Community Development Block Grant Economic Development Program
CDBG Economic Development Program
CSFA Number: 420-75-1631
STATE AGENCY INFORMATION
Agency Name
Department Of Commerce And Economic Opportunity (420)
Agency Identification
24-1
Agency Contact
PROGRAM INFORMATION
Short Description
The program provides federal funding for community-based projects. Communities in non-metropolitan areas can apply for Economic Development funding to assist private business in retaining or creating full-time, permanent jobs. Grant funds may also be used for improvements to public infrastructure that directly supports companies in local communities.
Federal Authorization
Housing and Community Development (HCD) Act of 1974; 20 ILCS 605/605-915; 20 ILCS 605/605-945; 20 ILCS 605/605-950
Illinois Statue Authorization
N/A
Illinois Administrative Rules Authorization
Title 47, Section 110
Objective
The program focuses on creation and retention of jobs with a minimum of 51% of the jobs qualifying as assisting those who are low-to-moderate income.
UGA Program Terms
Program-Specific Terms and requirements can be found at 24 CFR Part 570, 2 CFR 200 and program information at www.illinois.gov/dceo/CommunityServices/CommunityInfrastructure.
Eligible Applicants
Government Organizations;
Applicant Eligibility
Only units of general local government (i.e., cities, villages, townships and counties) may apply for funding. Municipalities must not be a HUD direct Entitlement community or be located in an urban county that receives ""entitlement"" funds. County and township applicants should not include areas that are incorporated within a city or village. Incorporated areas must apply on their own behalf, regardless of whether a water district or sanitary district is involved. Units of local government may apply for one grant per competitive program per year. Applicants that received a grant in the previous year must demonstrate reasonable progress by the time the application is reviewed, or it will not be considered. Applications that further a project in progress, whether funded with or without CDBG funds, will not be accepted. All applicants must be registered and have completed the Internal Control Questionnaire (ICQ) for the current year available at: https://grants.illinois.gov/portal/ prior to application submission. Applications submitted by communities who have not registered or completed the ICQ for the current year will not be considered for review.
Beneficiary Eligibility
Businesses that create or retain jobs of which 51% go to employees considered low-to-moderate income.
Types of Assistance
Project Grants
Subject / Service Area
Economic Development
Credentials / Documentation
• Written evidence of finalization of all financing (copies of promissory notes and commitment letters); • Finalization and documentation of all project costs (a detailed narrative for all non-CDBG activities with corresponding costs) and independent vendor cost estimates which verifies expenditures associated with CDBG activities; • Participation Agreement between the local government and benefitting business;
Preapplication Coordination
Economic Development grants are available to qualified applicants at any time.
Application Procedures
All original Application Forms and Materials as shown in the Guidebook must be utilized. The Guidebook and Application is available online at: https://www2.illinois.gov/dceo/CommunityDevelopment/Pages/default.aspx All Letters, Notices, Resolutions, Agreements or other communication provided by the unit of local government as part of the application must be of the exact verbiage contained in the Guidebook, be on the applicant community’s official letterhead and have original signatures where required. All application forms and certifications requiring signature must be signed by the Chief Elected Official of the applicant community, unless otherwise noted. A standard application package must be submitted to and reviewed by DCEO. Each package must contain the following items: 1. Uniform Grant Application in fillable PDF format. 2. Uniform Budget utilizing the template provided by DCEO for this project. 3. Conflict of Interest Disclosure 4. Mandatory Disclosures 5. Letter of Transmittal 6. Project Summary 7. Project Readiness Summary 8. Project Maps 9. Working Cost Estimate . 10. Projected Jobs NO ELECRONIC SUBMISSIONS OF ANY KIND WILL BE ALLOWED !
Criteria Selecting Proposals
N/A
Award Procedures
The screening and review process for the program is designed to ensure that limited CDBG program funds are awarded to communities that demonstrate the need for financial assistance and have a well-designed project. The actual number and types of awards will be subject to funding availability. All recommendations are forwarded to the Director's Office, for final funding decisions; however, all decisions will be based on the general distribution of funds outlined in Section I.
