Economic Development
Unlike other CDBG grants, the Economic Development Grant Program operates as a loan that must be repaid. However, if business financing projects are completed on time and without issues, 25% of the loan may be forgiven.
ECONOMIC DEVELOPMENT
$750,000
Funding Limit
MATCH
50%
of the CDBG grant request
Qualify
SEE IF YOUR COMMUNITY QUALIFIES
Check qualifications, programs, and more
2025 Grant Season Closed
The application season for 2025 has closed. Beginning in 2006, a pre-application is required. A new pre-application link will be available starting Jan. 7. A pre-application must be submitted and approved by CDBG before you can submit a full application. Full applications will open March 2 next year and close Oct. 16. If you haven’t discussed your project with staff yet, please do so before submitting a pre-application. You can contact a project manager at any time or email [email protected].
Qualifying Projects
A total of $750,000 has been allocated for the Economic Development program in 2026. The maximum amount of CDBG funds that can be applied for is $750,000. 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.
Selection Criteria
Grant applications are evaluated for funding based on project/financing feasibility, per capita job creation/retention, and project leveraging (match). Revised 2026 guidelines will be available in January.
Key considerations include:
Pre-Application
Applicants must submit a pre-application to confirm eligibility before applying for CDBG funding. This process allows us to provide early feedback and address any eligibility concerns before applicants complete the full application, and ensures projects align with program goals and are prepared for funding. The form requires a brief project description, estimated budget, eligibility status, and readiness to proceed.
Commerce will review submissions within ten days and provide further instructions. Only those with an approved pre-application may submit a full application, but pre-approval does not ensure grant funding. If you are new to the CDBG program, please reach out to us to schedule an initial discussion first. A new pre-application link will be available Jan. 7, 2026.
Communities may apply for multiple CDBG categories but can only be awarded up to two projects total, with no more than one from a major category. Major categories include: Community Facilities: Large/Small, Blueprint to Build, Water and Sewer Infrastructure, and Regional Water Implementation. For example, a city can submit applications for a Housing Rehabilitation and a Community Facilities: Large Grants project. However, a city cannot apply for both a Large and Small Community Facilities project.
The local government must hold two public hearings to demonstrate that reasonable efforts have been undertaken to ensure involvement of citizens or citizen organizations throughout all stages of the program. A notice about the hearing must be published in a local newspaper with the widest circulation, and it must appear at least 5 full days before the hearing—not counting the day it’s published or the day of the hearing itself. These hearings must be held at a time and location convenient to potential or actual beneficiaries, with accommodations for non-English speaking residents and persons with disabilities. A sample public hearing notice is included in program guidelines.
First Public Hearing: Must be held at least 15 days before the CDBG application is submitted, and no earlier than 120 days. The purpose of the hearing is to inform citizens about the proposed project, including its location, total cost, activities, and beneficiaries. Community members must be given a chance to suggest other project ideas and share their input, and the local governing body should carefully consider this feedback before submitting the application. The total project funding and CDBG amount requested must match what appears in the public hearing notice.
Second Public Hearing: Must be held at the conclusion of the project, prior to close out to inform citizens of the project’s successful or unsuccessful completion, and to obtain input on the grantee’s performance.
Yes, all CDBG-funded projects are federally required to have an environmental review. The Environmental Determination of Level of Review form must be submitted with the application. This will inform Commerce as to what level of environmental review you will undertake for your project if awarded.
Post-award, the city or county must conduct a full environmental review of the project, even for small projects that don’t require construction. This responsibility cannot be delegated and the cost to conduct the review must be paid with local funds. Project activities may not begin until after Commerce issues the environmental release of project funds.
Community Showcase Map
See other communities that have received funding in past years
Qualify
LMI help The Community Development Block Grant (CDBG) program requires that each CDBG funded activity must either principally benefit low- and moderate-income (LMI) persons, aid in the prevention or elimination of slums or blight, or meet a community development need having a particular urgency.
| Persons in Family |
LMI Family Income Limit* |
|---|---|
| 1 | |
| 2 | |
| 3 | |
| 4 | |
| 5 | |
| 6 | |
| 7 | |
| 8 |
LMI calculations are from the 2020 Census and LMI by household are from 2025 HUD Section 8. Final LMI will be confirmed upon application review.
Find Assistance
Assistance from a professional with CDBG grant experience can help you streamline and strengthen your application. Some or all of the costs to engage help can be covered by your award.
Find Pros in Your AreaApplication
(.) view all resources ApplicationOctober 16, 2026
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