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SCAM ALERT: DCEO has been made aware of organizations receiving fraudulent “notice of award” letters claiming to be from the Illinois Department of Commerce and Economic Opportunity. These are not legitimate notices from DCEO. If your organization receives a notice, please report it to the Federal Trade Commission and/or the FBI’s Internet Crime Complaint Center.

Illinois Grocery Initiative

Governor Pritzker announced new FY 2027 programming for the Illinois Grocery (IGI) on September 10, 2026. This includes three Notices of Funding Opportunity (NOFOs) that are posted to the DCEO Grant Opportunity page.

  • New Stores in Food Deserts (Round 3) – Grants will support establishment of new grocery stores located in food deserts. Applications will be open through December 9, 2026.
  • Grocery Rescue – Grants will support re-establishment of grocery stores at locations that have closed in the last 12 months. This rolling opportunity will remain open through June 30, 2027, or until funds are exhausted.
  • Equipment Upgrades (Round 3) – Grants will support investments in energy-efficient refrigeration, HVAC, and lighting in existing grocery stores. This rolling opportunity will remain open through June 30, 2027, or until funds are exhausted.

The Illinois Grocery Initiative, authorized by Public Act 103-0561, is intended to address inadequate access to fresh foods, especially in “food deserts.” Food deserts are defined as census tracts meeting specific criteria related to poverty and access to fresh foods. Food deserts may exist in both urban and rural areas.

Additional information on the Illinois Grocery Initiative is available below.

New Stores in Food Deserts Grant Program

  • The New Stores in Food Deserts Program is part of the State’s efforts to address food insecurity by offering competitive grants to support the establishment of new grocery stores in food deserts. 
  • Local units of government and small businesses (with fewer than 500 employees and no more than four existing grocery stores) are eligible to apply. 
  • Grants provide reimbursement to eligible applicants for both capital and non-capital costs associated with establishing sustainable grocery stores located in food deserts.
  • pplications for the first round of the program closed on May 24, 2024. Four applicants – from Carlinville, Chicago, Peoria, and Rockford – received funding. See the press release for more details. 
  • Applications for the second round of the program closed on December 2, 2024. Four applicants – from Champaign, Marion, Roodhouse, and Venice – received awards. See the press release for more details.

Equipment Upgrades Grant Program

  • The Illinois Grocery Initiative Equipment Upgrades Grant Program provides grants for energy-efficient equipment upgrades for existing independently owned for-profit grocery stores, cooperative grocery stores, or not-for-profit grocery stores.
  • The first round of applications closed on March 25, 2024; the seven awardees are listed in the Governor’s press release. 
  • The second round of applications closed on December 15, 2025.

High Impact Business (HIB) Tax Incentives

  • Illinois Grocery Initiative grantees are potentially eligible to receive HIB tax incentives, which are similar to Enterprise Zone benefits.
  • Interested grantees may review this summary of HIB for IGI grantees for information on the scope of benefits and how to get designated as an HIB business.

Technical Assistance

  • DCEO has contracted with Western Illinois University (WIU) to provide technical assistance services and guidance for Illinois Grocery Initiative applicants and grantees. Technical assistance can encompass business and financial planning, but the providers cannot complete application documents for prospective applicants.  DCEO is planning to add another university technical assistance partner in the near future. Applicants desiring assistance in preparing applications may contact WIU directly. 
    • Western Illinois University
      Sean Park
      Illinois Institute for Rural Affairs
      217-248-0079
      ms-park@wiu.edu
  • Questions regarding IGI programming can be directed to CEO.GroceryInitiative@illinois.gov
  • Questions regarding GATA eligibility and state grant processes can be directed to CEO.GrantHelp@illinois.gov.

Food Desert Mapping

Other Non-State Financial Resources

  • 2026 Local and Regional HFFI Partnerships Program
    • The 2026 Local and Regional HFFI Partnerships program provides $20 million to public-private partnerships to develop or expand local healthy food financing programs.
    • Partnerships can receive $200,000 to $1 million for capacity building and $500,000 to $3 million for credit enhancement, with a maximum combined award of $3 million.
    • Applications are due September 18, 2026. Grocery stores can benefit through lower-cost loans, flexible financing, small grants, and technical assistance.
  • 2026–2028 HFFI FARE Fund Loans
    • The 2026-2028 HFFI FARE Fund Loans program provides at least $22 million in loan funding for grocery stores, supermarkets, co-ops, and other eligible food businesses.
    • Loans range from $500,000 to $3 million, with up to $5 million considered on case-by case basis, and can be used for construction, remodeling, equipment, property acquisition, and working capital.
    • Applications are accepted through September 30, 2028, or until funds are exhausted. Eligible grocery stores must generally be located in underserved areas and meet the program's food access requirements.
  • SBA Grocery Guarantee
    • The SBA Grocery Guarantee  program provides a 90% guarantee of SBA loans of up to $5 million to eligible small businesses in the food production and supply sectors, including grocery stores.
    • Interested applicants can reach out to participating financial institutions.