CDBG Economic Development Toolkit 

Description

This Toolkit provides guidance on the effective use of Community Development Block Grant (CDBG) funds for financing eligible economic development projects, including microenterprise and small business development, large-scale commercial and industrial development, and job creation, job retention, and job training activities. 

It discusses the basics of financial underwriting and application of HUD’s public benefit standards. It explores a variety of economic development financing methods, including Section 108 Loan Guarantee Program financing, with regard to the application and approval process, collateral and debt coverage requirements, and companion grant programs.

Note: In April 2020, HUD updated the guidance for the microenterprise development portion of the Economic Development Toolkit Manual. For communities seeking information about microenterprise development, please refer to the "Microenterprise Assistance Toolkit" in the resource links.

Resource Links

• Economic Development Toolkit Manual (PDF)
• Microenterprise Assistance Toolkit (PDF)
• Economic Development Toolkit Slides (PDF)
• 24 CFR Part 570 (HTML)
• 24 CFR 570 (Prohibition on the Use of CDBG Assistance for Job Pirating Activities, Interim and Final Rule) (HTML)
• Notice CPD-89-33: Policy Guidance on Using CDBG Funds for Small Business Incubators (PDF)
• Notice CPD-96-01: CDBG Neighborhood Revitalization Strategies (PDF)
• Notice CPD-97-01: CDBG Community Revitalization in the State CDBG Program (PDF)
• CDBG Economic Development Activities Matrix (PDF)
• CDBG Economic Development Flow Chart (PDF)
• Memo: Counting Jobs for Economic Development Activities (PDF)
• U.S. Code, Title 42, Chapter 69 (HTML)