City of New Castle Business Grant Program

(OCRA CDBG) Current as of May 21, 2020

Click here for the Preliminary Application.

Accepting applications through May 29, 2020. (Please read this page before submitting the application).

Eligibility is limited to businesses within the municipal boundaries of the City of New Castle. Maximum grant request is $25,000.

May 21 update: Independent contractors (receiving a 1099) and Micro-enterprises are eligible. Micro-enterprise’s are defined as 5 or less employees with 1 or more of the employees owning the business.

Demand will exceed grant funds available. Not all applications will be funded. Not all applications will be funded at the requested amount. The program goal is to provide assistance to as many city businesses across all sectors and sizes. COVID-19 impact on the business will be a factor in the award process.

The primary objective of this funding is to preserve (retain) jobs for low- to moderate-income people (LMI). 

The business grant approval process includes the following:

  1. Submit preliminary application (See link above)
  2. Program committee reviews all applications and identifies approximately 25 applications for LMI verification.
  3. LMI verification completed.
  4. Request for funds is sent to state.
  5. Business grants funded.

The city and EDC know speed is important and are working as quickly as possible to get the grant funds to businesses efficiently while still adhering to the federal/state regulations.

Additional Details on the Primary Objective: The funding source is federal Community Development Block Grant (CDBG) through the state’s Office of Community and Rural Affairs (OCRA). The federal national objective is to benefit low-to moderate- income people (LMI) through job retention. 51% of the jobs retained through the city’s program (all business grants) must be held by LMI individuals. Furthermore, the business grant recipients will also need to submit a letter stating: “but for these CDBG funds these jobs would have been lost.”

What is LMI in Henry County (based on family income)?
A one person household, $36,150
Two people, $41,300
Three people, $46,450
Four people, $51,600
Five people, $55,750
Six people, $59,900
Seven people, $64,000
Eight people +, $68,150

Example: A family of four can make up to $51,600 and be considered low to moderate income for the purposes of this grant program.  A retained job contributes to the 51% LMI requirement if the family income of the person holding the job is $51,600 or less.  There will be a simple tracking form provided to employers to accomplish this record keeping.

Questions:
New Castle Henry County EDC
765-521-7402 (messages checked regularly)
cmurphy@growinhenry.com