Economic Development Program

Economic Development Program is sponsored by Louisiana Office of Community Development. The Economic Development Program provides CDBG funding to Louisiana communities to support infrastructure improvements that facilitate business startup and expansion.

Office Of Community Development | Economic Development Program Economic Development Program The Economic Development Program provides CDBG funding to Louisiana communities to support infrastructure improvements that facilitate business startup and expansion.

Through this program, local governments can invest in publicly owned infrastructure that directly supports for-profit businesses, helping to create and retain permanent jobs while strengthening local economies. An activity may be assisted in whole or in part with CDBG funds if it is eligible under Section 105(a) of Title I of the Housing and Community Development Act of 1974, as amended (42 USC 5305).

The Economic Development set-aside is used to provide grants to local governments for infrastructure improvements that facilitate the location or expansion of a specific business. Eligible activities include sewer, water and street or road access improvements on public property to the private industrial or business site boundaries. Funding for program administration is also permitted.

Federal legislation prohibits the use of CDBG funds to directly assist in the relocation of any industrial or commercial plant, facility or operation if the relocation is likely to result in a significant loss of employment in the labor market area from which the relocation occurs. Projects in which an elected official or a member of their immediate family has a financial interest as the project developer are ineligible.

Funds may not be used to acquire, construct or rehabilitate a building or to create a general industrial park project for the purpose of attracting future businesses. Awards are made continuously from April 1 through March 31 of each program year, subject to the availability of funds.

Economic Development requirements include: A pre-application meeting with LOCD A firm financial commitment from the private sector, with a minimum private-to-public funds The private-to-public funds ratio of 1:1 Cost per new full-time job not exceeding $35,000 A minimum of 10 jobs created or retained Employment of at least 51 percent low- to moderate-income persons Documentation demonstrating management, marketing, financial and economic feasibility Review factors include project creditworthiness, developer equity, private-to-public funding ratios, job creation relative to investment and the applicant’s performance on prior CDBG grants or loans.

Economic Development activities must be consistent with the current Consolidated Annual Action Plan. CDBG funds provide grants to eligible recipients for infrastructure improvements that support for-profit businesses. For additional information, please contact Janelle Dickey by phone at 225.

342. 7412 or by email at Janelle. Dickey@la.

gov . Available finding amounts are limited by the number of new permanent full-time jobs created, based on a maximum of $35,000 per job for publicly owned infrastructure. Includes up to $100,000 for program administration, including pre-agreement costs.

A maximum of $9,000 can be paid for pre-agreement costs if the ERR is submitted prior to application submittal or a maximum of $4,000 can be paid for pre-agreement costs if the ERR is not submitted prior to application submittal.

New or Startup Businesses: Up to $700,000 (including administrative and pre-agreement costs) for publicly owned infrastructure Up to $700,000 (including administrative and pre-agreement costs) for the purchase, rehabilitation or construction of a publicly owned building Expansion of Existing Businesses: Up to $1,100,000 (including administrative and pre-agreement costs) for publicly owned infrastructure Up to $1,100,000 (including administrative costs) for the purchase, rehabilitation or construction of a publicly owned building