CDBG Economic Development Grants
CDBG Economic Development grants provide funds which create and retain employment, primarily for low and moderate income people. Business financing is provided through Regional Development Corporations (RDC) and other Economic Development Entities (EDE), or through public facility improvements to support economic development efforts. The main goal in this category is to create jobs that provide good wages, benefits, and training programs.
CDBG Economic Development Funds can be used for acquisition of land and buildings, construction of commercial buildings, purchase of machinery and equipment, employee training, and public facilities improvements. Applications are accepted on a first-come, first- served basis.
Municipalities and counties can apply to use the grant funds in a variety of ways, but typically the funds are subgranted to a Regional Development Corporation (RDC), or Economic Development Entity (EDE), or used directly by the municipality. The maximum amount awarded to a municipality for economic develop is $500,000 a year (this total is not counted against CDBG awards in other catagories).
RDCs and EDEs can use the CDBG Economic Development funds to make loans to businesses, to acquire and develop real property for sale or lease, to businesses. In both cases the for-profit businesses commit to creating jobs for low and moderate income people. At least 60% of the jobs being created must be available to low and moderate income people. For each $1 of CDBG funds requested, $1 of non-CDBG money must be committed to the project. Matching funds can come from the business, the municipality or other sources and can be in the form of debt, equity, or the donation of land to an RDC or EDE. The commitment of match must be provided on submission of the application to CDFA.
When used directly by a municipality, funds are used to build or upgrade publicly owned infrastructure which will support the for-profit businesses in their need to expand, resulting in jobs for low and moderate income people.