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STATE
ADMINISTERED PROGRAMS: GRANTS AND LOANS
Community
Development Block Grant Program
Purpose:
The Community Development Block Grant Program (CDBG) is a federally
funded program administered by the Michigan Economic Development Corporation (MEDC).
The funds are used to improve publicly owned infrastructure, where those
improvements will directly lead to the creation of permanent jobs for
low-to-moderate income persons. MEDC will only accept job creation in manufacturing related
industries or in some cases for "destination tourism" projects.
Eligibility:
Local units of government (cities, villages, townships or counties) in
rural areas with a population of less than 50,000 people are the eligible
applicant for these funds.
At least 10 full-time equivalent jobs must be created as a result of this
project.
The CDBG funds invested in relation to the net permanent full time jobs
created must be no more than $10,000 per job.
The
business must pay their workers a certain average wage rate (determined by MEDC).
The ratio of other private and public funds invested in the projects
compared to the CDBG funds must be at least 2:1.
More eligibility requirements apply to this program. Contact MEDC for more details.
Funding:
The maximum amount of CDBG funds granted per project is generally not
greater than $750,000.
The infrastructure portion of the project must have a cash match (local
funds, federal funds, private funds, etc.) of at least 10%.
Process:
MEDC accepts proposals for funding under this program at any time during
the year. The first step in the
process is to complete a Notice of Intent and submit it to MEDC. If that is accepted, a full application must be prepared by
the applicant.
Contact:
Michigan Economic Development Corporation
http://medc.michigan.org/
201 N. Washington Square
Victor Office Center - 4th Floor
Lansing, MI 48933
Phone: (517) 373-9808
Category A - Economic Development Road Projects
Purpose:
The Category A - Economic Development Road Projects Program (Category A)
is State funded through the Michigan Department of Transportation Office of
Economic Development and the Michigan Economic Development Corporation.
Funds from this program are intended: (1) to improve the network of
highway services essential to economic competitiveness; (2) to improve
accessibility to target industries as a catalyst for economic growth; (3) to
support private initiatives that create or retain jobs; and (4) to encourage
economic development and redevelopment efforts that improve the health, safety
and welfare of Michigan citizens.
Eligibility:
Eligible applicants include all Act 51 recipient governmental units: The
Michigan Department of Transportation, all county road commissions, and all city
and village road agencies.
A particular transportation need must be shown to exist in one of the
following categories: capacity, condition, safety or accessibility.
The economic development project must create or retain permanent jobs.
The economic development project must increase the tax base of the local
area.
Negotiations between an appropriate agency and developers must be in
progress regarding the location or retention decision.
Applications must be accompanies by a "Resolution of Support"
from the appropriate unit(s) of local government.
The economic development project must relate to one of the following
target industries: agriculture or
food processing; tourism; forestry; high technology research; manufacturing;
mining or office centers of not less than 50,000 square feet.
More eligibility requirements apply to this program. Contact MDOT for more details.
Funding:
There are no minimum or maximum grant amounts.
Matching funds of at least 20% of the cost of the transportation
improvement are required. A project
which has more than a 20% match will be more competitive for funding.
Process:
MDOT accepts proposals for funds from this program at any time during the
year. Funding decisions are made on
a quarterly basis. The first step
in the application process is to submit a "Letter of Interest for Category
A Grant Funding". If that
"Letter of Interest" is accepted by MDOT, a full application must be
prepared by the applicant.
Contact:
Jacqueline G. Shinn
Office of Economic Development
Michigan Department of Transportation
http://www.mdot.state.mi.us/programs/edf/index.htm
P.O. Box 30050
Lansing, MI 48909
Phone: (517) 335-1069
Michigan
Transportation Enhancement Program
Purpose:
The Michigan Transportation Enhancement Program is federally funded
through the Michigan Department of Transportation Bureau of Transportation
Planning. Funding for this program
from the Transportation Equity Act for the 21st Century (TEA-21) will
be available through 2003. Grants
under this program are made for "transportation enhancement
activities" in four main categories: nonmotorized
facilities, transportation aesthetics, water quality and wildlife mortality and
historic preservation.
