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Catalog of Federal Domestic Assistance

Program Descriptions

11.307:  Economic Adjustment Assistance

Popular Name:  Economic Adjustment

Objectives:  To assist State and local interests design and implement strategies to adjust or bring about change to an economy. Program focuses on areas that have experienced or are under threat of serious structural damage to the underlying economic base. Such economic change may occur suddenly or over time, and generally results from industrial or corporate restructuring, new Federal laws or requirements, reduction in defense expenditures, depletion of natural resources, or natural disaster.

PROGRAM AND AWARD	FINANCIAL AND INFORMATION CONTACTS
ELIGIBILITY REQUIREMENTS	FINANCIAL AND ADMINISTRATIVE INFO.
APPLICATION AND AWARD PROCESS	INFORMATION CONTACTS
RELATED PROGRAMS	ASSISTANCE CONSIDERATIONS
PROGRAM ACCOMPLISHMENTS	POST ASSISTANCE REQUIREMENTS

11.307 ELIGIBILITY REQUIREMENTS:

11.307 APPLICATION AND AWARD PROCESS:

Preapplication Coordination:  EDA's Economic Development Representative (EDR) or regional office representative will meet with the proponent to determine whether preparation of a project proposal is appropriate. If appropriate, the proponent will be requested to prepare a brief project proposal according to an outline provided by the EDR. Following a review by the EDA, the Regional Director will determine whether to invite a formal application. An environmental impact assessment is necessary; an environmental impact statement may also be required. 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. The standard application forms as furnished by the Federal agency and required by 15 CFR Part 24 must be used for this program.

Application Procedure:  If an application is invited by the regional office, an EDR or regional office representative will provide necessary forms and assist in filling them out. This program is subject to the provisions of OMB Circular No. A-110 and 15 CFR Part 24.

Award Procedure:  Final decision on grant applications from eligible applicants is made by the Regional Office Director of the Economic Development Administration, Department of Commerce.

Deadlines:  Dates are published in the Federal Register.

Range of Approval/Disapproval Time:  Normally within 120 days of acceptance of a fully completed application.

Appeals:  None.

Renewals:  None.

Criteria for Selecting Proposals:  All proposals and applications for funding submitted to EDA are evaluated competitively for: 1) Conformance to statutory and regulatory requirements; 2) relative severity of the economic problem of the area; 3) quality of the scope of work proposed to address the problem; 4) merits of the activity(ies) for which funding is requested; and 5) the ability of the prospective applicant to carry out the proposed activity(ies). Additional criteria in the project selection process will be reviewed, as applicable, for: Strategy Grants: 1) Proper authority, mandate, and capacity of the applicant to lead and manage the planning process and strategy implementation; 2) representation of the public and private sectors in the development of the strategy's objectives, which may include: public program and service providers, trade and business associations, educational and research institutions, community development corporations, minorities, labor, low-income, etc; and 3) the proposed scope of work for the strategy focuses on the structural economic problem(s) and includes provisions for undertaking appropriate research and analysis to support a realistic, market-based, adjustment strategy. Implementation Grants: 1) An understanding of the economic problems being addressed; 2) an analysis of the economic sectors that constitute the community's economic base, including particular strengths and weaknesses that contribute to or detract from a community's current and potential economic competitiveness; 3) strategic objectives that focus on stimulating investment in new and/or existing economic activities that offer good prospects for revitalization and growth; and 4) identified resources and plans for coordinating such resources to implement the overall strategy. The proposed project must also be identified as a necessary element of or consistent with the strategy. Revolving Loan Fund Grants: 1) The need for a new or expanded public financing tool to enhance other business assistance programs and services targeting economic sectors and/or locations described in the strategy; 2) the types of financing activities anticipated; and 3) the capacity of the RLF organization to manage lending, create networks between the business community and other financial providers, and contribute to the adjustment strategy.

Examples of Funded Projects:  Grants received under the Economic Adjustment Program: (1) develop strategy for recovery from plant closure and major permanent job loss; (2) rehabilitate vacant industrial facility for multi-tenant use or as an incubator; (3) establish revolving loan funds, and/or recapitalization of revolving loan funds.

Range and Average of Financial Assistance:  No specific minimum or maximum.

11.307 RELATED PROGRAMS:

11.307 PROGRAM ACCOMPLISHMENTS:

11.307 FINANCIAL AND ADMINISTRATIVE INFO:

Federal Agency:  ECONOMIC DEVELOPMENT ADMINISTRATION, DEPARTMENT OF COMMERCE

Type of Assistance:  Project Grants.

Obligations:  (Grants) FY 99 $136,958,000 (includes funds appropriated for economic adjustment, defense adjustment, 1996 Floods, Tri-State Floods, 1997 Upper Midwest Floods, Hurricane Andrew and Alaska Fisheries); FY 00 est $125,722,000 (includes funds for economic adjustment, defense adjustment, 1996 Floods, Tri-State Floods, 1997 Upper Midwest Floods, Defense Adjustment Assistance, Hurricane Andrew, Northeast Fisheries, S. California Earthquake, Fran and Hortense and Alaska Fisheries); and FY 01 est $109,950,000 (includes funds for economic adjustment and defense adjustment).

Budget Account Number:  13-2050-0-1-452.

Authorization:  Public Works and Economic Development Act of 1965, as amended, Public Law 105-393, 42 U.S.C. 3149 et seq.; 112 Stat. 3596.

Regulations, Guidelines, and Literature:  13 CFR, Chapter 111, Part 308; Civil Rights Guidelines, RLF Plan Guidelines, CEDS Guidelines, RLF Audit Guidelines, RLF Administrative Manual and Standard Terms and Conditions; and program literature available from Regional Offices.

11.307 INFO CONTACTS:

Regional or Local Office:  Refer to Appendix IV of the Catalog for EDA regional office addresses.

Headquarters Office:  David F. Witschi, Director, Economic Adjustment Division, Economic Development Administration, Room H7327, Herbert C. Hoover Bldg., Department of Commerce, Washington DC 20230. Phone: (202) 482-2659. Use the same number for FTS.

(See Appendix IV for more contact info.)

11.307 ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:  EDA my generally fund 50 percent of a project's cost, however certain conditions of high economic distress or an applicant's inability to provide all of the matching share may permit a higher grant rate. Grant rate requirements may be found in EDA's regulations at 13 CFR Chapter III.

Length and Time Phasing of Assistance:  None.

Uses and Use Restrictions:  Strategy Grants help organize and carry out a planning process resulting in a Comprehensive Economic Development Strategy (CEDS) tailored to the community's specific economic problems and opportunities. Implementation Grants support one or more activities identified in an EDA-approved CEDS. Activities may include, but are not limited to, the creation/expansion of strategically targeted business development and financing programs such as: Revolving loan funds, infrastructure improvements, organizational development, and market or industry research and analysis.

11.307 POST ASSISTANCE REQUIREMENTS:

Reports:  With the exception of strategy grants, quarterly financial reports are required until one year after final disbursement of funds. Reports on RLF grants are initially required semi-annually but may be graduated to annual reports with the consent of the agency. Grantees are also required to report on program performance and project outcomes at intervals prescribed by the agency in compliance with GPRA of 1993.

Audits:  In accordance with the provisions of OMB Circular No. A-133 (Revised, June 24, 1997), recipients that are States, Local Governments, Non-profit 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 document. States, local governments, and non-profit 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:  As necessary for audit and as required by OMB Circular No. A-110 and 15 CFR Part 24. All financial and programmatic records, supporting documents, statistical reports and other records of grantees or sub grantees 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 be readily available for inspection and audit.