The
Coronavirus Aid, Relief, and Economic Security, or CARES, Act gave the U.S.
Department of Commerce's Economic Development Administration (EDA) $1.5 billion
to assist communities for best positioning with the coronavirus. Recently,
EDA published
answers to anticipated questions about how it actually applies.
Here's
an example:
Congress appropriated EDA $1.5 billion via the CARES Act. What
role will EDA play in strengthening and assisting communities recovering from
the coronavirus crisis?
EDA’s
mission is to lead the federal economic development agenda. EDA works directly
with communities to catalyze locally developed strategies to build capacity for
economic development based on local business conditions and needs.
CARES
Act funds were appropriated under the
Economic
Adjustment Assistance (EAA) Program (PDF), which is EDA’s most flexible
program. EDA will accept applications for grants to support a wide variety of
assistance including:
-Planning
and Technical Assistance
-Capitalization
and Recapitalization of Revolving Loan Funds (RLFs), which provide access to
capital for businesses
-Construction
of infrastructure and other economic development projects
-Innovation
grants.
Here's
another:
Is every community in the country eligible for EDA CARES Act
funding?
Yes.
EDA has determined that economic injury from the coronavirus pandemic constitutes
a “Special Need” under the EAA program and eligibility may be established on
that basis without reference to other economic distress criteria. Nonetheless,
applicants for EDA CARES Act Recovery Assistance are still required to explain
clearly in their application how their project would “prevent, prepare for, and
respond to coronavirus” or respond to “economic injury as a result of
coronavirus.”
What specific programs will EDA implement immediately to assist
communities?
EDA’s
CARES Act Recovery Assistance will advance economic development in communities
negatively impacted by COVID-19 in a variety of ways, including, but not
limited to:
-COVID-19
Economic Recovery Planning and Technical Assistance Grants: Provide economic
recovery grants to each of EDA’s
Economic
Development Districts (EDDs),
Tribal Grantees,
and
University
Centers, and others.
-Grants
to state and regional organizations to develop CARES Act recovery and
resilience strategies, including industry supply chain, cluster analyses,
econometric analyses, diversification efforts, and travel and tourism-related
marketing campaigns.
-Capitalizing
or Recapitalizing
RLFs
(PDF) across the nation targeting businesses in particularly economically
distressed areas that have been affected by the coronavirus pandemic.
-
Innovation grants
similar to Build to Scale, formerly known as Regional Innovation Strategies
(RIS)-like awards focused on technology innovation activities that will help
communities prevent, prepare, and respond to the coronavirus pandemic.
EDA expects to receive many
more quality applications than it can fund using CARES Act funds. To be
competitive, applicants should propose specific, well-defined projects to
prevent, prepare for, or respond to the coronavirus pandemic, including
economic injuries caused by the pandemic. Proposals that are limited to
providing general support for an organization and its mission are unlikely to
be successful.