The criteria noted below will be used to evaluate all applications requesting funding under the CDBG Economic Development component, as well as determine the appropriate level of financial assistance:
1. Project Benefit
2. CDBG National Objectives
3. CDBG Dollars
4. Resource Funding Successful applicants will receive a Notice of State Award Finalist (NOSAF) specifying terms and conditions of the grant. This will include completion of Environmentals, clearance of special conditions resulting from the application review.
Grantees are expected to meet all special conditions within 90 days of the NOSAF date or the Department may withdraw the Notice of State Award Finalist (NOSAF). DCEO will hold a mandatory Grant Administration Workshop after Awards are announced. All Administrators assigned to an awarded grant are required to attend. Once terms are accepted, and the conditions met, the Grantee will receive a Notice of State Award (NOSA) which includes information regarding your entity, grant funding, grant terms and conditions, and specific conditions assigned to the grant based on the risk assessments. In order to receive the formal Grant Agreement, the Grantee must indicate agreement to the contents of the NOSA by remitting Funds are disbursed on a reimbursement basis once demonstration of viable and approved incurred costs has been received.
Deadlines
This program is ongoing for use as needed.
Range of Approval or Disapproval Time
60 -90 days
Appeals
The Merit Based Review process is subject to appeal. However, competitive grant appeals are limited to the evaluation process. Evaluation scores may not be protested. Only the evaluation process is subject to appeal. The appeal must be submitted in writing to the Department within 14 calendar days after the date that the grant award notice has been published. The written appeal shall include the name and address of the appealing party, the identification of the grant and a statement of reasons for the appeal. To file an appeal, applicants must submit the appeal in writing and in accordance with the Merit-Based Application Review Appeals Process listed on the Grant Opportunities page of the DCEO website: https://www2.illinois.gov/dceo/AboutDCEO/GrantOpportunities/Pages/MeritAppReview.aspx.
Uses and Restrictions
The business may use funds in the form of a grant for “direct benefit” of the business: • Acquisition of land or building; • Purchase or installation of fixtures and equipment; • Construction, reconstruction, installation or rehabilitation of commercial or industrial buildings, structures and other real property); • Leasehold improvements; and • Working capital expenses (inventory, employee salaries, general operating expenses and advertising/marketing expenses. Units of local government may use CDBG funds in the form of a grant for public infrastructure improvements in support of economic development as an “indirect benefit” of the business.
Reports
Notice of Contract Award; Section 3 Report
Account Identification
875-42075-4900-1000 CDBG PROGRAM ADMIN, TECHNICAL ASSISTANCE AND GRANTS
Obligations
2021: $3,267,422.75 2022 to date: $943,732.00
Range and Average of Financial Assistance
$25,000 for jobs created; $10,000 for jobs retained; up to $1 million
Program Accomplishments
N/A
Regulations, Guidelines, and Literature
https://dceo.illinois.gov/communitydevelopment.html
Regional or Local Assistance Location
Statewide in local governments that do not receive direct entitlement funding from HUD
Headquarters Office
500 East Monroe Springfield, IL 62701 and 555 W Monroe St, 12th Floor Chicago, IL 60661
Program Website
https://dceo.illinois.gov/communitydevelopment.html
Example Projects
Installation of water line to a new business; equipment for a new line of manufacturing
FUNDING INFORMATION
Funding By Fiscal Year
FY 2019 : $4,000,000
FY 2022 : $3,000,000
FY 2023 : $3,000,000
FY 2024 : $1,980,641
Federal Funding
Notice of Funding Opportunities
| Agency ID | Award Range | Application Range |
Details | FY25-1 | $300000 - $1000000 | General announcement open for a period of time with no specific due dates for applications. |
ACTIVE AWARDS
Agency ID | Grantee Name | Start Date | End Date | Amount |
19-241002 | City of Arcola | 06/01/2023 | 05/31/2025 | 663,000 |
20-241002 | City of Eldorado | 03/01/2024 | 02/28/2026 | 500,000 |