Community Development Block Grant

Community Development Block Grant
Economic Development – (CDBG-ED) Program
(GPDI’s Assistance in Packaging and Administration)

All incorporated cities or counties in Kansas that do not receive an annual Community Development Block Grant (CDBG) entitlement allocation from Housing and Urban Development (HUD) are eligible to apply to the Kansas CDBG Program. A private for profit business must participate with a city or county in the application process. The business must provide financial information and a business plan as part of the application process. The grants are made on a competitive basis through the Kansas Department of Commerce. If the application is approved, the loan funds are channeled through the local government to the business.

Qualifications

  • Only cities and counties may apply.
  • Funds are a grant to the city/county and a loan to the business.
  • Funding ceiling is $35,000 per job created or retained with a minimum of $100,000 and a maximum of $750,000.
  • Matching requirement is 50¢ non-CDBG funds for every $1 of CDBG funds.
  • If the project involves construction, Davis Bacon prevailing wage rates are in effect.
  • Funds may be used to provide infrastructure improvements or business financing, but must be for a new or  existing business expanding in the community.
  • Funding for infrastructure projects is 50% grant and 50% loan at 2% interest for 10 years.
  • Business finance projects are 100% loan with a minimum 4% interest. Terms vary with the type of assets being financed.
  • Funding for retail businesses has additional requirements.

For for information, contact a GPDI representative.