Eligibility:
Eligible applicants for these funds must be one of the following:
an Act 51 recipient governmental unit, such as MDOT, all county road
commissions, city and village road agencies; public transit agencies or one
providing public transit services for rail/bike path projects; the Michigan
Department of Natural Resources, Recreation Division; any Metropolitan Planning
Organizations (MPO) or Michigan's 14 Regional Planning Organizations.
Projects must relate to an existing and functioning transportation
facility, or proposed and approved transportation projects.
Projects must be environmentally sound.
Applications must have letters of support from all local units of
government within the area of impact.
Applications are ranked against one another based on certain criteria.
Contact MDOT for more information.
More requirements must be met, depending upon the funding category of the
proposed project. Contact MDOT for
more information.
Funding:
There are no minimum or maximum grant amounts for this program.
Projects that are moderate in cost and can be implemented quickly will
receive a higher priority for funding.
MDOT requires that the applicant provide at least a 20% match to the
proposed project. Applicants that
increase their match up to 50% or more of the eligible project costs will
receive a higher priority for funding.
Process:
Applications are accepted once per year by MDOT.
In 1999 the due date was December 6th.
The due date for 2000 has not yet been announced.
Contact:
Paul McAllister, Enhancement Program Manager
Bureau of Transportation Planning
Michigan Department of Transportation
http://www.mdot.state.mi.us/programs/enhanc/enhance.htm
P.O. Box 30050
Lansing, MI 48909
Phone: (517) 335-2622
Recreation
Grants Program
Purpose:
The "Recreation Grants Program" refers to two different
recreation based funding sources administered by the Michigan Department of
Natural Resources (MDNR). The first
funding source is the "Michigan Natural Resources Trust Fund Program"
(MNRTF). This is funded through the
Kammer Recreational Land Trust Fund Act of 1976.
The purpose of the program is to provide a source of funds for public
acquisition of recreational lands. Funds
are accrued from the sale of oil, gas and mineral leases and royalties from oil,
gas and mineral extraction on state lands. No more than 25% of the funds each
year can be allocated for development projects, therefore the majority of
projects approved for funding under this program are property acquisition
projects.
The other funding source is the Recreation Bond portion of the
"Clean Michigan Initiative" (CMI).
In 1998, Michigan voters approved Proposal C, the Clean Michigan
Initiative, which is raising $675 million through bond sales for a variety of
environmental and natural resource needs in the State.
The CMI included $50 million to be used to assist local units of
government in the development and renovation of local, public recreation
facilities and infrastructure. It
is anticipated that this fund will be exhausted by early 2001.
Eligibility:
Both state and local units of government are eligible to apply under
MNRTF. Only local units of
government may apply under CMI. Eligible
local units of government include cities, villages, townships, and counties.
School districts are eligible under MNRTF, if they are the primary
provider of recreation in their service area.
Local governmental applicants must have a current community recreation
plan, which is locally adopted and approved by the MDNR 30 days prior to the
application deadline. The plan must
include justification that the proposed project is a high priority recreation
need in the community.
The MNRTF funds the acquisition and development of public outdoor
recreation areas, especially those that protect natural resources or provide
natural resource-based recreation.
The CMI funds can be used for the development and renovation of indoor
and outdoor public recreation facilities and infrastructure, with a focus on
community recreation needs.
Proposed development projects must comply with all state and federal
regulations for barrier-free construction.
Acquisition projects must be completed within one year and development
projects within two years.
Applicants for development projects must show they have adequate control
of the property to be developed.
The public must be afforded an opportunity to review and comment on the
proposed project prior to application. Documentation
of those efforts/opportunities are required as part of the grant application.
More requirements must be met, depending upon the funding source of the
proposed project. Contact MDNR for
more information.
Funding:
For the MNRTF Program the minimum development grant is $15,000 and the
maximum is $500,000. For
acquisition there are no minimum or maximum amounts.
This program requires at least a 25% local match.
