Community Development Block Grant - Economic
Development (CDBG-ED)
Community Development Block Grant - Economic
Development (CDBG-ED)
The CDBG-ED program was designed to assist
businesses that will invest private funds and create jobs as they expand
or relocate to Wisconsin. The Wisconsin Department of Commerce awards the
funds to a general-purpose unit of government (community) which then loans
the funds to a business. When the business repays the loan, the community
may retain the funds to capitalize a local revolving loan fund. This fund
can then be utilized to finance additional economic development projects
within the community.
Eligibility:
All businesses that are, or will be operating
in Wisconsin are invited to participate in this program provided they are:
* located in cities
whose population does not exceed 50,000,
* not located in Milwaukee
County; or
* not located in certain
Waukesha or Dane County communities.
For additional information on non-eligible
communities contact the appropriate Area Development Manager, identified
on page #2.
Note: Milwaukee County and all other ineligible
communities operate their own CDBG programs.
Eligible Activities:
* Construction and expansion
* Working capital
* Acquisition of existing
businesses, land, buildings, and equipment
Note: Refinancing is not an eligible activity.
Level of Participation:
The Department of Commerce's typical level
of participation in a CDBG-ED project is $3,000 to $10,000 per full time
job created, although the actual amount of participation is dependent upon
factors such as the following:
* The viability of the
project.
* The number and nature
of the jobs created.
* The project's economic
impact upon the community.
* The collateral position
available.
Program Requirements:
1. At least 50% of the total
eligible project costs must be funded through private resources.
2. At least 51% of the jobs
created or retained must be filled or made available to persons of low
and moderate income.
3. The total amount of the
CDBG-ED assistance that can be provided to any business may not exceed
$1 million.
Finance Terms and Conditions:
Interest Rate:
The Department of Commerce
will provide below market interest at a fixed rate for the life of the
loan (typically 4%).
Terms:
1.
Working capital-5 to 7 years
2.
Equipment-5 to 10 years
3.
Real estate-12 year term amortized over 20 years
Collateral:
The Department of Commerce
will seek the best collateral position possible to ensure that the CDBG-ED
loans are adequately secured.
Note: Personal guarantees
are required.
Repayment:
Monthly payments of
the principal and interest are required.
The Application Process:
The CDBG-ED application process involves
four steps:
1. Interested applicants must
first talk with the local Area Development Manager (ADM). {See map below}
The ADM will visit the site and discuss the project with the applicant,
provide a copy of the application manual and identify other programs that
could potentially assist the applicant.
2. The ADM will submit the
preliminary project information to the Department for review by a Finance
Specialist.
3. The Finance Specialist
will underwrite the project and make a funding recommendation to the Secretary's
Office. The Secretary's Office will either:
A. Deny the proposal,
in which case the applicant will receive a letter outlining the reasons
for denial.
OR
B. Make a positive funding
recommendation, in which case the applicant will receive a preliminary
commitment letter fully detailing the terms and conditions of the Department's
proposed participation.
4. If a positive recommendation
is made, the final step is for the community to submit a CDBG-ED application
for approval.
Business Information:
Businesses should have the following information
available when they meet with the local ADM:
* Background information
on the company.
* A description of
the project.
* A detailed project
budget.
* Information on employment
levels, wages and benefits, both existing and projected (3 years).
* A project timeline.
* Balance sheet, profit
and loss, and cash flow statements for the last three fiscal years, and
the most recent interim statement.
* Three years of financial
projections with notes covering all significant assumptions.
1. For the first year, provide
monthly balance sheets, profit and loss, and cash flow statements.
2. For the second and third
years, provide fiscal year-end balance sheets, profit and loss and cash
flow statements.
* Personal Financial
Statements for principals with ownership of 20% or greater. Statements
should be signed and include Social Security numbers, date of birth, phone
numbers and home addresses.
Note: All financial statements should be
prepared in accordance with Generally Accepted Accounting Principles (GAAP).
Wisconsin
Loan and Grant Section
Wisconsin
- Customized Labor Training (CLT) Grant Program
Employee
Ownership Assistance Grant Program
 Grants
for ANY State! You have seen this crazy guy on TV. Now
you can get his grant book via an ebook which you can download instantly.
I think it's about $24. I do have a copy and it's "loaded" with grant info.
Mathew
Lesko Grants here |
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