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 interested in opening new grocery stores in Illinois food deserts. Applicants must demonstrate that their proposed location currently lacks adequate access to fresh foods. Organizations can be nonprofits, for-profits, or social enterprises with the capacity to develop and operate a retail grocery store. The grant supports capital costs (land, construction, equipment) and limited working capital for first-year operations. Geographic scope is restricted to Illinois communities identified as food deserts.
All applicants must contribute matching funds as part of their proposal. Projects must result in a functioning grocery store that serves the targeted low-access community.
⚖️ 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 registration and compliance documentation
- Detailed project budget and narrative
- Site plan and development timeline
- Community needs assessment
- Letters of community support
- Financial projections and operating plan
- Matching fund commitment letters
- Environmental and feasibility studies (if applicable)
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
Can for-profit grocery chains apply for this grant?
Yes, both for-profit and nonprofit entities can apply. The focus is on establishing stores in food deserts, regardless of business structure.
What counts as a food desert for this grant?
Generally, areas where residents lack convenient access to fresh, affordable foods. Illinois DCEO uses specific criteria to identify eligible locations.
Can I use grant funds to purchase land and build from scratch?
Yes. The grant covers land acquisition, site development, construction, renovations, equipment, and first-year working capital.
Is matching funding required?
Yes, cost-sharing is required. The grant description indicates matching funds are mandatory, though the exact percentage isn't specified in available materials.
What's the typical project timeline?
That varies by project scope. Applicants should budget time for development, permitting, construction, and store opening.
💡 Tips for applicants
- Document why your location is a food desert. Use concrete data on resident demographics, existing grocery options, and distance to fresh food sources.
- Show strong community support. Include letters from local officials, community groups, and residents affected by food insecurity.
- Develop realistic operating projections. Demonstrate how the store will sustain operations and serve the community long-term after grant funding ends.
- Plan your matching funds strategically. Identify all funding sources early and secure commitments before submitting your full application.
- Budget for energy-efficient equipment. The grant specifically highlights HVAC, refrigeration, and lighting—these investments improve margins and align with funder priorities.
⚠️ Common mistakes
Failing to document actual food insecurity in the proposed location. Weak financial projections or operating plans that don't show store viability. Underestimating matching fund requirements or securing commitments too late in the process.
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