EDA Offers $335 Million for State & Local Economic Development

The Economic Development Administration (EDA) has $335 million available for grants to support state, regional and community efforts to create wealth and minimize poverty by promoting a favorable business environment to attract private capital investment and high skill, high wage jobs through world-class capacity building, infrastructure, business assistance, research grants and strategic initiatives.



EDA encourages only those investment proposals that will significantly benefit areas experiencing or threatened with substantial economic distress. 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 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, and/or reduced tax bases.



Most of the funding ($250 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; Trade Adjustment Assistance; and, Economic Adjustment Assistance programs.



Potential applicants must submit a pre-application proposal to the appropriate EDA representative for the area or regional office. Based on review of the preproposal, the EDA representative may recommend submission of a full proposal.



Funding priority areas have been identified for potential projects, including:

A. Proposals that enhance regional competitiveness and support long-term development of the regional economy; for example:

1. Upgrade core business infrastructure

a. Transportation infrastructure

b. Communications infrastructure

c. Specialized training program infrastructure

2. Reflect and implement a regional strategy that involves all stakeholders

a. Support regional benchmarking initiatives;

b. Encourage a common vision and collaboration among firms, universities, and training centers to implement a regional strategy;

c. Reflect strong leadership committed to regional economic development; and

d. Encourage a formal organization structure and process for working on economic 

issues and maintaining consensus.

3. Encourage cluster development

a. Establish research and industrial parks that encourage innovation-based competition; and

b. Implement cluster-focused and innovation-focused business development efforts.

B. Proposals to help communities plan and implement economic adjustment strategies in response to sudden and severe economic dislocations (e.g., major lay-offs and/or plant closures, trade impacts, defense restructuring, or disasters).

C. Proposals that support technology-led economic development; for example, proposals that:

1. Reflect the important role of research and development capacity of universities in regional economic development; and

2. Create and support technology transfers.

D. Proposals that advance community and faith-based social entrepreneurship in redevelopment strategies for areas of chronic economic distress.

More details and EDA regional contact information can be obtained in the March 1, 2002 Federal Register Online: