Top Small Business Grants in Illinois

Q: How do you get a small business grant in Illinois?

You can apply for Illinois small business grants, but there’s no guarantee you’ll get approved for one. You may have to submit a grant application as a qualified small business owner to be considered for a small business grant in Illinois.

Q: How hard is it to get a business loan in Illinois?

You may have difficulty getting a small business loan in Illinois if you have bad credit or insufficient business experience. You generally have to pay back business loans with interest.

Q: What is the easiest SBA loan to get approved for?

There’s no guarantee you’ll get approved for any SBA loan, but SBA microloans may be one of the easier ones to get if you’re a new business owner. Startups may be eligible for SBA microloans of up to $50K. If you’re looking for a streamlined application process, SBA Express working capital loans are an option you may consider.

Sulaiman Abdur-RahmanUpdated November 17, 2023

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.

Illinois has about 1.2 million small business owners who can apply for small business grants. Submitting an application and competing for Illinois small business grants can help you grow your small or medium-sized enterprise in the Prairie State.The Illinois economy has a gross domestic product of $1.03 trillion as of 2022. That’s the fifth largest GDP in the United States out of the 50 states and the District of Columbia. Small businesses contribute to the nation’s economy.Small and medium-sized firms exported about $17.1 billion worth of goods from Illinois in 2021, which ranks sixth in the nation out of the 50 states and Washington, D.C., according to the most recent U.S. Census Bureau export data.Below we highlight some of the top small business grants in Illinois that you can explore.

Grants for Small Businesses in Illinois

If you’re looking for small business grants in Illinois, here are some potential options to consider:

Illinois Tourism Attraction Grant Program

Program description: The Illinois Department of Commerce and Economic Opportunity (DCEO) awards grants to for-profit businesses, nonprofit organizations, and other entities that develop and enhance Illinois tourism attractions.
Incentive: Businesses can receive matching grants ranging from $15K to $500K to help reinvigorate tourism in Illinois.
General requirements: Here are some of the general requirements for this grant:
- Have a valid federal Employer Identification Number (EIN)
- Propose a viable project that promotes sustainable economic growth and tourism in Illinois
- Have a current System for Award Management (SAM) registration
- Have a valid Unique Entity Identifier (UEI) number
- Company not listed on the Federal Excluded Parties List
- Be in good standing with the Illinois Secretary of State, as applicable
- Not listed on the Illinois Stop Payment list
- Not listed on the Illinois Department of Healthcare and Family Services Provider Sanctions list
How to apply: Contact the DCEO if you’re interested in the Illinois Tourism Attraction Grant.

Illinois Reproductive Health Facilities Capital Grant Program

Program description: Illinois offers matching grants to nonprofit and for-profit clinics providing or planning to provide pregnancy-related services in a clinical setting.
Incentive: Receive grant awards ranging from $50K to $500K to help cover capital improvement expenses toward security enhancements or facility upgrades.
General requirements: Here are some of the general requirements for this grant:
- Have employees, volunteers, or agents who are licensed health care professionals
- Provide or plan to provide abortion care as defined in the Illinois Reproductive Health Act, as well as one or more of the following pregnancy-related services:
  - Contraception and contraceptive counseling
  - Pregnancy testing
  - Pregnancy diagnosis
  - Pregnancy options counseling
  - Limited obstetric ultrasound
  - Obstetric ultrasound
  - Obstetric sonogram
  - Sexually transmitted infections testing
  - Prenatal care
- Have a valid federal EIN
- Have a current SAM registration
- Have a valid UEI number
- Company not listed on the Federal Excluded Parties List
- Be in good standing with the Illinois Secretary of State, as applicable
- Not listed on the Illinois Stop Payment list
- Not listed on the Illinois Department of Healthcare and Family Services Provider Sanctions list
How to apply: You can access the Illinois Reproductive Health Facilities Capital Grant application on the DCEO website.

