Program aims to improve economy in Richland County, Montana

Tod Kasten, Montana Department of Commerce regional development officer, Circle, visited Richland County Commissioners Monday for the annual public hearing on the Community Development Block Grant – Economic Development (CDBG-ED).

By Ellen Robinson

Sidney Herald

http://sidneyherald.com/articles/2004/05/12/news/news03.txt

The program is designed to stimulate economic development activity. The CDBG-ED stimulates development by assisting Montana’s private sector with the purpose of creating or retaining jobs for low- and moderate-income residents.

The maximum amount awarded is $400,000 to a single entity. The CDBG-ED grant money is primarily for business and is intended to be a funding gap stop. The end purpose of the grant is to create full-time positions paying $25,000 a year, according to the Montana Department of Commerce.

"We are looking at the long term here, not something like construction projects that hire employees for six months to complete a project," Kasten said. "With public infrastructure projects, we look to see if it assists businesses in keeping jobs that would otherwise be lost or if it will produce more jobs."

CDBG-ED funds are intended to be used in situations where a funding gap exists, and alternative sources of public and private financing are not adequate.

Businesses must work with local governments to apply for CDBG-ED funds on behalf of the businesses, according to the Montana Department of Commerce.

"I am here because we want to know how we can help Richland County and to let the local businesses know the program is available. We solicit input in all stages of the game. It’s extremely important to find out what the needs and wants of the community and businesses are. We try to help solve some of the problems they face," Kasten said.

"I am here because we want to know how we can help Richland County and to let the local businesses know the program is available. We solicit input in all stages of the game. It’s extremely important to find out what the needs and wants of the community and businesses are. We try to help solve some of the problems they face," Kasten said.

Eligible activities for use of grant money include loans to business, customized employee training, technical assistance and business infrastructure projects.

Loans can be made to businesses for acquisition, construction, installation or rehabilitation of commercial and industrial buildings, facilities, equipment or working capital.

"The loans are friendly to businesses. The money is flexible, interest is 5 percent, and they are fixed rate loans, with beneficial terms and rates," Kasten said.

With the customized training grant money, the intent is to assist businesses in providing needed skills and better-paying jobs for their workers. The goal is to facilitate the growth of companies in Montana, increase wages for trained workers, increase employee productivity, and assist in the skills development of employees, according to the Montana Department of Commerce.

"When we are talking about training employees for work, we are talking about getting them certified to do a job," Kasten said.

Leslie Messer, Richland Economic Development, said, "We have a willing labor force but we need training for them."

The loan application is an open cycle starting every April when the Montana Department of Commerce receives the federal funds.

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