The Small and Emerging Business (SEB) designation was developed with the passage of the Climate and Equitable Jobs Act (CEJA) in 2021 to help new and small businesses navigate the solar energy landscape. The designation was introduced to the Illinois Solar for All (ILSFA) Program that year. The 2026 Long-Term Renewable Resources Procurement Plan established the SEB designation in the Illinois Shines Program and added new benefits for SEBs across both programs, including: a lower batch threshold for project submittal, project selection benefits (ILSFA only), and collateral deduction from REC payments (ILSFA only).
Beginning June 1, 2026, entities acting as or applying to become an Approved Vendor (AV) that meet the definition of either a “small” or “emerging” business will be able to apply for the SEB designation. There is a singular SEB registration form for both Illinois Shines and ILSFA. Upon approval of the application, the AV will receive the SEB designation for both programs. Single Project AVs are not eligible for the SEB designation.
To receive designation as a Small and Emerging Business in both Illinois Shines and ILSFA, the AV will have to demonstrate one of the following:
- Qualification as an “emerging” business: Demonstration that the entity has been authorized to do business in a U.S. state, district, or territory for less than 3 years. Examples of qualifying documentation include:
- Certification from a government agency/organization authorizing the entity to conduct business in a state, district, or territory with a date of issuance. (e.g. Corporation/LLC File Detail Reports or LLC Annual Reports).
- An EIN Issuance Letter from the Internal Revenue Service with a date of issuance.
- Any other document providing evidence of the entity’s authorization. of business (Document accepted at the Program Administrator’s discretion).
OR
- Qualification as a “small” business: Demonstration that an entity is (1) independently owned and operated and (2) had a gross revenue of less than $4 million in the previous calendar year.
- 1) Examples of qualifying documentation showing the business’ ownership structure include:
- Operating agreement
- Another document providing evidence of the entity being independently owned and operated (Document accepted at the Program Administrator’s discretion)
- 2) Examples of qualifying documentation showing the business’ gross revenue include:
- Business income tax returns from the previous year (e.g., IRS Form 1120, 1120S, 1065)
- A filed Schedule C from the previous year (Form 1040)
- Audited or reviewed financial reports produced by an independent party.
- Any other document providing evidence of the entity’s revenue and ownership structure (Document accepted at the Program Administrator’s discretion)
- 1) Examples of qualifying documentation showing the business’ ownership structure include:
AVs can only qualify for the status of “emerging business” for the first three years after the business has been authorized to do business in any U.S. state, district, or territory. For example, an entity authorized to do business on December 1, 2026, during the 2026-27 Program Year, would have its emerging status expire at the end of the 2029-30 Program Year on May 31, 2030.
The Illinois Shines Program Administrator will track the expiration of entities qualifying under “emerging” business criteria. The Program Administrator will inform entities qualifying under the “emerging” business criteria upon expiration of their “emerging” status.
AVs as SEBs under the “small” definition will need to renew their status during the annual AV renewal process in which they must provide the current documentation demonstrating ongoing qualification.
For questions, please contact the Program Administrator at [email protected].
Thank you!
Illinois Shines Program
[email protected]