For the CMI Program the minimum development grant is $15,000 and the
maximum is $750,000. The required
local match is a minimum of 25%, no more than half of which can be in donated
materials and labor or federal funds.
Process:
Applications are accepted by MDNR twice per year for both programs.
Both programs use the same application form and process.
For 2000, the due dates are April 1st
and September 1st. To
be eligible for funding applicants must have a community recreation plan
approved by the MDNR. For Round 1,
plans must be approved by no later than March 1st (should be
submitted to MDNR by February 15th).
For Round 2, plans must be approved by August 1st (should be
submitted to MDNR by July 15th).
Contact:
Grants Administration Division
Finance and Operations Services Bureau
Michigan Department of Natural Resources
http://www.dnr.state.mi.us/
P.O. Box 30425
Lansing, MI 48909-7925
Phone: (517) 373-9125
Information Request Line (24 hour voice mail):
(517) 373-2724
MICHIGAN LOCAL GOVERNMENTAL
INCENTIVES:
By State law
local units of government are allowed to form the following authorities in order
to help address certain economic and community development issues.
A very brief explanation of these incentives is listed below.
For more details, contact MEDC.
Local Development Finance Authority: Allows cities and certain township to make public
improvements that are necessary to enable an industrial project to move forward.
These public improvements are finance through the increase in property
tax revenues generated by the new private development.
Downtown Development Authority:
Local units of government can establish development authorities to carry
out commercial revitalization projects. The
authority can acquire and improve property and construct public facilities.
Brownfield Redevelopment Authorities: Allow municipalities to create a Brownfield Redevelopment
Authority to facilitate implementation of plans to create Brownfield
Redevelopment Zones and cleanup contaminated property.
Economic Development Corporations:
Cities, counties and townships can establish an economic development
corporation to strengthen and revitalize their local economies.
The Economic Development Authority can be used by a manufacturer to help
finance acquisition of land, machinery, construction or renovation or
acquisition of buildings.
For more
information concerning any of these local government incentives contact:
Michigan
Economic Development Corporation
http://medc.michigan.org/
201 N. Washington Square
Victor Office Center - 4th Floor
Lansing, MI 48933
Phone: (517) 373-9808
FEDERALLY
ADMINISTERED PROGRAMS: GRANTS AND LOANS
Economic
Development Administration
Purpose:
The Economic Development Administration was established under the Public
Works and Economic Development Act of 1965, as amended by the Economic
Development Administration Reform Act of 1998, to generate jobs, help retain
existing jobs, and stimulate industrial and commercial growth in
economically-distressed areas of the U.S. EDA
assistance is available to rural and urban areas of the U.S. who are
experiencing high unemployment, low income or other severe economic distress.
Eligibility:
Cities, states, counties, Indian tribes, economic development districts,
institutions of higher education and most non-profit entities are eligible for
EDA funds if the area to be served by the project:
·
Has a 24 month unemployment rate at least one percent above the
national average, or
·
Has an average per capita income 80%
or less than the national average or
·
Has a special need for assistance (based on EDA criteria for a
"special need").
The proposed project must create permanent jobs and
leverage private sector investment.
The
proposed project must be listed in a locally adopted "Comprehensive
Economic Development Strategy" (CEDS) or in a document which meets EDA's
criteria for a CEDS. In most areas
the CEDS is developed through the regional economic development district.
Contact EDA for more information.
EDA
has several programs which address the economic development needs of a
community. The most frequently used
program is the "Public Works and Development Facilities Program".
Funds from this program can be used to help fund water and wastewater
facilities, primarily serving industry and commerce; access roads to industrial
parks or sites; port improvements; business incubator facilities; technology
projects; sustainable development activities; export programs; brownfield
redevelopment and other infrastructure projects.
The program is primarily intended to benefit populations with low per
capita income, unemployed and underemployed residents and to help stop
out-migration as well as to assist areas experiencing long-term economic
distress due to industrial restructuring and business relocation.
More
requirements must be met, depending upon the funding source of the proposed
project. Contact EDA for more
information.
