• Menu

  • Community Economic Development Grants

    An essential tool for Community Development Corporations (CDCs) is the Community Economic Development (CED) program administered by the Office of Community Services in the Department of Health and Human
    Services. CED direct grants to CDCs and are used to finance business and job opportunities in
    low income communities. CED grants are the ‘glue’ that holds deals together. CDCs operating in
    low income urban and rural communities have found CED grants an important tool for attracting
    other capital.

    Section 680(a)(2) of the Community Services Block Grant (CSBG) Act of 1981, as amended,
    authorizes the Community Economic Development (CED) grants. CED grants are made on a
    competitive basis to private, nonprofit Community Development Corporations (CDCs) and are
    used to provide technical and financial assistance for private business enterprises and other
    economic development activities designed to address the economic needs of low-income
    individuals and families.

    CDCs almost always use CED funds with other sources of public and private capital to finance
    commercial and industrial facilities, small businesses, and mixed use projects. The emphasis of
    the program is on job creation and the standards required by the Office of Community Services
    (OCS) are among the most stringent in the federal system.

    The Community Economic Development program is the only federal program available to
    Community Development Corporations that exclusively targets low income communities for
    economic development assistance. What’s more, in this highly competitive program, CDCs must
    target job creation at no higher than $20,000 per job and leverage project funding from other
    sources. This is the lowest standard among federal agencies.

    A typical project will be in a community with poverty and unemployment rates well above the
    national average. These communities are places with low levels of economic activity. In
    addition, there are often few services and facilities available to residents. As a result of such
    economic conditions, businesses and projects in these communities encounter a myriad of
    obstacles that often prevent them from securing the financing they need from conventional
    sources. These hurdles include low loan-to-value ratios, uncertain and transitional markets,
    owners with limited credit, and limited understanding on the part of investors of the business
    opportunities in these areas. Many of these communities have a strong potential for economic
    growth, especially with the right blend of technical support and private sector investment. The
    American Recovery and Reinvestment Act estimates that it costs about $92,000 to create one
    job, yet OCS requires job creation at no more than $20,000 per job. At least 75% of the jobs
    created under CED are targeted to low income individuals.

    Midwest Minnesota CDC Project Visited by Treasury Secretary

    Posted by on Aug 16, 2016 in Blog, Community Economic Development Grants, New Markets Tax Credit | 0 comments

    Midwest Minnesota CDC Project Visited by Treasury Secretary

    On August 8th, 2016, U.S. Secretary of the Treasury Jack Lew visited Seward Community Cooperative Friendship Store, a grocery store in Minneapolis, Minnesota. The store, which is located in a low-income census tract and provides access to healthy, fresh foods, was financed in part by the New Markets Tax Credit (NMTC) and federal Community Economic Development (CED) funds from Midwest Minnesota Community Development Corporation (MMCDC). The event was also attended by Congressman Keith Ellison who represents the district where the grocery store...

    read more

    Leadership, Legacy and Cardboard Lobsters—Thank you Ron Phillips

    Posted by on Mar 18, 2016 in Blog, CDFI Fund Program, Community Economic Development Grants, Job Creation, JOLI, New Markets Tax Credit | 0 comments

    Leadership, Legacy and Cardboard Lobsters—Thank you Ron Phillips

    Post written by Bob Rapoza A celebration of a retiring leader in the CDC community was held this week. My good friend, Ron Phillips, the founder and president of Coastal Enterprises, Inc. is retiring. While I was not able to attend Ron’s celebration in Maine, I knew it would be quite an event, and a fitting tribute to all the good work done by a great organization and its leader. As such, I want to add a comment about my work with Ron and the Eagles and take this opportunity to put our efforts in perspective. Ron was part of a generation of...

    read more

    Emerging Green Industry Company Expands Facility

    Posted by on Jan 29, 2013 in Blog, Community Economic Development Grants, Lending, Poverty | 0 comments

    Emerging Green Industry Company Expands Facility

    The Northwest Side Community Development Corporation (NWSCDC) will use CED funding to expand a new, emerging green industry company known as Helios Solar Works in Milwaukee, Wisconsin. NWSCDC will assist Helios Solar works with capital equipment purchases and working capital to facilitate its rapid growth as the company expands its production line and establishes additional shifts to meet new orders from solar panel installations in the United States and Europe.

    read more