Community Development Block Grant Economic Development Program

The Illinois Community Development Block Grant (CDBG) Economic Development Program, administered by the Illinois Department of Commerce and Economic Opportunity (DCEO), supports economic growth in low-to-moderate income (LMI) communities. The program provides grants ranging from $300,000 to $1,000,000 to eligible local governments to fund public infrastructure improvements or directly assist private businesses that create or retain jobs for LMI residents. Applications are accepted on a rolling basis until available funds are exhausted, with a total allocation of $1.9 million for this round. Eligible applicants include units of general local government such as cities, villages, and counties that do not receive direct HUD entitlement funds. Proposed projects must demonstrate significant private investment, job creation or retention commitments, and financial feasibility. Job funding limits are capped at $10,000 per retained job and $25,000 per new job. Funding may cover expenses such as land acquisition, construction, leasehold improvements, and working capital. Applications require robust documentation, including a public hearing, project feasibility assessments, cost estimates, and evidence of matching funds with a minimum 1:1 ratio. Projects must also comply with federal environmental, labor, and procurement regulations. Grantees are responsible for quarterly performance and financial reporting, as well as a final report within 60 days of project completion. This is a reimbursement-based grant program, and all expenditures must be substantiated. For guidance, applicants can contact the Grant Help Desk at CEO.GrantHelp@illinois.gov or visit the program’s website for detailed guidelines and application materials.