Economic Adjustment Program

Program Description: This program helps states and local areas design and implement strategies for facilitating adjustments to changes in their economic situation that are causing or threaten to cause serious structural damage to the underlying economic base. Such changes may occur suddenly or over a long time, and result from industrial or corporate restructuring, new federal laws or requirements, reductions in defense expenditures, depletion of natural resources or natural disasters. Grants are provided for applicants to organize and carry out a planning process resulting in an adjustment strategy tailored to the particular economic problems and opportunities of the impacted area(s). Projects funded include the design and engineering of a new museum complex in Shasta County and the Redding Metro Report. Extra funding for the Northwest Economic Adjustment Initiative is included in this category.

Eligible Communities: State, city or other political subdivision of a state, or a consortium of such subdivisions, an Indian tribe, a designed Redevelopment Area (RA), a community development corporation, or a nonprofit organization determined by EDA to be representative of a RA. Areas must either have experienced, or anticipate, a change in economic situation resulting in the loss of a significant number of permanent jobs; or manifest at least one of the following: high unemployment, low per capital income, or failure to keep pace with national economic growth trends over the last 5 years.

Funding Information: Key selection factors include the relative severity of the adjustment problem, the quality and potential effectiveness of the adjustment strategy, and the extent to which the proposed activities will contribute to facilitating private sector investment in the types of enterprises and industry sectors that will strengthen the economic base of the area. EDA awards grants only and considers the unemployment in an area. EDA gives priority to projects designated as high priority by local economic development agencies. In addition, projects must result in job creation. Funds are available on a reimbursable basis upon approval. For technical assistance and planning projects, funds are available immediately or as soon as the work begins. For construction projects, funds are usually not disbursed until all construction contracts are awarded.

Timelines: EDA is funded on the basis of the federal fiscal year that runs October 1 to September 30. EDA is open for preapplications year-round. The EDA field representative will invite a preapplication for a project that seems to have a good chance of being successful. The preapplication is then submitted to the EDA regional office where a project review committee decides whether or not to invite a final application. After the final application is completely reviewed, the regional director makes the final decision. Most projects that submit a final application are approved for funding. The entire process from preapplication to final decision can take from three months (rare) to a year or more. The process can be lengthy because (1) EDA stops considering preapplications when spending limits for the fiscal year are complete, and (2) there are always numerous projects for the small staff to review.

Contact: Anne Berblinger Deena Sosson