+ Clean Energy

Commercial Property-Assessed Clean Energy Program (C-PACE): C-PACE offers long-term, fixed-rate financing or refinancing for up to 100% of a property owner's applicable energy-related project costs. Eligible projects include EV charging stations, and energy-efficient, renewable energy, resiliency, or water use improvements. Financing repayments are made via an assessment on the owner's property tax bill, remaining with the property even if it is sold. C-PACE programs are available in Chicagoland through Cook County, or the City of Chicago, or multiple C-PACE capital providers approved by the Illinois Finance Authority.

+ Property Tax Relief

Cook County Special Assessment Incentives (Class 6b, 7a, 7c, 8, 9, C, L): Cook County’s special assessment incentives are designed to encourage private business investment, employment, economic revitalization, development / redevelopment, and the preservation of landmark buildings by temporarily lowering property taxes.

Eligibility is determined by the Cook County Assessor’s Office. For the majority of the assessment incentives, qualified properties are assessed at 10% of fair market value for the first 10 years, 15% in the 11th year, and 20% in the 12th year.

• Class 6(b) - Designed to encourage the development of new industrial facilities, the rehabilitation of existing industrial structures, and the industrial reutilization of abandoned buildings.
• Class 7(a) - Intended to encourage smaller-scale commercial projects in areas determined to be "in need of commercial development.”
• Class 7(b) - Intended to encourage larger-sized commercial projects in areas determined to be "in need of commercial development.”
• Class 7(c) - Intended to encourage commercial projects that would not be economically feasible without assistance. Qualified projects will receive a reduced assessment level of 10% of fair market value for the first three years, 15% for the fourth year and 20% for the fifth year.
• Class 8 - Designed to encourage industrial and commercial development in areas experiencing severe economic inactivity. Additionally, a streamlined application process if available for properties located in Bloom, Bremen, Calumet, Rich and Thornton, or for any property obtained through the Cook County Tax Reactivation Project.
• Class C - Designed to encourage industrial and commercial development for the remediation of contaminated properties including abandoned property or vacant land. Evidence of a No Further Remediation Letter is required.
• Class L - Designed to support reinvestment of historic buildings to be used for commercial, industrial, multi-family residential or not-for-profit purposes. To qualify, buildings must have been individually designated as a landmark or as a contributing building in a designated historic or landmark district.

Affordable Housing Special Assessment:
Incentivizes the rehabilitation and new construction of multi-family residential properties to create and maintain affordable housing.

• Property owners agreeing to hold 35% or more of their units at affordable levels are eligible to receive a 35% decrease in assessed value.
• Property owners agreeing to hold at least 15% of their units at affordable levels are eligible to receive a 25% reduction in assessed value.
• For more information, click HERE.

+ Debt Financing (Non-Profit Lenders)

Chicagoland is home to several mission-driven lenders that offer financing to developers and entrepreneurs working in Opportunity Zones communities. Entities like Community Development Financial Institutions (CDFIs) that are regulated by the Department of Treasury and Certified Development Companies (CDCs) that are regulated by the U.S. Small Business Administration (SBA). The CDFIs and CDCs offer a variety of lending products including:

• pre-developmen loans
• acquisition and refinancing loans
• construction and rehabilitation loans
• mini-permanent and permanent mortgage loans
• equipment and working capital loans
• micro loans

Eligibility, products, and terms vary be lender. For more information, visit the following Chicago-based CDFIs and CDCs:

• Allies for Community Business
• Chicago Community Loan Fund
• Community Investment Corporation
• Enterprise Community Partners
• Greenwood Archer Capital
• IFF
• LISC
• SomerCor

+ Business Financing & Tax Credits (IL)

Angel Investment Tax Credit Program: This IL Department of Commerce & Economic Opportunity program encourages investment in innovative, early-stage companies, to help obtain working capital needed to further company growth in the state. Investors in companies certified as Qualified New Business Ventures (QNBVs) can receive a State of IL income tax credit equal to 25% of their investment, up to $2 million. A total of $10 million in tax credits are allocated each year. Credits are released by quarter, on a first-come first-served basis. For more information, and QNBV eligibility requirements, click HERE.

Participation Loan Program: The Illinois Finance Authority offers a participation loan product, in conjunction with lenders, for small to medium businesses that create or retain jobs.

• Supports financing of business start-up costs, business procurement, franchise fees, equipment, inventory as well as the purchase, construction, renovation, or tenant improvements of an eligible place of business that is not for passive real estate investment purposes.

• Through the pogram, IFA purchases participation directly from the borrower's lender up to the lesser of a) 25% of a total project, b) 50% of a specific loan within the total project, or c) $500,000.

• For more information and eligibility requirements, click HERE.

+ Tax Exemption Programs

Illinois Enterprise Zones Program: State and local tax exemptions may be available for businesses located or expanding in IL Enterprise Zones. State exemptions include:

• retailer's occupation tax paid on building materials,
• State sales tax on purchases of personal property used or consumed in the manufacturing process,
• State utility tax for electricity and natural gas, and
• IL Commerce Commission's administrative charge and telecommunication excise tax.

Local Tax Exemptions: In addition to State incentives, each Enterprise Zone offers local incentives to enhance business development projects. Each zone has a designated local zone administrator responsible for compliance and is available to answer questions.

+ Grant Opportunities

City of Chicago's Tax Increment Financing Program (TIF): This program is designed to promote public and private investment in specific districts in Chicago. The grant funds are primarily used to make improvements to Chicago's physical assets including public infrastructure, loal economic development, schools, transit, parks; and to leverage private sector investment including commercial, industrial, and affordable housing redevelopment projects.

Bank of America Small Business Down Payment Program: Down payment assistance grants covering up to 50% of required injection (up to $25,000) are available to eligible business owners with commercial real estate properties location in OPPORTUNITY ZONES in Chicago.

• Available to eligible women and minority business owners applying for SBA 504 and 7(a) commercial real estate loans.
• Eligibility requires 51% women or minority business ownership and owner occupancy and a 5% minimum down payment from the applicant.