ECONOMIC DEVELOPMENT PROGRAM Funds for economic development activities are provided to communities as gap funding to assist businesses in the creation/retention of jobs for low-and moderate-income persons. The Economic Development Program (EDP) offers the following two categories:

Business Assistance Grant Category (BA)

Activity Group 1 – Non-Municipal owned
Grants for gap financing to assist an identified business to create or retain jobs for low and moderate-income persons; or

Activity Group 2 – Municipal owned
Grants to Maine communities for gap financing to develop or rehabilitate public infrastructure or facilities that is essential for the location or expansion of identified business and industry.
Grants for required local match to conduct eligible economic development planning and technical assistance activities.

Minimum EDP Application Amount: $100,000

Maximum Project Size for Utilizing EDP Funds: $5,000,000

Category 1 - Business Assistance Grant (BA ) Maximum Award

Activity Group 1 - Non-Municipal Owned  

1) Rehabilitation of commercial or industrial                                                               $400,000     buildings, structures, capital equipment, and real
    property improvements.

2) Non-capital equipment and operating capital; or                                                    $200,000
    technical assistance provided regionally to businesses
    facing closure/bankruptcy needing advice to retain jobs
    and/or in need of advice to expand operations for the
    purpose of new job creation.

  Activity Group 2 - Municipal owned

1) Acquisition, relocation, demolition, clearance,                                                       $400,000
    construction, reconstruction, installation, and
    rehabilitation associated with public infrastructure
    projects such as water and sewer facilities, flood and
    drainage improvements, publicly-owned commercial
    and industrial buildings, parking, streets, curbs, gutters,
    sidewalks, etc. which are necessary to create or retain
    jobs in the non-retail private sector for low and moderate
    income persons.

2)  Required local match necessary to secure new funds                                             $50,000
     to the State for eligible economic development
     planning activities.

Category 2 - Development Fund Loan (DF)

1) Acquisition of existing facilities or land and site                                                    $400,000
    Improvements necessary for the construction of a new
    facility.
    DF program funds cannot be used to refinance existing debt.

NON-PROFIT DEVELOPMENT GRANT PROGRAM The Non-Profit Development Grant Program (NPDG) provides funding for communities forming partnerships with local non-profit development organizations to carry out activities in blighted areas located in designated downtown areas which will foster community economic development initiatives leading to the elimination of slum and blight and increased job opportunities for LMI persons. NPDG Program funds will be distributed through an annual grant submission and review process

Matching Fund Requirements: All communities applying for NPDG funds must certify that a cash match of at least 20 percent of the total grant award will be injected into the project activities. This match may consist of all non-CDBG loans, grants, endowments, etc contributed to the project.

Maximum NPDG Grant Amount: $250,000




INTERIM FINANCE PROGRAM The Interim Finance Program (IFP) utilizes funds not disbursed in the State's Letter of Credit for grants to communities to assist businesses or developers in creating housing and job opportunities for low and moderate-income people through short-term loans. The duration of loans will be dependant on availability of CDBG funds.

Maximum IFP Amount: The application amount must be between $500,000 and $5,000,000.
( The Commissioner of DECD may waive the $500,000 minimum requirement if OCD determines it is in the best interest of the State and if OCD incurs no additional administrative costs as a result of the smaller award.)

COMMUNITY PLANNING GRANT PROGRAM The Community Planning Grant (CPG) Program provides funding to communities or community partnerships that have clearly identified a local community or economic development problem and lack the resources to develop a strategy for solving that problem.

Matching Fund Requirements: All communities applying for CPG funds must certify that they will provide a cash match equivalent to 25 percent of the total grant award. This match may consist of all non-CDBG loans, grants, endowments, etc contributed to the project.

Maximum CPG Grant Amount: $10,000

TECHNICAL ASSISTANCE PROGRAM The Technical Assistance Program provides funds to contract with regional organizations to provide application development, development of alternative funding sources, grant administration, and general program assistance to Maine 's communities.

The Office of Community Development will use Technical Assistance funds to: conduct workshops, produce program materials, implement the CDBG Administrator's Certification Training Program, and outreach to communities.

TOP