Funding local governments that involve a for-profit business to create or retain jobs
These funds provide grants to local governments for creating and retaining jobs. Funding for projects is based on the number of jobs to be created and the level of distress in the community applying for the funds. Sixty percent of the jobs created or retained in a project must be for persons qualifying as prior low and moderate income (LMI). CDBG funds are granted to local governments for various types of infrastructure improvements to assist for profit businesses create or retain jobs. A local funding match of at least 25% of the determined need is required except in the 27 most distressed counties as defined in the Article 3J Tax Credit Act and current 21st Century Communities. Under certain conditions, financial assistance to private companies is available as loans to be negotiated by the local government applicant and a participating North Carolina commercial bank at a level not to exceed 50% of the total loan need.
Loans for publicly owned industrial shell buildings are available from the CDBG Revolving Loan Fund (RLF) based on the projected number of jobs to be created. The funds are provided in the form of a 2% simple interest loan with a five-year term with interest only payments during the first two years beginning on the July 1st after closing. The principal will amortize over the remaining three years. A dollar for dollar match is required by the local government applicant. Up to $500,000 from the RLF is available for industrial site certification. Loans to eligible communities can assist with the costs associated with certifying industrial sites.
View the Economic Development presentation to the March 2012 Community Development Academy
here. This presentation provides additional program information and highlights some grantee projects
For more information, contact:
George Sherrill, Section Chief
Commerce Finance Center