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RICHMOND - Governor Bob McDonnell today announced the awarding of $300,000 in Community Development Block Grant (CDBG) funds to the City of Galax to support the expansion of the Vaughan-Bassett Furniture Company. The project will provide for infrastructure improvements to relocate two blocks of South Railroad Avenue to support a 50,000 square foot expansion of the existing furniture facility.
Speaking about today’s announcement, Governor McDonnell commented, “I am pleased to see that business is growing and thriving in Galax. With the expansion of Vaughan-Bassett Furniture Company by the funds provided through this block grant, 30 new jobs will be created in addition to the 631 jobs already in place. These block grant funds will provide for necessary infrastructure improvements and the installation of high-speed broadband connections necessary for the successful expansion of operations.”
The CDBG is a federally-funded grant administered by the Virginia Department of Housing and Community Development (DHCD) since 1982. Virginia receives up to $19 million annually for this “small cities” CDBG program. Nearly 300 localities in Virginia who do not receive CDBG funds directly from the federal government are eligible for CDBG funding from DHCD.
“Community Development Block Grant awards allow us to help communities provide infrastructure and other improvements that attract new businesses, or to encourage existing businesses to grow and expand,” said DHCD Director Bill Shelton. “Through important economic development initiatives like this, we are able to help create safe, affordable, and prosperous communities in which Virginians can live, work and do business.”
This award is funded through the CDBG Community Economic Development Fund. Projects awarded under this fund require subject businesses to meet a number of criteria, including those focused on the minimum number of jobs created, amount of private investment, wages and benefits, and more. At least 51percent of all jobs created must be targeted to low-to-moderate income persons.