N.H. Admin. Code § Cdfa 307.01

Current through Register No. 44, October 31, 2024

Section Cdfa 307.01 - Administrative Requirements

(a) Notwithstanding the fact that Cdfa 306.01 applies to community development grants, the administrative requirements set forth in Cdfa 306.01(b), (d), (f), (g), (h), (i), (j), and (m) shall apply to each economic development application.

(b) CDBG funds awarded to a municipality in this category shall not exceed $500,000 for a one year grant(s).

(c) Eligible activities for economic development grants shall include:

(1) Acquiring, constructing, reconstructing, or rehabilitating commercial or industrial buildings;

(2) Purchasing machinery and equipment;

(3) Training of employees when conducted under the following circumstances:

a. As a public service pursuant to Cdfa 306.05(a)(1); or

b.When new jobs are being created and there is a lack of skilled persons in the labor market to fill the new jobs;

(4) Acquiring land;

(5) Making public facility improvements; and

(6) Any other activity that the authority determines to be consistent with the national objectives in 42 U.S.C. 5304(b) of the federal act.

(d) The following shall be eligible for financial assistance from the grantee:

(1) For-profit subrecipients; and

(2) Non-profit subrecipients.

(e) For-profit subrecipients shall be eligible to receive financial assistance under at least one or more of the following conditions:

(1) The assistance shall meet the objectives in 24 CFR 570.482(e)(2);

(2) The assistance is used solely for the added cost to be incurred by the business as a result of hiring unskilled workers and training them; or

(3) The assistance is used solely for teaching higher skills to existing employees in order to retain them.

(f) Non-profit subrecipients shall be eligible to receive financial assistance under the following conditions:

(1) Where the assistance shall meet the objectives in 24 CFR 570.482(e)(2);

(2) Where the assistance shall be for the purpose of loaning funds to a business and capitalizing a revolving loan fund with the repayments; or

(3) Where the assistance shall be for the acquisition or improvement of land or buildings owned by the non-profit.

(g) Municipalities without any subrecipient shall be eligible to receive financial assistance where the assistance is for the purpose of making public facility improvements in support of economic development.

(h) In order to be considered for an economic development grant the applicant shall:

(1) Document the expected rate of return to the business ownership, relative to the industry in which it is participating;

(2) Document through proformas and financial projections for the business that an adequate cash flow shall exist to repay the debt resulting from the project as well as any other debt that the business has incurred; and

(3) Include a detailed analysis prepared by a certified public accountant or a certified economic development professional documenting the cash value of the CDBG assistance to the business.

(i) Grantees or subrecipients shall neither propose nor provide grants to for-profit businesses or organizations.

(j) Applications shall include documentation that demonstrates that the project is feasible.

(k) Documentation required pursuant to (j) above shall, at a minimum, include the following:

(1) A description of management capabilities and qualifications;

(2) Financial history that is sufficient to determine the following:

a.The operating cycle;

b.Cash flow;

c.Cash management;

d.Permanent working capital;

e.Use of discretionary funds;

f.Profit and loss projections; and

g.Balance sheet projections;

(3) Market plans and projections; and

(4) Confirmed project component costs by an engineer or an independent appraiser.

(l) Applications shall be accepted on a year round basis and shall be scored according to Cdfa 310.13.

N.H. Admin. Code § Cdfa 307.01

(See Revision Note at chapter heading for Cdfa 300) #8387, eff 6-29-05