Community Development Grant – Small (CDG-S)

The Community Development Grant – Small (CDG-S) provides funding of up to $250,000 to support eligible commercial, mixed-use, and light manufacturing projects in the City of Chicago. These grants cover up to 75% of total eligible project costs for new construction, rehabilitation, or both. The funding prioritizes projects that generate strong local impacts by leveraging local talents, capacities, and institutions to enhance community vitality. Eligible applicants include private and non-profit developers, property owners, and businesses. The CDG-Small grants are funded through the Housing and Economic Development (HED) bond and are available exclusively for projects located within the City of Chicago. While this grant specifically targets projects within city limits, additional funding opportunities may be available through other programs managed by the Department of Planning and Development (DPD). Grant funding is provided on a reimbursement basis, meaning awardees must cover all upfront costs, with disbursements made at defined construction milestones. Applications are currently open and must be submitted by August 15, 2025, at 11:59 PM. Applicants who meet this deadline can expect to receive a response regarding their funding status in the winter of 2025. All applications must be submitted online as no physical submissions are accepted. The application process requires documentation such as project budgets, site control verification, and, where applicable, architectural designs and cost estimates. Applications are evaluated based on criteria including anticipated impact, site characteristics, intended uses, zoning compliance, design feasibility, and financial documentation. To be eligible, projects must be revenue-generating and fall into one of the following categories: commercial (office or retail), light industrial, or mixed-use residential (where residential costs do not exceed 25% of the total grant amount). Grant funds may be used for hard costs, soft costs, and acquisition costs, provided the latter do not exceed 25% of the total grant amount and are part of a broader commercial project. The program does not fund operations, staffing, furniture, fixtures, equipment, or home-based businesses. Additionally, mobile businesses, such as food trucks, do not qualify for this funding. Projects that are already in progress may still apply, but the grant will only cover remaining expenditures rather than those already incurred. The city encourages projects with demonstrated readiness, such as site control, architectural designs, and construction cost estimates. Selected projects must comply with prevailing wage requirements and are encouraged to adhere to Minority- and Women-Owned Business Enterprise (MBE/WBE) contracting standards. While projects must not have received full funding from the Neighborhood Opportunity Fund (NOF) or Small Business Improvement Fund (SBIF) within the last three years, applicants may still apply if they require additional funding. For further inquiries, applicants may contact the Department of Planning and Development via email at dpd@cityofchicago.org. Additional resources, including community plans and economic development support, can be found on the DPD’s website. Grant recipients are publicly announced, with project names, locations, and awarded amounts disclosed. Applicants who do not receive funding in this round may reapply in subsequent rounds.