The New York State Community Development Block Grant (CDBG) Economic Development Program, managed by the Office of Community Renewal, supports the economic growth of New York’s smaller communities by funding projects that create or retain jobs for low- and moderate-income residents. This program aims to assist communities in fostering business development that promotes well-paying, full-time employment with benefits and training for qualifying individuals. By investing in local economic initiatives, the CDBG program intends to stimulate sustainable job growth and improve economic stability in targeted areas.

The program consists of three primary funding categories: Economic Development, Small Business Assistance, and Microenterprise. Each funding category has specific objectives and serves different types of business initiatives. Economic Development and Small Business Assistance funds support municipalities by helping for-profit businesses create or retain permanent employment for low- and moderate-income residents. Microenterprise funds specifically assist businesses with five or fewer employees, including the owner, to provide opportunities for small-scale entrepreneurship that also prioritizes employment for low-income individuals. For all three categories, eligible applicants must be municipalities applying on behalf of the businesses that seek funding; funds are awarded to the municipality, not directly to individual businesses.

Applications for funding operate through an Open Round process via the Consolidated Funding Application (CFA) portal. This involves a two-step submission: first, applicants complete a preliminary Pre-Submission Form, which is reviewed by the Office of Community Renewal to determine eligibility. If the form meets program requirements, the applicant is invited to submit a full application, which must be completed within 60 days of receiving the invitation. Applications are accepted year-round, and there is no shared deadline for the Open Round process, allowing communities flexibility in planning and applying for funds.

To qualify, applicants must meet certain citizen participation requirements, which include issuing a public notice and conducting a public hearing prior to submission. Proof of this engagement is necessary for application eligibility. Additionally, projects cannot begin until funding is awarded and environmental reviews are approved by the Office of Community Renewal. This ensures that community input is considered, and environmental impacts are evaluated before funds are disbursed.

Funds provided through the CDBG Economic Development Program are flexible and can be used for a variety of legitimate business purposes, tailored to the needs of the municipality and its partner businesses. However, applications for CDBG funding cannot include requests for additional funding sources within the same application. This single-source focus allows municipalities to concentrate CDBG funds on specific economic goals that are designed to yield sustainable employment outcomes.

Overall, the CDBG Economic Development Program is structured to provide New York communities with the resources needed to foster economic growth, reduce poverty, and enhance job stability. By targeting small businesses and microenterprises, the program encourages the growth of locally-owned businesses and supports long-term economic advancement within communities throughout the state.