The Action Fund Loan is a Community Development Block Grant (CDBG) program which provides loans to certain types of for-profit companies for start-up or expansion when other possible sources of funding have been exhausted. Manufacturing, processing and assembly companies providing wages above the county average and medical benefits are prioritized for funding.
Projects must be in a “non-entitlement” area – a city with less than 50,000 population or a county with less than 200,000 population. Cities and counties must apply on behalf of the beneficiary companies. At least 51% of the new jobs to be created must be filled by persons considered “low to moderate income” (LMI).
Loans are for 3-10 year terms with rates determined by the DED. Only the least amount needed to complete a project will be funded. Funding amounts are the lesser of: $750,000 per project, or 40% of the total project cost, or $25,000 per new job created.
Applications are reviewed on a case-by-case basis, subject to fund availability.