My husband and I recently purchaced a small business in a rual community. It is the perfect spot to set up a recycling center. I would like to know if their are grants available (federal or for the state of Illinois) to purchase and how to set up a recycling center.

Its very unlikely any grants will be available to purchase a community recycling bin/center as grants are given almost exclusively to non-profit organizations. However, there may be a group that will give you a bin. I would google any environmental groups in your area and just do some old-fashioned "asking around."

The other option is to self-finance the recycling center and instead make it a for-profit venture. Lots of goods recycled have residual value and can be sold to include paper and metals.