9. Community Development Block Grant

Key Details:

• Federal funds for community development
• Must benefit low/moderate income persons
• Administered by Idaho Commerce
• Eligible activities include public infrastructure, housing rehabilitation, downtown revitalization
• Maximum grant of $500,000 for public facilities/housing projects

ANALYSIS

The Community Development Block Grant program, while not directly benefiting businesses, is structured in a way that primarily advantages larger-scale community development projects. This indirectly favors larger businesses that can benefit from improved infrastructure and community resources, while offering limited direct benefits to small businesses under 20 employees.

Small Businesses

For small businesses under 20 employees, the Community Development Block Grant program offers limited direct benefits. The CDBG is not designed as a business incentive, but rather as a community development tool. While small businesses might indirectly benefit from improved local infrastructure or revitalized downtowns, they have no direct access to these funds. The program's focus on low/moderate income areas might improve the general business environment in certain communities, potentially helping small businesses in those areas. However, the large-scale nature of most CDBG projects (up to $500,000 for public facilities/housing) suggests a focus on substantial community changes that are more likely to benefit larger, established businesses with the capacity to take advantage of improved infrastructure. Small businesses, especially those under 20 employees, often lack the resources or scale to fully capitalize on such large-scale community improvements. Additionally, the complex application and administration process for CDBG funds is typically handled by local governments, leaving small businesses with little influence over how these funds are used in their communities. While some small businesses in targeted areas might see indirect benefits from CDBG-funded improvements, the program does not provide a mechanism for small businesses to directly access or benefit from these funds.

Big Businesses

For larger businesses, the Community Development Block Grant program can offer significant indirect benefits that enhance the overall business environment. While not a direct business incentive, CDBG funds can substantially improve the infrastructure and community resources that support business operations. The program's focus on public infrastructure improvements can result in better transportation networks, utilities, and other essential services that are crucial for large-scale business operations. Downtown revitalization projects funded by CDBG can create more attractive commercial districts, potentially increasing customer traffic for retail and service businesses. For companies considering expansion or relocation, the availability of CDBG funds in a community can signal a commitment to ongoing development and improvement, making the area more attractive for investment. Large employers can benefit from housing rehabilitation projects that improve living conditions for their workforce. The maximum grant of $500,000 for public facilities/housing projects indicates a scale of improvement that can significantly enhance a community's business climate. While large businesses cannot directly access these funds, they can work with local governments to advocate for CDBG-funded projects that align with their needs. For out-of-state companies considering Idaho, communities with active CDBG programs may be more attractive due to their ongoing development efforts. For large in-state businesses, CDBG-funded improvements can enhance the local quality of life, potentially aiding in employee retention and attraction. Overall, while not a direct incentive, the CDBG program can significantly contribute to creating a business-friendly environment that particularly benefits larger companies.