The program uses local Tax Increment Financing (TIF) revenues to help owners of commercial and industrial properties and/or tenants within specific TIF districts to repair or remodel their facilities. Program participants can receive reimbursing grants to cover 25%, 50%, or 75% of the cost of remodeling work, with a maximum grant amount of $ 150,000. The grant does not have to be repaid.

The Small Business Improvement Fund (SBIF) helps make improvements to small business properties in selected Chicago neighborhoods.

Eligible Expenses For a SBIF Grant include, but are not limited to:

• New windows, floors or roof
• Sign removal and replacement
• Tuck pointing
• New heating, ventilation and air conditioning
• Improvements to accommodate disabled patrons or workers
• Purchase of adjacent property for building expansion or parking

SBIF grants are provided to property owners after remodeling work is completed and all expenses are paid. Residential property, residential components of a mixed-use building, and property leased to certain businesses are not eligible for the program. If you are not sure, contact us and ask.  Vacant business property is eligible, but grants are not paid until the space is occupied by a business tenant.

Applications are selected on a first come first served basis, unless a lottery is needed in a district.  The grant is processed by SomerCor 504, Inc., a federally certified Small Business Administration lender.

If you own a business property within a TIF district and want to know if you are eligible to participate in the SBIF program, call SomerCor at (312) 360-3300.

Fast & Efficient application process. Click here for application material.

Eligibility requirements to participate in the SBIF program:

Industrial: 100 or fewer full-time equivalent employees.

Commercial: Gross sales under $3 million annually for the prior three years, on average.

Property Owner/Landlord: Maximum net worth of $6 million (excluding industrial applicants).

Sign up for our Email Newsletter

Who can apply for a SBIF Grant?

Business and property owners can apply if they are in SBIF districts in the City of Chicago.  Business owners can own or lease their places of business.  Landlords are also eligible.

Am I in a SBIF district?

Click here for the General City Map.  This map is updated yearly.  Also check the list of TIF districts that contain the SBIF Program here.

I cannot tell from the map whether I am in a SBIF, is there another tool?

The City of Chicago’s Zoning Map tool (click here) will show if your property is in a TIF, the funding source for SBIF’s.  You must be in a TIF and in a SBIF to qualify.  For a list of TIF’s that have the SBIF legislative overlay click here.

How do I get the grant?

- Complete and submit application (click here).

- Get project plans approved.

- Complete project exactly as approved.

- Meet all deadlines and requirements.

How do I apply for the grant?

Check to see if you are in an eligible SBIF district.  Click here for an application.

What is a TIF, and why is it important for me?

The TIF (Tax Increment Financing) district is the mechanism that funds SBIF.  A portion of the property tax generated within each district is allocated to the TIF.  Then, a portion of those funds may be allocated to the SBIF program through an act of City Council.

What can I do with a SBIF Grant?

The grant is for permanent improvements to a property.  The improvements can be anything that becomes “real property”, meaning that it has to be built in.  These projects can be both inside and outside of the building.  For example, projects can include roofing, tuck pointing, electrical work, office build out, and window replacement.

What are eligible costs for the SBIFprogram?

Project costs that are eligible under the SBIF program include renovation and repair of the building, alterations needed for compliance with the Americans with Disabilities Act, façade repair and restoration of historic buildings, repair and other rehabilitation work to historic rooftop water tanks, and improvements necessary for environmental remediation.  The program can cover all of the permanent work as well as some of the “soft costs”, such as architectural work.  All external work listed on the application must comply with City of Chicago design guidelines.  Any work started prior to applicant receiving a Conditional Commitment from the City of Chicago is not eligible for SBIF funds. New construction is not eligible for SBIF funds.

How do I pay back the money?

The funds provided by the City through the SBIF Program are grants, and therefore are not repaid by the applicant.

Who is SomerCor?

SomerCor 504, Inc. is a non-profit corporation that has contracted with the City of Chicago to manage the SBIF program.  We have been running this program since 1999.  Our address is: 601 S. LaSalle, Suite 510, Chicago, IL, 60605. Click here for contact information.

How do I qualify as a Small Business?

-Commercial Business:  Annual sales in each of the last three years of less than $3,000,000.

-Industrial Business: Must have 100 or fewer full time equivalent employees.

-Landlord: Property owners must have a combined net worth not exceeding $6 million dollars and total liquid assets not exceeding $500,000 dollars. (Examples of liquid assets are: cash on hand, and non-retirement stocks and bonds)

- Tenant:  Annual sales of less than $3,000,000, with express prior property owner approval.

(Click here for Program Rules)

What is the maximum grant amount allowed under the Small Business Improvement Fund (SBIF)?

The SBIF Program provides grants in the form of reimbursement that are 25-75% of the total eligible project costs, not to exceed $150,000 per applicant, with the opportunity to reapply after one year. For instance, if you do $30,000 worth of roofing work and you are at the %50 rebate level, you will be reimbursed $15,000 for this project.

How do I know what percentage rebate I will get?

