New Business Program - 2026 Logo

  • New Business Program - 2026

    A City of Champaign / Champaign County EDC Program

  • INTRODUCTION

    The New Business Program supports entrepreneurs starting businesses in the City of Champaign by reimbursing up to $10,000 for eligible business costs and by providing technical support. Applicants submit a business plan during an application period and are awarded reimbursement grants according to a set of program criteria. Awardees may access their reimbursement grant by attending Illinois Small Business Development Center (SBDC) technical sessions. Applicants are encouraged to attend the SBDC's "Starting Your Business in Illinois" workshop prior to applying to strengthen their application and business plan.

    Eligible Applicants

    • Applicants must have plans to open a physical storefront or home-based business in the City of Champaign within one (1) year of application or have an active business in the City that has been in operations for less than two (2) years.  
    • Subject business must have fewer than three (3) full-time equivalent employees and must generate less than $250,000 in annual gross revenues.
    • Subject business must be a registered client with the Illinois Small Business Development Center.
    • Subject business must be in good standing with the Illinois Secretary of State. Businesses must operate legally in accordance with all Federal, State, and local laws and regulations and be current with all City taxes, fees, and licenses.
    • Subject business may not receive more than $20,000 in small business funding or more than one New or Growing Business award within a five year period.

    Eligible Costs: Applicants may apply for up to $10,000 reimbursement for the below costs.  

    • Bookkeeping, Digital Point-of-Sale Subscriptions (e.g., Quickbooks, Toast, Square, etc.)
    • Professional Services such as Human Resources, Accounting, and Legal Fees
    • Website, Branding, and Design Fees
    • Up to 50% of the total award can be used for one-time capital expenses such as equipment, computers and software, and furniture if these investments are justified within a business plan attached to the application

    Applicants with limited access to financing are encouraged to apply for microloans with Justine Petersen, a non-profit Community Development Financial Institution with local presence at the Champaign County Economic Development Corporation offices at 1817 South Neil Street, Suite 100, Champaign, IL 61820. 

    Program Terms: Applicants must submit a business plan (download a business plan outline or review an example business plan) and a complete application to be considered for this program. Applicants are encouraged to meet with Small Business Development Center (SBDC) staff to review/develop their business plan. Applicants that have attended the Starting Your Business in Illinois Workshop before applying to this program will receive higher application scores. For business plan assistance or to register for a workshop, please visit the SBDC's online resources or contact them via email. 

    A 10-page business plan in PDF format will be a required attachment for this application. Business plans will be scored for their demonstration of financial viability and a market analysis. 

    To score highly for financial viability, the plan should show detailed revenue and expense projections with a path to positive cash flow based on realistic growth assumptions. Applicants with demonstrated business operations experience will receive higher scoring.  To score highly for the market analysis, the plan should identify target customers and identify competitors, identify the applicant's competitive advantage, and provide a realistic and detailed marketing plan.

    If awarded reimbursement, awardees must attend four (4) technical training
    sessions organized by the Small Business Development Center within six (6) months of receiving an award to access the full award. Awardees may access 25% of their total reimbursement award for each technical session they attend. For example, an awardee that has attended two (2) technical sessions would be eligible for 50% reimbursement of their total award and an awardee that has attended four (4) sessions would be eligible for 100% reimbursement. Technical sessions are scheduled to accommodate a variety of schedules
    and are held virtual or in-person. One technical session from each of the following areas should be attended to receive a full award:

    • Legal
    • Marketing
    • Accounting
    • Human Resources

  • Applicant Information

  • Business Information

    Please provide information on the business that will use grant reimbursement funds

  • Business Eligibility

    Please provide information on the business that will use grant reimbursement funds

  • Ineligible Business Activities: Please note the following activities, when classified as a Principal Use (as defined in the Zoning Ordinance), are not eligible for participation in these programs:

    • Sale of packaged alcohol
    • Sale of cannabis
    • Adult uses
    • Gambling
    • Predatory lending
    • Franchise businesses
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  • If you have not already, please register as a client of the Small Business Development Center.

  • Application Materials

    Please take time to review the entirety of this section before completing. A complete business plan should be included and attached to this part of the application. A sample business plan and resources for the "Application Scoring" section may be found at the end of this page.

