CDBG Economic Development Application and Administration
The CDBG Economic Development funding program was developed to assist businesses in your community to create or retain jobs by offering gap financing for working capital or infrastructure projects. Infrastructure projects would include streets, roads and storm drains such as, eater and sewer lines, sewer pretreatment facilities, rail spur, and gas or electric lines. Infrastructure payback guidelines would be set upon special assessment of the business. Retail or local service businesses would payback 50% of the money borrowed at a 0% interest rate over a 10 year time period. A non-retail business would payback 25% of the money borrowed at a 0% interest rate over a 10 year period. Business finance projects would include land or buildings, machinery, equipment, inventory, payroll, and fixed assets. Money borrowed for business finance projects would be paid back depending upon what the funding was used for. If the funding was used for working capital, the borrower would have up to five years to payback the funds. If the funding was used to purchase machinery or equipment then the borrower will have up to ten years to payback the funds and if the funding was used to purchase land or a building then the borrower would have up to 15 years to payback the funds. If the funding was used for a combination of activities there will be blended payback terms. Contact the SEKRPC if you would like more information or help with the application process for a CDBG Economic Development Project.
