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Business Development Public Infrastructure Program (BDPIP)

The BDPIP program is designed to provide grants to units of local government for public improvements on behalf of businesses undertaking a major expansion or relocation project that will result in substantial private investment and the creation and/or retention of a large amount of Illinois jobs.  The infrastructure improvements must be made for public benefit and on public property and must directly result in the creation or retention of private sector jobs.  The local government must demonstrate clear need for financial assistance to undertake the improvements.  Grant eligibility and amounts are determined by the amount of investment and job creation or retention involved.

The Business Development Public Infrastructure Program provides funds for infrastructure improvements in support of economic development in the Illinois.

The Business Development Public Infrastructure Program helps local governments finance public infrastructure needed to support economic development and private sector job creation and retention.

Funding is available only for infrastructure projects which lead directly to private sector expansion or retention activities. General infrastructure construction and renovation activities -- those which lead only indirectly to job creation and retention -- are not eligible for consideration.

The Program, for example, could make funding available to a community to extend a water line to permit the location of a new firm and the creation of jobs or to increase the capacity of a sewer line to meet the expansion needs of an existing firm.

Administered by the Illinois Department of Commerce and Economic Opportunity, program funds may be used for a wide variety of public infrastructure improvements needed to induce job creation and retention. These include local roads and streets, access roads, bridges, sidewalks, waste disposal systems, water and sewer line extensions, water distribution and purification facilities, sewage treatment facilities, rail and air or water port improvements, gas and electric utility extensions, public transit systems, and the development and improvement of publicly owned industrial and commercial sites.

Eligible Applicants

Any general purpose local government (as defined by Article 7, Section 1 of the Illinois Constitution) may apply to the department for funding under the Business Development Public Infrastructure Program.

Extent of Department Participation

The Program helps to fund public infrastructure projects. There is no maximum amount of infrastructure funds which may be invested in any one project. However, the amounts must be commensurate with the number of jobs created or retained. For this program, at least one private sector job must be created or retained for every $10,000 awarded by the department. Typically, the department will limit its assistance to $500,000 or less.

Approved infrastructure projects for the most part will be financed as loans. Infrastructure project loans will be at a fixed, low or no-interest rate for a term not to exceed 10 years. In extenuating circumstances, a longer term, up to twenty years, will be considered. The loan term and amortization schedule will be flexible, according to the life expectancy of the proposed infrastructure improvement, and the repayment capacity of the local government. The principal and interest paid to the state will be used to establish an ongoing infrastructure revolving loan fund for future use by other Illinois communities.

Application Process and Pre-Application Discussions

Potential local government applicants should carefully review the application package and program requirements and are encouraged to contact department staff to discuss project ideas and fund availability. These discussions can help in determining the appropriateness of this program and whether other public or private sources may better meet community needs.

Grants are available on a very limited basis under the Public Infrastructure Program. The department will provide program funds in the form of a grant only when it can be demonstrated that the applicant's financial capability will not generate the necessary revenues to pay the debt service on the cost of the infrastructure. Grants will also be authorized in those circumstances where the proposed infrastructure project is necessary to encourage large out-of-state firms to locate in Illinois or to encourage existing large companies to undertake job expansion or retention projects. Applicants are encouraged to discuss potential grant applications prior to submittal to the department.

Submission Information

Under the Public Infrastructure Program, applications will be accepted on an ongoing basis. Interested local governments should submit an application to the Illinois Department of Commerce and Economic Opportunity. All information included with the original application will remain confidential consistent with the Public Infrastructure Program Act and the Illinois Freedom of Information Act.

For further information please contact:
Illinois Department of Commerce &
Economic Opportunity
Bureau Of Business Development
500 East Monroe
Springfield IL, 62701
Tel:  217-785-6169
TDD:  800-785-0667