Sending Office: Honorable Ron Kind
DEADLINE MARCH 15th.
Current Signers: Rep. Gwen Moore, Rep. Danny K. Davis, Rep. Darren Soto, Rep. Pingree, Rep. Cardenas, Rep. Cohen, Rep. Sewell, Rep. Donald M Payne JR, Rep. Ellison, Rep. DeSaulnier, Rep. Al Green
The Community Economic Development (CED) program is unique among federal development programs in that its principal purpose is to target job creation for low-income individuals. The CED program is authorized in the Community Services Block Grant Act and
is administered by the Department of Health and Human Services.
CED grants are made to local Community Development Corporations (CDCs) that use these funds to finance businesses that commit to creating jobs for low-income individuals. CDCs typically leverage $7 in private sector capital for every $1 in federal funds
to finance a range of businesses, including commercial and industrial facilities, healthy food commercial and distribution facilities, community facilities, mixed-use development and small business loan funds. The result is over $100 million of financing
to businesses and projects in some of the poorest urban and rural communities in America and the creation of thousands of jobs for low-income people.
As Congress turns to appropriations for Fiscal Year 2019, it is our hope that appropriators will maintain the FY16 appropriation of $29.883 million for Community Economic Development Grants.
The attached letter urges the House Appropriation Committee to maintain funding for this important program. If you wish to sign please contact Ethan Holmes at email@example.com or 202-225-5506.
Member of Congress
Hon. Tom Cole, Chairman
Hon. Rosa DeLauro, Ranking Member
Appropriations Subcommittee on Labor-HHS& Education
US House of Representatives
Dear Chairman Cole and Congresswoman DeLauro:
We write to express our support for Community Economic Development (CED) authorized by the Community Services Block Grant Act. We request the Fiscal Year 2019 appropriation of $29.883 million for CED.
Under this program, local Community Development Corporations (CDCs) provide financing for business and development activities designed to address the economic needs of low-income individuals by creating employment and business development opportunities.
CDCs use CED funds with other sources of public and private capital to finance commercial and industrial facilities, small businesses, and mixed-use projects
The CED program is the only federal economic development program with a principal purpose of job creation for low-income individuals. For this reason, the job creation program standards required are the most stringent among federal community development
programs. Most federal agencies have cost per job targets at $40-50,000. CED regulations require job creation at no more than $20,000 per job and that at least 75% of the jobs created under CED are targeted to low-income individuals.
A recent analysis of over 100 recent grants indicates that the CED program is performing at a high level. Community Development Corporation used to $86 million in CED funds to leverage more than $780 million in other capital that was used to finance the
start-up of 871 new business and the expansion of over 600 existing businesses. This financing results in the creation of 7000 full-time jobs, of which 79% went to low-income individuals at a cost per job of less than $12,500 per job.
We urge you to provide an FY 2018 appropriation for Community Economic Development grants of not less than $29.883 million. Thank you for your attention to this matter.
e-Dear Colleague version 2.0