Economic Adjustment Assistance (11.307)
Program
11.307 Economic Adjustment Assistance
Federal Agency
Agency: Department of Commerce
Office: Economic Development Administration
Authorization
Section 209 of the Public Works and Economic development Act of 1965, as amended (PWEDA), (42 U.S.C. 3149).
Program Number
11.307
Last Known Status
Active
Objectives
To address the needs of distressed communities experiencing adverse economic changes that may occur suddenly or over time, and generally result from industrial or corporate restructuring, new Federal laws or requirements, reduction in defense expenditures, depletion of natural resources, or natural disaster. Economic Adjustment Assistance grants are intended to enhance a distressed community's ability to compete economically by stimulating private investment in targeted areas. Current investment priorities include proposals that a) enhance the competitiveness of regions in the global economy by supporting existing industry clusters, developing emerging new clusters, or attracting new regional economic drivers; (b) support technology-led economic development and reflect the important role of linking universities and industry and technology transfers; and (c) advance community-and faith-based social entrepreneurship in redevelopment strategies for regions of chronic economic distress.
Types of Assistance
PROJECT GRANTS
Uses and Use Restrictions
The Economic Adjustment Assistance Program provides a wide range of technical, planning and public works and infrastructure assistance in regions experiencing adverse economic changes that may occur suddenly or over time. This program is designed to respond flexibly to pressing economic recovery issues and is well suited to help address challenges faced by U.S. communities and regions. Indirect costs are not allowed. All EDA grants are discretionary. EDA does not award federal grants.
Eligibility Requirements
Applicant Eligibility
Eligible applicants for EDA investment assistance include a State, city, county, or other political subdivision of a State, including a special purpose unit of a State or local government engaged in economic or infrastructure development activities, or a consortium of such political subdivision, an institution of higher education or a consortium of institutions of higher education, an Economic Development District organization, a private or public nonprofit organization or association, including a faith-based non-profit organization, acting in cooperation with officials of a political subdivision of a State, or an Indian Tribe, or a consortium of Indian Tribes. Individuals, companies, corporations, and associations organized for profit are not eligible. As used in this paragraph, 'State' includes the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau.
Beneficiary Eligibility
None. Investments are intended to alleviate long-term deterioration and sudden and severe economic dislocation in distressed communities and regions.
Credentials/Documentation
To be considered for EDA investment assistance, applicants must submit a completed EDA application package.
For all projects deemed to merit further consideration, the applicant will be required to submit a copy of the region's CEDS and letters of commitment to document local match. For EA projects involving construction, the applicant will also be required to submit: a USGS map of the project site, letters of commitment from private beneficiaries of the proposed project; comments from the metropolitan area review/clearinghouse agency; a legal opinion documenting project ownership, operation, maintenance, and management; an engineering report; an environmental narrative; and documented approval from the State Historic Preservation Officer (SHPO). For requests for Revolving Loan Fund assistance which EDA deems to merit further consideration, EDA will request an RLF Plan. Non-profit applicants will be required to submit additional paperwork. OMB Circular No. A-87 applies to this program.
Application and Award Process
Preapplication Coordination
Preapplication coordination is not applicable. An environmental impact assessment is required for this program. This program is excluded from coverage under E.O. 12372.
Application Procedure
OMB Circular No. A-102 applies to this program. OMB Circular No. A-110 applies to this program.
Award Procedure
Staff in the applicable EDA regional office review applications for eligibility and compatibility with EDA's mission and funding priorities. Applications deemed eligible and at least minimally consistent with EDA's mission and funding priorities are referred to an Investment Review Committee, which recommends applications for funding to the Regional Director. The Regional Director makes a funding determination and sends a recommendation to EDA Headquarters for concurrence.
Deadlines
Not Applicable.
