Filing Date:

Applications are accepted on a rolling basis. Contact the EDA for more information.

Eligibility:

District organization of a designated Economic Development District (EDD); 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 political subdivisions; and a public or private non‐profit organization or association acting in cooperation with officials of a political subdivision of a state.

Description:

Projects should address national strategic priorities including global competitiveness and innovation, and environmentally sustainable development; strengthen diverse communities that are rebuilding to become more competitive in the global economy; demonstrate a good return on EDA’s investment by serving as a catalyst for private sector investment; demonstrate or support regional collaboration to support the development and growth of innovation clusters; and employ public-private partnerships to use both public and private resources and/or leverage complementary investments by other government/public entities and/or non-profits.

EDA encourages the submission of only those applications that will significantly benefit regions with distressed economies, i.e. high levels of unemployment, low income levels, significant declines in per capita income, large numbers (or high rates) of business failures, reduced tax bases, or substantial loss of population because of the lack of employment opportunities.

An “economically distressed” community is one that is located in a region that meets one (or more) of the following economic distress criteria:  1) an unemployment rate that is, for the most recent 24-month period for which data are available, at least one percentage point greater than the national average unemployment rate; 2) per capita income that is, for the most recent period for which data are available, 80 percent or less of the national average per capita income; or 3) a “Special Need,” as determined by EDA.

The Economic Adjustment Assistance Program provides a wide range of technical, planning, and public works assistance in regions experiencing adverse economic changes that may occur suddenly or over time.

For example, it could be argued that modern rail facilities are but one important piece in a larger transportation network. By creating a strong, holistic transportation system that takes into account rail, air, vehicle, and water transport, a region increases its competitiveness; maintaining a vibrant and flexible transportation system better allows regions to weather economic change.

Financing:

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. While cash contributions are preferred, in-kind contributions, consisting of contributions of space, equipment, or services, or forgiveness or assumptions of debt, may provide the required non-federal share of the total project cost.

In FY 2010, the average size of an Economic Adjustment Assistance investment was approximately $550,000, though investments ranged from $100,000 to $1,250,000.

Additional Information:

U.S. Economic Development Administration – Economic Adjustment Assistance Program