Illinois Manufacturing Retention Grant Program

The Illinois Department of Commerce and Economic Opportunity (DCEO) is offering the Manufacturing Retention Grant Program. This program is designed to help manufacturing companies maintain their operational presence within Illinois. Its core mission is to encourage businesses to invest in their workforce, facilities, equipment, technologies, and infrastructure, thereby securing existing jobs and fostering economic stability in the state. The program is supported through the Enterprise Fund, administered by DCEO, which typically funds a broad range of economic development projects. The primary beneficiaries of this grant are private for-profit business entities that operate a major manufacturing complex in Bushnell, Illinois, specifically within McDonough County. These companies must have less than 1,000 employees and extensive experience in tool manufacturing. A key eligibility criterion is the requirement to have acquired a tool manufacturing firm in McDonough County with a minimum of 100 full-time equivalent employees. The grant's impact goal is to retain these companies' manufacturing campuses at operating production levels that support at least 100 employees at the Bushnell site. The program prioritizes job retention in Illinois through various investments. Eligible expenses encompass employee payroll for existing employees (including backpay incurred from May 14, 2024), invoices for services, training expenses for existing employees, and significant capital improvements. These improvements include refurbishment or replacement of machinery, equipment, and tooling (e.g., forging hammers, Swiss lathes), facility repairs (e.g., roof repair, electrical upgrades), productivity and innovation initiatives (e.g., robotics reprogramming, induction heat furnaces), and the replenishment of inventory to maintain standard stocking levels for daily production. The expected outcome of the Manufacturing Retention Grant Program is the successful retention of manufacturing operations and a minimum employment level of 100 employees at the Bushnell site. Measurable results will be directly tied to the utilization of the $5,000,000 total funding, with a performance period spanning from September 1, 2024, through August 31, 2026. The DCEO's strategic priority, as evidenced by this program, is to safeguard manufacturing jobs and foster a robust economic environment within Illinois, aligning with a theory of change that posits direct investment in established manufacturing entities will lead to sustained employment and economic growth.