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 establishing new grocery stores in Illinois food deserts. Eligible applicants include nonprofits, for-profit businesses, and cooperatives with plans to open fresh food retail in underserved communities. The program funds capital costs (land, construction, equipment) and eligible working capital for first-year operations.
Geographic scope is limited to Illinois. Applicants must demonstrate that their proposed location qualifies as a food desert with documented community need and limited access to fresh foods.
Activities supported include site acquisition, facility development, store renovation, equipment purchase, and working capital. Energy-efficient equipment is prioritized. Award amounts range from $500,000 to $5,200,000.
⚖️ 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
- GATA Certification (Illinois grant certification)
- Project Narrative/Business Plan
- Site Selection Study and Food Desert Documentation
- Detailed Budget and Cost Breakdown
- Proof of Cost Share/Match Commitment
- Financial Projections (3–5 year pro forma)
- Community Letters of Support
- 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?
Nonprofits, for-profit grocery retailers, cooperatives, and social enterprises can apply. Applicants must plan to open a store in an Illinois food desert.
What geographic areas are eligible?
Only Illinois is eligible. Your proposed store location must be in a documented food desert with limited fresh food access.
What costs can be funded?
Land acquisition, site development, construction, renovation, fixtures and equipment, working capital, and energy-efficient HVAC and refrigeration systems are all eligible.
How much competition should I expect?
With $20.8M in funding and awards up to $5.2M, typically 4–10 awards are made. Proposals with strong community partnerships and feasibility plans are most competitive.
What is the cost-sharing requirement?
Cost sharing is required but the specific percentage is not publicly specified. Contact DCEO for current match requirements before applying.
💡 Tips for applicants
- Document your food desert designation clearly. Use USDA food access maps or local health department data to support community need.
- Include a detailed financial plan showing market viability and operational sustainability beyond year one.
- Demonstrate strong community engagement. Letters of support from residents, local officials, and partner organizations strengthen applications.
- Highlight job creation and economic development impacts. Quantify permanent jobs, local hiring, and community benefits.
- Prioritize energy-efficient equipment in your budget. The program incentivizes HVAC, refrigeration, and lighting upgrades for sustainability.
⚠️ Common mistakes
Underestimating working capital needs or failing to justify how first-year operations will be sustained. Weak evidence of actual food desert conditions or inadequate community need assessment. Vague financial projections without realistic market analysis, comparable store data, or experienced management team resumes.
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