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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

APPLICATIONS ACCEPTED

Jan 1 – Nov. 14, 2025

HOW TO APPLY

Qualify

  • done
    Must notify Commerce 10 days prior to submitting an application
  • done
    Create/Retain low- and moderate-income jobs
  • done
    Provide at least a 50% match
  • done
    Have an acceptable use project

SEE IF YOUR COMMUNITY QUALIFIES

check qualifications programs and more

Program Overview

2025 Guidelines Coming Soon!

 

Funding Amounts

$1 million has been allocated for the Economic Development program in 2025.  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.
  • 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
  • Download grant guidelines for more information on program requirements.

FAQs

Can a community apply for more than one project?

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.

What is the public hearing process?

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.

Is an environmental review always required?

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.

Show All FAQs

Tips for Success

Determine the type of assistance your business will require – CDBG can help with business financing and/or infrastructure improvements.

Loan repayment is required with Economic Development funding; it is not a grant. How much, at what rate, and what term will be determined by the type of assistance provided.

You must be prepared to document at least one (1) created or retained job per every $35,000 of CDBG funds for business financing projects.

Community Showcase Map

See other communities that have received funding in past years

How to Apply

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.

View LMI Family Income Limits for
Persons in
Family
LMI Family Income Limit*
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*LMI calculations are from the 2020 Census and LMI by household are from 2024 HUD Section 8. Final LMI will be confirmed upon application review.

1

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 Area
2

Application

(.) view all resources Application

Application Deadline: November 14, 2025
Get notifications for this year and next year

3

Have Questions?

Email Tim Parks, CDBG Specialist
[email protected]
(785) 480-8072
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