Community-Based Economic Development

The Legislature created a Community-Based Economic Development (CBED) Program in the Department of Business, Economic Development & Tourism with Act 111, SLH 1991, codified as Chapter 210D, Hawaii Revised Statutes.

CBED logoThe CBED Program offers loans, grants and technical assistance to eligible non-profit, geographic, cultural or economic-based community groups to develop viable, sustainable business ventures that serve local needs and are compatible with the vision, character, and cultural values of their communities.

Community Based Economic Development is a strategy for addressing the needs of low-income communities. As the dialogue about incorporating community vision and values into present day Hawaii continues, CBED stands out as a necessary strategy to achieve those goals by bringing community empowerment and increased capacity, as well as conservation of local resources. CBED is a proven strategy that is different than traditional economic development because it emphasizes community reinvestment and opportunities. CBED is a complete process that not only addresses a community’s economic needs, but its social needs as well. CBED strategies help maintain Hawaii’s cherished quality of life for its residents for the long term while community-based organizations (CBOs) provide social services and ecosystem services that make a locality attractive to new and appropriate investment and economic development.

Development Grants for Non-Profits

Recognizing the value of “grassroots” planning, support and decision-making, the Hawaii State Legislature created the CBED program and revolving fund in 1990.

The Program offers loans, grants and technical assistance to eligible non-profit, geographic, cultural or economic-based community groups. These groups can develop viable, sustainable business ventures that serve local needs and are compatible with the vision, character and cultural values of their communities.

Mission Statement

Successful community-based economic development integrates viable economic projects to promote a community’s vision for its future health and quality of life.

The CBED program provides training and capacity building opportunities to promote, support, and invest in community-based development projects that result in measurable economic impact.

Progress / Accomplishments

Since its inception, Hawaii’s CBED Program has demonstrated the effectiveness of community-based economic development in Hawaii. Accomplishments from 1991 through 2009 include:

  • Every dollar of State funds invested in communities through the CBED Program has been matched by an average of 11 (eleven) dollars of financing from over 30 different sources.
  • Over $3.4 million has been committed to more than 143 community-based organizations statewide.
  • In FY2001, community-based organizations reported projects generating 93 new jobs or businesses.

CBED Grant Minimum Eligibility Requirements and Allowable Expenses

Project Match Grant (PMG):

  • Non-profit or Cooperative Association status
  • A CBO (a membership-based organization)
  • Economic Development outcome
  • PMG application

Planning & Organization Development (POD):

  • Have applied for IRS status or arranged sponsor within 6 months
  • Forming a CBO or is a CBO
  • Show economic development potential
  • POD application

Allowable Expenses:

  • Equipment rentals
  • Planning
  • Promotion/Advertisement
  • Air or ground travel with justification
  • Research and Survey expenses
  • Technical, Training & Planning Consultants
  • Board or Member training curriculum development
  • Compensation for staff for project related activities

Non-Allowable Expenses:

  • Facilities (maintenance, improvements, operating expense, etc.)
  • Construction
  • Utilities
  • Insurance
  • IRS and State application fees
  • Equipment purchases
  • Rent (Office/ Bldg)
  • Normal operating expenses

Hawaii Administrative Rules, Act 111 SLH1990

 

For more information regarding the Community Based Economic Development Program, contact Wayne Thom at wthom@dbedt.hawaii.gov

 

 

CBED Advisory Council Members

Carol M. Jung

Attorney at Law

West Hawaii
Exp: 6/30/13

Mary Ann Manahan

Oahu
Exp: 6/30/15

Michael J. Murakoshi

Kauai
 Exp: 6/30/14

Sharon Sakamoto

Oahu
Exp: 6/30/15

Joda P. Derrickson

Representative for Chair Collette Machado 
Office of Hawaiian Affairs

Kauai
Exp: 6/30/14

Hans H. Chun

Oahu
Exp: 6/30/13

Dennis Ling

Representative for Director Richard C. Lim
Dept. of Business, Economic Development & Tourism

 

Dean Matsukawa

Representative for Chairman Russell S. Kokubun
Dept. of Agriculture

 

Jennifer L. Zelko

East Hawaii
Exp: 6/30/14

Vacant

Lanai

JoAnn Inamasu

Maui
Exp: 6/30/15

Stephanie Crivello

Molokai
Exp: 6/30/13