ONGOING CDBG — Economic Development Opportunities
The Community Development Block Grant program distributes ~$3.3 billion annually to 1,200+ metro cities and urban counties. At least 70% must benefit low/moderate-income persons. Local grantees hire contractors — LLCs participate through competitive procurement.
How LLCs Participate in CDBG
| Role | How It Works | LLC Eligible? |
|---|---|---|
| Contractor | Selected through open competitive bidding (24 CFR 85.36). Construction, services, consulting. | YES |
| Subrecipient | Designated by grantee to carry out program activities. Generally limited to nonprofits. | NO* |
| Economic Development Beneficiary | Receive CDBG loans/grants for business expansion that creates jobs for low-income persons. | YES |
* Exception: Small Business Investment Companies and Local Development Corporations may serve as for-profit subrecipients.
CDBG Eligible Activities for Businesses
- Economic development loans and grants — for business expansion, job creation
- Microenterprise assistance — businesses with 5 or fewer employees
- Commercial rehabilitation — exterior improvements, building rehab
- Infrastructure supporting economic development — roads, water, sewer to serve businesses
- Technical assistance — business plan development, financial counseling
How to Find CDBG Opportunities
- Identify your local CDBG grantee — your city or county government's Community Development department
- Review their Annual Action Plan — describes planned CDBG spending and priorities for the year
- Watch for RFPs/IFBs — grantees must competitively procure contractors
- Register as a vendor with your local government and on SAM.gov
- Bid on contracts — construction, consulting, program administration, etc.
Key Regulation: Subrecipient vs. Contractor
The determining factor is how the entity is selected — not what it does
- Competitive procurement → entity is a contractor (LLC fully eligible)
- No competitive procurement → entity is a subrecipient (generally nonprofits only)
Related Programs
| Program | Annual Funding | Focus |
|---|---|---|
| CDBG Entitlement | ~$3.3 B | Metro cities/urban counties — housing, infrastructure, economic development |
| CDBG State Program | Included above | Non-entitlement areas via states |
| CDBG-DR (Disaster Recovery) | Varies | Post-disaster recovery |
| HOME | ~$1.4 B | Affordable housing — construction, rehab, rental assistance |
| ESG (Emergency Solutions) | ~$290 M | Homelessness prevention, rapid re-housing, shelters |