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Chicago Community Development Grant
City of Chicago
ABOUT THE GRANT
The Chicago Community Development Grant provides funding to support business and neighborhood vitality across the City of Chicago through three tiers of grants based on project size. Administered by the City of Chicago's Department of Planning and Development, the program supports business-related real estate investments that create and maintain jobs and improve quality of life for local residents. Eligible applicants include business owners, property owners, non-profit organizations, community developers, and entrepreneurs, with funding available for office, retail, cultural, industrial, institutional, light manufacturing, and mixed-use projects anywhere in the City of Chicago. Across all three tiers, grants are issued on a reimbursement basis and may, at DPD's discretion, be offered as a forgivable loan or traditional loan rather than a grant. Eligible uses generally include construction hard costs, pre-development soft costs (such as design and site preparation), and property acquisition costs.
The Small Community Development Grant:
Provides grants of up to $250,000 to support commercial, mixed-use, and light manufacturing projects, funding up to 75% of total eligible project costs. Small grants are funded through the Housing and Economic Development (HED) Bond and prioritize projects with strong local impacts that leverage local talent, capacity, and institutions. Mixed-use residential projects are eligible, though residential costs cannot exceed 25% of the total grant amount and must be part of a broader building improvement. Disbursements are made at defined construction milestones.
The Medium Community Development Grant:
Provides grants from $300,001 to $5,000,000 to support moderate-scale commercial, cultural, industrial, institutional, social service, and mixed-use projects. Medium grants fund up to 50% of total project costs and are awarded through competitive, semi-annual funding rounds. The CDG-M includes a Local Residency Bonus for applicants whose primary residence and proposed project are both located within the Neighborhood Opportunity Fund's Qualified Investment Area.
The Large Community Development Grant:
Provides grants in excess of $5,000,000 to support significant commercial, cultural, industrial, institutional, social service, and mixed-use development projects. Large grants are intended to cover approximately 25% of total project costs and are issued as a lump-sum reimbursement upon project completion. Applications are accepted on a rolling basis, with an initial DPD review within two to four weeks and final approval required from Chicago City Council.
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NOTES
Please note that each category of grant within this program has a different application period. Large grants are accepted on a rolling basis while the Small and Medium grants typically accept applications twice a year in February and August.
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