Who is eligible to apply for LFIG funding?
- An entity that is an Illinois resident. [505 ILCS 92/20(c) and 8 Ill. Adm. Code 340.20(a)(1)]
- Applicants must comply with all relevant State and federal laws and rules, including prevailing wage requirements, when applicable. [8 Ill. Adm. Code 340.20(a)(2)]
- To be eligible for a grant award, an applicant shall have an active GATA registration and be qualified on the GATA Grantee Portal and SAM.gov at the time the application is submitted. [8 Ill. Adm. Code 340.20(a)(3)]
- The entity must store, process, package, aggregate or distribute value-added agricultural products or plan to do so, and must be one of the following [505 ILCS 92/15(1) and 8 Ill. Adm. Code 340.20(a)(4)]:
- An Illinois farm with fewer than 50 employees [505 ILCS 92/15(1)(A) and 8 Ill. Adm. Code 340.20(a)(4)(i)].
- An Illinois cooperative with fewer than 50 employees [505 ILCS 92/15(1)(B) and 8 Ill. Adm. Code 340.20(a)(4)(ii)].
- "Illinois Cooperative" means a co-operative association organized under the Agriculture Co-Operative Act [805-ILCS 315] or the Co-operative Act [805 ILCS 310] or a limited worker cooperative association organized under the Limited Worker Cooperative Association Act [805 ILCS 317]. [8 Ill. Adm. Code 340.10(b)]
- An Illinois slaughter and/or processing facility with fewer than 50 employees [505 ILCS 92/15(1)(C)]. Slaughter and/or processing facilities must be USDA or state licensed or be a custom exempt slaughter and/or processing facility. [8 Ill. Adm. Code 340.20(a)(4)(iii)]
- An Illinois food business with fewer than 50 employees [505 ILCS 92/15(1)(D) and 8 Ill. Adm. Code 340.20(a)(4)(iv)].
- An Illinois food hub with fewer than 50 employees [505 ILCS 92/15(1)(E) and 8 Ill. Adm. Code 340.20(a)(4)(v)].
- An Illinois nonprofit organization [505 ILCS 92/15(1)(F) and 8 Ill. Adm. Code 340.20(a)(4)(vi)].
- A unit of local government in Illinois [505 ILCS 92/15(1)(G) and 8 Ill. Adm. Code 340.20(a)(4)(vii)].
We are located in Illinois, but our owner is located out of state. Do we qualify for this grant?
"Illinois Resident" means an entity that is registered to do business in Illinois and has its home-base of operations in Illinois as proven by a valid W9. [8 Ill. Adm. Code 340.10(b)]
Does the eligibility requirement of “less than 50 employees” mean all at the same time or does it encompass all employees over a given period of time?
The 50 employee threshold refers to the total number of employees working at the same time during the year, not the cumulative number employed over the entire year. Seasonal or temporary increases (e.g., harvest, agritourism weekends, deer season) do not affect eligibility. Please note that nonprofit organizations and local governments do not have an employee threshold for eligibility.
What documentation do I need to submit for “proof of the number of employees”?
The following are examples of documentation that will be deemed sufficient to establish “proof of the number of employees”. Substantially similar, unlisted documents identified in the application or any frequently asked questions or questions and answers for this program will also suffice.
A) Applicant's payroll logs showing how many people were paid by the applicant for each pay period for the 12 months preceding application;
B) IRS Form 941 for the four quarters preceding application, Illinois Form UI-3/40 Employer's Contribution and Wage report for the four quarters preceding application.
[8 Ill. Adm. Code 340.60(c)(5)].
My entity does not file IRS Form 941 or Illinois Form UI-3/40. Payments for services are reported on IRS Form 1099s. What should I supply as proof of the number of employees as required in the application?
If Individuals providing services for your entity have their earnings reported on IRS Form 1099, they are independent contractors and are not included in the employee count as related to this grant application. If you do not have employees, please provide a statement to that effect.
For employees, generally, you must withhold and deposit income taxes, Social Security taxes and Medicare taxes from the wages paid to an employee. Additionally, you must also pay the matching employer portion of Social Security and Medicare taxes as well as pay unemployment tax on wages paid to an employee. For proof of the number of employees, please provide IRS Form 941 for the four quarters preceding application or Illinois Form UI-3/40 Employer's Contribution and Wage report for the four quarters preceding application. [8 Ill. Adm. Code 340.60(c)(5)]
What expenditures qualify for reimbursement through LFIG funding?
