Community Development Block Grant (CDBG) -- SCKEDD’s Assistance in Packaging and Administration of Funds:

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 may 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 Kansas Department of Commerce. If the application is approved, the funds are channeled through the local government to the business.

Qualifications

Economic Development Projects:

• Maximum loan is $750,000.

• Points awarded by leverage minimums.

• Matching requirement for regular economic development requests of  $500,000 or less require $.50 non-CDBG funds for every $1.00 CDBG funds.

• Matching requirement for regular economic development requests in excess of $500,000 is $1.00 non-CDBG funds for every $1.00 CDBG funds.

• For economic development infrastructure projects, packages are available of 50% loan & 50% grant, with the loan at 2%.

• Collateral is best position available and can subordinate to other financing.

• Documented turndowns required (loan of last resort).

• Financing available for all business needs.

• Term: Land and building = 1-15 years; machine and equipment = 1-10 years; inventory and working capital = 1-5 years.

• Interest rate on most projects is not less than 3.5% below prime rate, minimum of 4%.

• Cost per job created/retained may not exceed $35,000. 51% must be LMI jobs. No penalty for prepayment. One grant available per project.

• Eligible areas: All 14 SCKEDD counties, excluding the City of Wichita.

• Davis-Bacon rates in effect.

• 50% Grant and 50% no interest loans available for infrastructure.

• Business loans are provided through a CDBG grant to local government on five competitive rounds.

Community Improvement Projects:

• Only Kansas cities and counties may apply.

• Grants are available in six categories: Housing ($400,000), Community Facilities ($400,000 max.), Water/Sewer ($400,000 max.), Urgent Need ($400,00 max.), KAN STEP ($400,000 max.), & Comprehensive Development ($4,000,000 max.).  In addition, grants are generally capped at $2,000 per beneficiary.  Housing is capped at $18,000 per dwelling unit.

• While dollar-for-dollar match is encouraged in the Community Facilities and Water/Sewer categories, match is less important or provided through alternative means with Housing and KAN STEP.  Comprehensive Development has significant match requirements.

• While many activities are eligible, CDBG funds are not amenable to new housing development, city halls, or police stations.  These funds are often used for water or sewer improvements, fire stations, senior centers, housing rehabilitation, etc.

• The project must meet one of three program goals: 1.) benefit to low- and moderate-income households, 2.) the elimination of slums and blight, 3.) the elimination of urgent threats to health & safety.

• Eligible areas: All 14 SCKEDD counties, excluding the City of Wichita.

• Davis-Bacon applies to most Community Improvement projects.

• Housing, Community Facilities, and Water/Sewer applications are due each fall.

• Urgent Need and KAN STEP have rolling application periods.

• Comprehensive Development has an extensive application process that begins with a pre-application (Community Assessment Tool) due by August 1.

For More Information Contact:

Economic Development Projects:

Sandra Ring, Program Manager

Email: sandy@sckedd.org

Community Improvement Projects:

Michael West, Program Manager
Email: mike@sckedd.org

316-262-7035
209 E. William, Ste. 300
Wichita, Kansas 67202-4012