The purpose of this guidebook is to help elected leaders of small towns and communities stretch their investments when matching funds are required to compete for a grant or to pay for development costs above the grant award itself. The federal "small cities" Community Development Block Grant (CDBG) is used as an example throughout the guide because it is the largest and perhaps most accessible grant program available to small and rural governments. CDBG funds may be used for economic development, public facilities, housing renovation, and other eligible activities. There are two primary methods to minimize local matching expenditures: (1) attracting money from other private and public sources; and (2) cutting unnecessary planning, project, and management costs. The guidebook discusses the concept of "leveraging" which enables a community to attract the most outside dollars for each dollar of local investment. It also identifies some of the specific financing sources used most often to provide matching funds for CDBG activities. The booklet mentions some frequently overlooked state and local resources, as well as some commonly-known federal grant and loan programs. The guide also examines a new approach to public management that is rooted in "old-fashioned common sense." By starting with a common definition of "entrepreneurial," grant recipients of all sizes are encouraged to examine the productivity of each dollar they invest in planning, administration, construction, and related costs. (TES)