Economic Adjustment Assistance
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 focus on (a) Collaborative Regional Innovation, (b) Public/Private Partnerships, (c) National Strategic Priorities, (d) Global Competitiveness, (e) Environmentally-Sustainable Development, (f) Economically Distressed and Underserved Communities. For more information on these investment priorities and current funding opportunities, go to http://www.eda.gov.
General information about this opportunity
Last Known Status
Agency: Department of Commerce
Office: Economic Development Administration
Type(s) of Assistance Offered
Project Grants (Cooperative Agreements)
Section 209 of the Public Works and Economic development Act of 1965, as amended (PWEDA), (42 U.S.C. § 3149).
Who is eligible to apply/benefit from this assistance?
Pursuant to PWEDA, eligible applicants for and recipients of EDA investment assistance include a State, city, county, or other political subdivision of a State, including a(n): (a) District Organization as defined in 13 CFR § 304.2; (b) Indian Tribe or a consortium of Indian Tribes; (c) State, city, 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 subdivisions; (d) institution of higher education or a consortium of institutions of higher education; or (e) public or private non-profit organization or association acting in cooperation with officials of a political subdivision of a State. See section 3 of PWEDA (42 U.S.C. § 3122) and 13 CFR § 300.3. Projects eligible for Economic Adjustment investment assistance also include those located in regions meeting “Special Need” criteria as defined in 13 CFR § 300.3. For-profit, private sector entities do not qualify for Economic Adjustment assistance under PWEDA. Therefore, EDA will not provide investments directly to individuals or for-profit entities. Such requests may be referred to State or local agencies, or to non- profit economic development organizations. As used in this paragraph, 'State' includes the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau.
Beneficiaries of investments made under Economic Adjustment are those communities who satisfy one or more of the economic distress and/or “Special Need” criteria set forth in 13 C.F.R.§ 301.3(a) and 13 C.F.R. § 300.3 to revitalize, expand, or upgrade their economic development assets to attract new industry, encourage business expansion, diversify their local economies, and generate or retain long-term private sector jobs and capital investments. Investments are intended to alleviate long-term deterioration and sudden and severe economic dislocation in distressed communities and regions.
To be considered for EDA investment assistance, applicants must first submit a complete EDA application package. EDA conducts its review of applications on a quarterly cycle. Applicants must provide a complete application that includes: a copy of the region's Comprehensive Economic Development Strategy (CEDS); letters of commitment to document matching funds; a USGS map of the site; letter of commitment from private beneficiaries of the project; comments from the metropolitan area review/clearinghouse agency; a legal opinion and other documentation, as necessary, verifying the applicant's answer to questions regarding project ownership, operation, maintenance, and management; an engineering report; an Environmental Assessment (and possibly an Environmental Impact Statement if deemed necessary); and documented approval from the State Historic Preservation Officer (SHPO). Non-profit applicants will be required to submit additional documentation, such as a Certificate of Good Standing, Articles of Incorporation, and other documents as applicable for the project. Applicants should refer to the specific requirements of the current Federal Funding Opportunity to determine what documents must be submitted at the time of submission. 2 CFR 200, Subpart E - Cost Principles applies to this program.
What is the process for applying and being award this assistance?
Preapplication coordination is required. An environmental impact assessment is required for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. For information on the application process you may access the applicable federal funding opportunity (FFO) announcement for Economic Adjustment investment assistance at www.grants.gov and at www.eda.gov. EDA will review each application for Economic Adjustment investment assistance in accordance with the evaluation criteria, funding priorities, and selection procedures set forth in the applicable FFO.
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 decision as the Grants Officer for the respective region.
Contact the headquarters or regional office, as appropriate, for application deadlines.
Approval/Disapproval Decision Time
From 90 to 120 days.
Applications for renewal or supplementation of additional projects may compete with applications for new awards.
How are proposals selected?
EDA will review all applications for investment assistance against the evaluation criteria outlined in the applicable Federal Funding Opportunity, which generally includes a review of the feasibility of the budget presented, conformance with EDA statutory and regulatory requirements, and alignment with strategic areas of interest and priority considerations identified in the applicable announcement. For more information on these investment priorities and current funding opportunities, go to http://www.eda.gov.
How may assistance be used?
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. To be eligible, a project must be located in or benefit a region that, on the date EDA receives an application for investment assistance, satisfies one or more of the economic distress criteria set forth in 13 C.F.R. § 301.3(a). All investments must be consistent with a current EDA- approved Comprehensive Economic Development Strategy (CEDS) or equivalent strategic economic development plan for the region in which the project will be located, and the applicant must have the required local share of funds committed, available, and unencumbered. Applicants must be able to start and complete proposed projects in a timely manner consistent with award terms and conditions. Recipients must award contracts in accordance with proper procurement procedures and ensure that contractors pay Davis-Bacon wage rates. Indirect costs are not allowed on construction projects. All grants awarded are competitive in nature. EDA does not award formula grants.
What are the requirements after being awarded this opportunity?
No program reports are required. No cash reports are required. Project progress and financial reports are required, generally on a quarterly basis, as required by the Special Terms and Conditions governing the award. EDA reviews progress and financial reports for compliance with all award terms and conditions, as well as EDA regulations. EDA requires the submission of the SF-425 Federal Financial Report. EDA reserves the right to conduct site visits on an as-needed basis..
In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. Single or program-specific audits shall be performed. The applicant is reminded that EDA or the Department of Commerce’s Office of Inspector General also may conduct an audit of an award at any time.
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.
Other 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
Project periods are specified in the grant award documents, but generally these do not exceed five years. See the following for information on how assistance is awarded/released:. See the following for information on how assistance is awarded/released: As stated in the award terms and conditions. Funds are disbursed on a reimbursement basis.
Who do I contact about this opportunity?
Regional or Local Office
See Regional Agency Offices.
Philip Saputo 1401 Constitution Avenue, NW, Room 71030, Washington, District of Columbia 20230 Email: email@example.com
Phone: (202) 400-0662
(Project Grants (Cooperative Agreements)) FY 14 $59,603,472; FY 15 est $35,000,000; and FY 16 Estimate Not Available
Range and Average of Financial Assistance
The average size of an EAA investment has been approximately $820,000, and investments generally range from $100,000 to $1,250,000. 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.
Examples of Funded Projects