Illinois Federal Grant Support Program

Program description: Illinois offers state-based financial assistance to eligible small businesses in Illinois that have also received federal grant awards.
Incentive: Receive state-based matching grants ranging from $10,000 to $2 million if you’ve also been approved for specific federal grant awards.
General requirements: Here are some of the general requirements for this grant:
- Be an Illinois-based organization or business
- Be the primary applicant on a federal award application
- Have a project proposal where at least 51% of the total project activities occur in Illinois
- Have a valid federal EIN
- Have a current SAM registration
- Have a valid UEI number
- Company not listed on the Federal Excluded Parties List
- Be in good standing with the Illinois Secretary of State, as applicable
- Not listed on the Illinois Stop Payment list
- Not listed on the Illinois Department of Healthcare and Family Services Provider Sanctions list
- Project must be eligible for a specified federal grant program
- You agree to provide matching funds toward the project
- Applicants for federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are ineligible for this grant but may be eligible for the DCEO’s separate Phase I SBIR/STTR Matching Grant Program
How to apply: You can access the Illinois Federal Grant Support Program application on the DCEO website.

Chicago Small Business Improvement Fund (SBIF) Grants

Program description: Chicago SBIF grants can reimburse small business owners for some of their costs of renovating, remodeling, or improving the appearance and viability of eligible commercial properties in the Windy City.
Incentive: Receive up to $150K in reimbursements for making improvements to eligible commercial properties and up to $250K for enhancing eligible industrial properties in Chicago.
General requirements: Here are some of the general requirements for this grant:
- Be the owner or tenant of an eligible Chicago business property located in a Tax Increment Financing (TIF) district where SBIF funds are available
- Have gross annual sales not exceeding $9 million on average over the previous three years if you’re a small business owner
- Have a net worth not exceeding $9 million and liquid assets up to $500,000 if you’re a commercial property owner
- Have 200 or fewer full-time employees if you’re an industrial business owner
- Make permanent building improvements to eligible commercial or industrial property in the Windy City
- Operate an eligible business that’s not one of the following ineligible businesses:
  - Chain and franchise businesses
  - Branch banks
  - Day labor employment agencies
  - Currency exchanges, payday loan operations, or title secured loan stores
  - Pawn shops
  - Fortune telling services
  - Liquor stores and nightclubs
  - Adult uses
  - Track waging facilities
  - K–12 schools
  - Gas stations
  - Firearms dealers
  - Places of worship
  - Smoke shops and cigar lounges
  - Tobacco dealers, including sales of tobacco, nicotine, or similar products and accessories
  - Residential storage warehouses
  - Trailer-storage yards, junk yards, and similar uses
How to apply: Access the grant application online through SomerCor 504 Inc., the nonprofit that administers Chicago’s SBIF Grant Program. You can email your completed application to SomerCor.

Illinois State Trade and Export Promotion (ISTEP) Grants

Program description: ISTEP is a grant reimbursement program that can help you export your goods and services from the Prairie State to foreign markets.
Incentive: Receive up to $10K in reimbursements for eligible business expenses, including website translation and international trade show participation costs.
General requirements: Here are some of the general requirements for this grant:
- Be an Illinois firm with headquarters or a substantial facility based within the Prairie State
- Be an active small business in existence for at least 12 months
- Be profitable with gross annual revenue of at least $250K
- Have products or services that contain at least 51% U.S. and 25% Illinois content or that substantially contribute to Illinois job creation
How to apply: Access the ISTEP grant application and web submission form on the DCEO website to apply. Companies applying for or receiving any other local, state, or federal grant funds associated with export promotion generally are not eligible for this grant.

Who Provides Small Business Grants in Illinois?

Local and state government agencies, including the state Department of Commerce and Economic Opportunity, offer a variety of small business grants in Illinois.You can compare small business grants in Illinois with similar programs in other states, such as:

Do You Have to Pay Back a Small Business Grant?

