New Grant Helps Cook County Small Businesses Buy First Properties

CHICAGO, IL – March 19, 2026 – A new initiative is set to unlock the door to commercial property ownership for small business owners across Cook County, addressing one of the most significant financial barriers to growth. SomerCor, a nonprofit U.S. Small Business Administration (SBA) Certified Development Company (CDC), has launched a Down Payment Assistance Program (DPAP) designed to help entrepreneurs purchase their first owner-occupied commercial real estate.

Funded through a grant from Cook County, the program aims to empower businesses that are financially healthy and ready to expand but lack the substantial upfront capital required for a down payment. By providing targeted financial support, the initiative allows business owners to transition from renting to owning, build long-term equity, and further invest in their local communities.

"Cook County is committed to expanding access to capital and supporting the small businesses that power our local economy," said Cook County Board President Toni Preckwinkle in a statement. "Programs like SomerCor's Down Payment Assistance Program help more entrepreneurs invest in their businesses, purchase commercial property, and build stronger communities."

Tackling the Down Payment Hurdle

The journey to purchasing commercial real estate is often stalled at the first step: the down payment. The SBA 504 loan program, a popular financing tool for acquiring fixed assets, typically requires borrowers to contribute at least 10% of the total project cost. This figure can rise to 15% for new businesses (in operation for two years or less) or for properties classified as "special-use," such as a hotel or car wash. For a business that is both a startup and acquiring a special-use property, the down payment can reach as high as 20%.

For a small business managing daily operational costs and cash flow, accumulating a lump sum of this magnitude—potentially tens or even hundreds of thousands of dollars—is a formidable challenge. This liquidity barrier can prevent even the most successful and creditworthy businesses from securing a permanent home, leaving them subject to rising rents and market volatility.

SomerCor's DPAP directly confronts this obstacle. The program provides a grant equal to 5% of the eligible project costs, capped at $25,000. This infusion of capital significantly reduces the upfront cash a borrower needs, preserving their working capital for hiring, inventory, and other growth-oriented activities.

"Too many strong small businesses are ready to grow but can't move forward because the upfront equity requirement stands in the way," said Manuel Flores, President and CEO of SomerCor. "Our Down Payment Assistance Program helps remove that barrier, allowing more entrepreneurs to purchase their building, grow equity, and invest in their communities."

A Strategic County-Wide Investment

The DPAP was made possible by the Cook County Community Financial Institution (CFI) Capacity Building Grant, a landmark $2.4 million effort by the county's Bureau of Economic Development. The grant program was created to strengthen mission-driven lenders and expand capital access for small businesses, particularly those who struggle to secure conventional bank loans.

A 2023 landscape assessment conducted for the county revealed that local CFIs had limited capital available to meet the needs of the small business community. In response, the county launched the grant to bolster the capacity of these crucial financial partners.

SomerCor was one of five CFIs selected to receive funding. The other recipients include Allies for Community Business, which will use the funds for a loan loss reserve pool; Greenwood Archer Capital, which is expanding capital for early-stage entrepreneurs; Jewish Free Loan Chicago; and Pursuit, which is launching a new product for startups. This diversified approach demonstrates a comprehensive county strategy to address various gaps in the small business financing ecosystem.

A Growing Model for Urban Economic Development

Cook County's partnership with CFIs like SomerCor is part of a growing national trend where municipalities are taking a more active role in fostering equitable economic growth. Similar down payment assistance programs for commercial properties have been successfully implemented in other major metropolitan areas.

For instance, Atlanta's Commercial Down Payment Assistance Loan Program offers loans of up to 20% of property costs, which can eventually be forgiven. In Washington, D.C., a fund provides grants of up to $500,000 to help disadvantaged businesses acquire commercial space. These programs recognize that property ownership is a key wealth-building tool that stabilizes businesses and, by extension, the neighborhoods they serve.

SomerCor's established reputation makes it a reliable administrator for such a vital program. As one of the largest nonprofit SBA lenders in the Midwest, it has deployed over $1.65 billion in SBA loans and helped create more than 45,000 jobs since its founding in 1992. The organization also administers major grant programs for the City of Chicago, including the Small Business Improvement Fund (SBIF), demonstrating a proven track record of managing public funds effectively to generate community impact.

Who Can Apply and What's the Impact?

The program is specifically targeted to support established local businesses ready to take the next step. To be eligible, a business must:

• Be making its first purchase of an owner-occupied commercial property in Cook County.
• Have been in operation for at least two years and be in good standing with the State of Illinois.
• Have annual revenue between $200,000 and $5,000,000.
• Be pursuing a total project that does not exceed $1,000,000.

All applicants are also subject to the standard underwriting requirements of the SBA, SomerCor, and the participating third-party bank lender. The program is projected to support 16 to 20 small business real estate projects in its initial phase, leveraging an estimated $5 million to $8 million in total private and SBA-backed investment across the county.

For the entrepreneurs who qualify, this assistance represents more than just a financial transaction. It is an opportunity to control their destiny, stabilize overhead costs, and build a tangible asset that can support their business for generations to come. By turning successful renters into proud property owners, the program promises to foster a more resilient and prosperous local economy for all of Cook County.