Rural Economic Development Grant is a grant from the Kansas Department of Commerce that provides up to $750,000 to rural Kansas communities for economic development projects. Funded through HUD Community Development Block Grant (CDBG) resources, the program targets job creation and retention for low-to-moderate income residents, requiring that at least 51% of jobs created benefit LMI individuals.

Eligible applicants include rural Kansas communities applying on behalf of for-profit businesses or agricultural cooperatives. Funds can support infrastructure, real estate, and other capital investments that stimulate local economies. The program deadline is October 16, 2026.

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Exporting Programs & Services, Investment, Reshoring Resources for your move to Kansas. Kansas Small Business Office Taxes, Credits, & Exemptions To The Stars: Kansas Business Awards Corporate & Professional Services Food Processing and Manufacturing Energy & Natural Resources Kansas Small Business Office Unlike other CDBG grants, the Economic Development Grant Program operates as a loan that must be repaid.

However, if business financing projects are completed on time and without issues, 25% of the loan may be forgiven. Get Program Notifications arrow_forward_ios of the CDBG grant request Create/Retain Low- and Moderate-Income jobs Provide at least a 50% match Check qualifications, programs, and more 2026 Pre-Application Now Open! A pre-application must be submitted and approved by CDBG before an application can be submitted.

The pre-application is used to determine project eligibility and readiness before proceeding to the full application stage. Commerce will review submissions within ten days and provide further instructions. Please discuss your project with CDBG staff before submitting a pre-application.

You can contact a project manager at any time or email [email protected] . A total of $750,000 has been allocated for the Economic Development program in 2026. The maximum amount of CDBG funds that can be applied for is $750,000.

This program funds projects assisting for-profit businesses or agricultural cooperatives with infrastructure improvements, land acquisition, site preparation, building construction or renovation, machinery, equipment, lease payments, inventory, payroll, and other working capital items.

Infrastructure improvements including roads, sidewalks, water lines, sewer lines, etc. Grant applications are evaluated for funding based on project/financing feasibility, per capita job creation/retention, and project leveraging (match). Revised 2026 guidelines will be available in January. Key considerations include: Must meet National Objective of LMI Jobs Creation/Retention.

At least 51% of the jobs created or retained must be considered low and moderate income. There is a maximum of $35,000 of CDBG funds invested per job created or retained. Projects must meet the required Public Benefit test.

Applicants must provide key financial and operational data on the proposed or existing business to demonstrate need. 24 months to create or retain the number of jobs proposed No bailouts or financial restructuring allowed Applicants must submit a pre-application to confirm eligibility before applying for CDBG funding.

This process allows us to provide early feedback and address any eligibility concerns before applicants complete the full application, and ensures projects align with program goals and are prepared for funding. The form requires a brief project description, estimated budget, eligibility status, and readiness to proceed. Commerce will review submissions within ten days and provide further instructions.

Only those with an approved pre-application may submit a full application, but pre-approval does not ensure grant funding. If you are new to the CDBG program, please reach out to us to schedule an initial discussion first. Can a community apply for more than one project?

Communities may apply for multiple CDBG categories but can only be awarded up to two projects total , with no more than one from a major category. Major categories include: Community Facilities: Large/Small, Blueprint to Build, Water and Sewer Infrastructure, and Regional Water Implementation. For example, a city can submit applications for a Housing Rehabilitation and a Community Facilities: Large Grants project.

However, a city cannot apply for both a Large and Small Community Facilities project. What is the public hearing process? The local government must hold two public hearings to demonstrate that reasonable efforts have been undertaken to ensure involvement of citizens or citizen organizations throughout all stages of the program.

A notice about the hearing must be published in a local newspaper with the widest circulation, and it must appear at least 5 full days before the hearing —not counting the day it’s published or the day of the hearing itself. These hearings must be held at a time and location convenient to potential or actual beneficiaries, with accommodations for non-English speaking residents and persons with disabilities.

A sample public hearing notice is included in program guidelines. First Public Hearing : Must be held at least 15 days before the CDBG application is submitted, and no earlier than 120 days . The purpose of the hearing is to inform citizens about the proposed project, including its location, total cost, activities, and beneficiaries.

Community members must be given a chance to suggest other project ideas and share their input, and the local governing body should carefully consider this feedback before submitting the application. The total project funding and CDBG amount requested must match what appears in the public hearing notice.

Second Public Hearing : Must be held at the conclusion of the project, prior to close out to inform citizens of the project’s successful or unsuccessful completion, and to obtain input on the grantee’s performance. Is an environmental review always required? Yes, all CDBG-funded projects are federally required to have an environmental review.

The Environmental Determination of Level of Review form must be submitted with the application. This will inform Commerce as to what level of environmental review you will undertake for your project if awarded. Post-award, the city or county must conduct a full environmental review of the project, even for small projects that don’t require construction .

This responsibility cannot be delegated and the cost to conduct the review must be paid with local funds . Project activities may not begin until after Commerce issues the environmental release of project funds. Loan repayment is required with Economic Development funding; it is not a grant.

You must be prepared to document at least one (1) created or retained job per every $35,000 of CDBG funds for business financing projects.

See other communities that have received funding in past years The Community Development Block Grant (CDBG) program requires that each CDBG funded activity must either principally benefit low- and moderate-income (LMI) persons, aid in the prevention or elimination of slums or blight, or meet a community development need having a particular urgency.

Based on program participants With an LMI (low- and moderate-income) of {{lmi}}%, you will have to survey and provide benefit to an area in your community with 51% LMI. Learn more about the survey process. View LMI Family Income Limits for LMI calculations are from the 2020 Census and LMI by household are from 2026 HUD Section 8.

Final LMI will be confirmed upon application review. Assistance from a professional with CDBG grant experience can help you streamline and strengthen your application. Some or all of the costs to engage help can be covered by your award.

Here are the background documents for the Commercial Rehabilitation grant that will help you apply.

Get notifications for this year and next year Email Tim Parks, CDBG Specialist Incentives & Financing, Taxes, Credits & Exemptions, Site Selection, Doing Business in Kansas Infrastructure assessment, community planning, development support, and downtown activation Find a Job, Job Seeker Services, Employer Services Plan your trip to Kansas. Places to visit, things to do. Order a free Travel Guide.

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