Program Overview
Montana’s CDBG Economic Development program is designed to stimulate economic development activity by assisting Montana’s private sector to create or retain jobs for low- to moderate-income (LMI) Montanans, i.e. individuals earning less than 80% of the area median income. The program can assist businesses by making fixed-rate financing available to them at low interest rates, and can offer payment deferrals, lower payments in the first year, and interest-only payments. CDBG-ED funds are intended to be used in situations where a funding gap exists and alternative sources of public and private financing are not adequate.
The focus of the program is full-time permanent positions for Montanans. Loan amounts are based on the number of employees a business will retain or the number of new positions to be created. Loan terms are determined according to the use of funds and the businesses financial position. The business must ensure that at least 51% of the jobs are made available to, or held by, LMI persons.