Funding:
There are no minimum or maximum amounts which can be applied for under
any EDA program. Because funding is
limited, applications of $500,000 to $1 million are more competitive for Public
Works Funding. Local match
requirements vary depending on the degree of economic distress found in the
project area. These normally range
from 50% to 70%. Communities which
actively participate in the CEDS process with their economic development
district may be eligible for a 10% "District Bonus".
Process:
EDA accepts applications for funding at any time during the year.
The first step in the process is for the applicant to complete
pre-application. If the
pre-application is accepted by EDA, the application must complete a full
application.
Contact:
Economic Development Administration
U.S. Department of Commerce
http://204.193.246.9/eda/html/prgtitle.htm
14th and Constitution Ave., N.W.
Room 7804
Washington, D.C. 20230
Phone: (202) 482-5081
or in Michigan contact:
John Peck, Economic Development Representative
Economic Development Administration
P.O. Box 517
Acme, MI 49610
(231) 938-1712
U.S.
Department of Agriculture - Rural Development
USDA
Rural Development has a variety of funding sources for economic development
related projects. A summary of the
most frequently used programs is found below:
Water
and Waste Disposal Loans and Grants
Purpose:
The Water and Waste Disposal Program is a federally funded loan and grant
program administered through USDA Rural Development.
The program's purpose is to assist in the development or improvement of
water and waste disposal systems (including solid waste disposal and storm
drainage) in the most financially needy rural areas.
Eligibility:
Funds are available to public entities, such as municipalities, counties,
special-purpose districts, Indian tribes and corporations not operated for
profit in rural areas and towns with a population not in excess of 10,000.
Priority will be given to public entities in rural areas with populations
smaller than 5,500 people, to restore a deteriorating water supply systems, or
to improve, enlarge or modify a water facility or an inadequate waste facility.
Highest priority is given to communities not in excess of 1,000 people.
Preference will also be give to requests which involve the merging of
small facilities and those serving low-income communities.
Financial assistance should result in reasonable user costs for rural
residents and businesses.
Applicants must be unable to obtain needed funds from other sources at
reasonable rates and terms.
Applicants must have the legal capacity to borrow and repay loans, to
pledge security for loans, and to operate and maintain the facilities or
services.
Applicants must have a financially sound facility based on taxes,
assessments, revenues, fees or other sources of income to pay all facility
costs, including operation and maintenance and to retire the indebtedness and
maintain a reserve.
Other requirements apply to this program.
Contact USDA - Rural Development for more information.
Funding:
There are no minimum or maximum amounts of loans/grants available under
this program. Because of limited
funding, smaller projects may have a better chance of being approved.
The applicant may be offered a combination of part grant and part loan or
loan only, based on the economic need of the community and the availability of
funds. Grants may be available for
up to 45% or 75% of eligible facility development costs.
Loans may have a maximum term of up to 40 years.
Interest rates are set quarterly based on current market yields for
municipal obligations.
Process:
Applications for funding may be made at any time during the year, through
the area office of USDA - Rural Development, located in Gladstone, Caro and
Grand Rapids.
Contact:
U.S. Department of Agriculture
Rural Development
http://www.rurdev.usda.gov/
14th
and Independence Ave., S.W.
Washington,
D.C. 20250
Phone:
(202) 720-2791
or
in Michigan contact:
Paul
Miller, Director
U.S.
Department of Agriculture
Rural
Development
3001
Coolidge Rd., Suite 200
E.
Lansing, MI 48823
Phone:
(517) 324-5156
Community
Facility Loans:
Purpose:
The Community Facility Loans Program is a federally funded program
administered through USDA-Rural Development.
This program is authorized to make loans to develop community facilities
for public use in rural areas and towns. Funds
may be used to construct, enlarge, or improve communities facilities for health
care, public safety and public services.
Eligibility:
Funds are available to public entities, such as municipalities, counties,
special-purpose districts, Indian tribes and corporations not operated for
profit in rural areas and towns with a population not in excess of 20,000.
Applicants must be unable to obtain needed funds from other sources at
reasonable rates and terms.
Applicants must have the legal capacity to borrow and repay loans, to
pledge security for loans, and to construct, operate and maintain the facilities
or services.