All grant funding must be used for purchasing, leasing to own, renting, building or installing infrastructure related to the processing, storage, aggregation, or distribution of value-added agricultural products. [505 ILCS 92/15(4) and 8 Ill. Adm. Code 340.30(a)(1)]
Allowable expenses include, but are not limited to, costs to purchase, lease, or install:
- Equipment used in the production of value-added agricultural products [505 ILCS 92/15(4)(A) and 8 Ill. Adm. Code 340.30(a)(2)(A)].
- Sanitizing equipment. [8 Ill. Adm. Code 340.30(a)(2)(B)]
- Milling or pressing equipment [505 ILCS 92/15(4)(B) and 8 Ill. Adm. Code 340.30(a)(2)(C)].
- Honey processing equipment and packaging including mini extractors lines, extractors, uncappers, dehydrators, creamers, warmers, heated sumps, bottling tanks and bottlers. [8 Ill. Adm. Code 340.30(a)(2)(D)]
- Syrup processing equipment and packaging including syrup evaporators, cookers, finishers, canners and bottlers. [8 Ill. Adm. Code 340.30(a)(2)(E)]
- Creamery or milk product processing and packaging equipment [505 ILCS 92/15(4)(C) and 8 Ill. Adm. Code 340.30(a)(2)(F)].
- Food hub development or expansion [505 ILCS 92/15(4)(D) and 8 Ill. Adm. Code 340.30(a)(2)(G)].
- Cooler walls, freezers and refrigeration units [505 ILCS 92/15(4)(E) and 8 Ill. Adm. Code 340.30(a)(2)(H)].
- Grading, packing, labeling, packaging, or sorting equipment [505 ILCS 92/15(4)(F) and 8 Ill. Adm. Code 340.30(a)(2)(I)].
- Refrigerated trucks [505 ILCS 92/15(4)(G) and 8 Ill. Adm. Code 340.30(a)(2)(J)].
- Custom exempt mobile slaughter units that meet all Federal and State regulations, including being licensed as an IDOA Type II slaughter/processing facility [505 ILCS 92/15(4)(H) and 8 Ill. Adm. Code 340.30(a)(2)(K)].
- Livestock, meat, and poultry, processing equipment (including fixtures or equipment necessary to expand animal throughput, processing capacity, the amount or type of products produced or processing speed, equipment necessary for compliance with federal hazard analysis and critical control point (HACCP) plan) [505 ILCS 92/15(4)(H) and 8 Ill. Adm. Code 340.30(a)(2)(L)].
- Agroforestry processing equipment [505 ILCS 92/15(4)(I) and 8 Ill. Adm. Code 340.30(a)(2)(M)].
- Local fish, wild caught fish, and shrimp processing [505 ILCS 92/15(4)(J) and 8 Ill. Adm. Code 340.30(a)(2)(N)].
- Aquaponic and or hydroponic equipment. [8 Ill. Adm. Code 340.30(a)(2)(O)]
- Equipment for school meal scratch cooking (including, but not limited to refrigerators, freezers, ovens (convection, combi, or steamer), warming/holding equipment, serving tables (hot or cold), milk coolers, or dish machines. [8 Ill. Adm. Code 340.30(a)(2)(P)]
Grant funding can only be used for expenses incurred after the date of the application. [8 Ill. Adm. Code 340.30(d)]
What expenditures do not qualify for reimbursement through LFIG funding?
- Labor, marketing, or promotion or for the costs of production agriculture, including the costs for the purchase of hoop houses, irrigation, breeding, animal housing or other infrastructure related to starting or increasing agricultural production. [505 ILCS 92/15(4) and 8 Ill. Adm. Code 340.30(b)(1)]
- Wages or travel costs. [8 Ill. Adm. Code 340.30(b)(2)]
- Portions of a project that have already received funding or been reimbursed by another federal or state grant program. [8 Ill. Adm. Code 340.30(b)(3)]
- Purchase or rental of a building or facility. [8 Ill. Adm. Code 340.30(b)(4)]
- Land acquisition or associated fees. [8 Ill. Adm. Code 340.30(b)(5)]
- Grant funding cannot be used to recoup previously-spent money on the project. [8 Ill. Adm. Code 340.30(c)]
What are specific examples of "value-added agricultural products" that are eligible for funding?
Value-added agricultural products refer to products that have been processed or transformed in a way that increases their market value beyond the raw commodity stage. Examples of value-added agricultural products include but are not limited to: grain-based products milled from grains, pasta or snacks made from wheat or corn, dairy products such as cheese, yogurt, or ice cream made from milk, meat products such as sausages, smoked meats or jerky, beverages such as cider or juice made from produce, and specialty and organic products such as packaged vegetables or salad mixes.
Can I purchase land using Local Food and Infrastructure Grant Funding?
