Trade Adjustment Assistance (11.313)

Program

11.313 Trade Adjustment Assistance

Federal Agency

Agency: Department of Commerce
Office: Economic Development Administration

Authorization

Trade Act of 1974, as amended (19 U.S.C. 2341 et seq.).

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

Cooperative Agreements

Uses and Use Restrictions

Under Chapter 3 of Title II of the Trade Act of 1974, a firm may apply to the Economic Development Administration (EDA) of the Department of Commerce for certification of eligibility to apply for trade adjustment assistance (TAA). Interested firms that believe they meet the requirements set forth in 13 CFR part 315 may contact EDA or one of the EDA-funded Trade Adjustment Assistance Centers (TAACs). TAACs will assist firms, at no cost, in completing and submitting a petition (Form ED-840P or any successor form) to EDA. Before a firm receives technical assistance under the program, the firm must have an adjustment proposal 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 certified 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 cost of preparing 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 fees. Actual provision of TAA will depend on the feasibility of the firm's adjustment proposal, compliance with the requirements of the Trade Act, EDA's regulations and guidelines, and the availability of funds. Organizations representing trade-injured industries are eligible under the Trade Act to apply to EDA for industry-wide assistance.

Eligibility Requirements

Applicant Eligibility

Section 253 of the Trade Act (19 U.S.C. 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 under section 265 of the Trade Act (19 U.S.C. 2355(a)), the applicant must submit evidence demonstrating that the industry faces import competition and includes a substantial number of Trade Act-certified firms or worker groups.

Beneficiary Eligibility

Only firms certified by EDA on behalf of the Secretary of Commerce are eligible for assistance under the TAA 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. The principal benefit is cost-shared technical assistance: the TAA program pays up to one-half of the cost of assistance by private-sector consultants and contractors for operational improvements at certified firms.

Credentials/Documentation

The TAACs act as intermediaries for this program between EDA and the firm. Entities seeking industry-wide assistance must contact EDA staff to discuss their needs, describe the import injury and determine if funding is available for industry-wide projects. OMB Circular No. A-87 applies to this program.

Application and Award Process

Preapplication Coordination

Preapplication coordination is not applicable. Environmental impact information is not 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. The nationwide network of 11 TAACs apply to EDA each year for funding for the coming fiscal year. Industry associations or other organizations seeking industry assistance must submit an application (SF-424) if invited to do so by EDA.

Award Procedure

Awards to TAACs are made based upon submitted applications, previous performance under cooperative agreements with EDA, and the availability of funds. Acceptance of an application or amended application for a cooperative agreement does not ensure funding by EDA.

Deadlines

Contact the headquarters or regional office, as appropriate, for application deadlines.

Range of Approval/Disapproval Time

From 15 to 30 days.

Appeals

Not Applicable.

Renewals

EDA Cooperative Agreements are renewed annually.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula.

This program has no matching requirements.

This program does not have MOE requirements.

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 TAA program is a nationwide federal program designed to help U.S. firms that have experienced business decline and loss of employment due to imports of like or directly competitive products. See the following for information on how assistance is awarded/released: Generally, grants are awarded annually. Grantees receive awards either in advance or monthly reimbursment.

Post Assistance Requirements

Reports

Periodic reporting of operating results and progress, financial statements, and summary of funds spent, consistent with EDA�s Government Performance Results Act (GPRA) reporting requirements. No cash reports are required. Grantees are required to submit annual reports on the progress. EDA requires the submission a 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. In accordance with the provisions of OMB Circular No. A-133, recipients that are States, local governments, nonprofit organizations, and institutions of higher education are subject to the audit requirements contained in the Single Audit Act Amendments of 1996 (31 U.S.C. 7501 et seq.). Commercial organizations shall be subject to the audit requirements as stipulated in the award documents. States, local governments, and nonprofit organizations that expend $500,000 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 three years. All financial and programmatic records, supporting documents, statistical reports, and other records of recipients or sub-recipients are required to be maintained by the terms of the agreement. The recipient must retain records for three years after submission of the final financial report, and have them readily available for inspection and audit.

Program Accomplishments

Fiscal Year 2008: In FY 2008, EDA, through TAACs, provided assistance to petitioning firms as follows: 173 petitions were certified as eligible to receive Trade Adjustment Assistance; 139 adjustment proposals were accepted. Fiscal Year 2009: No Current Data Available Fiscal Year 2010: No Current Data Available

Financial Information

Account Identification

13-2050-0-1-452.

Obligations

(Cooperative Agreements) FY 08 $14,209,654; FY 09 est $13,904,052; FY 10 est $15,800,000

Range and Average of Financial Assistance

Awards range between $1M-$1.6M.

Regulations, Guidelines and Literature

Copies of pertinent regulations (13 CFR Part 315), guidelines, and forms are available from EDA, the TAACs or the TAAC website at www.taacenters.org. Allowable costs will be determined in accordance with OMB Circular A-87 for State, local, and Indian Tribal governments; OMB Circular A-122 for nonprofit organizations; OMB Circular A-21 for educational institutions; and 48 CFR Part 31 for commercial organizations. Uniform administrative requirements will be in accordance with 15 CFR Part 14 for institutions of higher education and other non-profit and commercial organizations, and with 15 CFR Part 24 for State and local governments.

Related Programs

17.245 Trade Adjustment Assistance

Information Contacts

Regional or Local Office

See Regional Agency Offices.

Headquarters Office

John M. Thompson, 1401 Constitution Ave., NW, Washington, District of Columbia 20230 Email: jthompson@eda.doc.gov Phone: (202) 482-4924.

Web Site Address

www.eda.gov and www.taacenters.org

Examples of Funded Projects

Not Applicable.

Criteria for Selecting Proposals

EDA invites existing (currently funded) TAACs to submit either new or amended applications provided they have performed successfully and complied with previous conditions in their cooperative agreements with EDA and contingent upon the availability of funds. EDA also may invite new TAACs to submit applications through an applicable Federal Funding Opportunity (FFO) announcement. EDA generally evaluates existing (currently funded) TAACs based on: (i) performance under cooperative agreements with EDA and compliance with terms and conditions if such cooperative agreements; (ii) proposed scope of work, budget and application or amended application; and (iii) availability of funds.