Timeline and Awards

When will I find out if I’m receiving an award? 
Applicants who submit by the Nov. 8, 2024, deadline should expect a response in early 2025. 

How are grant amounts calculated? 
CDG-Small funding is calculated based on the project budget provided in the application. Applicants are encouraged to use general contractors that provide cost estimates based on formal bids. 

Will those who apply earlier have a better chance to receive funds? 
No. All applications submitted prior to the due date are evaluated equally. Late applications are not accepted. 

What does project readiness mean? 
Examples of project include having site control, architectural designs and construction cost estimates based on designs. 

Eligibility and Use of Funds

I am not a resident of Chicago. Can I still apply? 
Yes, if the project is located in the city of Chicago. 

My business is located outside of Chicago. Is it eligible for funding? 
No. 

What types of businesses are eligible for CDG-Small? 
Projects must be commercial, mixed-use or light industrial. Projects should add to the economic vitality of the surrounding neighborhood, benefit the community and meet a local need. 

Are non-profit organizations eligible? 
Yes. However, only costs associated with revenue-generating projects are eligible to apply.   

Can I apply for this program if my project is residential? 
No, not if it is exclusively residential. Mixed-use projects are eligible to apply. 

Are the residential portions of mixed-use developments eligible costs? 
The residential portions may not exceed 25% of eligible costs and must be included as part of a larger building improvement. (e.g. plumbing, HVAC, mechanical).     

Can I apply for a Small grant if I have a mobile business such as a food truck? 
No. Grants are limited to permanent building improvements. 

Are start-ups able to apply? 
Yes. 

Can I apply for my home-based business? 
No. Home-based businesses are not eligible. 

Can these grants be used for staffing or operations of my business? 
No. Operations and staff costs are ineligible. 

Is new construction eligible? 
Yes. New construction, rehabilitation and remodeling projects are all eligible for the program. 

Can you apply for this program if you’ve already received other City funds (such as NOF, SBIF, TIF)? 
Projects may not have completed funding through the Neighborhood Opportunity Fund or the Small Business Improvement Fund programs in the previous three years. The need for additional funding may be explained as part of the application process. 

If I apply for this program, will I also be considered for other City programs? 
No. The application is for a Community Development Grant up to $250,000. Other funding opportunities are listed on DPD’s Economc Development page. 

Can I apply if I don’t have detailed construction estimates or designs yet? 
Construction cost estimates and architectural designs are not required to apply. However, they are strongly recommended to demonstrate project readiness. 

Are acquisition costs eligible?  
Yes. Acquisition expenses can be included in the grant request but cannot exceed 25% of the total grant amount. To be eligible, the acquisition costs must be part of the larger construction or renovation project that is being submitted.   

Are pre-development costs, such as architectural fees, eligible? 
Yes. Pre-development costs may be included as part of a proposed project submission. Standalone pre-development costs are ineligible. 

Is furniture, fixtures and equipment (FFE) eligible? 
No. FFE is not eligible. 

Can I apply if I am currently acquiring or plan to acquire land through programs such as the Cook County Land Bank or ChiBlockBuilder? 
Yes. Site control is preferred through ownership or lease, but a clear path to site control is acceptable, whether through a letter of intent from the owner or an approved application to one of these government land programs. 

Will the City provide letters of intent to applicants interested in using City-owned lots? 
No. In order to be fair to all potential applicants, the City will not issue letters of intent to any developers or entrepreneurs applying to this program. 

Will there be requirements for MBE/WBE contracting or prevailing wage if I accept this grant?  

All Community Development Grant recipients must comply with prevailing wage and are encouraged to comply with MBE/WBE contracting requirements. 

Are applicants disqualified for building code violations on their properties? 
Building code violations should be addressed prior to applying. 

Can funds be used for environmental remediation? 
Funds can be used for remediation if it is part of a larger construction project. For example, remediation is an eligible cost if you remediate land and build a store on that vacant lot. 

Is the grant amount capped at 75% of total remaining project costs, or total overall project costs, including money already spent? 
CDG-Small awards are capped at 75% of remaining project costs up to $250,000. Money already spent should not be included in an estimate. Construction cost spreadsheets should only focus on remaining costs. Projects that are in progress are eligible to apply. In your application, please focus on remaining expenditures and the need for funds. 

Application

Are there resources available to help me with business planning prior to submitting the application? 
See the program’s Resources Page. 

Can I request a grant of more than 75% of my total costs? 
No. Costs are capped at 75% and $250,000. 

Can I still apply for a small grant if I don’t pass the eligibility assessment in Submittable? 
Failure to pass the eligibility assessment means the project is not competitive for the CDG-S program. 

Can I apply for both the small and large grant? 
Applicants should apply for either Small, Medium or Large grants, depending on the grant amount requested. 

If I am working on multiple developments, can I apply for multiple grants? 
Applicants can submit more than one application, but only one application per project. 

Are projects that have already broken ground or are in progress eligible to apply?  

Projects that are in progress are eligible to apply. In your application, please focus on remaining expenditures and the need for funds.  

Can I submit a physical application? 
No. All applications must be submitted online per instructions on the Community Development Grant website. 

What type of documentation should I provide if I am leasing the property? 
Please submit a copy of the lease, preferably demonstrating a lease for multiple years with the option to renew, along with a letter of consent from the property owner or landlord. 

How can I go about building a team to help me successfully plan for my project? 

To successfully complete the project, applicants need a project team that includes an architect, a general contractor, subcontractors and legal support. For assistance building a team, City staff recommends talking to non-profit community development organizations with a mission to support economic and community development. [BACP LINK] 

Project Selection

How are project awardees selected? 
Projects are selected based on application strength and competitiveness. Competitive projects are catalytic, benefit the community, and demonstrate strong feasibility and readiness. Strong applications include documentation to demonstrate these factors, such as site control, letters of intent, architectural designs, business plans, tax returns, etc. 

Will information about selected projects be made publicly available? 
Awarded projects are announced publicly, including the project name, location and amount awarded. 

If a proposed project is not accepted for funding, can the applicant submit the application in a subsequent round? 
Yes, applicants may apply in subsequent rounds.  

Program Details

Will I receive the grant funds up front, or do I need to pay for the work first and submit invoices to be reimbursed? 

Grants are provided as reimbursements: All expenses must be paid up front by the business owner. Funds are reimbursed to awardees once you've submitted proper documentation and once specific construction milestones are met. 

Are Community Development Grants the same as Neighborhood Opportunity Fund (NOF) Grants? 
No. These are separate programs. Community Development Grants allow light industrial projects and are not restricted to the South, Southwest and West sides. 

Is this program replacing the Neighborhood Opportunity Fund (NOF)? 
No, the NOF program will continue. CDG-S grants supplement the Small Business Development goals and objectives for the Department of Planning and Development.  

How many projects is the City expecting to fund in each round? 
Grant awards per round largely depend on the number and quality of applications received and available funds.  

How much time do selected applicants have to complete their projects? 
Competitive applications should demonstrate ability to be complete with 2 years of grant program acceptance. 

Since competitive projects demonstrate connections to community needs and plans, where can I find community plans for specific neighborhoods? 
A few potential resources for community plans include DPD-supported community plans, and Quality of Life Plans from LISC, among other resources. Questions about active plans for a specific neighborhood can be directed to dpd@cityofchicago.org.