Economic Development Programs

Enterprise Zone Programs

The City of Champaign/Champaign County Enterprise Zone is a state-authorized tool to stimulate economic growth and neighborhood revitalization in economically depressed areas.  Projects taking place within the Enterprise Zone (view an interactive map to determine eligibility) and that meet the requirements of one of the six programs below may become eligible to access these benefits. In addition, there are two benefits to the Enterprise Zone.

The first benefit offers an abatement of the City of Champaign, Champaign County,  Champaign Park District, Champaign-Urbana Mass Transit District, Parkland College (on commercial projects), and City of Champaign Township property taxes on the increased value of the project over the determined number of years (based on the specific program used).

The second benefit offers Sale Tax Exemption Certificates for use in the purchase of all permanent building materials purchased in the state of Illinois for use on the project.

The projects must meet the criteria for one of the programs below to access these benefits.

• Targeted Neighborhood Improvement Program – Rehabilitation or new construction of owner and renter-occupied single-family housing
• Affordable Multifamily Housing Program – Rehabilitation and new construction of qualifying multi-family housing projects.
• Commercial District Enhancement Program – Commercial rehab and new construction projects
• Employment Expansion Program – Employment and office projects generating new or retained employees
• Historic Structure Rehabilitation Program – Additional benefits for properties on the Local and National Register of Historic Places
• Tourism Development Program – New and Rehab of properties generating significant tourism traffic

Each project must complete a master application from one of the programs above. In addition, as contractors and subcontractors are awarded on the project, the project applicant must submit this Contractor Form for Sale Tax Exemption Certificates to be issued to each contractor.  NOTE: each entity purchasing building materials for the project must receive its own certificate.

• Building Materials Sales Tax Exemption Contractor Form

* NOTE: All contractors who take advantage of the Sales Tax Abatement portion of the program are required to submit an Illinois EZ-1 form to the Illinois Department of Revenue.  For more information on state reporting of incentives, visit the Department of Revenue website.

View an interactive map of special districts. 

Tax Increment Finance (TIF) Programs

Tax Increment Financing is a local tool that aids in redeveloping existing buildings and infrastructure within the TIF district. The City currently has five TIF Districts that collect property tax revenue from the increased value of new projects into a special fund that reallocates the money back to the districts through incentive programs. Below are programs available in any of the City’s TIF Districts (access interactive map to view TIF Districts).  Learn more about TIF Districts.

Applications

• Redevelopment Incentive Program
• Storefront Improvement Program

Small Business Programs – Applications Closed

The City of Champaign offers New and Growing Business Programs to help start and grow local businesses, prioritizing minority and women business owners.

Round Two of New and Growing Business Programs – Applications Closed

On September 16, 2025, City Council approved a second round of the New Business and Growing Business Programs. Application links and program details are posted below and in the Economic Development Manual (amended September 2025). Competitive applications may receive reimbursement awards. Upfront funding is not available. Awardees will meet with the Small Business Development Center to set goals and unlock their award. Awardees have one year to make eligible purchases and request reimbursement from the City. Submitting an application does not guarantee funding.

Application window: September 17 – October 26, 2025
Awards announced: December 2025
Reimbursement: December 2025 – January 2027

An in-person informational session on small business programs was hosted at the Champaign Public Library on September 23 and an online session was held on September 25 (recording). A key program change in this second round of funding gives greater weight to a 10-page business plan that includes a market analysis (business defines its competitive advantage, target customers, and competitors) and financial analysis (realistic cash flow projections and how grant funding will assist start up or expansion costs). New Business Program applicants are encouraged to attend the Starting your Business in Illinois technical session hosted by the Small Business Development Center (SBDC) within six months of applying to receive a point on their application (event calendar). Growing Business Program applicants who have met with the SBDC for business advising within six months of applying may also receive a point on their application. All applicants are encouraged to meet with the SBDC and use Champaign Public Library business resources for business plan assistance. You may also wish to download a sample business plan outline.

Each Business Assistance program has different applicant eligibility requirements, but some common eligibility requirements are listed below.

• Applicants must be a registered client of the Illinois Small Business Development Center.
• Subject business must operate legally in accordance with all Federal, State, and local laws and regulations, be current with all City taxes, fees, and licenses, and be in good standing with the State of Illinois Secretary of State.
• 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.
• Non-profit organizations, franchise businesses, adult-oriented businesses, liquor stores, cannabis dispensaries, predatory lending, and tobacco/vape shops are not eligible for these programs.

New Business Program – Awardees Announced in December 2025

Applicants are start-up businesses or those that first generated revenue within the last two (2) years. Businesses should have fewer than three full-time equivalent employees and generate less than $250,000 in gross annual revenues.

Growing Business Program – Awardees Announced in December 2025

Applicants are businesses that began generating revenue more than two (2) years ago and are seeking to grow their operations and/or expand employment. Businesses should have fewer than 25 full-time equivalent employees and generate less than $2 million in gross annual revenues.