The State of Small Business Support Funding in 2024

Evolving Priorities in Community/Economic Development Funding

The Banking Institution's Grants to Focus on Sustainable Community and Economic Development reflect shifting priorities in the community/economic development landscape. As the Foundation aims to make New Hampshire a more just, sustainable, and vibrant community, its funding strategies are adapting to emerging trends and challenges. The community development block grant (CDBG) program, a significant source of funding for such initiatives, is influencing these trends. Notably, the CDBG program's focus on housing, economic development, and community facilities is driving the priorities of grantees.

One key trend is the increased emphasis on partnership development grants that bring together diverse stakeholders to tackle complex community issues. This is reflected in the funder's support for collaborations that leverage resources and expertise to drive meaningful change. For instance, the USDA rural development grant has been instrumental in fostering partnerships between rural communities and organizations to address unique development challenges. As a result, applicants should be prepared to demonstrate their ability to form and maintain effective partnerships.

Capacity Building and Resource Requirements

To effectively deliver community/economic development projects, organizations must have the necessary capacity and resources. The funder is prioritizing initiatives that demonstrate a clear understanding of their capacity requirements and a plan to address potential gaps. This includes having the right staffing, infrastructure, and resource allocation to ensure successful project delivery. For example, organizations applying for CDBG funding must demonstrate their ability to manage complex projects and comply with federal regulations, such as the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR 200).

One verifiable delivery challenge unique to this sector is the need to balance the competing demands of different stakeholders, including community members, local government, and funding agencies. Effective project management and communication strategies are critical to navigating these challenges. Organizations should also be aware of the eligibility barriers and compliance traps associated with community development block grants. For instance, failure to comply with CDBG regulations can result in the loss of funding or reputational damage.

Measuring Success in Community/Economic Development

To assess the impact of their investments, the funder is requiring grantees to report on specific outcomes and key performance indicators (KPIs). These may include metrics related to job creation, housing development, or community engagement. Applicants should be prepared to articulate their measurement strategy and demonstrate their ability to collect and report on relevant data. The CDBG program's emphasis on outcome-based reporting is driving this trend, and applicants should familiarize themselves with the CDBG National Objectives and the types of outcomes that are typically measured.

As the community/economic development landscape continues to evolve, applicants must stay attuned to emerging trends and priorities. By understanding the funder's priorities and the challenges associated with community development block grants, organizations can position themselves for success and make meaningful contributions to the field.

Q: How do I determine if my organization's project is eligible for funding under the CDBG program? A: Review the CDBG National Objectives and ensure your project aligns with one or more of the eligible categories, such as housing, economic development, or community facilities. Q: What types of partnership development grants are most likely to be funded? A: The funder is prioritizing collaborations that bring together diverse stakeholders to tackle complex community issues, such as affordable housing or workforce development initiatives. Q: What are the most significant compliance risks associated with CDBG funding, and how can I mitigate them? A: Common compliance risks include failure to meet federal regulations, such as 2 CFR 200, and inadequate reporting. To mitigate these risks, ensure you have a robust compliance framework in place and seek guidance from experienced professionals as needed.