The Community Development Block Grant (CDBG) Planning and Feasibility Study Grant helps Colorado communities plan economic development projects that create or retain permanent jobs.
The project needs to create or retain at least one full-time equivalent job per $20,000 funded. Generally, the project needs to fill at least 51% of the jobs it creates or retains with low- to moderate-income persons. This program may award up to $75,000 in grants per year.
Every year, the U.S. Department of Housing and Urban Development’s State CDBG program gives Colorado money for community and economic development. We receive about one-third of this money for economic development across the state. Specifically, we use this money to aid the state’s business loan funds.
The money goes into 14 regional loan funds to create and retain jobs in Colorado. There used to be 16 regional loan funds. One fund merged and another fund is no longer active.
The funds cover most of Colorado’s rural areas. Each of the 14 regional funds is led locally with its own dedicated regional business loan fund manager, local loan review committee, and local board of directors.
Your grant request needs to have a funding ratio of 1-to-1 non-State funding to State funding. For example, if you request a grant of $20,000, you need to find $20,000 in cash from other sources. You will need to have the match in place when you apply for the grant.
These projects are not eligible for this grant:
- projects with historic or commercial importance, typically defined as downtown revitalization or improvements, to a community or a neighborhood, because the Colorado Department of Local Affairs supports those projects
- projects that have not yet identified a business to implement the project
If your business is in one of these areas, it is not eligible for this program:
- Adams County (unincorporated areas and Bennett, Broomfield, Brighton, Federal Heights, Northglenn and Thornton)
- Arapahoe County (unincorporated areas and Bow Mar, Centennial, Cherry Hills Village, Columbine Valley, Deer Trail, Englewood, Glendale, Greenwood Village, Littleton, and Sheridan)
- Douglas County (unincorporated areas and Castle Rock, Larkspur, Lone Tree, and Parker)
- Jefferson County (unincorporated areas and Arvada, Edgewater, Golden, Lakewood, Mountain View, and Wheat Ridge)
- Colorado Springs
- Fort Collins
- Grand Junction
Typically, regional business loan fund managers plan and prepare applications for this grant. If your business has an idea for this grant, contact your regional business loan fund manager.
Before applying for this grant, regional business loan fund managers need to consult with us about the project.
If we accept the application, the Governor’s Financial Review Committee will evaluate the application.
Provide these documents with the application:
- business plan
- pro forma projections
- historical and recent financial statements
- description of the planning/feasibility study to be undertaken
- description of the costs involved and use of all funds
- projected job creation/retention information
- description of how necessary consultants and others will be identified to complete the study
If the Governor’s Financial Review Committee awards the grant to your project, you will receive final terms of approval. you need to then submit to us:
- a copy of the plan or study, which becomes a public document
- CDBG-required environmental review or CDBG environmental exemption documents
You may not spend funds before:
- signing a contract to authorize the study
- completing the CDBG environmental review
You need to document costs and maintain the records. We will reimburse your organization or pay out funds as you incur costs. If you do not need all matching funds to complete the study or plan, you need to equally reduce the CDBG funding so the match ratio remains 1-to-1.