EDA Offers Funds for Distressed Areas

The Economic Development Administration (EDA) is accepting applications to support projects designed to alleviate conditions of substantial and persistent unemployment and underemployment in economically distressed areas and regions of the nation, and to address economic dislocations resulting from sudden and severe job losses. Distress may exist in a variety of forms, including, but not limited to, high levels of unemployment, low income levels, large concentrations of low-income families, significant decline 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, and/or reduced tax bases. Special need criteria that is described in the announcement must be met for eligibility.

EDA has a total of $360,550,000 available to fund projects in FY 2000 across several programs. More than half of the funds are allotted to the Public Works and Economic Development Assistance Program. Other programs range from trade adjustment and defense economic conversion to university centers and planning districts. Applications are accepted on a continuous basis and will be processed as funds are available.

Since EDA has already received and begun processing requests for funding under its programs for fiscal year 2000, the agency points out new requests that require approval during this fiscal year will face substantial competition.

During FY 2000, EDA will give priority consideration to projects that support the Clinton Administration's ``New Markets'' and ``Liveable Communities'' initiatives and the priorities of the Department of Commerce, including the following items:

• Commercialization and deployment of technology, particularly information technology and telecommunications, and efforts that support technology transfer, application, and deployment for regional economic development. Also included under this category would be projects that support the development of new environmental technologies and techniques (e.g., innovative material recycling or reuse within the context of eco-industrial development, pollution control or treatment processes, and flood mitigation) that significantly enhance
  
  an area's economic development potential;
• Sustainable development programs that will provide long-term economic development benefits while promoting eco-efficiency. Included are diversification of natural resource dependent economies, eco-industrial parks, aquaculture facilities, brownfields' redevelopment, and other projects that increase efficient use of resources without compromising the environment for future generations;
• Projects from Minority Serving Institutions to plan and implement activities that will create opportunities for minority enterprise and technology-based employment in distressed areas;
• Entrepreneurial development, especially programs that build local capacity such as small business incubators and community financial intermediaries, and projects benefiting minorities, businesses owned by women, and people with disabilities (e.g., revolving loan funds);
• Projects that fall under the New Markets Initiative -- those that attract private investment in economically distressed inner city areas, small and medium-sized towns, rural areas, and Native American communities.
• Projects located in federally designated rural and urban Enterprise Communities and Empowerment Zones and state enterprise zones;
• Projects that demonstrate innovative approaches to economic development; and,
• Projects that support locally created partnerships that focus on regional solutions for economic development. Such projects will be given priority over proposals that are more limited in scope. For example, projects that evidence collaboration in fostering an increase in regional (multi-county and/or multi-state) productivity and growth will be considered to the extent that such projects demonstrate a substantial benefit to economically distressed areas of the region.

More information may be found at the EDA website http://www.doc.gov/eda