Tourism Private Sector Grant Program

The Tourism Private Sector Grant Program is administered by the Illinois Department of Commerce and Economic Opportunity to support initiatives that stimulate tourism and increase overnight stays in Illinois. This state-funded program provides project grants to eligible entities with the goal of attracting and hosting tourism events across Illinois, thereby contributing to the local economy and raising the state’s profile as a travel destination. The program is open to a range of Illinois-based entities including not-for-profit organizations, for-profit businesses, municipalities, counties, and local tourism promotion groups. To be eligible, applicants must be in good standing with all relevant state authorities. Each applicant must provide documentation verifying their eligibility, including proof of nonprofit status or a statement from the relevant unit of government. Applicants must also complete pre-award requirements such as the Internal Controls Questionnaire (ICQ) and Programmatic Risk Assessment Questionnaire (PRAQ). This is a competitive grant program. Applications are reviewed and scored on a 100-point scale by an internal review committee, and awards are made to the highest scoring proposals until available funding is depleted. A minimum score of 60 points is required to be considered for funding. Evaluation criteria include organizational capacity, the quality of the proposal, and the demonstrated need for funding. Finalists are notified through a formal Notice of State Award. Applicants must submit a comprehensive application package that includes a completed uniform grant application, a capital budget using the department’s template, a conflict of interest disclosure, mandatory disclosures, a program-specific narrative, and an advance budget form. The program does not accept federal or other government funds as matching contributions. All grants require a dollar-for-dollar cash match from private sector sources. Up to 25% of the required match may be satisfied through in-kind contributions that can be easily documented, such as lodging or transportation services. Funding ranges from $10,000 to $50,000 per grant. Program funds must be matched with non-governmental private sector contributions. Matching funds must be clearly budgeted, irrevocably committed to the project, and not derived from sources already used to match other grants. The grant does not support general operational costs like payroll, rent, or utilities. Projects must be aligned with the goal of promoting tourism within the state of Illinois and may include activities like hosting major events. The program operates on a rolling fiscal basis, with funding amounts varying year to year. For FY24, the program was allocated $4.6 million, and $600,000 has been earmarked for both FY25 and FY26. Quarterly reporting is required through the use of the PPR and PFR forms. The grant process, from submission to award decision, generally takes between 30 to 60 business days. Applicants may appeal decisions only regarding the evaluation process, not the outcome or scoring.

Proposals must demonstrate capacity, quality, and need; ineligible expenses include payroll and rent; high scoring required for funding.