Funding supports new stores in food deserts, energy-efficient equipment upgrades

PEORIA - Governor JB Pritzker joined the Illinois Department of Commerce and Economic Opportunity (DCEO) and local leaders today to announce 11 awards totaling $7.9 million through the Illinois Grocery Initiative New Stores ($6.9 million) and Equipment Upgrades Grant Programs ($1 million) to address food deserts and prevent grocery store closures in Illinois. Additionally, the Governor announced $11 million available in grant funding for the second round of the New Stores in Food Deserts Program. Grantees will be selected through a competitive Notice of Funding Opportunity (NOFO) process.

"No matter where they live, every Illinoisans deserves access to fresh, affordable food at a local grocery store, a resource that is essential for maintaining the physical, mental, and financial health of our state's residents," said Governor JB Pritzker. "We're supporting the opening and maintenance of local grocery stores as part of our mission to end food deserts in Illinois and provide economic and community development for towns and neighborhoods across the state."

"The Illinois Grocery Initiative is an example of good government in action. Access to fresh, nutrient-dense and culturally relevant food is fundamental for the well-being of Illinoisans," said Lt. Governor Juliana Stratton. "We're not only eliminating food deserts but also creating opportunities for local businesses. Investing in grocery stores is an investment in community health."

New Stores in Food Deserts

The New Stores in Food Deserts Program awards will support the establishment of new grocery stores in USDA-defined food deserts. These grants will fund construction and renovation costs for new stores, as well as many first-year operations costs, such as employee wages, utility costs, initial inventory of food, and more.

 "Through the Illinois Grocery Initiative, the State of Illinois is changing lives and livelihoods by making it easier to put fresh food on the table," said DCEO Director Kristin Richards. "These grantees will make a significant impact on their communities and local economies by opening new stores and upgrading existing stores, and I encourage interested entities to explore opening new stores through the next round of this grant program."

Equipment Upgrades

Through the Equipment Upgrades Program, grants will provide funding for energy-efficient equipment upgrades for existing grocery stores, with priority given to those located in food insecure communities across the state. This program is designed to strengthen existing grocery stores and preserve access to fresh food in food insecure communities, in an effort to stop the formation of new food deserts.

 "Organizations such as Forty Acres Fresh Market in Austin are making a difference and the Illinois Grocery Initiative is the state's way of supporting those ongoing efforts and encouraging more to get involved," said Illinois Senate President Don Harmon (D-Oak Park). "The fact remains, if people are going to bed hungry in Illinois, then we have more work to do. But thanks to these organizations and this grant program, a growing number of people have access to fresh, healthy food and we are able to help spur economic revitalization in neighborhoods and communities all across this great state."

"Every family in Illinois deserves easy access to fresh, healthy foods," said Representative Jehan Gordon-Booth (D - Peoria). "I'm thrilled to see the Illinois Grocery Initiative providing critical funding for new stores and upgrades across the state and look forward to supporting the future of this grant program."

"I am thrilled to see the success of the Illinois Grocery Initiative," said Representative Mary Beth Canty (D - Arlington Heights). "This funding will ensure stores across the state have the resources they need to provide fresh and healthy food to families within the community, allowing all Illinoisians to thrive."

"Ensuring all communities have access to fresh, quality food is not just a priority - it's a necessity," said State Senator Christopher Belt (D-Swansea). "This funding through the Illinois Grocery Initiative is a major step toward eliminating food deserts in the state so every family, regardless of where they live, has reliable access to healthy food."

New Stores in Food Deserts - Round II

Launching today, the second round of the Illinois Grocery Initiative New Stores in Food Deserts Grant Program will build upon the State's efforts to encourage the establishment of new grocery stores in USDA-defined food deserts.

Requirements for grocery locations include:

- Must be located in a food desert,

- Must earn less than 30% of revenue from alcohol and tobacco sales,

- Must accept SNAP and WIC, and

- Must contribute to diversity of fresh foods available in community.

Qualified entities include units of local government and independent grocers or cooperatives with fewer than 500 employees and no more than four grocery locations. New Stores in Food Deserts grants will fund construction and renovation costs for new stores, as well as many first-year operations costs, such as employee wages, utility costs, initial inventory of food, and more.

Qualified applicants can apply for grants between $150,000 to $2.4 million, with a 1:3 match required. Applications will be accepted until December 2, 2024, at 5:00 p.m. To view the competitive Notice of Funding Opportunity (NOFO) and apply for the grant, please visit the DCEO website.

Interested parties are encouraged to reach out to [email protected] for application assistance. To help applicants prepare to apply for funding, DCEO will be holding a technical assistance webinar Wednesday, October 9th at 10:00 a.m.

Additionally, DCEO has contracted with Chicago State University and Western Illinois University to provide technical assistance and business counselling to prospective Illinois Grocery Initiative applicants and grantees.

Additional efforts toward equitable food access include $10 million for the Illinois Grocery Initiative in the Governor's FY25 budget, as well as the Governor's proposal to permanently eliminate the state grocery tax.

About the Illinois Grocery Initiative

The Illinois Grocery Initiative will provide wrap-around support to local governments and independent grocers opening grocery stores in and those currently operating in food deserts as authorized by PA 103-0561. The initiative has a detailed list of efforts to combat food insecurity across the state that includes:

- Providing support for existing grocery stores by offering grant funding for energy-efficient equipment upgrades.

- Supporting the establishment of new stores by providing grant funding for establishing new grocery stores in food deserts. These grants will support building/renovation, equipment, and first-year operational expenses.

- Providing technical assistance to prospective applicants and grantees. Technical assistance will include business planning, marketing, financing, supply chain management, and workforce development assistance as needed.

- Expanding tax incentive eligibility to grocers which includes exemption from tax on utilities and building materials.

- Commissioning a Grocery Initiative Study to explore the many factors that lead to the current circumstances regarding food insecurity.