The Seattle City Council has approved to allow the expenditure of $3.2 million in Community Development Block Grant funds by amending amend the City’s approved 2009 budget.

The City will receive these funds as part of the Federal Economic Stimulus Funding Legislation, known as the American Recovery and Reinvestment Act of 2009.

The money will support small business lending and facilities improvements for local food banks, child care programs, a teen parent home, and rental housing for seniors, according to the city.

“In order to get our local economy back on track, we have to provide direct monetary support to small businesses and funding for organizations helping people impacted by the economic slow-down,” said Council member Richard McIver, chair of the council’s Housing and Economic Development Committee.  “I am pleased that federal stimulus monies have been made available to give Seattle citizens and small business owners the support they need during these difficult times.”

The $3.2 million in Community Development Block Grant funding will go toward:

Small Business Lending:  $1.4 million will go toward providing small businesses with needed access to credit, with a focus on creating jobs and providing services to disadvantaged communities. Fifty-one percent of the jobs created are targeted to low- to moderate-income people.

Community Facilities Improvements:  $946,000 will be used to make one-time capital improvements to community facilities delivering basic services by renovating a food bank and a meal program space, and expanding capacity within a child care center and a teen parent home.

Multifamily Rental Housing Capital Development:  $850,000 will fund needed repairs to two buildings that are part of the Seattle Senior Housing Program (SSHP) managed by the Seattle Housing Authority (SHA). Funds will also leverage investments at 5 additional SSHP sites.