Community Development Grant – Small (CDG-S)

The Community Development Grant Small program is administered by the City of Chicago Department of Planning and Development and is designed to support small scale real estate development projects that enhance neighborhood economic vitality. The program is funded through sources including the Housing and Economic Development bond and the Chicago Recovery Plan, reflecting the City’s broader strategy to invest in local economic growth, job creation, and community revitalization. According to the program manual, grants are awarded through competitive semi annual funding rounds and are intended for projects requesting up to two hundred fifty thousand dollars in assistance. The primary purpose of the program is to support revenue generating developments that improve the quality of life for neighborhood residents and visitors. Eligible projects include commercial, mixed use, and light industrial developments that involve new construction, rehabilitation, or both. The program emphasizes projects that demonstrate strong local impact, including job creation, utilization of local talent, and contributions to community vitality. Mixed use projects may include residential components, but residential costs are limited to a maximum of twenty five percent of the total grant amount and must be tied to broader building improvements such as plumbing or structural systems. Funding under this program covers up to seventy five percent of total eligible project costs, with the remaining costs borne by the applicant. Eligible expenses include both hard and soft construction costs, as well as acquisition costs, provided they are part of a broader commercial development and do not exceed twenty five percent of the total grant amount. Ineligible costs include operational expenses such as salaries, inventory, utilities, and furnishings, as well as projects that are non revenue generating, involve heavy industry, or fall into restricted categories such as liquor stores, adult venues, or firearm dealers. Funds are distributed on a reimbursement basis, requiring awardees to initially cover expenses and receive payment at defined construction milestones. Eligibility is open to private developers, nonprofit organizations, business owners, and property owners proposing projects within the City of Chicago. While applicants are not required to reside in the city, projects must be physically located within city boundaries. Priority may be given to developments in underserved neighborhoods or areas experiencing economic challenges. Applicants must demonstrate project readiness, including site control, financing for at least fifty percent of total costs, contractor bids, and design documentation prepared by licensed professionals. The application process is conducted through the City’s Submittable platform and begins with an eligibility screening assessment. Applicants who pass this screening proceed to complete a detailed application that includes project budgets, business plans, financial documentation, and community impact narratives. Applications undergo a multi stage review process, including readiness and feasibility assessment, community impact evaluation, due diligence checks, and final recommendation. Successful applicants then enter a finalist stage where additional documentation is required within a defined timeline to finalize award amounts and execute contracts. Key dates indicate that applications are currently open, with a submission deadline of August fourteenth at eleven fifty nine pm. The program operates on a recurring basis with multiple funding rounds per year, typically semi annually. In addition to the application process, the City provides informational webinars and resources to support applicants, including monthly sessions and detailed program manuals and FAQs. Once awarded, projects must meet construction milestones to receive reimbursement payments and comply with ongoing monitoring requirements, including a three year compliance period following project completion.

Prioritize strong community impact and demonstrate project readiness with complete financial and construction documentation; secure contractor bids and financing early; align project with neighborhood needs