The City of Delray Beach is allocating up to $680,000 of the UDAG funding towards the economic development initiative. The maximum request is $35,000 per job created, including copies of lease ledger and salary verification. Application deadline is September 30, 2024.

Eligible Uses of Grant Award:

• Salary/Payroll for job creation and/or retention
• $35,000 maximum award, subject to funding availability (*Criteria must be met)

Eligibility Business Requirements:

Businesses are ELIGIBLE to apply for a one-time UDAG Business Assistance Grant if:

• It is defined as a “microenterprise” a commercial enterprise that has five (5) or fewer employees, one (1) of whom is the owner.
• Overall Benefit to Low-Moderate Income (LMI) Persons. (III.B.5. (d)(iv) Overall Benefit to LMI Persons.
• Has an Active Delray Beach Business Tax Receipt and/or  Palm Beach County Business Tax Receipt, if applicable, or is Exempt from filing a Business Tax Receipt with the Palm Beach County Tax Collector *You can renew your Business Tax Receipt online if it is not currently active; If you do not have a Palm Beach County Business Tax Receipt, please contact the Palm Beach County Tax Collector at 561-355-2264 or Delray Beach at 561- 243-7203 select option 4.
• Full-Time Equivalency (FTE) is calculated as one or more employee’s hours to equal 40 hours per week. Verified by W-2.
• Must create or retain at least one (1) full-time permanent job per $35,000 of UDAG funds invested.
• Duplication of benefits are prohibited. (Form Attached)

National Objective:

Under federal regulations, the use of UDAG funds for microenterprise activities must meet the national objective of benefit to low/moderate (“low/mod”) income persons under the Limited Clientele definition at the time of household income certification and for up to 6 months following certification. As such, all microenterprise owner households must be documented as employees of the business and meet Housing and Urban Development (HUD)’s low/mod household income definition prior to receiving any Program services. This is in addition to meeting the “definition” of a microenterprise, as described above. City Staff will verify that microenterprise owner(s) meet HUD’s low/mod income household requirement by completing the HUD 24 CFR Part 5.609 income verification process. Business Assistance program applicants must submit documentation to complete the income verification process, when applicable, to determine program eligibility as requested by City staff (included in Appendix C of the application). This information will be kept confidential to the extent permitted by law but will be used to determine program eligibility. Separate files will be maintained by the City for each Business application. As with other program activities, if the City determines that the applicant's household income information is not accurate, is over HUD’s income limits, is using funds for ineligible activities, or is disqualified from receiving federal assistance, then all program services will cease immediately, and any allocated funds will be due and payable immediately.

What You Will Need to Apply

Completed Business Financials

• Individuals: Sole Proprietors, Independent Contractors, Individual/Single-Owner Limited Liability Companies

- 2023 Individual Income Tax Return* (Form 1040), including Schedule C and all other schedules/statements submitted with the tax returns to the IRS; and

- 2022 Individual Income Tax Return* (Form 1040), including Schedule C and all other schedules/statements submitted with the tax returns to the IRS;  and

- Any payroll forms submitted to the IRS if you have employees other than yourself and

- Active Palm Beach County Business Tax Receipt, or Exemption if applicable; and/or Delray Beach Business Tax Receipt and

- For Individuals using a Fictitious Business Name:  An Active State of Florida Division of Corporations Record as shown on SunBiz.org

• Corporations:  C-Corps, S-Corps, and Limited Liability Companies

- 2023 Corporate Income Tax Return* (Form 1120), including all schedules/statements submitted to the IRS; or

- 2022 Corporate Income Tax Return* (Form 1120), including all schedules/statements submitted to the IRS if the 2022 Corporate Income Tax Return is not filed; or

- 2023 Income Tax Return for an S Corporation* (Form 1120-S), including all schedules/statements submitted to the IRS; or

- 2022 Income Tax Return for an S Corporation* (Form 1120-S), including all schedules/statements submitted to the IRS if the 2022 Income Tax Return for an S Corporation is not filed; and

- 2023 Transmittal of Wage and Tax Statements (Form W-3) Employer's Quarterly Federal Tax Return for 4th Quarter 2023 (Form 941) ; or

- Employer's Quarterly Federal Tax Return for most recent Quarter 2023 (IRS Form 941); or

- Any other payroll forms submitted to the IRS; and

- Active Palm Beach County Business Tax Receipt; and/or Delray Beach Business Tax Receipt

- Palm Beach County Business Tax Receipt Exemption; and

- An Active State of Florida Division of Corporations Record as shown on SunBiz.org

• Partnership

- 2023 Return of Partnership Income* (Form 1065); or

- 2022 Return of Partnership Income* (Form 1065) if 2022 Return of Partnership Income is not filed; and

- 2023 Transmittal of Wage and Tax Statements (Form W-3); or

- Employer's Quarterly Federal Tax Return for most recent Quarter 2023 (IRS Form 941); or

- Any other payroll forms submitted to the IRS; and

- Active Palm Beach County Business Tax Receipt; and/or Delray Beach Business Tax Receipt

- Written Statement attesting to your business Exemption; and

- For Partnerships using a Fictitious Business Name: An Active State of Florida Division of Corporations Record as shown on SunBiz.org 

* Note: All Returns must be SIGNED and DATED or must include a completed IRS e-file Signature Authorization (Form 8879) to demonstrate it was submitted electronically to the IRS.

• Lease Agreement
• W-2 for employee being retained.
• Bank Statements – Three (3) months of checking account/Most recent savings statement
• Business Tax Receipt as required for company/licensure type

Applying for the Program:

• You will access, complete, and submit the Application through the City of Delray Beach Neighborhood Services Page
• You will be required to attach the required documentation as part of the application completion and submission process
• Please gather all required documentation prior to applying;
• Applications will be reviewed on a first-come, first served basis
• Access to the portal will be available until 5 PM September 30, 2024.

Certification of Household Income (Must be met by employee being retained)

Household Size and Income Categories to be served:

For more information regarding the program, please contact Neighborhood Services staff at communityneighborhood@mydelraybeach.com. Hours of operation are Mon-Friday 8 AM - 5 PM. Thank you.

Online Application

Urban Development Action Grant (UDAG) Business Assistance Online Application