Local governments may apply on behalf of for-profit businesses for loans of up to $150,000. The loan is then converted to a grant at the rate of $500 per job created. Businesses should limit loan requests to that amount which their financial projections show they can convert based on jobs created.
The interest rate and term of the loan will be comparable to bank interest rates and terms.
CDBG Infrastructure Grants
Local governments may apply for a grant not to exceed $150,000 under this program to develop basic infrastructure for the benefit of a specific, identified business project. The business (or businesses) must create employment for low to moderate income individuals. Interested businesses must provide employment information, financial records and be willing to sign a guarantee that the funds will be repaid if the company fails to complete the proposed business project.
CDBG Job Training
Local governments may apply for grants under this program to provide job training to for-profit entities that can demonstrate the need for specially trained employees in their work place.
CDBG Technical Assistance Grants
Local governments may apply for grants under this program on behalf of for-profit businesses. Funds may be used to defray the cost of feasibility studies, business plan preparation, market studies, and test marketing. The for-profit business may be either a start-up or an existing business planning to expand. Up to $7,500 is available per applicant, and a 25% cash match is required. The funds cannot be used to pay company employees or principals to perform the work.