Community Development Block Program (CDBG) - Economic Development (ED)

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Contact

CDBG Main Line: (855) 333-CDBG (2324)

Purpose

Economic development through assistance to local businesses and low-income microenterprise owners to create or preserve jobs for low-income workers in rural communities; planning and evaluation studies related to any activity eligible for these allocations. 

Assistance Type and Terms

Enterprise Fund 

  • Grants of up to $500,000 to provide loans to businesses and grants for publicly-owned infrastructure and microenterprise assistance.  Individual project funding decisions are made by the jurisdiction.  Businesses receiving loans must create or retain private sector jobs principally for low-income and very low-income persons.  Microenterprise owners must be low-income.

Planning and Technical Assistance (PTA) 

  • Grants of up to $100,000 and two studies per funding round per jurisdiction.

Over-the-Counter  

  • Grants of up to $3 million for eligible cities and counties to lend to identified businesses, or use for public infrastructure improvements necessary to accommodate the creation, expansion, or retention of identified businesses. 
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Eligible Activities

Enterprise Fund

  • Grants for loans to businesses for working capital, land acquisition, equipment purchase, inventory purchase, debt restructuring, and other direct assistance.  Grants to support businesses by providing water and sewer services, access roads, and other public facilities.  Microenterprise funds may provide credit, general support (e.g., childcare, transportation), or technical assistance for persons developing microenterprises.

Planning and Technical Assistance (PTA)

  • Studies and plans for economic development activities that meet CDBG national objectives and provide principal benefit to low-income persons.

Over-the-Counter

  • Grants for the creation or retention of jobs for low-income workers.  May include loans or loan guarantees to businesses for construction, on-site improvements, equipment purchase, working capital, and site acquisition.  May also include loans for business start-ups, grants for publicly-owned infrastructure, and loans or grants for small business incubators.
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Eligible Applicants

Non-entitlement jurisdictions, i.e., cities with populations under 50,000 and counties with populations under 200,000 in unincorporated areas that do not participate in the U.S. Department of Housing and Urban Development (HUD) CDBG entitlement program.

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Application Procedure

Applications are invited by an annual Notice of Funding Availability (NOFA) and evaluated and scored on factors such as need, capacity, prior CDBG grant performance, and poverty in the applicant community.  For more information, check previous NOFAs and Awards.

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Resources

Federal Authority

State Authority

Forms and Documents

Other Resources