Are you planning to start a small business in Illinois but are struggling with funding? You are at the right place. Finance is the lifeline of any business, and sufficient funding is crucial to starting and running a successful business. Thankfully, Illinois offers a range of funding opportunities for small businesses to set up and expand. The funding opportunities are designed to support growth, resilience, and innovation, which can ultimately contribute to the state’s economy.
From the Back to Business grant and Advantage Illinois Program to the Illinois Small Business Development Fund (SBDF) and Illinois Manufacturing Excellence Center (IMEC), there are multiple funding sources for small businesses. Whether you are entering into manufacturing, finance, research and development, education or any other field, these financial assistances empower businesses and enhance economic growth. In this blog, we will shed light on some important funding opportunities for small businesses in Illinois to help you start or reestablish your business.
Back to Business (B2B) Grants
Illinois has launched a new financial funding opportunity B2B New Business Grant (B2B NewBiz), a grant program that provides financial assistance to businesses between January 2020 and December 2021. This grant is specifically available for businesses in industries most impacted by the pandemic.
- Purpose: To help small businesses affected most during the pandemic.
- Eligibility:
- The business must be based in Illinois.
- Must come under industries hit hardest by the pandemic.
- Not able to receive any other federal or state aid.
- Operations begin between January 1, 2020, and December 31, 2021.
- Grant Amount: Up to $25 million.
- How to Apply: Applications are submitted through the ICook County Small Business Source and partner organizations.
Advantage Illinois Program
One of the best Illinois Funding Opportunities, Advantage Illinois Program provides low-interest loans and loan guarantees for small businesses through the State Small Business Credit Initiative (SSBCI). It facilitates finance access for small enterprises that find it difficult to obtain traditional loans. Its INVENT supports businesses in various sectors, from technology to agriculture. As the funding comes in the form of loans, it must be repaid with interest.
- Purpose: Capital assistance for businesses struggling to get traditional funding.
- Eligibility:
- Must be a small business based in Illinois.
- Majorly owned by women, disabled, veterans or minority entrepreneurs.
- Grant Amount: Varies by program, but maximum $ 354 million.
- How to Apply: It works in partnership with local money lenders, so applications are handled by participating lenders and the bank itself.
Neighborhood Opportunity Funds
The Illinois DCEO is offering $14.7 million in funding for Opportunity Zones across the state to encourage investment in areas needing economic growth. The neighborhood opportunity funds accept grant applications from small business owners in Chicago, the South Sides, and the Southwest areas. By providing financial incentives, it helps construct and rehabilitate new businesses in these zones.
- Purpose: Support small businesses as well as local job creation and development.
- Eligibility:
- Business must be based in Chicago’s West, South Sides, and Southwest commercial corridors.
- Projects should contribute positively to the community.
- Projects must be locally owned or operated.
- Grant Amount: Up to $250,000 for small businesses and $250K – $2.5M for large projects.
- How to Apply: Each fund typically has its own application process, with forms available on its website.
Illinois Small Business Development Fund (SBDF)
The Illinois Small Business Development Fund (SBDF) is a state-supported initiative that provides financial support to small businesses and early-stage companies in Illinois. The funding can help small businesses extend their operations and purchase new assets to increase their scale.
- Purpose: To stimulate economic development by supporting small businesses and creating job opportunities.
- Eligibility:
- Applicants must be based in Illinois.
- Businesses must meet the definition of a “small business”.
- Must have been operational for a certain period (at least 1-2 year)
- Grant Amount: Up to $25,000.
- How to Apply: Applications are submitted through the Illinois Department of Commerce and Economic Opportunity (DCEO) or the relevant department.
Illinois Federal Grant Support Program
The Illinois Federal Grant Support Program offers state-based financial assistance in the form of federal grant funding to small businesses in Illinois. This program mainly streamlines the grant application process for businesses that also aim to receive federal grant awards.
- Purpose: To offer technical support and guidance for applicants seeking federal funding for projects.
- Eligibility:
- The business must be based in Illinois.
- Be the primary applicant on a federal award application.
- The project must be eligible for a specified federal grant program.
- Alignment with Economic Development Goals.
- Grant Amount: $10,000 to $2 million
- How to Apply: Applications are submitted through the Illinois Department of Commerce and Economic Opportunity (DCEO) website.
Amber Grant for Women
The Amber Grant for Women is a funding program specifically designed to support women entrepreneurs by providing grants for their small business ventures. Women in Illinois can apply for these small business grants and secure good funding for starting or even expanding their businesses.
- Purpose: To offer financial support to women entrepreneurs looking to start or grow their own business ventures.
- Eligibility:
- Applicants should be based in the United States.
- Applicants must identify as women.
- Clearly articulate business concepts and spendings.
- Grant Amount: $10,000 plus $25,000 at end of year.
- How to Apply: Women in Illinois can apply for this grant via WomensNet.
Illinois Manufacturing Excellence Center (IMEC) Grant Programs
IMEC is a nonprofit organization that offers grant opportunities and funding to manufacturing businesses in Illinois. It mainly supports businesses that focus on innovation, efficiency, workforce development, and tech adoption.
- Purpose: Helping manufacturers develop projects and support a wide range of manufacturing initiatives.
- Eligibility:
- It must be a manufacturing company operating in Illinois.
- The proposed project should align with the specific goals of the grant program.
- Grant Amount: Varies by program.
- How to Apply: Application forms are available on the IMEC website. Submit the grant application following IMEC’s guidelines.
Business Interruption Grant (BIG)
The BIG program focuses on delivering economic support to small businesses impacted most by disruptions like the COVID-19 pandemic. In this, the grant is given through federal funding to cover the losses due to the pandemic and re-establish the business.
- Purpose: To provide economic relief to businesses affected by economic downturns, natural disasters, public health emergencies.
- Eligibility:
- Direct impact on business operations by an interruption.
- Proving financial need or a significant drop in revenue.
- Grant Amount: Up to $150,000, can range widely.
- How to Apply: The application process varies by organization and information is available on the DCEO website.
Conclusion
For small businesses in Illinois, it’s difficult to secure funding through high-interest loans from private organizations. In such a situation, it’s important to know and understand cost-effective funding opportunities for small businesses. From Back to Business (B2B) Grants to Business Interruption Grants (BIG), we have discussed a number of resources to get financial assistance. The blog covers everything from their description and purpose to amount, eligibility and how to apply to help you make the right decisions.