Through this program, cities and counties can design a revolving loan program to help small businesses grow or to facilitate other revitalization/redevelopment projects that will result in job creation or retention. By providing funds to local governments (or sponsored eligible non-profit organization sub-applicants) to establish a revolving loan program, communities can promote the development of small businesses or facilitate other revitalization/redevelopment activities. The applicant is encouraged to design their program in a manner to best meet the area’s needs.
Applications are accepted year round.
The Applicant and Sub-Applicant have the flexibility to design the revolving loan program to meet the needs of the service area. The program may include low interest loans, forgivable loans, and loan guarantees. The Applicant is responsible for developing the loan application process and loan requirements, such as terms, collateral, underwriting criteria, etc. The loan guidelines must be consistent and fairly implemented. For microenterprise loans, at least one job must be created or retained for every $15,000 of loan proceeds. Funding may only be used for eligible expenses related to the project. Ineligible uses of CDBG funds include, but are not limited to, refinancing of existing debt, political or religious activities, or lobbying any governmental entity.