Trade Adjustment Assistance (11.313)
Program
11.313 Trade Adjustment Assistance
Federal Agency
ECONOMIC DEVELOPMENT ADMINISTRATION, DEPARTMENT OF COMMERCE
Authorization
Trade Act of 1974, Title II, Public Law 93-618, as amended, 88 Stat. 1978, 19 U.S.C. 2341-2343.
Program Number
11.313
Last Known Status
Active
Objectives
To provide trade adjustment assistance to firms and industries adversely affected by increased imports.
Types of Assistance
Project Grants.
Uses and Use Restrictions
Under Chapter 3 of Title II, of the Trade Act of 1974, as amended, a firm may petition the Economic Development Administration (EDA) of the Department of Commerce for certification as being impacted by import competition. Interested firms that believe they meet this requirement may contact EDA or one of the 12 EDA funded Trade Adjustment Assistance Centers (TAACs). TAACs will assist firms, at no cost, in completing and submitting a petition to EDA's Planning and Development Assistance Division (PDAD). Before a firm receives technical assistance under the program, the firm must have an adjustment plan approved by EDA. Usually the adjustment proposal, which includes an unbiased diagnostic of the firm's strengths, weaknesses, opportunities and threats, is prepared by the TAAC in cooperation with the firm. The adjustment proposal also identifies technical assistance tasks, which when implemented, will guide the firm toward economic recovery. The adjustment proposal must also demonstrate that the implementation of the technical assistance tasks has a reasonable chance helping the firm recover. The firm must pay at least 25 percent of the TAAC's cost of the preparation of the adjustment proposal. After a firm's adjustment proposal is accepted by EDA, the firm is authorized to apply for technical assistance to implement the recovery strategy. The technical assistance is usually provided by a private consultant, who is jointly hired by the certified firm and the TAAC. The certified firm and the TAAC each typically pay one half of the consultant's fee. The TAAC's total share of technical assistance for a firm, however, is generally limited to $75,000.Organizations representing trade-injured industries are eligible under the Trade Act to EDA for industry-wide assistance. However, since fiscal year 1996 EDA has allocated all of the program funds to support the activities of the national TAAC network. The only recent exception was assistance to the Alaskan Salmon industry, which was funded under a special appropriation for fiscal year 1999.
Eligibility Requirements
Applicant Eligibility
The statute (19 U.S.C. ss 2343 (b)) provides that grants may be awarded to "intermediary organizations (including Trade Adjustment Assistance Centers)" to provide assistance to trade-injured firms. For an industry association or other organizations to be eligible for industry assistance, evidence must be submitted demonstrating that the industry faces import competition and includes a substantial number of Trade Act certified firms or worker groups.
Beneficiary Eligibility
Only manufacturing and producing firms certified by EDA on behalf of the Secretary of Commerce are eligible for trade adjustment assistance under the program. Industries that can demonstrate they have been injured by imports and have a substantial number of Trade Act certified firm or worker groups may also benefit.
Credentials/Documentation
The TAACs act as intermediaries for this program between EDA and the firm. Entities seeking industry wide assistance must contact PDA staff to discuss their needs, describe the import injury and determine if funding is available for industry wide projects.
Application and Award Process
Preapplication Coordination
This program is excluded from coverage under E.O. 12372.
Application Procedure
The 12 TAACs apply each year for funding for the coming fiscal year. Industry associations or other organizations seeking industry assistance must submit an application Standard Form 424, if invited to do so as a result of the meeting with EDA representatives.
Award Procedure
Awards to TAACs are made based upon applications and previous performance. Awards to industries are made based on conformance with program requirements and availability of funds.
Deadlines
There are no deadlines, as long as the application allows enough time for processing to receive fiscal year funds.
Range of Approval/Disapproval Time
Appeals
There is no appeal procedure.
Renewals
TAAC investments are usually renewed; industry grants usually are not renewed.
Assistance Considerations
Formula and Matching Requirements
Federal funds can be used by TAACs for up to 100 percent of administrative expenses in providing technical assistance to firms. The Federal share of implementation assistance to firms is usually 50 percent and normally does exceed $75,000 per firm. Generally, a minimum of 50 percent share (half of which must be in cash) is required for industry assistance cooperative agreements.
