CDBG-CV Grant Application
Businesses Invited to Apply for CDBG-CV Grants
The City of Abilene is now accepting grant applications for its Community Development Block Grant program. The City received $132,000 to help businesses with payroll and inventory expenses.
Grant funds are from the United States Department of Housing and Urban Development (HUD) and administered by the Kansas Department of Commerce. As a sub-recipient, the City of Abilene must comply with all state and federal reporting requirements.
In order to qualify, each employee of a business must complete a Job Certification Form. Because this is a HUD program, 51% of a business’s employees must be at 80% low-moderate income or lower. E.g.) 80% LMI for a family of 4 is $51,900.
Applications are due Friday, July 10. The Grant Review Team will then review all applications and determine a formula to fulfill as many requests as possible. The City will grant 100% of the funds and no funds will be retained for administration. Grant awards of more than $5,000 are not anticipated; however, actual funding amounts are dependent on the number of applications and requests received.
Once notified of awards, businesses will then be required to provide proof of how the funds are spent. E.g.) copy of an invoice and check to purchase inventory to restock or copy of payroll from before and after a determined COVID19 time period to show expenses and jobs retained.
The City of Abilene acknowledges the complexities of this program but reminds businesses this is a grant and not a loan.
Grant applications are available online at AbileneCityHall.com/CDBG-CV
Please contact Julie Roller Weeks, Abilene Convention & Visitors Bureau director, at (785) 263-2231 or firstname.lastname@example.org with questions.
Send completed application to City of Abilene, attn: CDBG-CV, 419 N. Broadway or PO Box 519, Abilene, KS 67410.
1. Are businesses outside of the city limits with an Abilene address eligible to apply?
No, only businesses physically located within Abilene City limits are eligible.
2. Can farmers or ranchers apply?
No, farmers and ranchers are not eligible since there are funds available through USDA.
3. When are applications due?
Applications are due by Friday, July 10 at 5 pm. No applications will be reviewed prior to the deadline. The grant review committee will then review all applications and distribute funds to as many qualifying businesses as possible.
4. What can the grant pay for?
CDBG-CV Economic Development grants can be used to pay for the following expenses:
- Operational expenses (utility bills, mortgage payments, rent, property taxes for months affected by COVID19)
- Salaries and wages (not available for sole proprietor businesses)
- The purchase of 60 days’ worth of inventory needed to reopen (60 days will begin on the day the business is allowed to reopen).
5. How much can a business receive?
The goal of the City of Abilene’s CDBG-CV grant program is to assist as many businesses as possible. Grant awards of more than $5,000 are not anticipated, but grant amounts depend on applications received.
6. Why is the application form so long?
Because CDBG is a federal program, we are required to collect certain data. We are only asking for the required information.
7. Can nonprofits apply?
No, this program is only available to for-profit businesses.
8. Why must all employees complete a Job Certification Form?
CDBG-CV is financed in part through a grant provided by the Department of the United States Department of Housing and Urban Development(HUD) under Title 1 of the Federal Housing and Community Development Act of 1974, as amended (42 USC 5301 et. seq.) hereinafter called "the Federal Act," and administered by the State of Kansas, through the Kansas Department of Commerce, we must follow their rules.
9. Does the City of Abilene receive grant funds for administering this program?
No, the City of Abilene does not receive any funding to administer this program. The City of Abilene will grant out 100% of its award to Abilene businesses.
10. I rent a booth at a salon, am I eligible?
Yes, both the salon owner and stylists are eligible; however, both must apply and qualify separately. Each applicant must have their own individual DUNS number and funds for sole proprietors cannot be used for payroll. It is best for each salon to apply and use funds to purchase items that benefit all service providers.
11. If I received PPP or EIDL am I eligible?
Yes, however funds cannot pay for the same thing twice. The City of Abilene’s CDBG-CV grant funds cannot also be used to repay EIDL loans.
12. Are there income restrictions?
To be eligible to receive a CDBG-CV Economic Development grant, the recipient business must be a for-profit business and retaining jobs for low to moderate-income people. 51% or more of the full-time equivalent (FTE) jobs retained must be for persons from low to moderate-income households as defined by HUD.
13. Does having tax liability in arrears with the Kansas Department of Revenue or IRS disqualify a business from receiving CDBG-CV funds?
14. What are the expense categories that should be used?
Must be working capital. No construction or debt payoff.
15. Can this be used to pay property taxes accrued outside the three months (March-May) but possibly due during those same months, i.e. 2019 property taxes?
Only the months affected by COVID-19 can be paid using CDBG, Taxes for 2019 cannot be paid with this money.
16. Does a business need to have a duns number to benefit from cv funds?
Yes, they are required to have a DUNS number. Click here to get a DUNS number.
17. If awarded funding, what is considered proof of payment? An invoice with a check number and paid date?
An invoice marked paid is acceptable.
18. How would a self-employed individual justify lost income? 2019 tax return prorated 3-months? March-May 2019 income vs 2020 income?
It is based on the previous 12 months from the date they submit a job certification form. So they will need to account for the losses due to COVID-19. The individual should know whether he/she has worked or not during the time and can justify it that way.
19. When will I receive notification?
Award letters were mail Tuesday, July 28.
20. Can I still apply?
Applications closed Friday, July 10. If any award recipient is unable to accept their award, the City of Abilene will explore opportunities for Round 2 to distribute the remaining funding. A second funding round is not anticipated.