Type of Grant: Competitive Discretionary Grant

2008 Appropriation: $31.5 million

Legislative Authority:

The Community Services Block Grant Act of 1981 as amended by Section 680(a)(2) of the Community Opportunities, Accountability, and Training and Educational Services Act of 1998 (P.L. 105-285), authorizes the HHS Secretary to make grants that provide technical and financial assistance for economic development activities designed to address the economic needs of low-income individuals and families by creating employment and business development opportunities.

Purpose:

The purpose of the Community Economic Development discretionary grant program is to promote and support projects that address economic self-sufficiency for low-income persons and distressed communities by awarding funds to community development corporations (CDCs) to create employment and business development opportunities.

Each year approximately 40-45 grants are awarded with a maximum grant award level of $700,000. Grants are awarded to cover project costs for business start-up or expansion and the development of new products and services. The grants serve as catalysts for attracting additional private and public dollars; for every CED dollar awarded, $3-5 is leveraged. Types of projects funded include business incubators, shopping centers, manufacturing businesses and agriculture initiatives. Funded projects are to create new employment or business opportunities for low-income individuals.

Target Population:

Beneficiaries are low-income individuals that may be unemployed or receiving public assistance, including Temporary Assistance for Needy Families (TANF), at-risk youth, custodial and non-custodial parents, residents of public housing, persons with disabilities, persons who are homeless, and individuals transitioning from incarceration into the community.

Eligible Applicants:

Private, non-profit CDCs experienced in developing and managing economic development projects. The CDC must be governed by a board consisting of community residents and business and civic leaders and have as a principle purpose planning, developing, or managing low-income housing or community development projects. Faith-based and community organizations meeting the statutory eligibility requirements are eligible to apply.