§ 128.7-5 Purpose of a grant.

(a) A grant will be made by SBA only to finance research concerning the managing, financing and operation of small business enterprises to develop information or techniques which can be used by public or private organizations to aid small business enterprises, or to develop information which improves knowledge of the economy through research on the small business sector.

(b) No proposal nor portion of a proposal will be approved if its primary purpose is to provide information to be used to urge industry and trade located in one State to move to another. § 128.7-6 Amount of a grant.

No grant may exceed an aggregate amount of $40,000. Only one such grant may be made within any one State in any one year. SBA is not authorized to commit itself in any year to make a grant during subsequent years.

§ 128.7-7 Application for a grant.

(a) