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The Community Development Block Grant <br />:;;..:.. Program provides grants for infrastructure <br />development. Funds available are based on an <br />annual federal allocation to North Carolina from <br />the U.S. Department of Housing and Urban <br />Development and may be applied for by a local <br />government for economic development projects. <br />Private businesses cannot applyidirectly for this <br />t;. <br />,;fundingbut instead,;work col.latioiatively with <br />a IocaI'government and receive a loan or grant <br />through the local .,99M, for the project. <br />g g:::. , P 1 <br />,,,,-:::,;:: <br />Funded pro e;icts'leid to the creation or retention <br />of jobs . Economic development category projects <br />inay;ffivolve assistance for public facilities <br />needed to serve the target business, or loans <br />to the private business to fund items such as <br />machinery and equipment, property acquisition or <br />• Service or manufacturing industries must meet <br />the Article 3) Tax Credits wage standards. <br />• Grants must be made to applicants for <br />infrastructure improvements that are publicly <br />owned and maintained including construction or <br />improvements to water, sewer, streets, gas lines, <br />rail or municipal electrical utility systems. <br />• At least 60 percent of the jobs created or <br />retained through the CDBG funds must be filled <br />by persons who earned less than 80 percent <br />of the median income for that county in the <br />previous 12 months. <br />• A pre- application meeting is required for the <br />CDBG program. A CDBG program officer <br />should be contacted for assistance early in the <br />incentive planning process. <br />• jobs transferred within the state or from another <br />state do not qualify as new jobs. In addition, <br />CDBG funds may not be used to assist directly <br />in the relocation of any industrial or commercial <br />plant, facility or operation from one area to <br />North Carolina Deparhnen.t of Commerce <br />another area if the relocation is likely to result in <br />a significant loss of employment in the area from <br />which the relocation occurs. <br />Funding Levels <br />Businesses eligible for Article 3) Tax Credits can <br />receive a maximum of $10, 000 to $15,000 per <br />job committed depending on the tier level of the <br />county. Businesses not eligible for Article 3j Tax <br />Credits can receive a maximum of $4,000 to <br />$10,000 per job. <br />Grant and loan amounts are determined by the <br />cost of the project and the availability of funding. <br />Tier 1 and 2 counties may apply for up to $1 <br />million per project during the funding year Tier <br />3 counties can receive a maximum of $750,000 <br />per project per funding year. There is a $1.25 <br />million limit on CDBG funds — whether economic <br />development, housing or a combination of the two <br />— per fund year for each eligible government. <br />Grants and loans for infrastructure <br />development —and to enhance a community's <br />economy —are also available to companies that <br />apply in collaboration with a local government. <br />Incentives 1 21 <br />