Economic Development

Federal Grants

Community Development Block Grant Program (CDBG)
Appalachian Regional Commission Program (ARC)
Economic Development Administration (EDA)

COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (CDBG)

The U.S. Department of Housing and Urban Development allocates funding to the State of Tennessee on an annual basis for the Community Development Block Grant program (CDBG). The program is administered by the Tennessee Department Of Economic and Community Development. CDBG provides funding for infrastructure that is necessary to support the location or expansion of industries within the State of Tennessee. Local governments are eligible to receive funding from the program for the following eligible activities:

Water Systems: Source development, intake structures, treatment plants, storage facilities, transmission lines, other improvements associated with the provision of public water service.

Wastewater Systems: Collection lines, treatment plants, other improvements associated with the provision of public wastewater service.

Transportation Systems: Access roads, rail sidings, port facilities, airport improvements, other improvements associated with the provision of public transportation service.

Applicants for CDBG funds may be cities or counties. Each applicant may receive up to $500,000 per project in non-distressed areas or $750,000 in distressed areas. Applicants are required to contribute a portion of the total project costs based upon an ability-to-pay index established by the State of Tennessee. Applicants must also be able to prove that job creation and new capital investment will result from the project.

APPALACHIAN REGIONAL COMMISSION PROGRAM (ARC)

The Appalachian Regional Commission allocates funding to the State of Tennessee on an annual basis for the ARC Area Development Program. The program is administered by the Tennessee Department Of Economic and Community Development. ARC provides funding for infrastructure that is necessary to support the location or expansion of industries within the State of Tennessee. Local governments are eligible to receive funding from the program for the following eligible activities:

Water Systems: Source development, intake structures, treatment plants, storage facilities, transmission lines, other improvements associated with the provision of public water service.

Wastewater Systems: Collection lines, treatment plants, other improvements associated with the provision of public wastewater service.

Other Utility Systems: Other improvements to electrical systems, gas systems, telecommunications systems.

Transportation Systems: Access roads, rail sidings, port facilities, airport improvements, other improvements associated with the provision of public transportation service.

Employee Training: Provision of job training to new or existing employees.

Applicants for ARC funds may be cities, counties or utility districts. Each applicant may receive up to $500,000 per project. Applicants are required to contribute 50% of the total project costs in non-distressed counties and 20% of the project costs in distressed counties. Applicants must also be able to prove that job creation and new capital investment will result from the project.

ECONOMIC DEVELOPMENT ADMINISTRATION (EDA)

The Economic Development Administration (EDA) provides funding to local governments for infrastructure that is necessary to support the location or expansion of industries within the State of Tennessee. Local governments are eligible to receive funding from the program for the following eligible activities:

Water Systems: Source development, intake structures, treatment plants, storage facilities, transmission lines, other improvements associated with the provision of public water service.

Wastewater Systems: Collection lines, treatment plants, other improvements associated with the provision of public wastewater service.

Other Utility Systems: Other improvements to electrical systems, gas systems, telecommunications systems.

Transportation Systems: Access roads, rail sidings, port facilities, airport improvements, other improvements associated with the provision of public transportation service.

Site Improvements: Leveling, grading, or drainage of real property in order to make the property more suitable for the location or expansion of industries.

Industrial Building: Construction of industrial buildings that will be leased to a committed industry.

Applicants for EDA funds may be cities or counties. Each applicant may receive up to $1,500,000 per project. Applicants are required to contribute between 30% and 50% of the total project costs based upon the level of distress in the local area. Applicants must also be able to prove that job creation and new capital investment will result from the project.