EDA Offers $411 Million for Local Economic Development

The Economic Development Administration (EDA) is offering nearly $411 million in financial assistance for distressed areas. The agency has already begun accepting proposals and will continue to do so until the $410,972,866 allocated for FY 2001 is exhausted. EDA seeks proposals for projects that will significantly benefit areas experiencing or threatened with substantial economic distress, and targets assistance to communities with the highest economic distress. Such distress may exist in a variety of forms such as high levels of unemployment, low income levels, large concentrations of low-income families, significant declines in per capita income, substantial loss of population because of the lack of employment opportunities, large numbers or high rates of business failures, sudden major layoffs or plant closures, military base closures, natural or other major disasters, depletion of natural resources, or reduced tax bases.



Most of the funding ($286 million) is available under Public Works and Economic Development Assistance program. The remaining funds are distributed through Planning Assistance for Economic Development Districts, Indian Tribes, States, and Other Development Organizations; Technical Assistance-Local Technical Assistance, National Technical Assistance, and University Centers; Economic Adjustment Assistance; Defense Economic Conversion; Research and Evaluation; and Trade Adjustment Assistance programs.



The ability to obtain EDA funding may be enhanced for proposals that address one or more of the following priorities:

• Proposals to construct or rehabilitate essential public works and development facilities required to stabilize and diversify employment in economically distressed communities throughout the United States and its territories.
• Proposals to help communities plan and implement economic adjustment strategies in response to actual or threatened sudden and severe economic dislocations (e.g., major layoffs and/or plant closures, trade impacts, defense restructuring, natural disasters).
• Proposals that support sustainable development (i.e., promote the efficient use of resources without compromising the environment for future generations). Examples include the productive reuse of abandoned industrial facilities and the redevelopment of brownfields.
• Proposals that build local capacity for enterprise development in distressed communities (e.g., small business incubators, revolving loan funds, and  other programs to support business start-ups, retention and expansion). This includes proposals that involve minority serving institutions and assistance to minority communities and businesses.
• Innovative proposals and partnerships, particularly those involving regional solutions to problems of high unemployment and low per capita income. Such projects will be given priority over proposals that are more limited in scope.

More details and regional contact information can be obtained at the Federal Register Online, Volume 66, Number 50, under March 14, 2001, Economic Development Administration. For a link, go to SSTI’s resource page <http://www.ssti.org&gt; and click on Information Resources, choose Federal Register, browse, 2001, March 14, 2001.