Community Development Block Grant (CDBG) Economic Development Program

The Community Development Block Grant (CDBG) Economic Development Program is administered by the Illinois Department of Commerce and Economic Opportunity (DCEO) with funding from the U.S. Department of Housing and Urban Development (HUD). As part of HUD’s longstanding mission to support community revitalization and assist low-to-moderate income populations, this program is designed to provide financial assistance to Illinois local governments in support of private businesses. The purpose is to foster job creation and retention, particularly for low-to-moderate income individuals, and to stimulate private investment in economically distressed areas. This funding opportunity, designated under NOFO ID 1631-2890 and CSFA number 420-75-1631, provides federal grant funding to eligible local governments across Illinois to support job-creating projects undertaken by private businesses. These projects may involve direct grants to businesses for activities such as land acquisition, purchase or installation of equipment, construction and rehabilitation of commercial and industrial spaces, leasehold improvements, or working capital expenses. Alternatively, funds may be used by the local government for public infrastructure improvements that indirectly benefit private employers. All funded activities must result in the creation or retention of permanent jobs, with a strict requirement that grants not exceed $10,000 per retained job or $25,000 per created job. Eligibility is limited to non-entitlement units of general local government within Illinois, which includes cities, villages, townships, and counties that do not directly receive HUD formula-based funding. These applicants must be prequalified in the Illinois GATA (Grant Accountability and Transparency Act) portal and demonstrate project feasibility, a critical need for funding, and alignment with CDBG national objectives—most commonly, benefiting low-to-moderate income individuals. Projects must also be tied to eligible North American Industry Classification System (NAICS) sectors such as manufacturing, transportation, warehousing, health care, construction, agriculture, and others outlined in the NOFO. The funding availability totals approximately $1.9 million, with two awards anticipated. Each grant award will range between $300,000 and $1,000,000. A 1:1 cost share or matching contribution is required. This is a reimbursement-based grant program, meaning expenses must be incurred and documented before grant disbursement. Certain activities are explicitly ineligible, including marijuana-related projects, speculative land purchases, and general government expenses. All applicants must conduct a public hearing, post public notices, and comply with environmental review procedures. Grantees are responsible for adhering to federal compliance requirements including Davis-Bacon labor standards, procurement procedures, and activity delivery protocols. Environmental and audit compliance is also strictly enforced. Applications are accepted on a rolling basis, meaning there is no fixed deadline. However, funds will be awarded on a first-come, as-needed basis until depleted. A Notice of State Award Finalist (NOSAF) will be issued to successful applicants, and project execution is expected to begin approximately 90 days thereafter. The grant period of performance is 24 months. All relevant documents—including signed application forms, financial statements, cost estimates, letters of commitment, and public hearing documentation—must be submitted in a specific format outlined in the application instructions. Submissions must be delivered in-person or by mail; electronic submissions are not permitted. Interested applicants should review the 2025 CDBG Guidebook for full details. For assistance, the designated agency contact is Wendy Bell, who can be reached by email at ceo.ocd@illinois.gov. Additional guidance and templates are available at the Illinois DCEO’s community development website. Compliance with all guidelines is mandatory, and failure to follow application packaging or eligibility requirements will result in disqualification.

Use only original, unmodified forms from the official Guidebook. Altered forms will result in automatic disqualification. Ensure all public hearing and environmental requirements are met. Submit physical applications in two clearly labeled folders, not digitally