A small business grant typically comes with terms and conditions, and you may be responsible for paying back the grant if you violate those terms. In general, small and midsized business owners are not required to pay back an SMB grant absent any violations.You typically have to sign a funding agreement to accept a small business grant. As mentioned above, the grant may come with certain conditions. Using the grant for an illegitimate purpose may violate the agreement and require business owners to pay back the grant.Small business grants may require you to spend the money by a certain date. You may also have to provide proof of payment and a written statement detailing how you’ve spent the grant.Recommended: How To Get a Small Business Grant

Who Is Eligible for Small Business Grants in Illinois?

Local business owners or operators of an enterprise with fewer than 500 employees may be eligible for small business grants in Illinois.The U.S. Small Business Administration’s Office of Advocacy generally defines a small business as an independent business having fewer than 500 employees. A small business, including individuals with freelancing business ideas, may be eligible for small business grants.

What Industries Does Illinois Support With Grants?

Illinois offers a variety of grants supporting the following industries:

Manufacturing
Reproductive health clinics
Retail trade (store and nonstore retailers)
Travel agencies

Illinois Resources for SMB Owners Looking for Funding

Here are some resources for small and medium-sized businesses looking for funding in the Prairie State:

Illinois Small Business Development Centers (SBDC)

Illinois SBDC facilities statewide can provide Illinois small business owners with the following services:

Business training seminars and webinars
Marketing research
One-on-one business advice and management assistance

SBA District Office in Illinois

The U.S. Small Business Administration (SBA) is a federal agency that provides resources and support to small business owners. The SBA Illinois District Office serves the entire Prairie State with a main office in Chicago and satellite office in Springfield.

Alternative Funding Sources for Small Businesses in Illinois

Here are some alternative funding sources for small businesses in Illinois:

Illinois State Small Business Credit Initiative (SSBCI)

The Illinois State Small Business Credit Initiative is a federally funded program for small business owners in the Prairie State. Federal law — the American Rescue Plan Act of 2021 — allocates more than $354.6 million to the Illinois SSBCI.Here’s how Illinois plans to use the SSBCI funding:

Advantage Illinois Loan Guarantee Program — $114.8 million. This program provides a guarantee of partial principal repayment to the lender if a small business loan goes into default.
Innovation Venture Fund (INVENT) — $114.8 million. This program will help eligible startups access venture capital.
Advantage Illinois Participation Loan Program — $105 million. This program uses SSBCI funds alongside private funds to support small business loans to eligible borrowers, including socially and economically disadvantaged individuals.
Climate Bank Finance Participation Loan Program — $20 million. This program uses SSBCI funds to help support the financing needs of small businesses involved in environmental or “green” activities.

Illinois Microloan Lenders

Community-based nonprofits may offer microloans of up to $50,000 to small business owners in Illinois, including microloans for women-owned small businesses. In general, microloans can range from $500 to $50K and may be available to startups.

Illinois SMB Loans from Private Lenders

Banks, credit unions, and private lenders may offer different types of small business loans to Illinois business owners.Here are some of the funding products you may consider depending on your needs:

Find Small Business Financing With Lantern

If you need funding to grow your business, Lantern by SoFi can help. Just fill out a simple form and find the right financing for your business.Lantern can help you find fast funding for your small or medium-sized enterprise.

Frequently Asked Questions

How do you get a small business grant in Illinois?

How hard is it to get a business loan in Illinois?

What is the easiest SBA loan to get approved for?

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About the Author

Sulaiman Abdur-Rahman

Sulaiman Abdur-Rahman writes about personal loans, auto loans, student loans, and other personal finance topics for Lantern. He’s the recipient of more than 10 journalism awards and served as a New Jersey Society of Professional Journalists board member. An alumnus of the Philadelphia-based Temple University, Abdur-Rahman is a strong advocate of the First Amendment and freedom of speech.

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