Tech Incubator Enhancement Program

The Illinois Department of Commerce and Economic Opportunity (DCEO) has announced the Tech Incubator Enhancement Grant Program (TIEG) under its 2025 funding opportunity. This program is designed to modernize and revitalize tech incubators across Illinois, adapting to the post-pandemic tech landscape by fostering hybrid work models and supporting startups. The program targets key growth industries identified in the Illinois 2024 Economic Growth Plan, including life sciences, quantum computing, artificial intelligence, clean energy, advanced manufacturing, and next-generation agriculture. It aims to empower startups through improved infrastructure, state-of-the-art facilities, and enhanced support services. The grant has an anticipated total funding pool of $7 million, with award amounts ranging from $10,000 to $3 million. Fifteen grants are expected to be awarded. Funding is intended for capital improvements such as architectural planning, building acquisition or construction, and durable equipment procurement. Operating expenses, staff costs, lease payments, and temporary facilities are explicitly ineligible. Awards will be distributed starting May 1, 2025, for a performance period ending April 30, 2026. Eligible applicants include existing tech incubators that have operated since before March 1, 2020, and new incubators launched on or after that date, serving areas with limited entrepreneurial resources. Applicants must be nonprofit organizations or accredited public colleges or universities providing comprehensive resources to startups, including funding assistance, mentorship, networking, and skill-building opportunities. Existing incubators must demonstrate a 1:1 match for state funds, while cost-sharing is recommended but not required for new incubators. Applications must include detailed project narratives, budgets, conflict-of-interest disclosures, and documentation of cost-sharing funds, among other requirements. Key components include a layout of the proposed facility, descriptions of support services, and evidence of alignment with Illinois’ key growth industries. The submission deadline is March 17, 2025, at 5:00 PM CST, and applications must be submitted electronically. Additional support is available through a technical assistance session scheduled for January 24, 2025. Evaluation criteria emphasize the need, capacity, and quality of the proposed project. Applications will be scored on a 100-point scale, with points awarded for demonstrated regional need, alignment with growth industries, operational capacity, and plans for outreach and community engagement. A minimum score of 70 is required to qualify for funding, and awards will also consider geographic and industry distribution. Successful applicants must comply with various state and federal regulations, including nondiscrimination laws, prevailing wage requirements, and environmental review procedures. Periodic reporting on financial and performance metrics is mandatory. For more information, applicants can contact Jamie Gladfelter at CEO.TIEG@illinois.gov or visit the program’s website for additional resources.