Obtaining Grant & Loan Assistance for Economic Development
One way that CARPDC can assist with Economic Development projects is by obtaining grant and loan assistance to aid a new or existing business in creating jobs. It is important to involve CARPDC early in your economic development project so that we can help identify costs that grant or loan funding can cover so you can take that into consideration when developing incentive packages for a business. Specifically, CARPDC is available to work with you to develop your project, write a grant application, and administer the grant once it is received. Some of the grant and loan opportunities that CARPDC can help you secure include the following:
CDBG ED Grant
- “ED” (Economic Development) grants are made available through the Alabama Department of Economic and Community Affairs (ADECA), and provide $50,000 to $200,000 for land, facilities and infrastructure such as water lines, sewer lines, rail spurs, docks, cranes, access roads, etc., to facilitate creation and/or retention of jobs by a new or existing business. It is possible to request over $200,000 in some cases.
- At least 15 jobs must be created or retained to be eligible for ED funding, 51% of which must be to low and moderate income persons.
- A 20% local match is required.
CDBG ED Float Loan
- ED Float loans are made available by ADECA, and can be used to finance any necessary activity, including acquisition, site preparation, new construction, renovation, purchase of machinery and equipment, working capital, refinancing, and other CDBG-eligible activities approved by the State.
- The ED Float Loan program will aid in the creation of new jobs, however, in exceptional circumstances, it may be used to help retain jobs. At least 51% of associated jobs must be occupied by or made available to low and moderate income persons.
- The minimum ED Float Loan amount shall be $1 Million and the maximum shall be $10 Million with a term of one year. Extensions for an additional year may be considered.
- Generally speaking, the program is used for 100+ jobs projects at a maximum of $35,000 per job created or retained.
- “IA” (Industrial Access) grants are made available through the Alabama Department of Transportation (ALDOT) for the construction of access roads needed to create or retain jobs at new or existing businesses.
- While match is not required for IA grants, preliminary engineering and grant administration costs are not eligible for grant funding, and are therefore to be paid for by the project sponsor or applicant.
- IA applications are considered at quarterly meetings of the Industrial Access Road and Bridge Corporation, however grant applications are due at least 45 days prior to the quarterly meetings for evaluation by ALDOT.
CARPDC Revolving Loan Fund (RLF)
- The CARPDC Revolving Loan Fund (RLF) program enables CARPDC, in collaboration with a private lender, to financially assist small and medium sized businesses by making loans for start-up or expansion that will result in the creation or retention of jobs and the enhancement of private sector investments.
- Revolving loans range from a minimum of $10,000 to a maximum of $150,000, and RLF participation cannot exceed 1/3 of the total project cost.