[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: 13CFR301.4] [Page 545-546] 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. 301.4 Grant rates. (a) Except as otherwise provided for in this chapter, the amount of the EDA grant may not exceed 50 percent of the cost of the project. Cash or in-kind contributions, fairly evaluated by EDA, including contributions of space, equipment, and services, may provide the non- Federal share of the project cost. In-kind contributions must be eligible project costs and meet applicable Federal cost principles and uniform administrative requirements. (b) EDA may supplement the Federal share of a grant project where the applicant is able to demonstrate that the non-Federal share that would otherwise be required cannot be provided because of the overall economic situation. It is not necessary for an applicant to prove that it would be impossible to provide a full 50 percent non-Federal share, but it must show circumstances warranting any reduction. In determining whether to provide a Federal share greater than 50 percent for a project, EDA will give due consideration to the applicant's economic situation and the relative needs of the area. In the case of Indian tribes, EDA may reduce or waive the non-Federal share, and in other cases EDA may reduce the non-Federal share of the cost of the project below 50 percent, in accordance with the following table, showing the maximum Federal grant rate, including the supplement: ------------------------------------------------------------------------ Maximum grant rates Projects (percentage) ------------------------------------------------------------------------ (1) Projects of Indian tribes where EDA has 100 made a determination to waive the non- Federal share of the cost of the project. (2) Projects under Part 308 located in 100 Presidentially-declared disaster areas for which EDA receives an application for assistance under a supplemental appropriation, within 18 months of the date of declaration, and for which the President established a rate of Federal participation, based on the public assistance grant rate of the Federal Emergency Management Agency (FEMA) for the disaster, of greater than 80 percent. (3) Projects of Indian tribes where EDA has Less than 100 made a determination to reduce the non- Federal share of the cost of the project. (4) Projects of States or political Less than 100 subdivisions of States that have exhausted their effective taxing and/or borrowing capacity, or nonprofit organizations that have exhausted their borrowing capacity. (5) Projects under Part 308 located in 80 Presidentially-declared disaster areas for which EDA receives an application for assistance under a supplemental appropriation, within 18 months of the date of declaration. (6) Projects located in Federally-declared 80 disaster areas, for which EDA receives an application for assistance within 18 months of the date of declaration, when the Assistant Secretary determines that the applicant cannot provide the required non- Federal share because of the disaster's impact on the economic situation. (7) Projects located in eligible areas where: (i) The 24-month unemployment rate is at least 225% of the national average or (ii) The per capita income (PCI) is not 80 more than 50% of the national average. (8) Projects located in eligible areas that are not eligible for a higher rate, where: [[Page 546]] (i) The 24-month unemployment rate is at least 180% of the national average or (ii) The PCI is not more than 60% of the 70 national average. (9) Projects located in eligible areas that are not eligible for a higher rate, where: (1) The 24-month unemployment rate is at least 150% of the national average or (2) The PCI is not more than 70% of the 60 national average. (10) Projects in all other eligible areas.... 50 ------------------------------------------------------------------------ (c) The table in paragraph (b) of this section does not apply to projects which support the on-going operations of Economic Development Districts or University Centers. Grant rates for those projects are provided in part 306 and subpart B of part 307, of this chapter, respectively. (d) Projects located in designated Economic Development Districts are eligible for an amount of additional Federal grant assistance not to exceed 10 percent of the estimated cost of the project, provided (1) The project applicant is actively participating in the economic development activities of the district; (2) The project is consistent with the strategy of the district; and (3) The non-Federal share of the project is not less than 20 percent. (4) The project is not a University Center project under subpart B of part 307, of this chapter; and (5) The district organization is not itself the sole project applicant. Projects (other than planning projects under part 306 of this chapter) for which the district organization is a co-applicant are eligible for the incentive if the co-applicant with the district is actively participating in the economic development activities of the district and the project is otherwise eligible for such incentive. Planning projects under part 306 of this chapter for which the district organization is an applicant or a co-applicant are not eligible for the 10 percent increase in assistance. (e) EDA may make grants to supplement grants awarded in other Federal grant programs. (1) Supplemental grants under paragraph (e) of this section are only available for projects: (i) Under Federal grant programs that (A) Provide assistance in the construction or equipping of public works, public service, or development facilities, and (B) Are designated by EDA as eligible for supplemental EDA grants, and (ii) Are consistent with a strategy. (2) EDA's funds combined with funds from another Federal grant program may be at the maximum EDA grant rate, as set forth above, even if the other Federal program has a lower grant rate. If the other Federal program has a grant rate higher than the maximum EDA grant rate as set forth above, the combination of funds may exceed the EDA rate provided the EDA share does not exceed the EDA rate. (f) An applicant is eligible for the highest applicable maximum grant rate, as set forth above, in effect between the time EDA invites the application and the time the project is approved. The Federal share of a project receiving EDA grant assistance may be (and often is) less than the maximum grant rate for which the recipient is eligible. (g) EDA's NOFA will provide additional criteria to ensure that the level of economic distress of an area, rather than a preference for a geographic area or a specific type of economic distress, is the primary factor in allocating assistance. [64 FR 5353, Feb. 3, 1999, as amended at 64 FR 32975, June 18, 1999; 64 FR 69873, Dec. 14, 1999]