Community Development Block Grant Economic Development Program
🏛 Illinois Department of Commerce and Economic Opportunity
✓ Free, no account · Source: Illinois GATA Catalog (CSFA) · Last verified Jun 1, 2026
Can you apply?
This grant is for community-based organizations and local government units in Illinois. Only non-metropolitan areas qualify for Economic Development funding. Projects must create or retain full-time, permanent jobs. At least 51% of jobs created/retained must assist low-to-moderate income individuals.
Private businesses can receive grants for land/building acquisition, equipment purchases, construction, leasehold improvements, and working capital. Local government units can receive grants for public infrastructure that supports economic development.
Both direct benefit (to businesses) and indirect benefit (public infrastructure) projects are eligible. Applicants must demonstrate job creation or retention outcomes.
⚖️ Cost sharing / matching required — applicants must contribute their own funds.
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Program description
The program provides federal funding for community-based projects. Communities in non-metropolitan areas can apply for Economic Development funding to assist private business in retaining or creating full-time, permanent jobs. Grant funds may also be used for improvements to public infrastructure that directly supports companies in local communities. The program focuses on creation and retention of jobs with a minimum of 51% of the jobs qualifying as assisting those who are low-to-moderate income. The business may use funds in the form of a grant for “direct benefit” of the business: • Acquisition of land or building; • Purchase or installation of fixtures and equipment; • Construction, reconstruction, installation or rehabilitation of commercial or industrial buildings, structures and other real property); • Leasehold improvements; and • Working capital expenses (inventory, employee salaries, general operating expenses and advertising/marketing expenses. Units of local government may use CDBG funds in the form of a grant for public infrastructure improvements in support of economic development as an “indirect benefit” of the business. Beneficiaries: Businesses that create or retain jobs of which 51% go to employees considered low-to-moderate income. Federal Assistance Listing: 14.228 — Community Development Block Grants/State’s program and Non-Entitlement Grants in Hawaii. Administered by the Illinois Department of Commerce and Economic Opportunity via the Illinois GATA Catalog of State Financial Assistance (CSFA 420-75-1631).
Who can apply
Eligible applicants
Demographic focus
How to apply
Application links
Key dates & requirements
Required documents
- Application form (via Illinois GATA system)
- Project narrative describing job creation/retention outcomes
- Detailed budget with cost-sharing breakdown
- Economic data for the community (unemployment, income levels)
- Business plan or infrastructure improvement specifications
- Evidence of local government or business support
Program contact
- 👤 Wendy Bell
- 📧 ceo.ocd@illinois.gov
Funding track record
Recent awards under CFDA 14.228 from the last 3 years — real organizations that won funding through this same program.
Top 10 Largest Recent Awards
-
$1,932,347,000
-
$1,639,381,000
-
$1,428,120,000
-
$1,107,881,000
-
$925,394,000
-
$910,624,000
-
$831,502,000
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$813,783,000
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$709,324,000
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$585,704,000
Top States by Funding
- FL 16 awards $6,650.5M
- PR 3 awards $2,282.6M
- NC 5 awards $1,791.9M
- HI 1 awards $1,639.4M
- IL 8 awards $973.9M
Source: USAspending.gov — federal spending transparency. Data covers last 3 years.
Funding history
Annual funding for this program — Illinois state appropriations. How funding has trended year over year.
| 2019 | $4,000,000 | |
| 2022 | $3,000,000 | |
| 2023 | $3,000,000 | |
| 2024 | $1,980,641 |
FAQ
Who can apply for this grant?
Private businesses in non-metropolitan Illinois communities and local government units. Jobs created/retained must primarily benefit low-to-moderate income individuals.
What can grant funds be used for?
Businesses may use funds for land/building acquisition, equipment, construction, leasehold improvements, and working capital. Local governments may fund public infrastructure supporting economic development.
Is cost-sharing required?
Yes, cost-sharing is required. Budget documents should specify your match commitment.
What is the typical award amount?
Awards typically range from $300,000 to $1,000,000. The total program funds approximately $1,900,000.
How often can I apply?
The program has rolling deadlines. Check with the Illinois Department of Commerce and Economic Opportunity for current application windows.
💡 Tips for applicants
- Emphasize job creation and retention outcomes in your narrative. Quantify jobs created and percentage serving low-to-moderate income workers.
- Document how public infrastructure improvements directly support business expansion or job creation in your area.
- Clearly calculate your cost-share commitment. Show funds from local sources, business partners, or other grants.
- Provide strong economic data about your community. Include unemployment rates, median income, and business growth potential.
- Connect your project to existing economic development strategies. Show alignment with local and regional plans.
⚠️ Common mistakes
Applying in metropolitan areas when only non-metro communities are eligible. Failing to demonstrate that 51% of jobs assist low-to-moderate income individuals. Underestimating cost-share requirements and submitting budgets without adequate local match.
Similar grants
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- OPEN Neighborhood Assistance Program (NAP) — Pennsylvania Department of Community & Economic Development