Rural Economic Development Initiative (REDI)

The Rural Economic Development Initiative (REDI) is administered by the Colorado Department of Local Affairs (DOLA), Division of Local Government. This state-funded program supports economic diversification and resilience in Colorado’s rural communities. REDI’s overarching goal is to stimulate job creation, bolster economic development capacity, and build economic systems that can adapt and thrive amidst change. The program targets projects that serve as a catalyst for long-term community growth and workforce stability, ensuring rural Colorado remains competitive and resilient against economic disruptions. Eligible applicants include county and municipal governments, particularly those located in counties with fewer than 50,000 residents or municipalities with fewer than 25,000 residents that are not adjacent to larger cities. Additionally, councils of governments may apply in partnership with intergovernmental agencies, housing authorities, economic development organizations, nonprofits, private employers, or tribes. All proposed projects must align with the program’s key goals, primarily contributing to job creation or retention—whether directly or indirectly—and must represent community-identified priorities. Projects eligible for REDI funding may include infrastructure investments, plans, construction, workforce development programs, and entrepreneurial support ecosystems. Specific examples include business attraction and retention efforts, incubators or accelerators for entrepreneurs, economic resilience studies, and workforce support mechanisms. REDI funds can be applied to strategic initiatives such as innovation hubs, makerspaces, communal kitchens, or consulting services that support business expansion and startup growth. Capacity-building grants are permitted under strict criteria, requiring a demonstrated tie to specific projects and sustainable funding plans after the grant term. These grants require a 50/50 or higher match and cannot fund previously funded positions. Applications for the next REDI funding cycle will be accepted from February 12, 2025, to March 12, 2025. A total of $780,000 is available for this cycle, and individual grant requests should not exceed $100,000. Selected applicants will receive notification by June 2025, with funds available for use beginning July 2025. Projects must be completed within two years of the award, although extensions may be granted in certain cases. Applicants must submit their proposals through the DOLA Grants Portal and are strongly encouraged to consult with their Regional Manager before submission to enhance application competitiveness. Applications will be evaluated based on six scoring criteria: community benefit and demonstration of need (20 points), project timeline and outcomes (10 points), job creation and retention (30 points), economic resilience (20 points), collaboration and readiness (10 points), and social equity (5 points). An additional 5 points are awarded based on local financial contribution and match. Projects are expected to align with existing regional plans and display readiness to proceed with clear deliverables and feasible timelines. Preference is given to projects offering innovative, long-term solutions that align with broader economic development goals. Post-award, recipients must submit quarterly progress reports and a final closeout report detailing job impacts, community benefits, and ongoing economic development results. Additional performance criteria include adherence to scope of work milestones and state procurement rules. Applicants considering construction or major renovation projects must comply with energy efficiency standards if projects meet certain size or funding thresholds. REDI emphasizes sustainability, community-wide impact, and inclusive economic opportunities for historically underrepresented or economically vulnerable groups. For technical and program-related questions, applicants may contact Kate Guibert, Rural Prosperity Manager, at 720-822-7803 or kate.guibert@state.co.us. For grant portal or general assistance, inquiries can be directed to the Division of Local Government Help Desk at dola_dlg_helpdesk@state.co.us or by calling 303-864-7720.

Applicants are encouraged to contact Regional Managers and submit all documents via portal using the Budget/Financial Template.