Community Development Block Grant - Economic Development Program (CDBG-ED)

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Application Procedure

Applications are accepted on a continuous basis as long as funding is available for each program year. The maximum amount available to each community is $400,000. The maximum amount available to consolidated governments is $800,000. Up to 8% of the total CDBG-ED funding is allowed for local government administrative expenses, with not less than 92% committed to the project. Businesses relocating to a new Montana community must make prior commitments to move their facility or operations three months before the application is submitted. The Department will accept a full application based primarily on a favorable preliminary review of the business plan and financial statements of the business. Department staff and a loan review committee review project applications and make recommendations to the Depertment Director, who then makes a final award determination.

Grantees and businesses should be aware that it will take at least two or more months after a tentative award of funds has been issued before the business will actually receive any CDBG-ED funds. Grantees and businesses are required to meet specific conditions before a release of CDBG-ED funds is granted.

Thresholds:

  1. Maximum of $25,000 CDBG-ED funds per job
  2. Maximum of $5,000 CDBG-ED funds per employee for employee training
  3. Minimum of 51% jobs to benefit LMI persons
  4. Minimum of 1:1 matching funds

Other Requirements:

  1. Two public hearings
  2. Detailed business plan
  3. Current and 3 years projected financial statements
  4. Hiring and training plan
  5. Project budget with proposed "sources & uses"

Ineligible Activities:

  1. General community promotion
  2. Assistance to professional sports teams
  3. Assistance to privately-owned recreational facilities
  4. Acquisition of land with no specific proposed use