Why changes could be coming to Des Plaines business grant program

A Des Plaines business grant program that helps fund facility improvements could see significant changes.

City leaders are considering splitting the business assistance program into three financial tiers instead of the current two. Additionally, officials have proposed limiting how much money the city will shell out.

The city council debated the proposed changes Monday night. No final decisions were made.

Grants of $10,000 or less — called “boost” grants — now are awarded by the community and economic development department without city council approval. Grants greater than $10,000, called “growth” grants, require council approval.

For either category, funds are awarded for up to half a project’s cost, and work must be completed before payment is made.

Entrepreneurs can apply for grants as long as construction hasn’t been completed.

Under proposed changes unveiled Monday by Community and Economic Development Director Jeff Rogers, grant applications would fall into three categories: “sprout,” for projects that will cost $20,000 or less; “boost,” for projects that will cost between $20,001 and $140,000; and “growth,” for projects that will cost between $140,001 and $1 million.

Sprout grants would cover up to half the cost of a project with a maximum payout of $10,000. Boost grants would cover up to 25% of a project’s cost, with a minimum payout of $10,000 and a cap of $40,000. Growth grants would cover up to 12.5% of a project’s cost, with a minimum payout of $40,000 and a cap of $150,000.

Rogers revealed other potential changes: individual businesses would be eligible to receive no more than $150,000 in grants; entrepreneurs would have to wait 10 years between grant applications; and grants would need to be approved before construction begins.

The proposed rules displeased 5th Ward Alderman Carla Brookman, who called the percentage splits “strange” and objected to the financial caps.

“The council can’t be limited to just arbitrary award limits,” she said.

Rogers said the council would retain the right to award grants in ways that differ from the proposed regulations.

Second Ward Alderman Colt Moylan liked the proposed limits, saying officials “have to use taxpayer funds responsibly.”

Council members ultimately agreed creating three grant categories and requiring applications before work begins were good ideas. City staffers will draw up the changes for a future council vote.