Challenge Grant Guidelines

The Rock River Valley Entrepreneurship Center (RRVEC), with financial support from the Illinois Department of Economic Opportunity (DCEO), administers a matching challenge grant program targeted at high-growth companies in the Northern Illinois area. The purpose of the program is to assist those businesses with the potential for rapid, sustainable growth in obtaining professional services that will assist in the acquisition of capital, increase in revenue or other operational issues.

A minimum of 10% projected growth in jobs and revenues annually over a three year time frame are required. Grant funding must be used for the successful achievement of a significant business milestone. The maximum funding available for each individual award is $5,000. Recipients are required to provide a cash match of 100% of the award amount.

Award Process

An application is not considered complete until an application, company's Business Plan (or Executive Summary), resumes and selected service provider's outline is received.
An agreement will be executed by all parties to insure confidentiality.
Completed applications will go through an internal review to assess the company's growth potential, management team, and operational plan. Applicants will then be notified if they will continue through the grant process or be recommended to other applicable services. Applicants continuing through the process will then consult with the Director for further due diligence which entails either a site visit or in-person interview.
During the review process, additional information may be requested to help support your application. To expedite the process, please be forthcoming in providing supporting information.
The RRVEC Awards Committee will then review completed applications and will notify you with a decision within 30 days.

How to Apply

Applicants must contact the RRVEC to set-up an initial interview with the director. Click here to download an application (MS Word format). To set-up an initial interview, contact:

Sherry Pritz
(815) 921-2054
S.Pritz@rvc.cc.il.us

Challenge Grant Process Guidelines

Grant applications must be completed in accordance with the instructions established by the RRVEC and shall be reviewed and evaluated by the RRVEC director. Evaluations of complete applications are reviewed and funding recommendations are then submitted to the RRVEC Awards Committee. Applicants may be notified of deficiencies and may be given the opportunity to submit revisions. Given the significant demand for this grant program, the application process is selective and grants are based on project viability, job growth potential, sustainability, need and merit-based factors. The RRVEC will notify applicants of the evaluation determination within 30 days of receiving a completed application. In those circumstances where grant applications do not meet these criteria for entrepreneurship awards, the RRVEC director may recommend alternative assistance programs.

Eligible Applicants

Any small or medium-sized for-profit, entrepreneurial business of 500 employees or fewer.
Located in the State of Illinois.
Currently is or will be engaged in creating new services or products with high-growth potential.
Has had a growth rate or is projected to have a growth rate of at least 10% in employment and revenue annually over a three-year period.

Eligible Project Costs

Eligible project costs include the provision or acquisition of professional services that will lead to the successful achievement of a significant business milestone. Projects should deliver a short-term impact on the acquisition of capital or increase in revenue. Broad categories of services may include those related to:

Lead generation and prospecting strategies
Market sales analysis, research, and targeting
Presentation preparation and coaching
Overall business strategy development
Marketing strategies and plans
Development of private placement memorandums
Capitalization strategies
Financial modeling
Comprehensive business planning and funding assistance
Operational planning, budgeting, and performance measurement processes
Management control and cost control systems development
Manufacturing or Operations process development or improvement
Funding strategies
Legal services for obtaining patents, copyrights, trademarks, and contract evaluation
Other specialized or accelerated services deemed critical to the successful achievement of a significant milestone.

Ineligible Project Costs

The RRVEC's Awards Committee has discretion to determine special funding circumstances, in consultation with DCEO. Generally, the following project costs will not be eligible for award funding:

Legal costs associated with establishing or incorporating your business
Architectural, engineering and design costs
Rental or purchase of land or buildings or any improvements or furnishings to land or buildings
Software or office equipment
Employee salaries
Business valuation or appraisal fees
Loan application/origination fees
Fees for lobbying elected assemblies or for entertainment