No. Land acquisition and associated fees are listed as ineligible costs under the Local Food Infrastructure Grant Administrative Rules. [8 Ill. Adm. Code 340.30(b)(5)]
Can funds be used for labor, marketing, or for production agriculture?
No. Labor, marketing, or promotion or for the costs of production agriculture, including the costs for the purchase of hoop houses, irrigation, breeding, animal housing or other infrastructure related to starting or increasing agricultural production are ineligible costs. [505 ILCS 92/15(4) and 8 Ill. Adm. Code 340.30(b)(1)]
Can funds be used for wages or travel costs?
No. Wages and travel costs are listed as ineligible costs under the Local Food Infrastructure Grant Administrative Rules. [8 Ill. Adm. Code 340.30(b)(2)]
Can I use grant funds for a project that has already received other state or federal funding?
No. Portions of a project that have already received funding or been reimbursed by another federal or state grant program are ineligible. [8 Ill. Adm. Code 340.30(b)(3)]
Is the purchase or rental of a building or facility an eligible expense?
No. Purchase or rental of a building or facility is ineligible under the Local Food Infrastructure Grant Administrative Rules. [8 Ill. Adm. Code 340.30(b)(4)]
Can grant funding cover construction costs?
As a rule, construction costs are not allowable unless with prior written approval. In some cases, minor repairs or renovations may be allowable. Consult with the program office before budgeting funds in this category. Estimated construction costs must be supported by documentation including drawings and estimates, formal bids, etc.
All grant funding must be used for purchasing, leasing to own, renting, building or installing infrastructure related to the processing, storage, aggregation, or distribution of value-added agricultural products [505 ILCS 92/15(4)]. “Value-added agricultural product” is “any farm or agricultural product or by-product that has its value enhanced through processing in Illinois, packaging in Illinois, or any other activity in Illinois.” [505 ILCS 92/5]
Allowable expenses include, but are not limited to, those items identified in 505 ILCS 92/15(4) and 8 Ill. Adm. Code 340.30(a)(2), which are covered in this FAQ.
Labor, wages, and travel costs are ineligible expenses pursuant to 505 ILCS 92/15(4) and 8 Ill. Adm. Code 340.30(b). Accordingly, items included in the budget of the application should not include labor, wages, and travel costs. Installation fees and/or construction costs that can be classified as labor, wages, and travel costs are ineligible for grant funding.
Can used or refurbished equipment or vehicles be purchased?
The funding opportunity is not limited to the purchase of new equipment or vehicles. All grantees of the funding opportunity are required to use documented procurement procedures that are consistent with 2 CFR 200.317 through 2 CFR 200.327, which can be found here: https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR45ddd4419ad436d
All grants are required to follow procurement standards that are outlined in 2 CFR 200.317 through 2 CFR 200.327 (https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR45ddd4419ad436d). The document at the following link provides an overview of these requirements and can assist your organization with establishing an organization procurement policy and remain in compliance with procurement standards: https://agr.illinois.gov/content/dam/soi/en/web/agr/assistance/illinoisfarmprograms/lfig/IDOA%20Procurement_10%2015%202025.pdf. Noncompliance with procurement standards may result in the return of funds to the agency.
Generally, the procurement standards must meet the following requirements:
- Full and open competition;
- Written procurement procedures;
- Documentation of vendor selection; and
- Price reasonableness
Would the purchase of a non-refrigerated truck used to transport product be eligible for funding under this grant?
The entity must store, process, package, aggregate or distribute value-added agricultural products or plan to do so. All grant funding must be used for purchasing, leasing to own, renting, building or installing infrastructure related to the processing, storage, aggregation, or distribution of value-added agricultural products. [505 ILCS 92/15(4)]. “Value-added agricultural product” is “any farm or agricultural product or by-product that has its value enhanced through processing in Illinois, packaging in Illinois, or any other activity in Illinois.” [505 ILCS 92/5].
Are projects that are already in progress eligible? Can an entity or entities apply for funding for projects that have already started?
Yes, applicants may apply for funding for a project that is already in progress. However, grant funding cannot be used to recoup previously-spent money on the project and can only be used for expenses incurred after the date of the application. [8 Ill. Adm. Code 340.30(c)-(d)]
Grant funding cannot be used for portions of a project that have already received funding or been reimbursed by another federal or state grant program. [8 Ill. Adm. Code 340.30(b)(3)]
Grant funding cannot be used to repay prior debt payments nor meet the match requirements of another grant.
Can LFIG funding be used for land improvements, like fencing or to increase farm acreage?
No, the Local Food and Infrastructure Grant is not intended to be used for land improvements nor to increase farm acreage.