Thursday, April 5, 2012

Community Development Block Grants:

     What is CDBG?:  The Community Development Block Grant (CDBG) program is a flexible program that provides communities with resources to address a wide range of unique community development needs. Beginning in 1974, the CDBG program is one of the longest continuously run programs at HUD. The CDBG program provides annual grants on a formula basis to 1209 general units of local government and States.

      Primary CDBG Objective:  The primary objective of the CDBG program is to develop viable communities by providing decent housing and a suitable living environment and by expanding economic opportunities. These grants primarily serve persons of low- and moderate-income, as the State must ensure that at least 70 percent of its CDBG grant funds are used for activities that benefit these persons.


     CDBG In Action in Springfield:  The above picture shows the results of the CDBG program in Springfield.  The city’s Community Development Block Grant Small Business Assistance Program resulted in 50 jobs created or retained and nine revamped facades on commercial buildings.  The city made $340,000 in grants and low-interest business loans between 2010 and 2012 to 32 businesses, including nine new businesses and 23 existing businesses, according to a news release.

There were grants of up to $10,000 per storefront for exterior improvements like signs, doors, windows and paint and loans of up to $25,000 for equipment and interior renovations. The property must be in a low-income neighborhood the federal government has deemed eligible for
Community Development Block Grants and businesses must create or retain at least one job for each $10,000 and they must remain in Springfield for a minimum of three years after the grant is made.


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