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CED Fact Sheet

Published: August 30, 2012
Audience:
Community Economic Development (CED)
Category:
About, Fact Sheet


FACT SHEET
Community Economic Development
Office of Community Services
Administration for Children and Families
U.S. Department of Health and Human Services

 

Purpose: To support employment and commercial development projects designed to provide economic self-sufficiency for low-income residents and their communities.

Uses: Grants are awarded for project costs for

  • Startup or expansion of businesses, physical, or commercial activities;
  • Capital expenditures such as the purchase of equipment or real property;
  • Allowable operating expenses; and
  • Loans or equity investments.

Type of Grant: Competitive discretionary grants.

Eligible Applicants: Private, non-profit organizations that are community development corporations (CDCs) including faith-based organizations, and Tribal and Alaskan Native organizations.  CDCs must be governed by a tripartite board of directors that consists of residents of the community served, and local business and civic leaders.  CDCs must have as their principle purpose planning, developing or managing low-income housing or community development projects. 

Appropriations: In FY 2012, $ 27.2 million.  

Authority: Section 680 of the Community Services Block Grant Act (P.L. 105-285), as amended.    

Program Characteristics:     

  • There were 38 grants awarded in FY 2012 that are expected to support over 1,800 jobs.  Projects have three to five years to complete implementation.
  • Beginning in 2011, the CED program partnered with U.S. Departments of Agriculture (USDA) and Treasury in the Healthy Food Financing Initiative (HFFI). The goal of HFFI is to expand the availability of nutritious food, including developing and equipping grocery stores, small retailers, corner stores, and farmers markets selling healthy food. In 2012, CED awarded 13 grants to projects that were focused around HFFI.Grants have a maximum grant award level of $800,000 and funds may cover project costs for business start-up or expansion and the development of new products and services.
  • Grants serve as catalysts for attracting additional private and public dollars: for every CED dollar awarded, $3-5 is leveraged.
  • Types of projects funded include business incubators, shopping centers, manufacturing businesses and agriculture initiatives.