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celled checks. The Regional Office may held by him in connection with finanwithhold 10 percent of all requested cial assistance extended under the Act. disbursements on all project costs ex (b) Collect or compromise all obligacept land costs. When the Regional Of- tions assigned to or held by him in confice determines that the status of the nection with EDA financial assistance project is such as would place EDA'S projects until such time as such obligainterest in jeopardy, the Regional Of tions may be referred to the Attorney fice may withhold a greater percentage General for suit or collection. after stating in writing to the borrower (c) Take any and all other actions dethe basis for such decision. The bor- termined by him to be necessary or derower shall, on EDA Form ED-265, sirable in purchasing, servicing, com“Disbursement of Business Loan promising, modifying, liquidating, or Funds,” acknowledge receipt of each otherwise administratively dealing disbursement made by EDA.

with or realizing on loans or guaranties (e) Requests by an applicant for a

made or evidences of indebtedness purmodification of the terms on which its

chased under the Act. EDA financial assistance has been extended shall be submitted to the Re- PART 307 –TECHNICAL ASSISTgional Director, supported by such doc ANCE, RESEARCH, AND INFORumentation and facts as would justify MATION the requests.

Subpart A-Technical Assistance $ 306.32 Project servicing.

Sec. EDA personnel will make periodic

307.1 Purpose. visits to projects until such time as the 307.2 Authority. financial assistance has been fully re 307.3 Projects. paid. Such personnel will consult with 307.4 Location. employees and officers of the applicant

307.5 Applicants. and obtain such information as is nec

307.6 Priority consideration.

307.7 Technical assistance through Federal essary to determine the employment

personnel and contracts. levels as well as the soundness of its fi- 307.8 Procedures for assistance by EDA dinancial condition and management. rect contracting. Requests by an applicant for a modi 307.9 Contracting procedure. fication of the terms on which its EDA 307.10 Technical assistance through grants. financial assistance has been extended

307.11 Grant procedures.

307.12 Procedural grant requirements. shall be submitted to the Regional Di

307.13 Limitations. rector, supported by such documenta

307.14 Repayment. tion and facts as would justify the re

307.15 Repayment not required. quests.

307.16 Records and audit-grantees.

307.17 Records and audit-contractors. 8306.33 Liquidation and administra

tion of loans, guarantees and evidences of indebtedness.

Subpart B-Planning Grants and Economic

Growth Study Grants In the event that the Assistant Secretary determines it is necessary or de

307.21 Purpose.

307.22 Planning grant objectives. sirable to take actions to protect or

307.23 Economic growth study grant objecfurther the interests of EDA in connec

tives. tion with loans or guarantees made or 307.24 Applicants. evidences of indebtedness purchased 307.25 Terms and conditions. under the Act, the Assistant Secretary 307.26 Financial requirements. may:

307.27 Work program.

307.28 Continuation planning grants. (a) Assign or sell at public or private

307.29 Other requirements. sale, or otherwise dispose of for cash or credit, in his discretion and upon such terms and conditions as he shall deter

Subpart C-Study, Training, and Research mine to be reasonable, any evidence of

Program debt, contract, claim, personal or real 307.41 General. property, or security assigned to or 307.42 Purpose.

307.43 Program. 307.44 Requirements.

Subpart D--State and Local Economic

Planning Grants

307.50 Purpose.
307.51 Objectives.
307.52 Types of grants.
307.53 Eligible applicants.
307.54 Submission of applications.
307.65 Application requirements.
307.56 Grant limitations.
307.57 Annual reports.
307.58 Coordination.
307.59 Requirements.

AUTHORITY: Sec. 701, Pub. L. 89_136, 79 Stat. 570 (42 U.S.C. 3211); sec. 1–105, E.O. 12185; Department of Commerce Organization Order 10-4, as amended (40 FR 56702, as amended).

SOURCE: 38 FR 2284, Jan. 23, 1973, unless otherwise noted.

Subpart A-Technical Assistance 8307.1 Purpose.

The purpose of this subpart is to set forth the requirements and procedures pursuant to which eligible applicants may receive technical assistance under section 301 (a), (b), (d), and (f) of the Act.

(v) Studies regarding energy conservation if such studies will examine specific energy problems which have broad applicability to economically distressed regions and communities.

(2) Pursuant to section 301(b) of the Act, grants to defray administrative expenses of organizations qualified to receive grants under section 301(a) of the Act. (See also subpart B of this part.)

(3) Pursuant to section 301(d) of the Act, assistance, technical information, market research, or other forms of assistance or advice.

(4) Pursuant to section 301(f) of the Act, demonstration programs of special economic development.

(b) Technical assistance may be provided by the Assistant Secretary through:

(1) Members of this staff,

(2) Payment of funds to other departments or agencies of the Federal Government,

(3) Grants-in-aid to appropriate public or private nonprofit State, area, district, or local organizations, or

(4) Contracts with private individuals, partnerships, firms, corporations, or suitable institutions. (38 FR 2284, Jan. 23, 1973, as amended at 45 FR 57963, Aug. 29, 1980) 8307.4 Location.

