CDBG Interior Page

Funding Amounts

$2.5 million has been allocated for the Economic Development program in 2024.  The maximum amount of CDBG funds that can be applied for is $750,000.

Qualifying Projects

This program funds projects assisting for-profit businesses or agricultural cooperatives with infrastructure improvements, land acquisition, site preparation, building construction or renovation, machinery, equipment, lease payments, inventory, payroll, and other working capital items.

• Infrastructure improvements including roads, sidewalks, water lines, sewer lines, etc.
• Business financing for a new business locating in, or an existing business expanding in, a community.

• • Non-Retail/Local Service businesses
  • Retail/Local Service businesses

• If business financing projects are completed on time with no concerns, there is a 25% forgiveness of the CDBG loan

Selection Criteria

Grant applications are evaluated for funding based on project/financing feasibility, per capita job creation/retention, and project leveraging (match).

Key considerations include:

• Must meet National Objective of LMI Jobs Creation/Retention.  At least 51% of the jobs created or retained must be considered low and moderate income.
• There is a maximum of $35,000 of CDBG funds invested per job created or retained for Business Finance.
• There is a maximum of $10,000 of CDBG funds invested per job created or retained for Infrastructure.
• Projects must meet the required Public Benefit test.
• Applicants must provide key financial and operational data on the proposed or existing business to demonstrate need.
• 24 months to create or retain the number of jobs proposed
• No bailouts or financial restructuring allowed