Strategic Economic Development Program

The Illinois Department of Commerce and Economic Opportunity (DCEO) is announcing the Strategic Economic Development Program under the State of Illinois Uniform Notice of Funding Opportunity (NOFO). This funding opportunity is part of Illinois’ ongoing strategy to bolster electric vehicle (EV) manufacturing and infrastructure investment in targeted regions. Specifically, the grant supports capital investment for a designated EV component part manufacturer located in McLean County, Illinois. The DCEO, a central economic development agency in Illinois, administers this program using funds appropriated by the Illinois General Assembly. The total anticipated funding for this round is $2,375,000, and only one award is expected to be issued. The program seeks to assist the expansion of an existing electric vehicle component manufacturer by funding building improvements, infrastructure costs, and the purchase of machinery and equipment required for manufacturing EV parts. Funding will be distributed over two disbursement periods: an initial reimbursement of up to 50% of the awarded amount upon documentation of capital expenditures, and the final 50% once all expenditures, including the required matching funds, are fully documented. The funding can be used for capital improvement projects incurred during State Fiscal Years 2025, 2026, and a portion of 2027 (covering July 1, 2024, through August 31, 2026). Eligible costs must adhere to Illinois bondability guidelines. Applicants must meet stringent eligibility criteria. Eligible entities must be business entities located in McLean County that already hold an executed agreement under the Reimagining Energy and Vehicles in Illinois (REV) Tier 1 Program. Additionally, applicants must be among the top 20 global suppliers ranked by sales of original equipment parts in 2024, as published by Auto News. Entities not meeting these eligibility standards will not be considered. Applicants must also be registered and in good standing in the Illinois GATA (Grant Accountability and Transparency Act) portal and meet federal and state compliance requirements regarding tax status and debarment. The application window runs from August 6, 2025, through August 21, 2025, closing at 5:00 PM CST. All application materials must be submitted through a specified Smartsheet web form. Required documents include the Uniform Grant Application, a program-specific application with project and budget summaries, conflict of interest and disclosure forms, and a detailed justification for capital expenditures. All applications must be complete, accurate, and compliant with formatting instructions. Only one application may be submitted per applicant. No technical assistance session is scheduled for this opportunity. The evaluation process will score applications out of 100 points based on three weighted criteria: Need, Capacity, and Quality. Specific scoring components include REV agreement status, McLean County location, designation in special economic zones, job creation metrics, and production of EV-related products. Additional criteria include average wages of new jobs created and organizational capacity to complete the project within the performance period. Applications will be reviewed by an Evaluation Committee, and awards will be issued in order of score ranking until all funds are allocated. Appeals are allowed only concerning the evaluation process, not the scoring outcomes. The expected project performance period is from September 1, 2025, through August 31, 2026, with the possibility of two one-year extensions if needed. Grantees will be required to submit quarterly performance and financial reports, comply with state labor laws including prevailing wage and Illinois Works requirements, and undergo both fiscal and programmatic monitoring. Questions may be directed to the Program Contact, Joy Wolfe, or the DCEO Grant Help Desk via the contact information provided in the NOFO. The final Notice of State Award (NOSA) will outline all grant conditions and must be accepted by the grantee in the GATA portal prior to the disbursement of funds.

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