(a) Technical assistance will be provided in areas designated as redevelopment areas, however, a nondesignated area may also receive technical assistance, except for demonstration grants under section 301(f) of the Act, as an area of substantial need, if at least one of the following conditions is found to exist:

(1) The closing or the imminent shutdown of a major source of jobs is shown to have a highly adverse effect on the area.

(2) The area is so closely linked geographically or economically with a designated area as to substantially affect its economy.

(3) The economy problems of the area are so severe that they are leading toward substantial unemployment in the near future.

(4) The project is directed toward solving problems in a "hard-hit" part of a noneligible area, and that part ap

8307.2 Authority.

The Assistant Secretary may provide technical assistance, pursuant to title III of the Act, which would be useful in alleviating or preventing conditions of excessive unemployment or underemployment, to designated redevelopment areas and to other areas which he finds have substantial need for such assistance, including projects of regional or national scope.

8307.3 Projects.

(a) Technical assistance should serve the purpose of solving problems of economic growth, and may include:

(1) Pursuant to section 301(a) of the


(i) Feasibility studies,

(ii) Identifying, planning, and programing of economic development projects,

(iii) Management and operational assistance,

(iv) Preliminary design planning and feasibility studies of development facilities, and

EDA contribution for technical assistance through payment of funds to other departments or agencies of the Federal Government may be 100 percent of the project cost.

pears to have persistent and substantial unemployment on the basis of readily available facts.

(5) Where an economic development district is formed under title IV of the Act, technical assistance may be rendered to that district or its economic development center.

(6) The project is one of national scope.

(b) Demonstration grants under section 301(1) of the Act may be provided only in redevelopment areas.

8 307.8 Procedures for assistance by

EDA direct contracting. (a) Applicants for technical assistance for which EDA will directly contract for a service, may recommend potential contractors.

(b) EDA does not limit its choice to contractors suggested by the applicant and may invite contract proposals from competent, qualified individuals and organizations.

(c) Final selection of a contractor is made by the U.S. Department of Commerce according to Federal Procurement Regulations.

(d) The Government is not obligated in any way by any negotiations between the applicant (or others) and the suggested contractor.

$ 307.5 Applicants.

(a) Applicants eligible for technical assistance, except as provided in paragraph (b) of this section, include:

(1) Local and area development organizations, for profit or nonprofit;

(2) State agencies; (3) Federal agencies; (4) Municipal bodies; (5) Individuals; (6) Partnerships; (7) Firms; (8) Corporations; (9) Indian tribes; (10) Other appropriate applicants. (b) Only qualified nonprofit State, area, district, or local development organizations are eligible for technical assistance through granus. (See also subpart B of this part.) $307.6 Priority consideration.

Projects warranting priority consideration by EDA are those which:

(a) Can be expected to have a specific effect on employment or family income in a relatively short time.

(b) Offer assurances of effective follow-up.

(c) Benefit population groups with the greatest evidence of unemployment, underemployment, or low-family income. (d) Are in designated areas. (e) Would benefit additional areas.

(1) Contribute substantially to the overall objectives of the Act. $307.7 Technical assistance through

Federal personnel and contracts. The Federal share of technical assistance provided by Federal personnel, or through contracts, may be 100 percent, but a maximum non-Federal contribution in cash or in kind is preferred. The

8 307.9 Contracting procedure.

(a) The Contracting Officer in the Department of Commerce is the sole legal party representing the Government in technical assistance contracts, including negotiation of financial terms and conditions, and award, administration, and termination of contracts.

(b) for technical assistance projects being carried out under contract, the Contracting Officer designates a Contracting Officer's Technical Representative (COTR), who is responsible for the preliminary acceptance of all the work required under the contract, including the preliminary approval of any and all reports, and such other specific responsibilities as are stipulated in various articles of the contract. The COTR is not authorized to make any commitments or otherwise obligate the Government, or authorize any changes which affect the contract price, terms, or conditions. Such changes are referred to the Contracting Officer through the COTR.

(c) Contracting is governed by Department of Commerce regulations and the Federal Procurement Regulations.

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if made, would be unsuccessful in raising the necessary funds for the project. 8307.11 Grant procedures.

Grant funds are disbursed directly to the applicant, who is responsible for employing personnel, hiring consultants, and planning and administering the program. EDA, however, reserves the right to approve plans for spending such funds, as well as the right to ap prove the qualifications of personnel, consultants, or contractors. Grant offers are made on the terms specified by the Assistant Secretary. Each grant will designate a Grant Administrator (GRA) who is responsible for the administration of the grant and liaison with the Grantee. The GRA is also responsible for evaluating the operation of the grant as executed by the Grantee, and for the preliminary approval of any and all reports and such other specific responsibilities as are stipulated in various articles of the grant.

8307.10 Technical assistance through

grants. (a) The Federal share of technical assistance provided in the form of a grant must not exceed 75 percent of the total amount of the funds required.

(1) In determining the non-Federal share, EDA will give consideration to all contributions, both in cash and inkind, fairly evaluated including but not limited to space, equipment, and services.

