ECONOMIC DEVELOPMENT ADMINISTRATION, DEPARTMENT OF COMMERCE

AUTHORIZATION:

Public Works and Economic Development Act of 1965, as amended; 42 U.S.C. 3141, Section 201, Public Law 105-393; 112 Stat. 3596.

OBJECTIVES:

To promote long-term economic development and assist in the construction of public works and development facilities needed to initiate and support the creation or retention of permanent jobs in the private sector in areas experiencing substantial economic distress.

TYPES OF ASSISTANCE:

Project Grants.

USES AND USE RESTRICTIONS:

Grants for such public facilities as water and sewer systems, industrial access roads, industrial parks, port facilities, railroad sidings and spurs, tourism facilities, skill-training vocational schools, business incubator facilities, and infrastructure improvements needed for business expansion. Qualified projects must fulfill a pressing need of the area and must: (1) tend to improve the opportunities for the successful establishment or expansion of industrial or commercial plants or facilities; (2) assist in the creation of additional long-term employment opportunities; or (3) benefit the long-term unemployed/underemployed and members of low-income families. In addition, proposed projects must be consistent with the currently approved Comprehensive Economic Development Strategy for the area, and for the Economic Development District, if any, in which it will be located, and must have adequate local share of funds. Projects must be capable of being started and completed in a timely manner.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:   States, cities, counties, an institution of higher education or a consortium of institutions of higher education, and other political subdivisions, Indian tribes, the Federated States of Micronesia, the Republic of the Marshall Islands, Commonwealths and territories of the U.S. flag, Economic Development Districts, and private or public nonprofit organizations or associations acting in cooperation with officials of a Political Subdivision of a State or Indian Tribe. Individuals, companies, corporations, and associations organized for profit are not eligible.

Beneficiary Eligibility:   Local economies, unemployed and underemployed persons, and/or members of low-income families are assisted through the creation of new jobs or retention of jobs.

Credentials/Documentation:   Applications must describe the type of facility proposed, estimated costs, purpose of proposed project, permanent private sector job impact (estimated payrolls, estimated private investment), estimated time for construction implementation and completion, and assurances that the project will satisfy statutory requirements. Most important, documentation must demonstrate how the project will satisfy a pressing need of the area and have a positive impact on the economic development of the community.

APPLICATION AND AWARD PROCESS:

Preapplication Coordination:   The Economic Development Representative (EDR) or other appropriate EDA official will meet with the applicant and community leaders to explore the applicability of the proposed project for EDA funding. If deemed appropriate, a proposal will be requested. After reviewing the proposal, the EDR and/or the regional office will notify the applicant if EDA decides to invite an application. If the project appears viable, a preapplication conference with regional office personnel may be arranged at EDA's discretion. If EDA invites a formal application, the OMB-approved application form furnished by EDA must be used. An environmental impact assessment is required for this program. The review of the environmental impact assessment may result in an environmental impact statement being 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.

Application Procedure:   Applicants should contact the EDR servicing the State in which the project is located or other designated EDA Official. The economic development representative or other appropriate EDA Official assigned as coordinator for the project will provide necessary forms and assistance to interested applicants.

Award Procedure:   Grant applications are invited and approved by the Regional Director, and announced by the Assistant Secretary of Commerce for Economic Development.

Deadlines:   Generally, the applicants are given 30 days after their applications have been invited to submit the formal application.

Range of Approval/Disapproval Time:   Normally within 60 days of acceptance of a fully completed application.

Appeals:   None.

Renewals:   None.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   The basic grant rate may be up to 50 percent of the project cost. Severely depressed areas may receive supplementary grants to bring the Federal contribution up to 80 percent of the project cost; recognized Indian tribes may be eligible for up to 100 percent assistance. Additionally, eligible areas located within and actively participating in the operations of Economic Development Districts are, subject to the 80 percent maximum Federal grant limit, eligible for a 10 percent bonus on grants for public works projects. On average, EDA grants cover approximately 50 percent of project costs.

Length and Time Phasing of Assistance:   EDA grant funds are generally disbursed for costs incurred after all contracts for construction have been awarded.

POST ASSISTANCE REQUIREMENTS:

Reports:   Standard financial and performance reports are required, and special reports for specific projects may be requested. Compliance: Applicable statutes include the Architectural Barriers Act, Civil Rights Act, Davis Bacon Act, the Water Pollution Control Act, other applicable Acts.

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:   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 from the date when the final expenditure report is submitted.

FINANCIAL INFORMATION:

Account Identification:   13-2050-0-1-452.

Obligations:   (Grants) FY 99 $205,748,000; FY 00 est $204,521,000; and FY 01 est $251,200,000.

Range and Average of Financial Assistance:   No specific minimum or maximum project amount, average $849,000.

PROGAM ACCOMPLISHMENTS:

In fiscal year 1999, 248 Public works projects were approved.

REGULATIONS, GUIDELINES, AND LITERATURE:

Title 13 CFR Chapter III, Part 302, 305, 316, 314 and 317; Annual Report; Economic Development Administration Civil Rights Guidelines. Department of Commerce Organization Order 10-4, as amended (40 FR 56702, as amended).

INFORMATION CONTACTS:

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

Headquarters Office:   David L. McIlwain, Director, Public Works Division, Economic Development Administration, Room H7326, Herbert C. Hoover Building, Department of Commerce, Washington, DC 20230. Telephone: (202) 482-5265. Use the same number for FTS.

Web Site Address:   http://www.doc.gov/eda/.

EXAMPLES OF FUNDED PROJECTS:

1) Infrastructure for industrial park development; 2) port development and expansion; 3) infrastructure necessary for economic development (e.g. water/sewer facilities); 4) renovation and recycling of old industrial buildings; 5) construction of vocational-technical facilities and skill centers; 6) construction of incubator facilities; 7) redevelopment of browns fields and 8) CEO-industrial development.

CRITERIA FOR SELECTING PROPOSALS: