Community Development Block Grant (CDBG) Business Assistance Loan Program

Low-Interest Loans to Support Retention and/or Creation of Low-Moderate Income Jobs

The Community Development Block (CDBG) Grant Program is administered by the California Department of Housing and Community Development (HCD). The primary federal objective of the CDBG program is the development of viable urban communities by providing decent housing and a suitable living environment and through expanding economic opportunities, principally, for persons of low- and moderate-income. “Persons of low and moderate income” are defined as families, households, and individuals whose incomes do not exceed 80 percent of the county median income, adjusted for family or household size.

Periodically throughout the years, the City has been awarded funding from the CDBG program to administer a Business Assistance Loan Program. The City is currently utilizing CDBG Program Income to fund the continuation of the Business Assistance Loan Program. The program will begin accepting applications in February 2026, and applications will be processed on a first come, first served basis until July 2028 or until funds are exhausted, whichever occurs first.

​Funds can typically be used for purchase of equipment, real property, working capital, debt consolidation, and construction (construction is subject to prevailing wage / Davis Bacon Labor Law requirements).

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• Interest rates from 2.5% to 5%

• Flexible repayment terms are based on capacity to repay​

• Loans from $35,000 up to $210,000

• For every $35,000 loaned, at least one job is created or retained

• At least 50% of jobs created or retained are filled by low-moderate income persons

• Repaid funds become CDBG Program Income, which can then be used for other CDBG-eligible activities​