Governor JB Pritzker of Illinois has unveiled a $26 million grant package for the Illinois Grocery Initiative. This allocation includes $20.8 million for establishing new grocery stores, $750,000 for equipment improvements, and $4.5 million dedicated to the Grocery Rescue Program.
The Grocery Rescue Program aims to revive grocery stores that have closed within the past year, prioritizing smaller businesses and enhancing food availability in areas lacking nearby supermarkets.
Program Details
Eligible for up to $1.5 million in funding are independent grocers or cooperatives with fewer than 500 employees and no more than four locations that have closed in the last year. These projects must be situated in regions with limited access to fresh produce.
Funds can be utilized for store purchases, repairs, property renovations, equipment, and certain initial operating expenses. Owners of the closed stores or properties are ineligible for this financial support.
Application Process
The Illinois Department of Commerce will accept applications for the Grocery Rescue Program and equipment upgrades until June 30, 2027, or until funds are depleted. Applications for new stores in food deserts are being accepted until December 9.
Since its inception in 2024, the Illinois Grocery Initiative has allocated $19 million, with nearly $17 million facilitating the opening of eight new stores and $2 million enhancing equipment at 14 supermarkets.
Governor Pritzker remarked, “Local grocery stores are the backbone of communities across the state — keeping our people healthy and fed, growing local economies, and keeping our neighborhoods thriving.”
This initiative follows several grocery store closures in Chicago, including seven Save A Lot stores operated by Yellow Banana, which were set to close as of late July. Earlier this year, Chicago introduced a grant program offering up to $10,000 to food entrepreneurs and farmers markets in areas with limited food access.
Additionally, the city partnered with Lyft last month to provide seniors with up to two $25 ride credits for travel to grocery stores or essential destinations until September 30 or until the $25,000 Lyft award is fully utilized. This partnership is part of broader efforts to address food access challenges in Illinois, complemented by the new funding from the Illinois Grocery Initiative.
