Small Business Development Centers Grant Program

The Illinois Department of Commerce and Economic Opportunity (DCEO) is offering funding through the Small Business Development Centers (SBDC) program under Funding Opportunity Number FY26-2. The Illinois SBDC Network operates through a cooperative agreement with the U.S. Small Business Administration (SBA) and serves as a statewide technical assistance and advising network for entrepreneurs and existing small businesses. The purpose of this funding opportunity is to identify qualified host organizations that can operate Illinois SBDC Service Centers in underserved geographic regions of Illinois, specifically including designated neighborhoods in the City of Chicago, the municipality of Elgin, and the counties of Grundy and Kankakee. The program is intended to expand access to entrepreneurship support services, improve access to capital, strengthen business operations, support innovation and exports, and improve statewide economic development outcomes through coordinated business assistance services. Illinois SBDCs are expected to provide professional, confidential, one-on-one advising and technical assistance to small businesses and pre-venture entrepreneurs. Eligible services include business planning, financial analysis, access to capital assistance, marketing support, export readiness, regulatory compliance guidance, disaster preparedness, cybersecurity, AI and technology adoption, manufacturing support, and operational improvement strategies. The NOFO also permits applicants to request specialty designations for International Trade Centers and Manufacturing Specialty Centers. These specialty programs are intended to provide statewide expertise in exporting, international trade, manufacturing, and onshoring activities. Applicants proposing specialty designations must already have operated an Illinois SBDC Service Center for at least three years and must coordinate services statewide to avoid duplication. Funding for this opportunity is supported through both federal pass-through funding from the U.S. Small Business Administration and state appropriations from the Illinois General Assembly. The NOFO states that up to 10 awards are anticipated. The statewide summary section references estimated total funding of $1,463,251 with award ranges from $80,000 to $525,000, while the detailed funding section later identifies $380,259 available through this specific NOFO with awards ranging from $80,000 to $380,259. The program operates as a reimbursement grant program and requires recipients to maintain sufficient cash flow to operate activities prior to reimbursement. The initial project period runs from January 1, 2026 through December 31, 2026, with the broader NOFO covering a three-year timeframe through December 31, 2028. Grant agreements will be issued one year at a time, with the possibility of two additional one-year continuation awards. A mandatory cost-sharing requirement applies to all applicants. Recipients must provide a 100 percent match equal to the grant amount, with at least 50 percent of the total award amount committed as cash match each year. Remaining match amounts may be provided through allowable in-kind contributions such as staff salaries, facilities, and supplies directly supporting SBDC activities. Match documentation must be included with the application and may include signed agreements, leases, memoranda of understanding, or contracts. Although indirect costs are generally not reimbursable under this program, waived indirect costs may be counted toward the in-kind match requirement if properly documented and supported through an approved indirect cost rate agreement or approved de minimis methodology. Applicants are required to comply with federal and state cost principles and reporting requirements. Eligible applicants include accredited institutions of higher education, nonprofit organizations engaged in economic development activities, counties or municipalities with economic development programs, workforce investment boards, and economic development corporations. Applicants must demonstrate at least five years of organizational operation, fiscal soundness, prior experience managing government funding, the ability to recruit qualified staff, and the capacity to provide services within the specified geographic coverage areas identified in the NOFO. Applicants must also complete GATA registration requirements, maintain SAM.gov registration, obtain a UEI number prior to award execution, and remain in good standing with both state and federal compliance systems. Only organizations serving as official SBDC Service Centers may receive direct awards, although satellite locations may operate under subawards or memoranda of understanding with funded service centers. Applications are accepted on a rolling basis until all required geographic coverage areas are filled. The application package must include the Uniform Grant Application, Uniform Budget, Conflict of Interest Disclosure, Mandatory Disclosure, program narrative sections, personnel forms, organizational charts, proposed scope of work, training calendar, office closure schedules, and any required supplemental documentation. Program narrative Sections 1 through 4 may not exceed fifteen pages. Applications must be submitted electronically through the Smartsheet application portal identified in the NOFO. The Department notes that the application portal limits uploads to ten files, so applicants may need to combine supporting materials before submission. Applications undergo a three-phase merit review process involving initial compliance review, detailed evaluation by multiple reviewers, and final funding recommendations from the Illinois SBDC Lead Center. Applications are evaluated competitively on a 300-point scale using categories related to need, organizational capacity, and application quality. Additional points are available for specialty designation proposals. Review criteria include service area assessment, client needs analysis, training plans, organizational stability, fiscal controls, staffing qualifications, performance measurement strategies, budget alignment, marketing and outreach plans, innovative service delivery methods, and application completeness. Successful applicants will receive a Notice of State Award and enter a grant agreement negotiation process with DCEO. Programmatic and financial reporting requirements include quarterly performance reports, financial reports, client advising documentation, economic impact reporting, training records, stakeholder engagement activities, and annual success stories. The primary agency contact for the opportunity is Ericka A. White at Ericka.White@illinois.gov, and general grant assistance is available through CEO.GrantHelp@illinois.gov. The official NOFO document and supporting materials are available through the Illinois GATA and DCEO grant opportunity websites.

Demonstrate strong regional coordination measurable client impact and detailed fiscal controls. Applications should clearly define service areas provide data-driven needs assessments and show partnerships that expand outreach while avoiding duplication of services.