Illinois Grocery Initiative
🏛 Illinois Department of Commerce and Economic Opportunity
✓ Free, no account · Source: Illinois GATA Catalog (CSFA) · Last verified Sep 11, 2026
Can you apply?
This grant is for organizations seeking to establish new grocery stores or improve existing facilities in Illinois food deserts. Eligible applicants typically include for-profit grocers, nonprofits, cooperatives, and community development organizations with experience in retail or food systems. Projects must be located in designated food desert areas in Illinois and focus on increasing access to fresh, healthy foods. Both capital improvements and working capital for first-year operations are supported.
The program requires cost sharing from applicants. Awards range from $100,000 to $1,500,000. Preference is typically given to projects demonstrating community benefit, financial viability, and strong local support.
⚖️ Cost sharing / matching required — applicants must contribute their own funds.
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Program description
This program aims to combat food insecurity by offering competitive grants to support the establishment of new grocery stores in food deserts by reimbursing successful applicants for eligible capital and non-capital costs. Intended result is the establishment of New Stores in Food Deserts and improved access to fresh foods in these communities. Funds can be used for:
*Land acquisition and related expenses
*Site development
*Construction of a new facility
*Renovations of an existing facility
*Furniture, fixtures, and equipment
*Working capital for specified first-year operating expenses
*Energy efficient HVAC, refrigeration & lighting equipment Beneficiaries: Communities with limited access to fresh foods. Administered by the Illinois Department of Commerce and Economic Opportunity via the Illinois GATA Catalog of State Financial Assistance (CSFA 420-35-3295).
Who can apply
Eligible applicants
Demographic focus
How to apply
Application links
Key dates & requirements
Required documents
- Application form (GATA-required)
- Project narrative and food desert justification
- Market analysis and financial pro forma
- Site plan and construction/renovation specifications
- Cost breakdown and budget narrative
- Proof of cost-share commitments
- Proof of land control or acquisition plan
- Project timeline
- Organizational capacity documentation
Program contact
- 👤 John O'Conner
- 📧 CEO.GroceryInitiative@illinois.gov
Funding history
Annual funding for this program — Illinois state appropriations. How funding has trended year over year.
| 2024 | $20,000,000 | |
| 2025 | $13,500,000 | |
| 2026 | $13,000,000 | |
| 2027 | $22,550,000 |
FAQ
Who can apply for the Illinois Grocery Initiative?
For-profit grocers, nonprofits, cooperatives, and community development organizations can apply. Applicants should have retail or food service experience and be able to demonstrate financial viability.
What geographic areas are eligible?
Projects must be located in Illinois food deserts as designated by the state. Applicants must provide evidence the area qualifies.
What costs can be funded?
Eligible costs include land acquisition, site development, construction, renovations, equipment, fixtures, and working capital for first-year operations. Energy-efficient HVAC and refrigeration equipment are specifically supported.
What is the funding range?
Grants range from $100,000 to $1,500,000. Cost sharing is required but the specific match percentage should be confirmed with the administering agency.
When is the deadline?
The deadline is June 30, 2027. Applicants should submit well before the deadline and verify any pre-application requirements with the Illinois Department of Commerce and Economic Opportunity.
💡 Tips for applicants
- Document the food desert status of your location thoroughly with demographic and retail access data.
- Demonstrate financial sustainability with detailed pro formas, market analysis, and management team credentials.
- Show strong community need and support through letters from local officials, residents, and partner organizations.
- Identify specific cost-share partners early, such as local government, foundations, or community investors.
- Budget energy-efficient equipment prominently since the grant specifically incentivizes sustainable refrigeration and HVAC systems.
⚠️ Common mistakes
Applicants fail to document food desert status with rigorous data, making their site location ineligible. Many projects underestimate operating costs or present weak market analysis, raising lender and reviewer concerns about viability. Applications lack demonstrated community support and partnerships needed to justify public investment.
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