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Illinois Grocery Rescue Program
IL DCEO
ABOUT THE GRANT
The Illinois Grocery Rescue Program provides Illinois-based businesses and organizations with reimbursement grants of $100,000 to $1,500,000 to reopen recently closed grocery stores in areas with low access to fresh food. Administered by the Illinois Department of Commerce and Economic Opportunity (DCEO) as part of the broader Illinois Grocery Initiative (authorized by Public Act 103-0561), the program has approximately $4.5 million in total funding available per cycle and anticipates 3 to 5 awards per round. The goal of the program is to prevent grocery closures from leading to long-term reductions in fresh food access, encourage economic stability and growth, and prevent existing grocery-suitable buildings from falling into disrepair.
To qualify, projects must reestablish a grocery store at a specific location that experienced a grocery store closure within the 12 months prior to application, and the location must meet several geographic and community criteria: the census tract must be classified as a low-access tract for fresh food (rural tracts where at least 33 percent of the population or at least 500 residents live more than 10 miles from the nearest grocery store, or urban tracts where the same thresholds apply within half a mile), the census tract must have a median family income less than $116,620 (110 percent of the state median), and the store must be classified as a supermarket or grocery retailer under NAICS code 445110. The store cannot derive more than 30 percent of its revenue from alcohol and tobacco sales, must sell fresh foods such as unprocessed meats, fruits, and vegetables, and must prepare to accept both SNAP and WIC benefits. Property or business owners who were involved in the recent store closure are not eligible.
Eligible applicant types include for-profit corporations, nonprofit corporations, limited liability companies, all limited partnerships, agricultural cooperatives, local government entities, sole proprietors, and special act corporations. Grant funds can be used for acquisition, repair, and refurbishment of real property and durable equipment at the former grocery store location, purchase of energy-efficient HVAC, refrigeration, and lighting equipment, and store operations for the period prior to reopening and the first 12 months of operations. Eligible operational costs include employee wages, utilities, initial food inventory, and point-of-sale systems that accommodate SNAP and WIC transactions. Grant funds cannot be used to purchase equipment, supplies, or inventory unrelated to the provision of food (such as lottery equipment or non-food initial inventory).
Applicants must provide a 25 percent match of total project costs (representing a 1:3 match), which may come from any non-state sources such as local municipal funds, federal funds, or private investment. In-kind contributions and expenditures incurred prior to receipt of the Notice of State Award cannot count toward the match. The program operates on a reimbursement basis, with grantees submitting paid invoices for approved expenditures, though DCEO may allow an advance of up to two months' worth of expenditures on a case-by-case basis. Applications are scored competitively across three main categories: Need, Capacity, and Quality. Grantees must continue grocery operations at the project location for at least three years following project completion, and DCEO may claw back grant funds if the store closes before that time.
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NOTES
We haven't added commentary on this grant yet. In the meantime, the fundor's website (linkeded above) is the best source for application details and eligibility specifics.
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