City of Chicago

Department of Planning & Development

Andrew Mooney, Commissioner
Small Business Improvement Fund
SBIF
Joseph Lewis SomerCor 504, Inc.

Presentation Focus
What is SBIF?
Who is eligible?
What are eligible expenses?
Whats the application process?
What are the requirements/restrictions?
Whats the payment process?
TIF: Tax Increment
Property Tax $ After TIF
- Property Tax $ Before TIF
Tax Increment $
Frozen EAV
TIF $
Tax Districts
TIF: How it works
Long term investment (23 years)
Funds improvements & development
Public works projects
Business retention/attraction
SBIF Program
TIF Works
87
th
/Cottage Grove
SBIF/TIF Map
N
Stony Island/Burnside
SBIF/TIF Map
N
SBIF Organization Chart
CITY OF
CHICAGO
City Council
DPD
SomerCor
504
SBIF Applicants
Local
Agencies
SBIF
Permanent building improvements in TIFs
Rebate 25% to 75% of SBIF-eligible costs
$100,000 max per single-tenant commercial property
$150,000 max per industrial property
$250,000 max per multi-tenant building property,
$50,000 max per applicant in property
SBIF Eligible Applicants
Property Owner: max $6m net worth &
$500k liquidity
Commercial Lessee: max $5m annual
sales past or projected 3 years,
leasehold interest, owner approval
Industrial Lessee: max 100 employees
Property/Business Owner: property and
lessee requirements apply
Vacant Property: min 60% lease-up;
100% ground floor lease-up before
rebate can be issued
Sliding Scale Eligibility: Landlord
Landlord- no ownership interest in the business
leasing the commercial space
If the applicant has net worth:
-Greater than or equal to $6 Million, ineligible
-Greater than or equal to $4.5 Million, but less
than $6 million; eligible for 25%
-Greater than or equal to $2.5 Million, but less
than $4.5 million; eligible for 50%
-Less than $2.5 Million; eligible for 75%
Net Worth is defined as Assets minus Liabilities; what
is owned minus what is owed.
Sliding Scale Eligibility: Tenant
Tenant- leasing for a minimum of three years from a
building owner of no financial relationship
If the applicant shows sales:
-Greater than or equal to $5 Million, ineligible
-Greater than or equal to $4 Million, but less than
$5 million; eligible for 25%
-Greater than or equal to $3 Million, but less
than $4 million; eligible for 50%
-Less than $3 Million; eligible for 75%

Sales are defined as gross receipts as filed on a tax
return; if business is new, these are projected gross
receipts
Sliding Scale Eligibility: Owner
Occupied
Owner Occupied- has ownership interest
in business and property
-The schedules above for both net worth
and sales apply. If the applicant should
fall within different eligibility ranges for net
worth and sales (i.e. 75% /50%), then the
applicant will be eligible for the lesser of
the two percentages (i.e. 50%).
NOT SBIF Eligible
Natl chains/franchises (fast food, bank
branches, etc.)
Currency exchanges, pay day loan stores
Liquor stores, bars, night clubs
Astrology, palm readers
Hotels and motels
Trailer storage, junk yards
Massage parlors, adult businesses
Similar uses
SBIF Eligible Costs
Roof & faade
HVAC & mechanical systems
Permanent signs & awnings
Floor & interior build-out
Environmental remediation
Land purchase (special cases only)
Parking facility paving
Beautification
ADA compliance as needed
SBIF Eligible Costs
DAT Donuts
8247 S. Cottage Grove Ave.
After Before
SBIF Eligible Costs
Mayfair Academy
8701 S. Bennett Ave.
After Before
SBIF Eligible Costs
Venetta Carter
8623 S. Cottage Grove Ave.
After Before
NOT SBIF Eligible Costs
New construction
Minor repairs/improvements (e.g. painting)
Equipment related expenses (e.g. cash
registers, phones, computers, machinery)
Planters surrounding/affixed to building
Perimeter security fencing (e.g. razor wire)
Exterior security shutters
Work on residential unit interiors
Impermanent items (e.g. furniture)
Compliance
Faade design requirements
Valid City business license
No City debt
Economic Disclosure Statement
Grant Recipient Affidavit (e.g. relocation)
Proof of land ownership or min 3 yr. Lease
Other City funding during prior 3 yrs.
deducted from eligible grant amount,
excluding TIF Works

SBIF TIMELINE

Application Deadline: July 31, 2014
Applications must be received before 5 p.m. on deadline.
Within 20 DAYS: Furnish Additional Documents to
Complete Application
Within 120 DAYS: Construction Planning & Cost
Estimate Submittal
Within 300 DAYS: Complete Construction
3 YEARS from date of Final Rebate: Eligible Again
for SBIF
Payment

Proof of payment:
Invoices
Cancelled checks
Waivers of lien
Site visit
4-8 weeks for payment from City
Other SBIF Criteria

Contractor licensed by City and insured
M/WBE contractor list provided
Technical Assistance by SomerCor

Contact Info
Jake Stern
SomerCor 504, Inc.
Ph 312-360-3328
Email: jakestern@somercor.com
Nora Curry
Department of Planning & Development
Ph 312-744-1867
Email: nora.curry@cityofchicago.org
Joseph Lewis
SomerCor 504, Inc.
Ph 312-360-3329
Email: jlewis@somercor.com
Silvia Sanchez
SomerCor 504, Inc.
Ph 312-360-3334
Email: ssanchez@somercor.com
City of Chicago
Department of Planning & Development
Andrew Mooney, Commissioner
THANK YOU!

Questions