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Illinois CDBG Economic Development Program.

Illinois CDBG Economic Development funding lets an eligible local government sponsor assistance for a business project that creates or retains permanent full-time jobs.

Offered byIllinois Department of Commerce and Economic Opportunityverified 2026-07-10

Overview

What it does.

The City or another eligible unit of local government applies and remains responsible for compliance. A private company cannot apply directly even when the project is the beneficiary.

Best for: A substantial Chester business location or expansion project with a documented financing gap and permanent jobs.

Eligibility

Who and what may qualify.

Eligible applicants

  • Eligible non-entitlement units of local government sponsoring qualifying job-creating or job-retaining business projects

Applicants excluded by the source

  • Private businesses applying without an eligible local-government sponsor

Eligible uses

  • Gap financing for a qualifying business
  • Public infrastructure directly supporting a qualifying local business project

Application

How to start.

  1. Discuss the project with the City of Chester and DCEO before treating funding as part of the financing plan.
  2. Confirm community, national-objective, job, underwriting, and project eligibility.
  3. The eligible local government submits the state grant application and supporting business documentation.

Timing: DCEO lists the current opportunity as rolling.

Planning notes

Limits to account for.

  • A local government must apply.
  • The project must satisfy CDBG national objectives, underwriting, job, and compliance requirements.

Coordinate with the local sponsor and DCEO to avoid duplicate public funding for the same cost.

Evidence

Official sources.