  • Application Process:

    1. Applications will be accepted until October 26. Applications will require a business plan (download a business plan outline) with a financial analysis, market analysis, and discussion of employment expansion. The application will request a budget for reimbursement funding and an explanation of how the business will play an economic role in the community and increase tax revenues.
    2. Applications will be reviewed by the City's Review Committee and applicants will be notified of their application's status within 45 days of the application's close. Applications with the highest scores will be the first to receive funding until the program cycle's funds are depleted. If several applications have the same score and insufficient funding remains to fulfill their funding requests, remaining funds will be allocated proportionally among applicants.
    3. Awardees may submit invoices of eligible expenses to receive reimbursement according to the number of technical sessions the applicant has attended to date. Reimbursement payments shall only be made to awardees through January 2027. Only eligible expenses will be reimbursed. Cash purchases cannot be reimbursed. 
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  • Business Plan Scoring

    Business plans should include a financial analysis and a market analysis. These will be scored by the Review Committee according to the below criteria. Applicants are encouraged to use Champaign Public Library business services resources to aid their market analysis and business plan development.

    Business Plan Scoring Rubric
    Category 0 points 1 point 2 points
    Financial Viability Limited financial information and unrealistic projections (e.g., 300% growth without justification) and no business operation experience Basic projections with some gaps or optimistic assumptions (e.g., annual projections without seasonal variation) and some business operation experience Detailed revenue/expense projections show a path to positive cash flow, realistic growth assumptions (e.g., 30% revenue growth based on adding 2 clients) and demonstrated business operation experience
    Business and Market Strategy Vague market definition, minimal competitive analysis, generic approach (e.g., everyone is our customer, marketing is “social media”) General target market identified and some competitive awareness shown Target customers and competitors identified, clear competitive advantage and marketing plan (e.g., target “X” households in “Y” miles earning “Z” income; differentiate from competitors “A, B, C” through 24-hour service)

  • Download a business plan outline or view an example business plan. For business plan assistance, please visit the SBDC's online resources or contact them directly via email.

    If you are interested in applying for a City of Champaign Small Business Microloan, please contact Justine Petersen following the directions in this handout.

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  • Application Scoring

    The review committee will use the below rubric to score applications and award funding. Applicants are encouraged to attend the Starting your Business in Illinois webinar within six months of applying to this program to receive a point on this scoring rubric. 

      Application Scoring Criteria 
    1-2 points Will this business increase the tax base through a) sales tax, b) property tax, c) food and beverage tax, or d) hotel tax? Satisfying one of these scores one point, satisfying two or more scores two points.
    1-2 points Is this business an Economically Disadvantaged Business, a Minority Business Enterprise, a Socially Disadvantaged Business, or a Woman Business Enterprise as defined in the City of Champaign Equal Opportunity in Purchasing Ordinance of the Municipal Code (Sec. 12.5-62)? Satisfying one of these definitions scores one point, satisfying two or more scores two points.
    1-2 points Does the business plan include employment expansion within the next three (3) to five (5) years? Plans to add one to three full-time equivalent (FTE) employees score one point. Plans to add four or more FTE employees score two points.
    1-2 points Does this business commit to use requested funding to make at least 25% of purchases from businesses located in Champaign County and/or from the City of Champaign CDAP vendor list? Satisfying one of these scores one point, satisfying two or more scores two points.
    1 point Has the applicant attended the Starting Your Business in Illinois Workshop hosted by the Illinois Small Business Development Center?
    1 point Will this business offer goods or services not available within a ¼-mile of its proposed location and/or directly address a City Council goal?
    1 point Does this business provide economic opportunity for residents or partner with community organization to enhance economic participation and inclusion within the City of Champaign?

  • Definitions for Equal Opportunity in Purchasing Ordinance business classifications may be found under Sec. 12.5-62.

  • The following question requests information regarding the Champaign Diversity Advancement Program (CDAP). Applicants may use the CDAP vendor list to verify information.

  • Applicants must register as a client of the Small Business Development Center to participate in this program. Applicants are encouraged to attend SBDC workshops and may contact the SBDC by emailing info@cusbdc.org. 

  • The above question requests City of Champaign City Council Goals information. Applicants may also wish to use the City's interactive map to review their site and take 0.25-mile measurements.

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  • Please review your application before selecting the below "Submit" button. 

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