuals from other target groups with significant barriers to employment. Employers claim about $1 billion in tax credits each year under the WOTC program.
What Workers can Employers Claim WOTC for?
- Veterans
- Temporary Assistance for Needy Families (TANF) Recipients
- Supplemental Nutrition Assistance Program recipients (also known as SNAP or food stamps)
- Designated Community Residents (living in Empowerment Zones or Rural Renewal Counties)
- Vocational Rehabilitation Referral
- Ex-felons
- Supplemental Security Income (SSI) Recipients
- Summer Youth Employee (living in Empowerment Zones)
- Long Term Unemployed (LTUR)
Learn more about the Work Opportunity Tax Credit (WOTC) HERE.
Provide businesses with sustainable, no-cost, and low-cost strategies to recruit, train, and retain the skilled workforce needed to thrive. Your partnership with DRS gives you access to our qualified vocational rehabilitation professionals. DRS provides job analysis, job coaches, training, and job accommodations/technical assistance.
There are several financial incentives that are available to businesses that hire individuals with disabilities. DRS can help you take advantage of these:
- On the Job Evaluations (OJE) are wages reimbursed to the employer for evaluating if an individual with a disability can perform the duties of a certain job.
- On the Job Training (OJT) reimburses an employer a negotiated wage if an individual with a disability that they hire needs certain kinds of training.
- Work Opportunity Tax Credits (WOTC) provides a tax credit for employers who hire certain targeted low-income groups, including vocational rehabilitation candidates and Social Security Administration (SSI/SSDI) recipients.
The River Edge Historic Tax Credit Program offers a 25% state income tax credit for qualified expenditures on certified historic structures within River Edge Redevelopment Zones (Aurora, East St. Louis, Elgin, Peoria & Rockford). This initiative, extended until December 31, 2021, aims to boost Illinois' economy by creating jobs through substantial rehabilitation projects. Recent changes in the Historic Preservation Tax Credit Act have transferred program administration to the Department of Natural Resources since January 1, 2019, fostering the revitalization of historic structures and neighborhoods.
Learn more about the Illinois Historic Preservation Tax Credit Program HERE.
Discover Illinois as a premier hub for film, TV, and advertising production! Explore diverse locations, from Chicago's skyline to historic neighborhoods. With stunning landscapes and a thriving industry, Illinois provides a 30% Film Tax Credit, making it a top choice for filmmakers and creatives.
The REV Illinois Act is a competitive incentives program aimed at boosting clean jobs in Illinois by attracting companies in the electric vehicle and renewables sectors. It supports the state's climate change goals, including achieving 100% clean energy by 2050 and putting one million EVs on the road by 2030. The program offers incentives for manufacturing electric vehicles, batteries, charging infrastructure, recycling products, and renewables like solar, wind, and energy storage. Benefits range from twenty to thirty years, including tax incentives, training credits, grants, and equipment/capital cost exemptions.
Learn more about the Reimagining Energy and Vehicles (REV) Illinois Program HERE.
The Business Attraction Prime Sites Capital Grant Program in Illinois supports companies undertaking significant capital investment projects that commit to creating jobs for residents within the state. Eligible projects range from new construction to renovation of industrial and commercial facilities, excluding warehouses. Grants, ranging from $250,000 to $25 million, are formula-based with a maximum of $10,000 per new job created. There's a 4:1 match requirement, limiting grant funds to cover only 20% of the total eligible capital expenses for the project.
Learn more about the Business Attraction Prime Sites Capital Program HERE.
Discover the benefits of WOTC (Work Opportunity Tax Credit) – a federal program offering employers tax credits of up to $1 billion annually for hiring and retaining veterans and individuals facing employment barriers. The credit amount varies based on factors like the hired individual's target group, first-year wages, and hours worked, with a maximum limit on the tax credit. Take advantage of this opportunity to support diverse hiring and boost your business.
Learn more about the Work Opportunity Tax Credit (WOTC) HERE.
Illinois is launching the Advantage Illinois – SSBCI 2.0 Program with $220 million to aid small businesses. The initiative prioritizes equitable support, utilizing outreach partners to engage historically marginalized groups like Socially and Economically Disadvantaged Individuals (SEDI) and Very Small Businesses. The program, guided by the U.S. Department of the Treasury, aims to address barriers these groups face in accessing capital.
Advantage Illinois under SSBCI 2.0 will offer two programs and must result in job creation or retention at the project location.
- Participation Loan Program (PLP) (presentation) – helps Illinois businesses get term loan financing at lower rates by purchasing a portion of the loan and lowering the risk for the lenders.
- Loan Guarantee Program (LGP) – provides a guarantee of partial principal repayment to the lender if a loan goes into default.
The Illinois Innovation Venture Fund (INVENT) is a $114 million equity capital program supported by the U.S. Department of the Treasury's State Small Business Credit Initiative (SSBCI) and managed by the Illinois Department of Commerce and Economic Opportunity (DCEO). This initiative aims to break down barriers for founders and communities that have struggled to access capital. The fund prioritizes small businesses, Capital Disadvantaged Business (CDB) owners, socially and economically disadvantaged individuals (SEDI), and industries aligned with the state's economic development plan. The goal is to foster sustainable growth, enhance access to capital, and support traditionally underserved entrepreneurs.
Learn more about the Illinois Innovation Venture Fund (INVENT) HERE.
This new program will be overseen by DCEO and administered by the Illinois Finance Authority (IFA), which will partner with local lenders to issue the loans. As Illinois officially designated “Climate Bank”, IFA will be exclusively focusing on providing its SSBCI-supported financing for the start-up and/or expansion of ventures directly involving environmentally supportive, “green” businesses, including those that address the adverse impacts of climate change.
Learn more about the Climate Bank Finance Participation Program HERE.
Additional Resources:
- Agricultural Justice Project (AJP), a program offering free resources and guidance for owners of farms and food businesses.
- Funding options for Black-owned businesses, including venture capital firms and programs offering financing to Black entrepreneurs.
- Funding options for LGBTQ+-owned businesses, including resource networks and organizations that offer grants to LGBTQ+ entrepreneurs and those from other underrepresented backgrounds.
- Funding options for Hispanic-owned businesses, including funding sources and organizations aimed at supporting Latinx and Hispanic entrepreneurs.
- Funding options for minority-owned businesses, including multiple grants, funding sources, and low-cost loans that are intended to help minority-owned businesses grow.
- Funding options for veteran-owned businesses, from government-backed programs to pitch competitions and business accelerators.
- Funding options for women-owned businesses, including ten programs, agencies, and organizations that are helping women entrepreneurs be better represented in the ranks of American business owners.
- SBA Small Business Development Centers, can help companies of all kinds locate additional funding opportunities at the national and local level.
