Dive Brief:
- Illinois Gov. JB Pritzker announced last week over $26 million in available grant funding for the Illinois Grocery Initiative.
- The funding includes $20.8 million set aside to help open new stores, $750,000 for equipment upgrades and $4.5 million for the Grocery Rescue Program — a new initiative that aims to help reopen grocery stores that closed in the last year.
- The funding builds on efforts in Illinois to provide more funding opportunities to grocers.
Dive Insight:
In looking to rescue grocery stores that recently shuttered, Illinois wants to support smaller operators and boost food options in areas where people don’t live near a supermarket.
For the new Grocery Rescue Program, which aims to prevent the formation of new food deserts, the state is designed to help independent grocers or cooperatives — specifically those with fewer than 500 employees and no more than four grocery locations that have closed within 12 months. Projects must be located in areas with low access to fresh foods.
The new program is doling out up to $1.5 million each to recipients, who can use the funding for store acquisition, repair, property refurbishment and equipment, and some first-year operating costs. The state noted that store or property owners associated with the store closure are not eligible to receive the funds.
The applications for the Grocery Rescue Program and equipment upgrades will stay open until June 30, 2027, or until the funds are exhausted, according to the state’s Department of Commerce.
Meanwhile, the state is accepting applications for new stores in food deserts until Dec. 9.
Since its start in 2024, the Illinois Grocery Initiative has distributed $19 million in funding, nearly $17 million of which helped to open eight new stores and $2 million of which went toward equipment upgrades at 14 supermarkets.
“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,” Gov. Pritzker said in a statement. “This latest round of funding from the Illinois Grocery Initiative will keep quality, affordable groceries close to home for Illinois families while supporting small businesses across the state.”
The grocery rescue effort comes on the heels of several grocery stores closing up shop in Chicago. In 2022, Yellow Banana received a $13.5 million grant from the city to remodel five Save A Lot supermarkets in the city and reopen a Save A Lot in the city’s Auburn-Gresham neighborhood. This summer, Save A Lot ended its arrangement with Yellow Banana, and the seven Yellow Banana-run Save A Lot stores were set to close as of late July, Block Club Chicago reported.
Earlier this year, Chicago launched a grant program that provides up to $10,000 to “food entrepreneurs and farmers markets” in areas with low food access. Last month, the city announced a partnership with Lyft to provide seniors with up to two $25 Lyft ride credits to travel to grocery stores or other essential destinations through Sept. 30, or until the full $25,000 award from Lyft is spent.
