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� <br />3 <br />The program has two major sources of funds. Qne is t�-�a state-administered allocation <br />of federal Small Cities Development Progz�m gr�nts, a part of the Community I�evelopment <br />BflQck Grant program. The other is the state's Econorr�ic Recovery Grants, a program <br />created in 1984 to supplement the federal funds. Any jurisdiction can apply for funds under <br />the state program. Indian trib�es and the state's largest cities and urban counties are not <br />eli��ble ta receiv�e funds from th�e federal gart of the program because they may receive <br />Community Development Block Grant funds directly from the U. S. Department of Housirrg <br />ar�d �Urban Development.� <br />From, 1984 through late 198� th� Small Citi�s Economic Development Program <br />received ann�al iunding between $$ mil�ion and $9 millian (of this, betvrre�n $5 million and <br />$6 million c.�me fram the state and approximately $3 million came from the federal <br />govarnment). I�uring this period, the program's �dministrators a�pproved gr�nts to 162 cities, <br />counties, townships, and In�dian reservadons, although five af these jurisdicdons later <br />rec�iv� no funding when projects did nat xcur as planned. The administrators approved a <br />�otal of 2�5 grants; eight af these wer� later t�rminated with virtually no funds spent. Local <br />jurisdhctions offered financing to or prepared to undertake projects on behalf of 209 <br />businesses; �e o�f th�se businesses ultic�ately r�ived no financing; ten I�usinesses rec�ivod <br />more than one grant or lo�n. Th� loans or gran�s to businesses ranged f�nm $10,000 to th� <br />Iegal limit of SSOO,Q00.5 <br />'Miz�aesota Statutes, ch. 116J.873 "Econo�ic ltecavery Gra�ts"; �innesota Rules, ch. 4300; "MYnnesnta <br />Small Cities Economic Development Pa�ograr� Applicasion M�aual," especially p. 1; U, S, Code 42, ch. 69, .. <br />"Commuaity Development"; Cod� of Foderal Regulations 24, ch. S, subch. C, pt. 570, 1 April 1988. <br />'Grants approvod for 209 businesses an,d additional g�nts approvod for 10 of the same businesses meant <br />DTED spproved funds on 219 occas6oas for � business or a prnjoct in support of a business. Mike Auger, <br />Director, Small Cities Economic Development Program, Community I2evelapment Division, Mianesota <br />Departmenc of Trade and �conomic Devel�pment, St. Paul, MN, personal commuaication with the author, Feb. <br />� <br />