Frequently Asked Questions
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:
