[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR301.2]

[Page 544]
 
                TITLE 13--BUSINESS CREDIT AND ASSISTANCE
 
CHAPTER III--ECONOMIC DEVELOPMENT ADMINISTRATION, DEPARTMENT OF COMMERCE
 
PART 301--GENERAL ELIGIBILITY AND GRANT RATE REQUIREMENTS--Table of Contents
 
Sec. 301.2  Area eligibility.

    (a) EDA awards public works and development facilities grants under 
part 305 and economic adjustment grants under part 308 for projects to 
enhance economic development in economically distressed areas.
    (b) An area is eligible for a project grant under part 305 or 308 if 
it has one of the following:
    (1) An unemployment rate that is, for the most recent 24-month 
period for which data are available, at least one percent greater than 
the national average unemployment rate. For example, if the national 
average unemployment rate is 6 percent, an area is eligible under this 
provision if it has an unemployment rate of 7 percent.
    (2) Per capita income that is, for the most recent period for which 
data are available, 80 percent or less of the national average per 
capita income.
    (3) A special need, as determined by EDA, arising from actual or 
threatened severe unemployment or economic adjustment problems resulting 
from severe short-term or long-term changes in economic conditions, for 
example:
    (i) Substantial outmigration or population loss;
    (ii) Underemployment, that is, employment of workers at less than 
full time or at less skilled tasks than their training or abilities 
permit;
    (iii) Military base closures or realignments, defense contractor 
reductions-in-force, or Department of Energy defense-related funding 
reductions;
    (iv) Natural or other major disasters or emergencies;
    (v) Extraordinary depletion of natural resources;
    (vi) Closure or restructuring of industrial firms, essential to area 
economies; or
    (vii) Destructive impacts of foreign trade.
    (c) A non-distressed area [i.e., an area that does not meet the 
criteria of paragraph (b) of this section] within an Economic 
Development District is also eligible, provided the project will be of a 
substantial direct benefit to an area that meets at least one of the 
criteria of paragraph (b) of this section. A project provides 
substantial direct benefit if it provides significant employment 
opportunities for unemployed, underemployed or low income residents.
    (d) Normally an area is defined by geographical/political 
boundaries, e.g., city, county, Indian reservation. However, a smaller 
area (without regard to political boundaries) is also eligible even 
though it may be part of a larger community that overall is experiencing 
low distress. When the boundaries of the project area differ from 
established political boundaries, the project area must be of sufficient 
size appropriate to the proposed project, and the applicant must justify 
the proposed boundaries in relation to the project's benefits to the 
area.
    (e) Eligibility is determined at the time that EDA receives an 
application and is based on the most recent Federal data available for 
the area where the project will be located or where the substantial 
direct benefits will be received. If no Federal data are available to 
determine eligibility, an applicant must submit to EDA the most recent 
data available through the government of the State in which the area is 
located, i.e., conducted by or at the direction of the State government. 
Other data may be submitted, as appropriate, to substantiate eligibility 
based on special needs, under paragraph (b)(3) of this section.
    (f) EDA may reject any documentation of eligibility that it 
determines is inaccurate.
    (g) There is no area eligibility requirement for a project grant 
under part 306 or 307.
    (h) EDA describes special needs criteria under paragraph (b)(3) of 
this section in a NOFA.

[64 FR 5353, Feb. 3, 1999, as amended at 64 FR 69873, Dec. 14, 1999]