What do “matching contribution” and the requirement for “a minimum of one-to-one leverage ratio” mean?
ADM applicants must contribute resources of equal or greater value to the proposed project than they are requesting from the ADM. For example, a request for a $100,000 ADM grant must be “matched” with a contribution of at least $100,000 from the applying partners. However, while this matching contribution must include a financial component, it can also include “in-kind” contributions. So, for instance, applicants could provide a matching contribution of a $50,000 loan from a bank, $25,000 cash investment and land and machinery used during the course of the grant that is equal in value to $25,000. Be sure to include the monetary value of all “in-kind” contributions in the proposal in the “Notes” of the Financial Section of the ADM application. Applicants are encouraged to submit focused proposals.
