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Economic Development

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grants/federal/cdbg/pages/economic-development.aspxState & Local

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The Kentucky Department for Local Government is offering CDBG Economic Development funding to cities and counties, excluding designated entitlement areas, to support activities that create or retain jobs for low and moderate income persons. Funding is available through two tracks: Traditional, which focuses on job creation and retention for business or industrial clients, and Non-Traditional, which supports human services and professional advancement. Eligible communities can request up to 1 million dollars per jurisdiction, with multi-jurisdiction applications allowed up to 2 million dollars, while non-traditional multi-jurisdiction requests are capped at 500,000 dollars. Project approval is subject to specific financial criteria, including a limit of 20,000 dollars in CDBG funding per job and a requirement that CDBG participation does not exceed one third of the total project cost. The program also includes recapture provisions for loans or leases, where repayments may remain local for other approved economic development projects under state oversight. The application window for this solicitation is open from April 1, 2026, through March 1, 2027.

General Info

Kentucky CDBG funding for job creation in cities and counties through March 2027.

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Timeline

PhaseSolicitation
Posted

Solicitation

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Organization & Contact Information

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AgencyKentucky Department for Local Government
Contacts1 person available
OfficeN/A
Office AddressN/A

Full Description

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The Economic Development Branch works to fund development activities that create or retain jobs principally benefiting low and moderate income (LMI) persons. Additional goals provide for the training and provision of human services that allow for the professional advancement of LMI persons. As part of the Commonwealth's allocation from the CDBG program, these projects have been allocated estimate with up to $1,000,000 of CDBG funding per community.There are two areas of eligibility for CDBG Economic Development funding:Traditional: Provides grant assistance to communities for projects which specifically address the creation or retention of jobs through eligible activities. Funds can be provided to a community to use for specific business/industrial clients.Non-Traditional: Allows for the funding of eligible activities benefiting low and moderate income persons not directly related to job creation.Who can Apply: All cities and counties with the exception of designated entitlement areas. Multi-Jurisdiction Applications may jointly request $2 million provided that the $1 million per jurisdiction is not exceeded. Multi-Jurisdiction Non-Traditional Economic Development applicants may request up to $500,000 if the $250,000 per jurisdiction is not exceeded.Recapture: When a loan or lease is made to an entity, DLG may allow the repayment to remain in the local jurisdiction for use toward other economic development projects. Future utilization of these funds is subject to oversight and approval by DLG and may be recaptured based on various factors.Program Criteria: Basic guidelines include limits on the level of CDBG participation proposed in a project. The CDBG cost should not exceed $20,000 per job. CDBG participation should be limited to one third of the total project.Applications Accepted: Dates will are April 1, 2026 - March 1, 2027 .For more information, contact the Office of Federal Grants .

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