Des Plaines overhauls grant program for local businesses, entrepreneurs
A Des Plaines grant program for entrepreneurs seeking to open businesses or improve existing operations in the city is being overhauled.
The city council on Monday unanimously voted to simplify the business assistance program. From now on, there will be two broad grant categories instead of the previous five.
One category is for grants under $10,000. They will be awarded by the community and economic development department without city council approval and be known as "boost" grants.
Grants under $10,000 didn't require council approval under the previous grant structure, either.
The second category is for grants greater than $10,000. They'll be called "growth" grants and will require council approval, as they have in the past.
Financial caps have been removed and grants now can be combined with tax-sharing deals, Cook County property tax breaks and other financial incentives, officials said.
"(It's a) totally reworked program," John Carlisle, Des Plaines' community and economic development director, told the council before its vote.
But because more money is at stake, applications for growth grants must include business plans with performance projections and tax-revenue estimates, documents indicate. Information about the people involved in a business applying for a grant will be required, too, among other data.
The changes stemmed from a January council discussion of a proposed grant program for restaurateurs in the downtown area. Rather than approving that plan, officials requested it be reworked to expand the pool of potential applicants.
Previously, business assistance grants were available in separate categories for awnings, facade rehabilitation, interior build out, outdoor dining and multiunit retail.
Businesses were limited to one grant in each category. Each category had a cap, ranging from $5,000 to $50,000, and separate applications were needed.
"That can be difficult to explain and market," Carlisle said.
Now, a single business owner won't have to apply for multiple grants for different aspects of a project. And because the five categories have been eliminated, more types of projects will be eligible, officials said.
The business assistance program has a $350,000 budget this year, up $100,000 from 2022. As always, funds are awarded for up to half the cost of a project, and work must be completed before payment is made.
However, under the new plan, an entrepreneur will be able to apply for a grant as long as construction hasn't been completed, rather than before it's started.