EDA Offers $228M for State & Local Economic Development

The Economic Development Administration (EDA) has announced it has $228.12 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 ($203.7 million) is available under Public Works and Economic Development Facilities 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. Upon review of the preproposal, the EDA representative may recommend submission of a full proposal.

Generally, all proposals should seek to enhance regional competitiveness and support long-term development of the regional economy. Further priority will be given to proposals that:

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1. Stimulate innovation and regional competitiveness:

a. Reflect strong leadership committed to regional economic development;

b. Encourage a formal organization structure and process for working on economic issues and maintaining consensus;

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

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

e. Implement cluster- and innovation-focused business development efforts; and,

f. Develop or implement coordinated economic and workforce development strategies.

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2. Upgrade core business infrastructure such as:

a. Transportation infrastructure

b. Communications infrastructure

c. Specialized training program infrastructure

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3. 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).

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4. Support technology-led economic development:

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

2. Create and support technology transfers.

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5. Advance community and faith-based social entrepreneurship in redevelopment strategies for areas of chronic economic distress.

More details and EDA regional contact information is available in the April 9 edition of the Federal Register at: http://www.access.gpo.gov/su_docs/fedreg/frcont03.html

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Copyright State Science & Technology Institute 2003. Information in this issue of SSTI Weekly Digest was prepared under a cooperative agreement with the U.S. Department of Commerce, Economic Development Administration. Redistribution to all others interested in tech-based economic development is strongly encouraged — please cite the State Science & Technology Institute whenever portions are reproduced or redirected. Any opinions expressed in the Digest do not necessarily reflect the official position of the U.S. Department of Commerce.