Near West Side small businesses were granted $1.5 million in TIF funds by the city to upgrade their facilities, in an attempt to keep good manufacturing jobs in the neighborhood.

This is the third year the Kinzie Industrial Corridor has received grants from the City of Chicago's Small Business Improvement Fund (SBIF), but this year local companies can receive up to $150,000. In the past, $50,000 was the maximum amount granted. The grants can be used to modernize and expand their facilities.

City officials and grant administrators met with local business owners last week at the Chicagoland Beverage Company, at 2056 W. Walnut, to hand out applications and discuss guidelines and eligibility.

John Hall, board chairman of the Industrial Council of Nearwest Chicago, a 400-member business organization, said the grants are helping small business owners survive in a competitive market.

"We've got a lot of small companies, so it's a competitive world out there," said Hall, who is president and founder of the Goose Island Beer Company. "And you're either growing and getting better or going the other way."

Goose Island, located at 1800 W. Fulton, received a grant last year, which allowed it to construct a new shipping dock, and put the money that would have been used for the project toward other needed expenses.

"We're able to put more dollars into equipment and capacity," Hall said.

One year after businesses receive the grant, they are able to apply for another, which is what Hall said he plans to do. If Goose Island gets a grant, Hall said they will put it towards a new roof.

Businesses located in the Kinzie Industrial Corridor, which is bordered by Chicago and Madison and Kedzie and Halsted, can apply for the grants through SomerCor 504, Inc., a non-profit development company hired by the city to administer the SBIF.

Eligibility for the grant depends on what type of business it is and the type of project they need funding for. Projects typically approved include refurbishing roofs and facades, land purchases, environmental remediation and interior build outs. The grants do not cover new construction, minor repairs, residential interiors or equipment related expenses.

The applications are due on Oct. 5, and the number of applicants and the amount of work determines how many businesses will receive grants. In the past, every eligible business that applied got one. But if more companies apply than the SBIF can afford, a lottery will choose the grant recipients. If the SBIF can afford more than what was applied for, then applications will be accepted on a first-come-first-serve basis after Oct. 5.

"It all depends on how much work needs to be done," said John Paulun, director of the SBIF for SomerCor.

In the past, $30,000 was the average amount for the grants given out, but Paulun said with the increase from $50,000 to $150,000 for the maximum it is hard to determine what this year's would be. Paulun said the steps toward being approved for the grant are relatively smooth, and the construction of projects is usually completed within about one year of its approval.

"It's one of the easier city programs that I've come across," Paulun said.

Co-owners of the Chicagoland Beverage Company, Brad Schulman and Steve Gorelik, have operated their business in the Kinzie Industrial Corridor for the past seven years, and were able to expand their facilities from 7,500 square feet to 30,000 square feet after receiving a grant from the SBIF last year. They purchased the building next door after the company it housed went out of business, which they said may not have been possible without the grant.

"We really needed the extra assistance," Schulman said. "It gave us more space for inventory and employees."

The Chicagoland Beverage Company distributes coffees and teas, including Intelligentsia coffee and Mighty Leaf tea, throughout the area. Because of the high cost of having a business in the city, they said the grant made it possible for them to grow without having to relocate to a cheaper suburban location.

"It makes our business more efficient, and distribution is a lot more profitable," Gorelik said.