Landlord- no ownership interest in the business leasing the commercial space

If the applicant has net worth:

-Greater than $6 Million, ineligible

-Greater than $4.5 Million, but less than or equal to $6 million; eligible for 25%

-Greater than $2.5 Million, but less than or equal to $4.5 million; eligible for 50%

-Less than or equal to $2.5 Million; eligible for 75%

Tenant- leasing for a minimum of three years from a building owner of no financial relationship

If the applicant shows sales:

-Greater than $3 Million, ineligible

-Greater than $2 Million, but less than or equal to $3 million; eligible for 25%

-Greater than $1 Million, but less than or equal to $2 million; eligible for 50%

-Less than or equal to $1 Million; eligible for 75%

Owner / Occupied- has ownership interest in business and property

-The schedules above for both net worth and sales apply.  If the applicant should fall within different eligibility ranges for net worth and sales (i.e. 75% / 50%), then the applicant will be eligible for the lesser of the two percentages (i.e. 50%).

Industrial Applicant- Either a building owner or a building tenant

-Eligible Industrial Applicants receive 50% rebates.  (Must have 100 or fewer employees.  Sales and net worth maximums are not considered)

Is there SBIF funding in my area?

Every SBIF area has its own budget that the City refills if it has TIF funds available and there is a need shown by area businesses for more grant money.  This is not an annualized refill, but is based on need and availability of funds.  Please check with SomerCor to see if there are funds in your SBIF.  Here is a list of the City’s TIF districts that have SBIFs.  We also create a waiting list for funds.  When more funding becomes available, or the City allocates more funds, we will let you know.  The waiting list helps the City gauge demand for additional funding in particular SBIF areas.

What  if I am in a TIF and it is not a SBIF?

TIF (Tax Increment Financing) is the mechanism that funds the SBIF (Small Business Improvement Fund).  If you are in a TIF, and it is not yet a SBIF, please contact your Alderman.  Your Alderman’s phone number can be found in the zoning map information (click here).  You can also contact the Project Manager from the Department of Community Development.

What about Scofflaw (City Debt)?

Each individual who is applying for a grant and has an interest as an owner, tenant, partner or member in the property must not have any unpaid parking tickets or other indebtedness to the City and must be current on all applicable child support payments and must submit a satisfactory Economic Disclosure Statement and Affidavit.

Will there be enough SBIF Funds for all applicants?

Each Tax Incremental Financing (TIF) District has limited funds reserved for the SBIF Program. If demand for the SBIF funds is greater than the funds available, a lottery will be conducted. If any surplus funds become available, they will be allocated to waitlisted applicants.

What will my responsibilities be to the City once I receive the money?

Once the applicant receives the grant, he or she must provide minimal information to SomerCor annually. If the applicant owns the property, they must continue to own the property for three years. If applicant leases the property, they must not relocate the business outside of the TIF district for three years. If the applicant is a tenant, the lease term must have more than three years remaining.

Who should I call if I have questions?

SomerCor 504, Inc. is administering the program for the City, so please contact us.

Can I be a start up?

Yes, Start ups can apply.  Applicant will need to supply a business plan with three years of projected gross sales.

What if I have been in business for only one or two years?

If you have only been in business for 1-2 years, SomerCor will want need tax returns and a projection of gross sales to equal three years of data.

Am I eligible if I live outside of Chicago?

The important consideration is where you have your business/property.  To participate in SBIF, your property has to be in the City of Chicago, as the funding source comes from City of Chicago property taxes.  If you live in another area, please call your City’s Planning, Economic Development, or Community Development Department to see what other programs may be available to assist small business.

What if my building has both business and residential spaces?

This program is primarily for business use.  Business space projects may be eligible.  Residential space interior and residential projects are ineligible.  Mixed use exceptions: Chicago has many mixed use buildings, with both commercial and residential space.   For these buildings, many envelope projects such as roofing, façade, window replacement, and tuck pointing can be eligible.

SomerCor 504, Inc. is administering the program for the City. If you have questions, please contact the SBIF Team:

Sign up for our Email Newsletter

Below are application material available for download. In order to view the following applications, you must have Adobe Acrobat Reader.

SBIF Downloadable Forms

• Application Packet
• SBIF Design Guidelines
• SBIF Map
• SBIF Program Rules

Within 10 days of receiving the application, SomerCor will send a letter informing the applicant of its eligibility. A request for more information to determine eligibility may be made at this time. If the applicant is ineligible, the reasons for that determination will be explained.

Please Fax, Email, or send Application material.

Sign up for our Email Newsletter

The SBIF program is funded with TIF (Tax Increment Financing) dollars, so we will look for  TIF districts with this tool.  All SBIF’s are TIF’s, but not all TIF’s are SBIF’s.  Your business must be in the City of Chicago to apply for the grant.

1. Go to the City’s Zoning tool website:  http://maps.cityofchicago.org/website/zoning/index.html

2.  When you get to the City of Chicago’s zoning page, click on the zoning map icon, and then click accept.  After accepting, a new window will open with the screen below. This is the mapping tool.  It may take a minute for the “data retrieving” to stop.

3. Click on the zoning tab on the upper right side of the screen, and then check the box next to “TIF’s”, as shown in the picture below.

