13 C.F.R. Subpart A—General
Title 13 - Business Credit and Assistance
(a) The purpose of Economic Adjustment Assistance Investments is to address the needs of communities experiencing adverse economic changes that may occur suddenly or over time, including but not limited to those caused by: (1) Military base closures or realignments, defense contractor reductions in force, or U.S. Department of Energy defense-related funding reductions; (2) Federally-Declared Disasters; (3) International trade; (4) Long-term economic deterioration; (5) Loss of a major community employer; or (6) Loss of manufacturing jobs. (b) Economic Adjustment Assistance Investments are intended to enhance a distressed community's ability to compete economically by stimulating private investment in targeted economic sectors through use of tools that: (1) Help develop and implement a CEDS; (2) Expand the capacity of public officials and economic development organizations to work effectively with businesses; (3) Assist in overcoming major obstacles identified in the CEDS; (4) Enable communities to plan and coordinate the use of federal resources and other resources available to support economic recovery, development of Regional economies, or recovery from natural or other disasters; or (5) Encourage the development of innovative public and private approaches to economic restructuring and revitalization. (a) Economic Adjustment Assistance Investments may be made when the Project funded by the Investment will help the Region meet a Special Need. The Region in which a Project is located must have a CEDS with which the Project is consistent (except that this requirement shall not apply to Strategy Grants described in §307.3). (b) Additional criteria or priority consideration factors for Economic Adjustment Assistance may be set forth in an FFO. Economic Adjustment Assistance Investments may be used to develop a CEDS to alleviate long-term economic deterioration or a sudden and severe economic dislocation (a “Strategy Grant”), or to fund a Project implementing such a CEDS (an “Implementation Grant”). (a) Strategy Grants support developing, updating or refining a CEDS. (b) Implementation Grants support the execution of activities identified in a CEDS. Specific activities may be funded as separate Investments or as multiple elements of a single Investment. Examples of Implementation Grant activities include: (1) Infrastructure improvements, such as site acquisition, site preparation, construction, rehabilitation and equipping of facilities; (2) Provision of business or infrastructure financing through the capitalization of Recipient-administered Revolving Loan Funds (“RLFs”), which may include loans, loan guaranties and interest rate buy-downs to facilitate business lending activities; (3) Market or industry research and analysis; (4) Technical assistance, including organizational development such as business networking, restructuring or improving the delivery of business services, or feasibility studies; (5) Public services; (6) Training; and (7) Other activities justified by the CEDS that satisfy applicable statutory and regulatory requirements. (a) General. EDA will select Economic Adjustment Assistance Projects in accordance with part 301 of this chapter and the additional criteria provided in paragraphs (b) and (c) of this section, as applicable. (b) Strategy Grants. EDA will review Strategy Grant proposals to ensure that the proposed activities conform to the CEDS requirements set forth in §303.7 of this chapter. (c) Implementation Grants. (1) EDA will review Implementation Grant proposals for the extent to which: (i) The applicable CEDS meets the requirements in §303.7 of this chapter; and (ii) The proposed Project is identified as a necessary element of or consistent with the applicable CEDS. (2) Revolving Loan Fund Grants. For Eligible Applicants seeking to capitalize or recapitalize an RLF, EDA will review the proposals for: (i) The need for a new or expanded public financing tool to enhance other business assistance programs and services targeting economic sectors and locations described in the CEDS; (ii) The types of financing activities anticipated; and (iii) The capacity of the RLF organization to manage lending activities, create networks between the business community and other financial providers, and implement the CEDS. (d) Additional criteria or priority consideration factors for Economic Adjustment Assistance may be set forth in an FFO. (a) Each application for Economic Adjustment Assistance must: (1) Include or incorporate by reference (if so approved by EDA) a CEDS, except that a CEDS is not required when applying for a Strategy Grant; and (2) Explain how the proposed Project meets the criteria set forth in §307.2. (b) For a technical assistance Project of significant Regional or national scope under this subpart, EDA may waive the requirement set forth in §301.2(b) of this chapter that the non-profit organization act in cooperation with officials of a political subdivision of a State. In addition to the post-approval requirements set forth in §302.18 of this chapter: (a) Strategy Grants shall comply with the applicable provisions of part 303 of this chapter; (b) Implementation Grants involving construction shall comply with the provisions of subpart B of part 305 of this chapter; (c) Implementation Grants not involving construction shall comply with the applicable provisions of subpart A of part 306 of this chapter; and (d) RLF Grants shall comply with the requirements set forth in this part and in the following publications: (1) EDA's RLF Standard Terms and Conditions and (2) The Compliance Supplement to OMB Circular A–133 (the “Compliance Supplement”). The Compliance Supplement is available via the Internet at http://www.omb.gov.
Title 13: Business Credit and Assistance
PART 307—ECONOMIC ADJUSTMENT ASSISTANCE INVESTMENTS
Subpart A—General
§ 307.1 Purpose and scope.
§ 307.2 Criteria.
§ 307.3 Use of Economic Adjustment Assistance Investments.
§ 307.4 Award requirements.
§ 307.5 Application requirements.
§ 307.6 Economic Adjustment Assistance post-approval requirements.
