The Economic Development program (EDP) provides communities with gap funding to assist identified businesses in the creation/retention of jobs for low- and moderate-income people.
Maximum Award: $100,000*
1. Eligible Activities:
a) Grants to Municipalities for Direct Business Support: working capital and capital equipment purchase
Acquisition, and any type of construction or renovation is not an allowable activity.
2. Exclusions:
Applicants may apply on behalf of only one business.
EDP funds cannot be used to refinance existing debt.
All EDP activities must be in support of an identified business; speculative activities are excluded.
Communities may not apply on behalf of a business that has received prior CDBG EDP funding.
* Waivers to increase the maximum grant award amount, in instances where the impact of the project is substantial and can be documented, must be approved by the Director of the Office of Community Development.
3. Project Benefit:
All projects must document that at a minimum, 51% of all jobs created or retained because of the funded activity must be taken/held by people of low and moderate income as defined by HUD. Jobs created/retained must be in the community applying for the EDP award. If job creation requirements are not met, the applicant community will be responsible for immediate repayment to DECD of all CDBG funds expended on the project.
4. Program Dollars per Job:
The maximum CDBG participation per job created or retained with EDP funds is $30,000.
Please see the current Program Statement for further program information.