4. Enter your address in the “Search by Address” field, or enter the cross streets into the “Search by Intersection” field.   Your desired address should come up on the map with a circle around it.  Go to the left side of the screen, and click the “Identify button”.  Green crosshatchings or lines on the map indicate TIF areas.  If you do not have the green cross hatching, you are most likely not in a TIF/SBIF. On the map below, you can see an area with the green “TIF” lines in the blue area, and an area without the green lines in the beige area.

5. Click on your address on the map.  The identify button does require pop-ups in order to work correctly.  You may need to adjust your internet settings to use this function.

(If you have pop-up difficulty, there are two ways to fix it.  There will either be a bar on the top of the screen that asks you if you want to allow the pop-ups or you can hold down the CTRL button when you click the identify tool.  Both of these should work, but there is a chance that you will have to re-enter your data.  If you still have problems, feel free to contact Somercor either by phone or email, and we will be happy to assist you.)

6.  After clicking on the Identify button and clicking on your address, you should see a pop-up window like the one shown below.

This pop-up window will include useful information such as:

TIF District, which we have circled in orange, the Ward and Alderman information, and sometimes whether you are in Empowerment Zones.

If this box does not include “TIF” as shown below, the address selected is NOT included in a TIF District.  If your property is right next to a TIF, but is not in a TIF, contact us and we will talk with the City to make sure that the boundary lines are drawn correctly.  Normally they are, but the map is not 100% accurate.

7.  Once you have verified that you are in a TIF District name, please verify that your address is also in a SBIF District.  The following list includes all the current SBIF areas. 

If you are currently in a TIF District that is not a SBIF, please contact your alderman (you can find their information by using the identify button)and let them know that you would like to have the SBIF program implemented in your TIF district.

SBIF FUNDING REPORT

Updated: 7/12/2010.  Any applications recieved after this date will not be reflected in this report.  If your area currently has a waiting list, we encourage you to apply  by sending in the first five pages of the applicaton.  The waitlist helps the City determine how much funding is needed in a specific area. 

TIF/SBIF DISTRICT

AVAILABLE FUNDING   $

# OF WAITLIST APPLICANTS

WAITLIST REQUESTED FUNDING   $

Coming Soon

• SBIF Gram – June 2010, Website News, Joel Berman AIA article, The Boiler Room
• SBIF News – February, 2010
• SBIF New Year, Better Rules – Jan, 2010
• September Highlights – Sept, 2009
• New Technology – Aug, 2009
• New Districts, New Funding – June, 2009
• First Newsletter

Sign up for our Email Newsletter

Because of our agency relationship with the City of Chicago, SomerCor 504, Inc does not endorse any of these lenders, but has provided this list as a courtesy for applicants looking to finance their SBIF grant.  Please consult several lenders when you are looking for financing.

Micro Finance – Loans of up to $25,000

Accion Chicago, (312) 275-3000, www.accionchicago.org

Priscilla Cordero, Senior Loan Officer, (312) 275-3000 ext 104, info@accionchicago.org

Nitika Nautiyal Chauhan, Senior Loan Officer,  (312) 275-3000 ext 112, info@accionchicago.org

Non-Profit Lenders

Chicago Community Ventures (CCV), www.chiventures.org

Duane Wadlington, Loan Officer, dwadlington@chiventures.org, 312.960.0319

Bank Lenders

Banco Popular

Jan Goldstein, Business Banking Specialist, jgoldstein@bpop.com, (773) 205-3126

National City/PNC

Tom Bartkowski, AVP Business Banking, tom.bartkowski@nationalcity.com, (773) 358-8137

Harris Bank

Steven Lick, A.V.P and Branch Manager, steven.lick@harrisbank.com, (773) 384-8600 x 2222, 2196 N Elston Ave.

Illinois Service Federal Savings and Loan Association

William L. McKnight, Chief Lending Officer, wlmcknight@isfbank.com, 4619 S. King Drive, Chicago, Illinois  60653, 773-624-2000, ext 317, Il Service Federal is interested in lending on the S.E. Side of the City of Chicago.

The City of Chicago requires two bids for work that is to be completed with a SBIF Grant.

We are working on a list of contractors that have used the SBIF.  We hope to have this list ready by July, 2010.

Derek Walvoord, SBIF Director                    
P: 312.360.3319
F: 312.360.3333                     dwalvoord@somercor.com

Silvia Sanchez, Assistant Director       
P: 312.360.3334
F: 312.360.3333 ssanchez@somercor.com

John Paulun, SBIF Director               
P: 312.360.3305
F: 312.360.3333                          jpaulun@somercor.com

Kelly Collings, Assistant Director       
P: 312.360.3329
F: 312.360.3333 kcollings@somercor.com

• Kinzie Lottery Results 6-24-2010
• Devon Western II Lottery Results 7/7/2010 
• Clark Ridge II Lottery Results 7_7_2010
• Near North Lottery Results 7_7_2010
• Lawrence/Broadway II Lottery Results 7/7/2010 
• 79th St. Corridor Lottery Results 7-21-2010
• Addison South Lottery Results 7-21-2010
• Goose Island II Lottery Results 7-21-2010