Category: Federal Incentives, Grants & Loans
AGENCY: Economic Development Administration (EDA)
DESCRIPTION: This program is also known as the Long-Term Economic Deterioration/Revolving Loan Fund. Grants are provided to economic development intermediaries and non-profit organizations which establish revolving loan funds (RLF) for business expansion opportunities.
ELIGIBLE USES: Awards may be used for activities such as developing and updating a CEDS and for implementing the CEDS by carrying out projects for site acquisition and preparation, construction, rehabilitation, and equipping facilities, technical assistance, market or industry research and analysis, and other activities set out in 13 C.F.R. 307.3.
APPLICANT ELIGIBILITY: Eligible applicants for EDA investment assistance include a state, city, county, or other political subdivision of a state, including a special purpose unit of a state or local government engaged in economic or infrastructure development activities, or a consortium of such political subdivision, an institution of higher education or a consortium of institutions of higher education, an Economic Development District organization, a private or public non-profit organization or association, including a faith-based non-profit organization, acting in cooperation with officials of a political subdivision of a state, or an Indian Tribe, or a consortium of Indian Tribes. Individuals, companies, corporations, and associations organized for profit are not eligible. As used in this paragraph, 'state' includes the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau.
PROGRAM/LOAN STRUCTURE: The maximum investment rate will not exceed 50 % of the project cost, except that the project may receive an investment rate up to 80 % based on relative needs as measured by the severity and duration of unemployment and the per capita income level and extent of underemployment in the region. Indian Tribes may be eligible for an investment rate of 100 %. In addition, states or political subdivisions of a state that have exhausted their effective borrowing and taxing capacity or non-profit organizations that have exhausted their effective borrowing capacity may also be eligible for a 100 % rate. On average, EDA investment assistance covers approximately 50 % of project costs.
QUALIFICATION CRITERIA/COMMENTS: EDA will assess the economic development needs of the affected region in which the proposed project will be located (or will service) as well as the capability of the proponent to implement the proposed project. EDA will select proposals competitively based on strategic areas of interest and priority considerations identified in the applicable announcement of Federal Funding Opportunity (FFO). EDA may also consider the degree to which an investment in the proposed project will satisfy: (a) Is market-based and results driven; (b) Has strong organizational leadership; (c) Advances productivity, innovation and entrepreneurship; (d) Looks beyond the immediate economic horizon, anticipates economic changes and diversifies the local and regional economy; and (e) Demonstrates a high degree of local commitment. A proposal for investment assistance must meet EDA investment policy guidelines and other requirements as set out in the applicable FFO.
For more, visit the home page at www.eda.gov or call (303) 844-4715.