Economic Development (CDBG)

All incorporated cities or counties in Kansas that do not receive an annual Community Development Block Grant (CDBG) entitlement allocation from Housing and Urban Development (HUD) are eligible to apply to the Kansas CDBG Program.

About CDBG

  • Financing available for all business needs.
  • Maximum loan possible is $750,000.
  • Points are awarded by leverage minimums.
  • Business loans are provided through a CDBG grant to local government on monthly competitive rounds.

Funding and Interest

  • Matching requirement for regular economic development requests of $500,000 or less require $.50 of non-CDBG funds for every $1.00 of CDBG funds.
  • Matching requirement for regular economic development requests in excess of $500,000 is $1.00 of non-CDBG funds for every $1.00 of CDBG funds.
  • For economic development infrastructure projects, packages are available of 25% loan & 75% grant, with the loan at 0% for ten years. Payments are made every six (6) months.
  • Collateral is best position available and can subordinate to other financing.
  • Documented turndowns required (loan of last resort).
  • Term: Land and building = 1-15 years; machine and equipment = 1-10 years; inventory and working capital = 1-5 years.
  • Interest rate on most projects is not less than 3.5% below prime rate, minimum of 4%.
  • Cost per job created/retained may not exceed $35,000. 51% must be jobs filled by low to moderate income (LMI) persons. There is no penalty for prepayment. One grant available per project.
  • 50% Grant and 50% no interest loans available for infrastructure.


  • Eligible areas: All 14 SCKEDD counties, excluding the City of Wichita.
  • Davis-Bacon rates are in effect.

For more information, please contact:

Economic Development Projects
Christie Henry, Lending Program Manager
9730 E. 50th Street N.
Bel Aire, Kansas 67226