Business Attraction Prime Sites Grant Program

The Business Attraction Prime Sites program is administered by the Illinois Department of Commerce and Economic Opportunity (DCEO) to support large-scale economic development projects that encourage businesses to relocate to Illinois or expand operations within the state. The program operates under the State of Illinois Uniform Notice of Funding Opportunity process and is funded through state capital appropriations under the Rebuild Illinois initiative. The grant program is intended to strengthen Illinois’ long-term economic competitiveness by incentivizing substantial private investment, supporting infrastructure and capital improvements, and creating or retaining jobs for Illinois residents in strategic growth industries. The NOFO has been modified multiple times since its original release in 2021 to increase award caps, expand eligibility to include REV and MICRO programs, extend the application deadline through June 30, 2027, and align the opportunity with Illinois’ 2024 Economic Growth Plan. The program provides grants ranging from $250,000 to $25,000,000 with an estimated total program funding pool of $120,000,000. Awards are formula based and tied to job creation and retention commitments associated with existing EDGE, HIB, REV, or MICRO tax credit eligibility. Tier 1 projects under EDGE, HIB, REV, and MICRO programs generally qualify for grants equal to $5,000 per new job committed, while Tier 2 EDGE, REV, and MICRO projects may qualify for $10,000 per new job committed and $5,000 per retained job committed. Eligible projects include new construction and renovation of industrial or commercial facilities, associated infrastructure improvements, site preparation, utility work, land and building acquisition, and durable equipment purchases. Construction or renovation of warehouse-only facilities is specifically excluded. The funding cannot be used for operational expenses, lease payments, temporary facilities, rolling stock purchases, livestock, or administrative and indirect costs. To qualify, applicants must be businesses relocating to or expanding within Illinois that have received confirmation of eligibility for EDGE, HIB, REV, or MICRO incentives or have pending applications that are ultimately approved. For EDGE and HIB eligibility, applicants generally must commit to either creating at least 40 new Illinois resident jobs with a minimum $40 million investment or creating at least 100 new Illinois resident jobs with at least $20 million in investment. Eligible applicants must also operate in one of the strategic industries identified in Illinois’ Economic Growth Plan, including life sciences, quantum computing, artificial intelligence, microelectronics, clean energy production and manufacturing, advanced manufacturing, agriculture technology and food processing, and transportation, distribution, and logistics. Applicants must be registered and pre-qualified in the Illinois GATA Grantee Portal and maintain active SAM registration, a valid UEI number, good standing with the Illinois Secretary of State, and compliance with state and federal exclusion and sanctions requirements. The grant requires a 1:1 cost share match, with DCEO funding limited to up to 50 percent of eligible capital project costs. Funds are reimbursed in stages after execution of a finalized grant agreement. Initially, the state reimburses documented capital expenditures up to 50 percent of the awarded amount. The remaining 50 percent is reimbursed after all project expenditures and matching funds have been fully expended. DCEO anticipates final disbursement within two years after grant agreement execution, with the possibility of a one-year extension depending on project timelines. The program also contains clawback provisions allowing DCEO to recover grant funds if the recipient fails to meet minimum investment thresholds, required job creation commitments, or retained job commitments specified in the associated tax credit agreements. Applicants must submit a Uniform Grant Application, Uniform Capital Budget template, Conflict of Interest Disclosure, Mandatory Disclosure form, and a detailed Project Narrative using the official template provided by DCEO. An optional Authorized Designee Form may also be submitted. The Project Narrative must demonstrate project need, organizational capacity, economic impact, budget detail, matching fund availability, project timeline feasibility, and mitigation plans for project risks. Applications are submitted electronically through the official Smartsheet submission portal. Applicants are advised that the portal only permits up to ten uploaded files, so combining documents may be necessary before submission. Pre-award costs are allowable retroactively to the effective date of the associated tax credit agreement. Applications are reviewed competitively using a 100-point merit review process focused on need, organizational capacity, project quality, and economic impact. Projects scoring above 80 points are recommended for funding, while projects scoring above 65 points may also be considered if additional awards are needed to meet statewide funding distribution goals. DCEO also considers geographic diversity, underserved area impacts, and high-growth industry alignment when making funding decisions. Awards are reviewed on a rolling basis through June 30, 2027, and the agency intends to fully obligate available funding by the end of fiscal year 2026. Successful applicants receive a Notice of State Award and then enter a potentially lengthy grant agreement negotiation and compliance process. Recipients are subject to extensive reporting, monitoring, prevailing wage, apprenticeship, procurement, and workforce participation requirements throughout the life of the project. Program contacts include Joy Wolfe at ceo.obd@illinois.gov and the DCEO Grant Help Desk at CEO.GrantHelp@illinois.gov. Additional grant resources, application templates, and eligibility guidance are available through the Illinois DCEO grant opportunities website. The opportunity is considered recurring because the NOFO has been repeatedly extended and modified over multiple years, with the current application period remaining open through June 30, 2027. The funding opportunity is currently accepting applications on a rolling basis.

Applicants should clearly demonstrate that the project would not occur in Illinois without state support. Strong applications provide detailed and realistic construction and implementation timelines, documented matching fund availability, comprehensive budget support, mitigation plans for project risks, and evidence of durable economic impact through job creation and industry growth.