Tech Incubator Enhancement Program

The Illinois Department of Commerce and Economic Opportunity (DCEO) has announced the Tech Incubator Enhancement Grant Program (TIEG), aimed at strengthening Illinois' tech network by modernizing existing incubators and supporting the development of new incubators. This initiative aligns with the Illinois 2024 Economic Growth Plan and is designed to bolster innovation, adaptability, and collaboration in the tech startup ecosystem. The program responds to evolving industry needs due to the COVID-19 pandemic, where hybrid and remote work models have reshaped requirements for incubators, necessitating updated equipment and infrastructure. The grant provides financial assistance to existing tech incubators that have been operational since before March 1, 2020, and new incubators that will serve key growth industries in underserved areas. Eligible applicants include nonprofit organizations and accredited public colleges or universities that provide dedicated spaces, mentorship, networking opportunities, and access to funding for startups. Grants may be used for architectural planning, engineering design, land and building acquisition, site preparation, utility work, construction, and purchase of durable equipment. However, funds cannot be used for operational expenses, lease payments, labor costs outside of project construction, or the purchase of vehicles. A total of $7,000,000 is allocated for this initiative, with anticipated award amounts ranging from $10,000 to $3,000,000. The program expects to issue approximately 15 awards. Existing incubators must provide a 1:1 match of funds, whereas new incubators are encouraged but not required to provide matching funds. Indirect costs, administrative expenses, and overhead are not eligible for reimbursement. The period of performance for awarded grants is from May 1, 2025, to April 30, 2026. Applications must be submitted electronically between January 15, 2025, and March 17, 2025, by 5:00 PM CST. A technical assistance session will be held on January 24, 2025, at 2:00 PM CST, though participation is not mandatory. Applications require a completed uniform grant application, budget, conflict of interest disclosure, mandatory disclosures, and a detailed project narrative. The application must demonstrate need, capacity, and project quality, with specific evaluation criteria including the proposed facility’s layout, impact on the tech community, financial feasibility, and outreach efforts for underserved populations. Award announcements are expected after the application review process, with final awards issued through a Notice of State Award (NOSA). Award recipients must comply with reporting and monitoring requirements, including periodic financial and performance reporting. Additionally, compliance with the Illinois Works Jobs Program Act, Prevailing Wage Act, and other regulatory requirements is necessary for capital improvement projects. The grant does not obligate DCEO to issue any awards, and funding will be awarded competitively based on evaluation scores. For further inquiries, applicants may contact Jamie Gladfelter at the Illinois Department of Commerce & Economic Opportunity via email at jamie.gladfelter@illinois.gov or by phone at 800-252-2923.