Community Development Block Grant Economic Development Program

The Illinois Department of Commerce and Economic Opportunity (DCEO) administers the Community Development Block Grant (CDBG) Economic Development Program, funded by the U.S. Department of Housing and Urban Development (HUD). This initiative is designed to assist eligible units of general local government in Illinois, excluding HUD entitlement communities, to foster private sector job creation or retention. The program stems from the federal Housing and Community Development Act of 1974, which consolidated several categorical grant programs into a block grant format, emphasizing community-driven economic and infrastructure improvements. The primary goal of the CDBG Economic Development Program is to stimulate local economies by supporting private businesses through local government grants. These funds are utilized either directly, such as for land acquisition or equipment purchases, or indirectly, such as infrastructure improvements that enable private sector expansion. A key requirement is that projects must lead to the creation or retention of permanent jobs, particularly for individuals from low-to-moderate income backgrounds. The program supports financial assistance where there is a clear and documented need, including evidence that the project would not proceed without CDBG funds. Applications are evaluated based on financial feasibility, public benefit, and the capacity of the applicant and partner businesses to comply with program regulations. Grants range from $300,000 to $1,000,000, with no more than $10,000 in funding per retained job and $25,000 per created job. Projects that do not result in job creation or retention are ineligible. The program is structured as a reimbursement grant, with allowable costs substantiated by documentation. Costs related to general government operations, debt refinancing, and marijuana-related projects are expressly excluded. Activity delivery costs, such as grant administration and audit preparation, are capped at $35,000 and must be detailed with appropriate supporting invoices. All funded projects are expected to be operational within a 24-month grant term, with a potential one-year extension under specific circumstances. Applicants must be registered and prequalified in the Illinois Grant Accountability and Transparency Act (GATA) system and must not be listed on any state or federal debarment or stop payment lists. Furthermore, private sector partners must provide commitments to job creation or retention and demonstrate that they are financially capable of fulfilling project goals. A 1:1 cost share is required, with documentation of all matching funds, including detailed letters from financial institutions or bond purchasers. The application process includes a mandatory public hearing with published notice, allowing for public comments and transparency. A variety of documents are required, including project maps, cost estimates, job projections, minority benefit statements, council resolutions, and detailed financial records from both the applicant and benefiting businesses. Applications are reviewed on a rolling basis until available funds are exhausted. Evaluation is based on need, project readiness, financial feasibility, and job commitments. All applications must be submitted physically to the DCEO Office of Community Development in Springfield, Illinois, using prescribed formatting and documentation templates. Successful applicants will receive a Notice of State Award (NOSA), followed by a grant agreement development phase. The anticipated start date is approximately 90 days post-NOSA, with project performance extending over two years. This funding opportunity remains open continuously until all allocated funds are awarded, and the program may implement a backup funding round if additional funds become available later in the program year.

Use all official templates without modification; failure to comply will result in disqualification. Ensure public notice is published exactly as directed.