(2) No Federal funds may be included in the 25-percent non-Federal share.

(b) The Assistant Secretary may waive all or part of the 25-percent nonFederal share of technical assistance grants, except for administrative expense grants under section 301(b), if he determines that the non-Federal share is not reasonably available because of the critical nature of the situation requiring technical assistance, or for other good cause.

(1) In determining whether a critical situation exists, the Assistant Secretary will consider one or more of the following criteria:

(i) The extent of the critical situation, as measured by unemployment, underemployment, and family income levels:

(ii) The nature and extent of the funds reasonably currently available to comprise the non-Federal share, as made known by the applicant and verified by the Economic Development Administration; or

(iii) The extent of local support for the project, as manifested by previous bona fide local efforts to assist it financially.

(2) In determining whether “other good cause" exists, the Assistant Secretary will consider one or more of the following factors in addition to those listed in paragraph (b)(1) of this section:

(i) Where the technical assistance is requested to replace, rehabilitate, or expand an activity already existing in the community, and the applicant can show a need to conserve funds in order to encourage the establishment of new activities that will strengthen the economic base of the community; or

(ii) Where the Assistant Secretary determines that a bona fide local fund. raising drive either has been made or,

8307.12 Procedural grant require

ments. (a) Grant agreements provide that the Government shall pay quarterly, or in certain circumstances more frequently, an amount to cover Federalshare funds estimated to be expended by the Grantee during the period following the payment.

(b) Contributions by the grantee, whether in cash or in kind, are expected to be paid out at the same general rate as "Federal share" expenditure. In any event, one-half of the Grantee's share of project cost will be available, incurred, or expended by the time one-half of the Federal share has been disbursed. Exceptions to this midpoint, pro rata requirement are approved in writing by the GRA.

(c) Technical assistance grants require that any interest earned on funds paid to the Grantee under the grant be reported and returned to the Government within 10 days after receipt of such interest, according to directions specified by the GRA. This requirement does not apply to States or State agencies, but it may apply to political subdivisions of States.

(d) Technical assistance grants require the Grantee to maintain separate records for the grant in a manner con

sistent with generally accepted accounting practices to safeguard the assets, insure internal control, and provide accurate and reliable accounting data and, unless otherwise authorized by the GRA, to establish a separate bank account for the funds provided under the grant. The requirement for a separate bank account does not apply to States or State agencies, however, such States or State agencies must establish a separate fund a count which identifies the application of funds provided through the grant.

(e) Any amendment to a grant must be approved in writing by EDA.

(f) Evidence is required that all persons authorized to handle funds under the grant, except elected officials, are bonded or secured for an appropriate amount.

(g) To assure adequate and effective planning and economical use of funds where practicable, grants for administrative expenses under section 301(b) of the Act shall be used in conjunction with other available planning grants, such as urban planning grants authorized under the Housing Act of 1954, as amended, and highway planning and research grants authorized under the search grants authorized und Federal-Aid Highway Act of 1962.

(h) The requirements of part 309 of this chapter pertain to technical assistance.

8 307.13 Limitations.

Technical assistance shall be provided on terms and conditions set by the Assistant Secretary, subject to the following restrictions and limitations, among others:

(a) Technical assistance funds may not be used to cover the costs of work already performed or of services already provided;

(b) No technical assistance project will be approved without satisfactory assurance to the Assistant Secretary that it is not being simultaneously considered for financial support by another organization or Federal agency;

(c) All applications not of national scope will be coordinated with appropriate Federal agencies, with interest in the project.

(d) Technical assistance for tourism development must be shown to be essential to a coordinated program of economic development in the area.

(e) The Overall Economic Development Program (OEDP) for designated areas and, whenever available, for economic development districts, will be considered in the evaluation of technical assistance applications.

(f) It is preferable that applications except those for projects of national scope be reviewed by the appropriate State, district, or area economic development organization before being submitted to EDA.

8307.14 Repayment.

The Assistant Secretary may, in his discretion, require the repayment of technical assistance under section 301(a) of the Act and prescribe the terms and conditions of such repayment.

(a) Federal costs of technical assistance projects of substantial proprietary benefit to a private individual, corporation, or other business organization are expected to be repaid to the Federal Government through arrangements agreed upon between the Government and the recipient.

(b) Repayment shall be made on onehalf the first $10,000 of project cost and 100 percent of the remaining project cost.

(c) Repayment shall be interest-free and unsecured.

(d) In the case of Federal agency business loan borrowers, repayment shall be made in monthly or quarterly payments in an amount approximating, but not in excess of, payments required on the loan. They will commence subsequent to the last payment of the loan.

(e) For all other applicants or beneficiaries, the terms of repayment shall not be inconsistent with the purpose and the use of the technical assistance.

(f) When the technical assistance beneficiary is a subsidiary, repayment shall, wherever possible, be required of the parent or controlling organization in addition to its subsidiary.

$ 307.15 Repayment not required.

Repayment will be waived under the following circumstances:

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