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11.302 ECONOMIC DEVELOPMENT_SUPPORT FOR PLANNING ORGANIZATIONS

(Section 203 Grants for Planning and Administrative Expenses)

FEDERAL AGENCY

ECONOMIC DEVELOPMENT ADMINISTRATION, DEPARTMENT OF COMMERCE

AUTHORIZATION

Public Works and Economic Development Act of 1965, as amended; Public Law 108-373; 118 Stat. 1759; 42 U.S.C. 3143.

OBJECTIVES

To help States, sub-state planning units, Indian Tribes, and local governments strengthen economic development planning capacity and formulate and establish comprehensive economic development strategies designed to reduce unemployment and increase incomes.

TYPES OF ASSISTANCE

Project Grants.

USES AND USE RESTRICTIONS

Grants are used to help pay the cost of economic development planning and administrative expenses of organizations that carry out the planning.

ELIGIBILITY REQUIREMENTS

Applicant Eligibility

Eligible recipients are Economic Development Districts; Indian tribes; units of State and local governments; States; institutions of higher education; and public or private nonprofit organizations.

Beneficiary Eligibility

The unemployed and low-income residents of eligible areas.

Credentials/Documentation

None. Costs will be determined in accordance will OMB Circular No. A-87 for States, Local governments, and Indian Tribal Governments.

APPLICATION AND AWARD PROCESS

Preapplication Coordination

Submit a letter of interest, a statement of distress, and a proposed work program not to exceed ten pages. Assistance in the preparation of a formal application may be requested from EDA Staff. The standard application form SF-424, as furnished by EDA and required by 15 CFR, Part 24, "Uniform Administrative Requirements for Grants and Cooperative Agreements with State and Local Governments, must be used for this program. This program is excluded from coverage under E.O. 12372.

Application Procedure

Following invitation by the Agency, submit a formal application to the appropriate EDA Regional office and a copy to the EDA Economic Development Representative for the State. Applications must be cleared by the State's Intergovernmental Review Process as authorized under Executive Order 12372.

Award Procedure

The EDA Assistant Secretary approves initial grant awards to District organizations and Indian Tribes.

Deadlines

Not applicable.

Range of Approval/Disapproval Time

From 45 to 60 Days.

Appeals

Not applicable.

Renewals

Grants are normally made for a 12-month period and may be renewable if program performance is satisfactory, the area continues to exhibit substantial economic distress, and the proposed work program is acceptable. Priority funding consideration is given to previously funded partnership grants to Economic Development Districts, Indian Tribes and other eligible areas.

ASSISTANCE CONSIDERATIONS

Formula and Matching Requirements

Formula and Matching Requirements This program has no statutory formula and no legal or administrative regulations or prescribed factors to be used to allocate funds among eligible applicants. The Federal share may be 50 percent of the total project cost and the required local share must be obtained from nonfederal sources in the form of cash and/or in-kind contributions. An eligible applicant may request a supplementary grant in excess of 50 percent if it meets the criteria established in 13 CFR 301.4(b) or 13 CFR 306.3(b) as appropriate. The Assistant Secretary may authorize up to 100 percent funding for Indian Tribes.

Length and Time Phasing of Assistance

Generally 12 months. Funds are released in two payments over the course of the grant period. Aids the long-range economic development of areas with severe unemployment and low family income problems; helps to create an environment where higher paying lucrative jobs are created; and creates new, permanent jobs.

POST ASSISTANCE REQUIREMENTS

Reports

Semi-annual financial reports; progress reports 5 months and 10 months after grant start date; annual update or report of the Comprehensive Economic Development Strategy (CEDS) is due as determined by the Regional Office.

Audits

In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), recipients that are States, Local Governments, Nonprofit Organizations 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 nonprofit organizations that expend $500,000 or more in a year in Federal awards shall have a single or program-specific audit conducted for that year.

Records

Financial records must be maintained until 3 years after the completion of the grant project or submission of the final financial report, whichever is later, and be readily available for inspection and audit. 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.

FINANCIAL INFORMATION

Account Identification

13-2050-0-1-452.

Obligations

(Investments) FY 04 $23,747,000; FY 05 est $23,667,000; and FY 06 not available.

Range and Average of Financial Assistance

$500 to $175,000. Average: $59,000.

PROGRAM ACCOMPLISHMENTS

In fiscal year 2004, 395 grants were awarded to Economic Development Districts, Indian Tribes, States, urban areas and sub-state political sub-divisions. These entities carried out a variety of planning and related efforts aimed at generating jobs and income for their areas and for unemployed/underemployed residents.

REGULATIONS, GUIDELINES, AND LITERATURE

13 CFR 306 Planning Assistance.

INFORMATION CONTACTS

Regional or Local Office

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

Headquarters Office

Refer to Appendix IV of the Catalog for EDA Regional Office addresses and telephone numbers.

Web Site Address

http://www.eda.gov/

EXAMPLES OF FUNDED PROJECTS

Projects are for the purpose of supporting staff to undertake comprehensive economic development strategies and planning by Economic Development Districts, Indian tribes, States, sub-states areas, cities and counties.

CRITERIA FOR SELECTING PROPOSALS

EDA will invest in applicants who are entrepreneurial in spirit and in action. Potential investments will be analyzed using the following five supplemental evaluation criteria of approximately equal weight: extent that proposed investments are market-based; extent that proposed investments are pro-active in nature and scope; extent that proposed investments look beyond the immediate economic horizon, anticipate economic changes, and diversify the local and regional economy; likelihood that proposed investments maximize the attraction of private sector investments and would not otherwise come to fruition absent EDA's investment; likelihood that proposed investments have a high probability of success; likelihood that proposed investments result in an environment where high skill, high wage jobs were created; and likelihood that proposed investments maximize Return on Taxpayer Investment.