Des Plaines business grant program reshaped; new limits set

Des Plaines’ grant program for local businesses is being reshaped with new financial formulas and limits.

Starting immediately, grants will fall into three categories instead of two: “sprout,” for construction or renovation projects costing business owners $20,000 or less; “boost,” for projects costing between $20,000 and $140,000; and “growth,” for projects of up to $1.02 million.

Previously, grants of $10,000 or less were called “boost grants,” while grants exceeding $10,000 were called “growth grants.”

Grants were awarded for up to half a project’s cost, regardless of amount. Moving forward, the percentage covered will depend on the size of the requested grant.

The new “sprout grants” will cover up to half a project’s cost, with a $10,000 maximum payout.

“Boost grants” will cover up to $10,000 of the first $20,000 in eligible costs; after that, the city will cover 25% of up to $140,000 in eligible costs, with the total grant to be capped at $40,000.

“Growth grants” will cover up to $10,000 of the first $20,000 in eligible costs and then 25% of up to $140,000 in eligible costs; after that, the city will cover 12.5% of up to $1.02 million in eligible costs, with the total grant to be capped at $150,000.

As was the case before, grants for projects with at least $20,000 in expenses can be approved by the city’s community and economic development director, Jeff Rogers, without council discussion or approval. Grants for projects exceeding that sum will require council votes.

The city council approved the changes Monday night.

Eighth Ward Alderman Mike Charewicz proposed allowing entrepreneurs to apply for grants until their businesses are ready for occupancy; the council backed that measure without objection as part of its overall approval.

The council discussed revising the grant program in October but made no final decisions at that time.

The grant program last was overhauled in 2023. At that time, officials decided to offer two grant categories instead of five that were based on the type of work to be done rather than the size of the grant.

The city has awarded more than $1.4 million in grants through the program, Rogers said.