2024 Economic Development Program

The Kansas Department of Commerce is inviting applications for its 2024 Economic Development Program, which aims to support economic growth in the state. A total of $2 million has been allocated for this program, with individual grants capped at $750,000. The program is designed to assist for-profit businesses and agricultural cooperatives in various areas, including infrastructure improvements, land acquisition, site preparation, building construction or renovation, machinery, equipment, lease payments, inventory, payroll, and other working capital needs. The program is open to all incorporated cities and counties in Kansas that do not receive an annual Community Development Block Grant (CDBG) entitlement allocation from the U.S. Department of Housing and Urban Development (HUD). The primary purpose of the Economic Development Program is to facilitate projects that enhance the economic viability of communities in Kansas. The objectives include creating or retaining jobs, particularly for low and moderate-income individuals, and supporting the establishment or expansion of businesses in non-entitlement areas of the state. Projects that meet the program's criteria can receive a 25% forgiveness of the CDBG loan if completed on time and without issues. Eligible projects can include a wide range of activities, such as infrastructure improvements like roads and water lines, as well as financing for new or expanding businesses. The program prioritizes non-retail and local service businesses, but retail businesses are also eligible. To qualify for funding, applicants must demonstrate that the business operation benefiting from the grant is located in a non-entitlement area of Kansas. To apply for the grant, applicants must submit a detailed proposal that includes key financial and operational data about the business. The application process requires a 50% match of the total project cost, which means that applicants must secure additional funding to cover half of the project's expenses. The evaluation of applications will focus on project feasibility, job creation or retention per capita, and the ability to leverage additional funding. Applications will be assessed based on several criteria, including the creation or retention of low and moderate-income jobs, with at least 51% of the jobs created or retained needing to meet this requirement. Additionally, there is a cap of $35,000 in CDBG funds that can be invested per job created or retained. Projects must also pass a Public Benefit test, and applicants are expected to provide comprehensive financial data to support their proposals. The deadline for submitting applications for the 2024 Economic Development Program is December 2, 2024. Interested parties should ensure that their applications are complete and submitted on time to be considered for funding. For further information, applicants can contact Timothy Parks at the Kansas Department of Commerce via email or phone.