Applicants must be financially sound, and be able to organize and manage
the facility effectively
Other requirements apply to this program.
Contact USDA - Rural Development for more information.
Funding:
There are no minimum or maximum amounts of funding that may be approved
under this program. Because of
limited funding, smaller projects may have a better chance of being funded.
Loans may have a maximum term of up to 40 years.
Interest rates are set periodically based on current market yields for
municipal obligations.
Process:
Applications for funding may be made at any time during the year, through
the district office of USDA - Rural Development.
Contact:
U.S. Department of Agriculture
Rural Development
http://www.rurdev.usda.gov/rhs/Nonprofit/np-splash.htm
14th and Independence Ave., S.W.
Washington, D.C. 20250
Phone: (202) 720-2791
or in Michigan contact:
Jim Yoder, Rural Development Specialist
USDA - Rural Development
P.O. Box 231
Gladstone, MI 49837
Phone: (906) 428-1060 ext. 6
Rural
Business Enterprise Grants
Purpose:
The Rural Business Enterprise Grants program is federally funded and
administered through USDA-Rural Development.
Funds may be used to facilitate the development of small and emerging
private business enterprises.
Eligibility:
Eligibility is limited to public bodies, private nonprofit corporations,
and Indian Tribes in rural areas. This
includes all areas other than cities of more than 50,000 people and their
immediately adjacent urban or urbanizing areas.
Small
and emerging businesses with less than 50 new employees and less than $1 million
in gross annual revenues are also eligible for assistance under this program.
Grant
funds can pay for the acquisition and development of land and the construction
of buildings, plants, equipment, access streets and roads, parking areas,
utility and service extension, refinancing and fees for professional services.
Grant
funds can also pay for technical assistance and related training, start up costs
and working capital, financial assistance to a third party, production of
television programs targeted for rural residents, and for rural distance
learning networks.
Grants
may also be used to establish or fund revolving loan programs.
Applications for these funds are subjected to selection priorities
defined by USDA-Rural Development.
Other
requirements apply to this program. Contact
USDA - Rural Development for more information.
Funding:
There is no minimum amount which can be requested under this program.
The maximum amount is $500,000. Funding for this program is extremely
limited, so smaller funding requests stand a better chance of being funded than
larger ones. There is no firm match
requirement for this program, however, projects with substantial amounts of
match (non-federal funds) are more likely to be approved than those without
local match.
Process:
Funding decisions for this program are made once per year. The first step in the process is for the applicant to submit
a pre-application to USDA-Rural Development.
The pre-application is normally due in September.
If the pre-application is approved by USDA-Rural Development, the
applicant must prepare a full-application in order to complete the application
process.
Contact:
U.S. Department of Agriculture
Rural Development
http://www.rurdev.usda.gov/
14th and Independence Ave., S.W.
Washington, D.C. 20250
Phone: (202) 720-2791
State Planning &
Research (SPR) Funds
These Michigan Department
of Transportation funds are available for transportation research and
transportation planning. Types of transportation planning projects that may be
funded include (but are not limited to) area-wide transportation plans, a
variety of corridor studies, and multi-modal transportation plans. Eligible
applicants include (but are not limited to) colleges & universities,
planning agencies, and local governments (through the planning departments).
The SPR grant application
should be completed and submitted by mid-June for being funded the following
fiscal year, starting October 1st. There is no local match
requirement, however this is an element that is considered when an application
is under review. Generally, the more matching funds that are appropriated for a
project, the higher will be the rating for consideration of funding.
The grant application should contain the following
elements:
Project Title
Project Manager (agency and contact person)
Problem Statement
Project Objective
Project Description
Products & Deliverables
Time Frame
Budget (by fiscal year)
-
MDOT Cost
-
Local
Match
-
Staff Time
-
Equipment
-
Consultant Cost
MDOT
Contact Person:
Andrea
Bergemann
Project
Planning Section
Bureau
of Transportation Planning
P.O.
Box 30050
Lansing,
MI 48909
(517)
335-6896
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