Economic Development - Community Development Block Grant (CDBG)

The Economic Development Grant Program, administered by the Kansas Department of Commerce under the Community Development Block Grant (CDBG) umbrella, is a distinctive funding initiative tailored to support business financing needs across eligible Kansas communities. Unlike traditional grants, this program functions as a loan that must be repaid; however, a performance incentive is embedded—25% of the loan may be forgiven if the business financing project is completed on time and without complications. This structure is designed to foster accountability while supporting economic growth, job creation, and infrastructure development. The 2026 funding allocation for this program is $750,000, which also represents the maximum funding amount any single project may request. Importantly, applicants must commit to a minimum 50% match of the CDBG grant request. Qualifying projects are those that create or retain jobs for low- and moderate-income individuals (LMI), with a required threshold of at least 51% of jobs falling within that category. Additionally, CDBG funds can support a wide range of uses, including infrastructure improvements such as roads, sidewalks, water and sewer lines; land acquisition; site preparation; building construction or renovation; as well as machinery, equipment, lease payments, inventory, payroll, and other working capital items. Prospective applicants must first submit a pre-application form to determine eligibility and project readiness. This is a mandatory gating step—full applications cannot be submitted without an approved pre-application. The pre-application includes a project summary, budget estimate, and readiness assessment. Applicants are strongly encouraged to engage with a project manager or CDBG staff prior to submission. Upon submission, the Kansas Department of Commerce commits to reviewing pre-applications within ten days and will issue further instructions thereafter. It should be noted that while pre-approval allows applicants to proceed to the full application, it does not guarantee final grant funding. Evaluation of full applications hinges on several key criteria, including project feasibility, job creation or retention on a per capita basis, and the degree of financial leveraging or match. There is a limit of $35,000 in CDBG investment per job created or retained. Additionally, projects must pass the Public Benefit test and cannot involve bailouts or financial restructuring. A 24-month window is provided for grantees to meet job creation or retention targets, and applicants are required to furnish relevant financial and operational data to justify the funding request and demonstrate viability. The application window for 2026 opens on March 2 and closes on October 16. Only cities and counties in Kansas are eligible to apply, and each community may be awarded up to two projects in total across all CDBG categories, with no more than one project from a major category. Major categories include Community Facilities (Large or Small), Blueprint to Build, Water and Sewer Infrastructure, and Regional Water Implementation. Notably, communities cannot apply for both Large and Small Community Facilities projects concurrently. Applicants or interested stakeholders can contact Tim Parks, CDBG Specialist, via email at [email protected] or phone at (785) 480-8072 for assistance or clarification. While there is no specific PDF application guide provided, additional details are accessible via the Kansas Department of Commerce’s website. Program notifications and updates are also available for those wishing to stay informed on upcoming cycles or changes. New applicants are advised to schedule an initial conversation with CDBG staff before beginning the application process to ensure alignment with program goals.

Engage early with CDBG staff; Document job creation carefully; Meet match and feasibility standards