Illinois Grocery Initiative

The Illinois Department of Commerce & Economic Opportunity (DCEO) is offering competitive grant funding to establish new grocery stores in designated food‑desert census tracts. Up to eight awards ranging from $500,000 to $5.2 million will support capital costs (construction, equipment, site development) and operating expenses for the first two years, with optional pharmacy integration. Applicants must provide a cost‑share of 15 % (if a pharmacy is included) or 25 % (no pharmacy) and must be eligible entities such as independent grocers, cooperatives, or local government units with ≤500 employees and ≤4 locations. The grant period runs March 1 2027 – June 30 2030, with quarterly performance reporting and strict compliance on indirect costs, procurement, and labor rules. A technical assistance session is offered (non‑mandatory) on 09/15/2026. • Target: New grocery store (or supermarket) in a USDA‑defined food desert in Illinois • Funding: $500 k–$5.2 M per award; total program funding $20.8 M • Eligible entities: For‑profit, non‑profit, LLCs, limited partnerships, government units, ≤500 employees, ≤4 stores • Cost‑share: 15 % (with pharmacy) or 25 % (without) of total project costs • Allowed expenses: Land acquisition, construction/renovation, equipment, working capital (wages, utilities, inventory of food & prescription meds) for first 24 months • Disallowed: Delivery vehicles, non‑food inventory, lottery equipment, capital‑related indirect costs • Application window: 09/10/2026 – 12/09/2026 (5 PM) via online portal • Required attachments: Uniform Grant Application, Uniform Budget, conflict‑of‑interest, mandatory disclosure, letters of support (≥2, one from elected official) • Reporting: Quarterly performance & financial reports; final close‑out after June 30 2030