Range of Approval/Disapproval Time
Requests for Economic Adjustment Assistance that do not contain a construction component will generally receive a response within 4 months. For projects involving construction, applicants will generally receive notification that their request for assistance has been declined or receive a notification that EDA has determined that their project merits further consideration within 120 days. The length of time that elapses between the notification that a project merits further consideration and actual grant award varies considerably based on the time required for the applicant to gather and submit the requested additional materials (e.g. environmental narrative, engineering reports, etc.) and the time required for EDA to assess this information.
Appeals
Not Applicable.
Renewals
Not Applicable.
Assistance Considerations
Formula and Matching Requirements
This program has no statutory formula.
Matching Requirements: Generally, the amount of the EDA grant may not exceed 50 percent of the total cost of the project. Projects may receive an additional amount that shall not exceed 30 percent, based on the relative needs of the region in which the project will be located, as determined by EDA.
In the case of EDA investment assistance to a(n) (i) Indian Tribe, (ii) State (or political subdivision of a State) that the Assistant Secretary determines has exhausted its effective taxing and borrowing capacity, or (iii) non-profit organization that the Assistant Secretary determines has exhausted its effective borrowing capacity, the Assistant Secretary has the discretion to establish a maximum EDA investment rate of up to 100 percent of the total project cost.
This program does not have MOE requirements.
Length and Time Phasing of Assistance
The period of performance is as stated in the award terms and conditions, although it rarely exceeds five years. See the following for information on how assistance is awarded/released: As stated in the award terms and conditions. Construction assistance is always on a reimbursement basis.
Post Assistance Requirements
Reports
No program reports are required. No cash reports are required. As stated in the award terms and conditions. If construction is included in the project, quarterly reports on the progress of construction are required. EDA requires the submission of the SF-425 Federal Financial Report. EDA reserves the right to conduct site visits.
Audits
In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. Single or program-specific audits shall be performed in accordance with the requirements contained in OMB Circular A-133, “Audits of States, Local Governments, and Non-Profit Organizations,” and the related Compliance Supplement. OMB Circular A-133 requires any non-federal entity (i.e., non-profit organizations, including non-profit institutions of higher education and hospitals, States, local governments and Indian tribes) that expends federal awards of $500,000 or more in the recipient’s fiscal year to conduct a single or program-specific audit in accordance with the requirements set out in the Circular.
Records
All financial and programmatic records, supporting documents, statistical reports and other records of recipients and sub-recipients are required to be maintained by the terms of the agreement.
Program Accomplishments
Not Applicable.
Financial Information
Account Identification
13-2050-0-1-452.
Obligations
(Project Grants) FY 08 $48,051,464; FY 09 est $185,849,918; FY 10 est $135,000,000 - Current Fiscal Year, 2009, estimate includes American Recovery and Reinvestment Act (ARRA) obligations.
Range and Average of Financial Assistance
The average size of an Economic Adjustment investment in FY 2008 was approximately $468,150. However, this average is informational only and is not intended to restrict the size of future awards.
Regulations, Guidelines and Literature
13 CFR Parts 300-302, 307.
Related Programs
11.300 Investments for Public Works and Economic Development Facilities; 11.302 Economic Development_Support for Planning Organizations; 11.303 Economic Development_Technical Assistance
Information Contacts
Regional or Local Office
See Regional Agency Offices.
Headquarters Office
Maureen Klovers 1401 Constitution Ave, N.W. Room 7019, Washington, District of Columbia 20230 Email: mklovers@eda.doc.gov Phone: 202-482-2785
Web Site Address
Examples of Funded Projects
Fiscal Year 2008: No Current Data Available Fiscal Year 2009: For a list of recent investments, see EDA's website at http://www.eda.gov/NewsEvents/NewInvestments.xml. Fiscal Year 2010: No Current Data Available
Criteria for Selecting Proposals
EDA will review all investment applications for the feasibility of the budget presented and conformance with EDA statutory and regulatory requirements. EDA will assess the economic development needs of the region in which the proposed project is located, as well as the capacity of the applicant to implement the proposed project. Furthermore, EDA will select proposals competitively based on strategic areas of interest and priority considerations identified in the applicable announcement of federal funding opportunity (FFO).
