Economic Development - Community Development Block Grant (CDBG)

The Economic Development Grant Program, administered by the Kansas Department of Commerce, is part of the state's Community Development Block Grant (CDBG) initiative. Unlike other CDBG programs, this grant functions as a loan that must be repaid, although there is a unique provision where 25% of the loan may be forgiven if business financing projects are completed on time and without issues. The program aims to support job creation and retention in Kansas communities by assisting for-profit businesses and agricultural cooperatives. In 2025, a total of $1 million has been allocated for the program, with a maximum award amount of $750,000 available per project. Applicants are required to match 50% of the grant amount requested. The grant is intended to fund infrastructure improvements, land acquisition, site preparation, building construction or renovation, machinery and equipment purchases, lease payments, inventory, payroll, and other working capital expenses. Eligible businesses include those that are non-retail or provide local retail services. Applications are evaluated based on several criteria, including project feasibility, job creation or retention per capita, and project leveraging. Projects must meet the national objective of creating or retaining jobs for low- and moderate-income individuals, with a requirement that at least 51% of jobs created or retained fall into this income category. Additionally, there is a cap of $35,000 of CDBG funds per job created or retained. Projects must also pass a public benefit test and provide necessary financial and operational data to demonstrate need. No bailouts or financial restructuring are permitted under the program. The grant cycle for 2025 is open from January 1 to November 14. Applicants must notify the Department of Commerce at least 10 days before submitting an application. Job creation or retention must be achieved within 24 months of project funding. Assistance from professionals experienced with CDBG grants is encouraged, and their costs may be covered by the award. To qualify, communities must demonstrate the ability to create or retain low- and moderate-income jobs, provide at least a 50% match, and have an acceptable use project. An environmental review may be required depending on the nature of the project. Public hearings may also be necessary as part of the application process. Applicants can contact Tim Parks, the CDBG Specialist at the Kansas Department of Commerce, for assistance or questions related to the program. He can be reached via email at [email protected] or by phone at (785) 480-8072.

Seek help from professionals experienced in CDBG grants; their costs may be partially covered by the award. Be prepared to justify job creation and financial need.