The Local Government Innovation Fund Council is working to resolve the fact that local governments are applying for more grants than loans from a $45 million fund that allocates “$36 million toward loans for project implementation, with a small portion available for planning and feasibility study grants,” Gongwer reports. As of June, the council had approved “41 grants totaling $3.46 million and 10 loans worth $2.96 million,” the article said. Although it is clear that local governments prefer the grants because they do not involve repayment, members also reasoned that many of the projects are still in the developmental stage and are therefore ineligible to apply for loans for project implementation, the article said. Members discussed whether the unused funds should be reapportioned to allow for more grants, but concluded that this would require the legislature to revise the statute that divides the funding.
Local governments apply for more feasibility grants than implementation loans
