Economic Development grants to cities or counties are loaned to provide gap financing for private businesses that create or retain permanent jobs. Eligible activities include infrastructure, land acquisition, fixed assets and working capital. At least 51 percent of the jobs created or retained by the for-profit entity must meet the Department of Housing and Urban Development's low- and moderate-income standard.
Some repayment is required for all economic development categories. Grants are made to cities and counties, which then loan funds to developing businesses. Repaid funds are returned to the state revolving loan fund. Funds may also be used for infrastructure on a loan / grant basis. The funding ceiling is $35,000 per job created or retained with a maximum of $750,000. Matching funds are required.