Montana’s CDBG Economic Development program is designed to stimulate economic development activity by assisting Montana’s private sector to create or retain jobs for low- to moderate-income Montanans, specifically, this includes individuals earning less than 80% of the area median income.
The program can assist businesses by awarding grants to local governments and making fixed-rate financing available to those businesses at low interest rates. In addition, the program can offer payment deferrals, lower first-year payments, and interest-only payments.
Businesses work with local governments to apply to the program, and the local government then loans to an eligible business or grants to a non-profit. CDBG-ED funds are intended to be used in situations where a funding gap exists, and alternative sources of public and private financing are not adequate.
The focus of the program is to support the creation or retention of full-time permanent jobs for Montanans. Loan amounts are based on the number of employees a business will retain or the number of new positions to be created. Loan terms are determined according to the use of funds and the businesses financial position. The business must ensure that at least 51% of the jobs are made available to, or held by, individuals earning less than 80% of the area median income.