Kansas Department of Commerce: Economic Development Grant

The Kansas Department of Commerce offers an Economic Development Grant to support for-profit businesses and agricultural cooperatives in non-entitlement areas of Kansas. This loan must be repaid, but 25% may be forgiven if projects are completed successfully. Funding up to $750,000 is available from a total allocation of $1 million for 2025, aimed at infrastructure improvements and business expansion.

Unlike other CDBG grants, the Economic Development Grant Program operates as a loan that must be repaid. However, if business financing projects are completed on time and without issues, 25% of the loan may be forgiven.
This program funds projects assisting for-profit businesses or agricultural cooperatives with infrastructure improvements, land acquisition, site preparation, building construction or renovation, machinery, equipment, lease payments, inventory, payroll and other working capital items.
Funding Amounts
$1 million has been allocated for the Economic Development program in 2025. The maximum amount of CDBG funds that can be applied for is $750,000.

Eligibility

For-profit businesses or agricultural cooperatives in cities or counties in Kansas that do not receive entitlements from HUD (Entitlement areas: Johnson County, Kansas City, Lawrence, Leavenworth, Manhattan, Overland Park, Shawnee, Topeka, Wichita).CDBG awards must comply with federal requirements to primarily benefit low- and moderate-income (LMI) persons.Eligible expenses include:

• Infrastructure improvements including roads, sidewalks, water lines and sewer lines
• Business financing for a new or existing business expanding in a Kansas community
• Non-Retail/Local Service businesses
• Retail/Local Service businesses
• If business financing projects are completed on time with no concerns, there is a 25% forgiveness of the CDBG loan