CDBG Funds Increased and Expanded
The CARES Act makes an additional $5 billion available in supplemental Community Development Block Grants (CDBG) funding for threats to prevent, prepare for, and respond to coronavirus. In addition, the Act allows for greater flexibility in administering grants from 2019 and 2020. CDBG funds can be used by economic development organizations, including uses as grants or loans to small businesses.
Join IEDC's free webinar on Monday, April 20 "Moving Money to the Streets -Steps to Get CDBG Dollars Working Locally" for more information about how CDBG funds can be used for economic development.
According to an April 9th letter from John Gibbs, Acting Assistant Secretary for Community Planning and Development, CDBG grantees are advised to amend or prepare their plans as soon as possible. To expedite the disbursement of these funds and to allow for the expanded use of CDBG YY 19 and FY 20 grants, the following provisions have been made:
- Eliminates the 15 percent cap on the amount of grant funds that can be used for public services activities. (Public service activities include child care, health care, and job training.)
- The additional CDBG-CV funds may be used to reimburse costs to prevent, prepare for, or respond to coronavirus.
- Citizen participation is still required, but an expedited 5-day timeline is allowed.
- The deadline to submit updates to consolidated plans has been extended to August 16, 2021.
- Waivers or alternative requirements are arable for CDBG-CV funds and some other funds to expedite or facilitate use.