Community Development Block Grant Planning and Feasibility Studies Grant

The Community Development Block Grant (CDBG) Planning and Feasibility Studies Grant is administered by the Colorado Office of Economic Development and International Trade (OEDIT) under its Business Funding and Incentives division. This grant is funded by the U.S. Department of Housing and Urban Development (HUD) through its State CDBG program. Each year, Colorado receives an allocation from HUD and distributes roughly one-third of it to support economic development, particularly job creation and retention, across the state. These funds are channeled into 14 regionally-managed business loan funds that serve primarily rural areas in Colorado, each with local oversight including a dedicated loan fund manager, review committee, and board. The primary objective of the CDBG Planning and Feasibility Studies Grant is to help Colorado communities assess and prepare for economic development projects that have the potential to create or retain permanent jobs. A crucial funding condition is that each awarded project must demonstrate the ability to create or retain at least one full-time equivalent (FTE) job per $20,000 in grant funds awarded. Moreover, 51% of the jobs generated or preserved by the funded project must be made available to low- to moderate-income individuals. The grant can award up to $75,000 annually per project, contingent on job creation and adherence to other program criteria. To be eligible for this funding, applicants must meet several location-based and project-based restrictions. Ineligible areas include specific counties and municipalities such as Denver, Boulder, Colorado Springs, and others primarily representing more urbanized or independently funded jurisdictions. In addition, the program excludes projects that do not identify a specific business to implement the proposed initiative or that focus on downtown revitalization or historic/commercial improvements—areas typically supported by the Colorado Department of Local Affairs instead. Applications for this grant are typically developed and submitted by regional business loan fund managers. Interested businesses or communities are advised to approach their regional fund managers with project ideas. The application process involves initial consultation with OEDIT, followed by formal evaluation by the Governor’s Financial Review Committee upon acceptance. If selected for funding, applicants are required to submit a finalized version of the study or plan, which becomes a public record, along with environmental review documentation as required by CDBG regulations. Projects cannot begin incurring costs or expending funds until two key conditions are met: the contract authorizing the study must be signed, and a CDBG-compliant environmental review must be completed. Fund disbursement occurs on a reimbursement basis, and all incurred costs must be properly documented. Importantly, if the actual cost of the study is lower than initially anticipated, both the CDBG and matching funds must be equally reduced to maintain the required 1-to-1 funding ratio. Matching funds must be non-state in origin and fully committed at the time of application. The program contact for this grant is Robyn Berkey, the CDBG Program Manager at OEDIT. She can be reached via email for further inquiries. The grant operates on a rolling deadline basis, which means applications are reviewed continuously without a fixed submission date. This structure allows communities to apply when ready, provided they meet all eligibility and matching fund requirements.