Chicago is putting serious money on the table for residents, small business owners, nonprofits, and developers with a vision for their neighborhoods. Through the Medium Community Development Grant (CDG-M) program, the City is offering between $300,001 and $5 million to help turn ambitious plans into bricks-and-mortar reality. The next application deadline is August 15, 2025, and this semi-annual funding round could be the boost that moves the right project from concept to construction. These grants are not for work that has already begun. Projects must still be in the proposal stage, but they can cover a wide range of uses, from new retail spaces to cultural centers, industrial facilities, social service hubs, healthcare clinics, and mixed-use housing developments with at least 10 units and 100 percent commercial space on the ground floor. The goal is to invest in projects that will strengthen communities, create jobs, and give residents better access to the spaces and services they need.
The CDG-M can cover up to half of total project costs, and there is even more help available for those working in and living in one of Chicago’s Qualified Investment Areas. This “local residency bonus” can add up to 25 percent of project costs, capped at $500,000, on top of the standard award, though total City funding cannot exceed $5 million. Grant funds can be used for hard costs like construction, site preparation, and building systems, soft costs such as architectural, engineering, and legal services, and acquisition costs tied to a full build-out. They cannot be spent on day-to-day operations, minor repairs, furniture, fixtures, or parking lots with no development attached. Awards are usually paid on a reimbursement basis, either in stages as construction milestones are met or in full after completion. This means applicants need a clear financing plan to carry the work until City funds are released.
Applications must be submitted online by 11:59 p.m. on August 15, with all proposals in this round reviewed together. Submitting early will not improve the odds of selection, but it can give City staff time to flag missing details before the deadline. The City evaluates projects based on readiness, financial feasibility, and how well they align with program goals, especially in terms of community benefit. In past cycles, CDG-M funding has helped launch new health facilities, mixed-use developments, and major upgrades to community service centers. These projects now serve as anchors in their neighborhoods. For residents and organizations with a strong plan and a clear vision, this grant is more than just money. It is a chance to bring lasting investment to the block. Full program details, eligibility rules, and application materials can be found at chicago.gov/medium_grants.
