Infrastructure Grant Program

     Non-entitlement local governments may apply for the State Economic Development Grants to provide public infrastructure to facilitate the location of a new or expanding industry.

Advantages

•Grant to community for infrastructure development to assist new or expanding industry.

Use of funds

•Public infrastructure to facilitate location or expansion of industry, e.g.:

—water lines.

—sewer lines.

—access road.

source of funds

•Alabama Department of Economic and Community Affairs (ADECA).

•Community Development Block Grant (CDBG).

•State/Federal Government.

Interest rate

•None--this is a grant.

Maturity term

•None--this is a grant.

Limits

•$35,000-$200,000 grant available per project.

•Project must generally fall in SIC Code 20 through 39, or consist of major warehousing or distribution centers.

•Project must include local public match of at least 20% of requested grant.

—Amount may be reduced to 10% of project cost where applicant's 1990 population (as determined by Census Bureau) was 1,000 or less and 1989 per capita income (as estimated by Census Bureau) was $11,500 or less.

—Where applicant's population is 1,000 or less and per capita income is $8,000 or less, no match will be required.

•Proposed project must not involve intrastate relocation of industry, except when such relocation may have been necessitated by inadequacies associated with existing location and move to new location will result in a greater number of jobs created.

•Grants from Economic Development Grant fund for infrastructure will not be made in cases where construction of private facility has begun prior to grant award or earliest possible date of Release of Environmental Conditions by ADECA.

Eligibility

•Non-entitlement local governments with commitment from industry to create jobs.

Ineligible

•Entitlement areas receiving community development block grant funds directly from federal government.

General

•Applications may be submitted any time during program period.

•Applications funded on an "as needed" basis.

•State maintains the right to deny funding of any application (determined by quality of project).

Job creation

•Fifteen or more jobs.

•At least 51% of project beneficiaries must be from low- and moderate-income households.

Source: Alabama Development Office