Urbana Incentive Programs

Description: Urbana has recently revised its facade loan program. Now, eligible businesses that are located in TIF districts 1, 2, or 4 can receive an interest subsidy of up to 5.5% on a loan between $5,000 and $60,000 to construct on or improve their property.

In addition, businesses that meet certain criteria can receive up to an additional 10% of their loan amount in the form of a grant. This is another way that Urbana is trying to help support its local establishments and attract new businesses in order to better serve the community.

Another incentive program, the Urbana Gallery District Incentive Program provides guidelines whereby an art gallery owner and a building owner can jointly apply for rent subsidy within TIF 1 or TIF 2, which encompass most of downtown Urbana.

Does the City of Urbana offer business incentives?
Yes. The City offers a variety of incentives in the Enterprise Zone including:

  • Illinois Development Finance Authority (IDFA) provides financing and technical assistance to businesses, local governments, and not-for-profit corporations. IDFA assistance may be used both inside the outside of the Urbana Enterprise Zone.
  • Application preparation for Federal grants for land acquisition, construction financing, and equipment purchase to large firms locating or expanding in the Zone.
  • Up to 50% of a trainee‘s wages may be eligible for reimbursement through the JTPA On-The-Job Training Program which is administered locally by the Champaign County Consortium (Ph 217/384–8640).
  • Additional financial assistance is available through the Prairie State 2000 Authority which provides assistance to companies through a grant or loan that helps offset the trainer costs associated with new technology or productivity/quality improvement retraining. For further information phone 309/344–2756 or 312/814–2700.
  • Below market rate loans for first-time homebuyers in the Enterprise Zone.
  • Community Development Block Grant funding for public improvements and private housing rehabilitation.
  • Assignment of a City staff person to expedite the procedures relating to the construction of a project in the Enterprise Zone.
  • Other incentives to be determined on a case-by-case basis.

What other incentives are available?
If you would like additional information on how the State of Illinois can help small businesses, call DCEO‘s Business Hotline at 800/252–2923.

Does the City of Urbana have any funding available to help businesses with improvements?
The City of Urbana offers a low-interest commercial loan currently at 2% fixed interest rate with a 5-year term and $5,000 – $40,000 loan limit. This loan is provided by the participation of local financial institutions for primarily exterior improvements to commercial buildings located in and near downtown Urbana.

I want to start a business in Urbana, but need financial assistance. Are there business loan programs available to me?
There are no other financial programs available through the City of Urbana other than the Facade Loan Program. For more information about financial alternatives for small businesses, contact the Economic Development Division at 384–2442.

Can citizens or businesses request trees for planting at specific locations?
Yes. Participation in the cost-share program ($60 per tree) guarantees trees within a year, if specific ordinance space requirements are met.

Source: City of Urbana
Urbana Business Association
Date Last Revisted: 4/26/07