Chicago’s Small Business Improvement Fund (SBIF) Reimbursement Grants

Grant Overview

Donor: The City of Chicago and SomerCor

About: SBIF, Small Business Improvement Fund, provides grants to Chicago’s small businesses looking to grow. The grants are funded by Tax Increment Financing (TIF) and are available for different TIF districts across Chicago. Grants are available for up to $150,000 for commercial businesses and up to $250,000 for industrial businesses. Grants cover 30% to 90% of the cost of remodeling work. Businesses must be located in an eligible TIF district and meet specific financial and size criteria.

The program aims to promote economic development by helping small businesses and property owners with the costs of permanent building improvements. Eligible expenses include most permanent building improvements, such as exterior renovations, interior remodeling, HVAC upgrades, and ADA improvements.

It is important to keep in mind that the applications are only accepted during specific application windows for each TIF district, as listed in the rollout calendar. Businesses must also have a valid city business license, be current with property taxes, and be free of any city debts to qualify. Detailed business plans and financial projections may be required for startups.

To get the most out of SBIF and other similar opportunities, consider leveraging Grantaura’s expert services for grant research, document preparation, application submission, and crowdfunding support.

Focus: Building renovations, HVAC upgrades, ADA improvements, Storefront renovation, Building systems, Interior remodeling, Roof replacement

Region: Chicago (Illinois, United States of America), Northern America

Eligibility:
-Business properties located in a TIF district where SBIF funds are available and the SBIF is open for applications
-Commercial businesses with gross annual sales up to $9 million on average over the previous three years
-Commercial property owners with a net worth up to $9 million and liquid assets up to $500,000
-Industrial businesses with up to 200 full-time employees
-Residential projects are not eligible for SBIF grants
-Applicants must have a valid city business license, be current with property taxes, and be clear of City indebtedness
-Detailed business plans and financial projections may be required for startups
-Business owners must submit Economic Disclosure Statements and affidavits as a part of the application process
-SBIF grants will not be paid until the improved property is occupied by an eligible small business tenant or tenants

Benefits:
-Grants of up to $150,000 for commercial properties and up to $250,000 for industrial properties
-Grants cover between 30 percent and 90 percent of the cost of remodeling work
-Grants are funded by Tax Increment Financing (TIF) revenues in designated TIF districts citywide
-The grant does not have to be repaid
-Grants can be used to reimburse up to 90% of pre-approved construction costs, with a maximum reimbursement of $75,000 for multi-tenant properties, $150,000 for commercial properties, and $250,000 for industrial properties
-Recipients of commercial SBIF grants of at least $25,000 are required to invest 10 percent of the grant amount on exterior improvements

Deadline:
February 2025
OPENS: 9 a.m. Saturday, Feb. 1
CLOSES: 5 p.m. Sunday, March 2

March 2025
OPENS: 9 a.m. Saturday, March. 1
CLOSES: 5 p.m. Sunday, March 30

April 2025
OPENS: 9 a.m. Tuesday, April 1
CLOSES: 5 p.m. Wednesday, April 30

Terms:
-SBIF: Small Business Improvement Fund
-TIF: Tax Increment Financing
-DPD: Department of Planning and Development
-ADA: Americans with Disabilities Act
-SomerCor: The organization that administers the SBIF grant on behalf of the City of Chicago