Length and Time Phasing of Assistance
Generally one year for TAAC investments and the amount of time needed to complete the project For industry grants. The Trade Adjustment Assistance program is a trade remedy program. It is designed to help firms, which have been injured by increased imports, in regaining their economic competitiveness. Unlike other EDA programs, there is no requirement that the area receiving assistance under the program be suffering from community wide economic distress.
Post Assistance Requirements
Reports
Periodic reporting of operating results and progress, financial statements, and summary of funds spent.
Audits
In accordance with the provisions of OMB Circular No. A-133 (Revised June 24, 1997), recipients that are States, Local Government, Nonprofit Organizations (to include Hospitals), and Institutions of Higher Learning shall be subject to the audit requirements contained in the Single Audit Act Amendments of 1996 (31 U.S.C. 7501-7507). Commercial organizations shall be subject to the audit requirements as stipulated in the award documents. States, local governments, and nonprofit governments that expend $300,000 or more in a year in Federal awards shall have a single or program-specific audit conducted for that year.
Records
Records are required to be maintained for 3 years. All financial and programmatic records, supporting documents, statistical reports, and other records of grantees or subgrantees are required to be maintained by the terms of the agreement. The grantee must retain records for 3 years after completion of the project or submission of the final financial report, whichever is later, and have them readily available for inspection and audit.
Program Accomplishments
In fiscal year 2002, the TAACs provided assistance to firms as follows: 170 firms were certified eligible to receive trade adjustment assistance; 141 adjustment proposals were accepted.
Financial Information
Account Identification
13-2050-0-1-452.
Obligations
(Cooperative Agreements) FY 02 $10,500,000; FY 03 est $13,000,000; and FY 04 est $13,000,000.
Range and Average of Financial Assistance
TAAC investments FY 03 $606,035 to $1,082,913.
Regulations, Guidelines and Literature
Copies of pertinent regulations, guidelines, a TAA information package, and forms are available from the Planning and Development Assistance Division, the Trade Adjustment Assistance Centers (TAACs), or their website, www.taacenters.org. Allowable cost will be determined in accordance with OMB Circular A-87 for State and local governments and Indian Tribes; OMB Circular A-122 for nonprofit and for-profit organizations; OMB Circular A-21 for institutions of higher education; and 48 CFR Part 31 for commercial organizations. Financial assistance management will be in accordance with 15 CFR Part 14 for institutions of higher education, hospitals, and other non-profit and commercial organizations, and with 15 CRF Part 24 for state and local governments.
Related Programs
10.768, Business and Industry Loans; 59.012, Small Business Loans.
Information Contacts
Regional or Local Office
Local Department of Commerce District Offices are listed in Appendix IV of the Catalog.
Headquarters Office
For Firm and Industry Assistance Information: Anthony J. Meyer, U. S. Department of Commerce, Room H7315 Economic Development Administration, Planning and Development Assistance Division, 14th & Constitution Avenue, NW., Washington, DC 20230. Telephone: (202) 482-2127. FAX No. (202) 482-0466. Use the same number for FTS.
Web Site Address
http://www.doc.gov/eda/andwww.taacenters.org
Examples of Funded Projects
There are 12 funded Trade Adjustment Assistance Centers (TAACs), which cover the 50 States and the District of Columbia. The TAACs receive cooperative agreements to help firms become certified and receive trade adjustment assistance. Common types of technical assistance firms receive under the program include market research, quality assurance completion (ISO-9000 designation, for example) and management information systems guidance. Industries have been aided in developing new manufacturing machines and procedures, technological innovations, expanding exporting opportunities, marketing studies, product diversification, etc. No funds are currently available for the FAA for Industries program.
Criteria for Selecting Proposals
TAAC funding priority is given to existing TAACs which have successfully carried out previous cooperative agreements. Industries must have a substantial number of TAA certified firms and have developed a proposal providing meaningful near-term benefit to their industry to receive assistance. EDA will invest in applicants who are entrepreneurial in spirit and in action. Potential investments will be analyzed using the following seven supplemental evaluation criteria of approximately equal weight: extent that proposed investments are market-based; extent that proposed investments are pro-active in nature and scope; extent that proposed investments look beyond the immediate economic horizon, anticipate economic changes, and diversify the local and regional economy; likelihood that proposed investments maximize the attraction of private sector investments and would not otherwise come to fruition absent EDA's investment; likelihood that proposed investments have a high probability of success; likelihood that proposed investments result in an environment where high skill, high wage jobs are created; and likelihood the proposed investments maximize Return on Taxpayer Investment.
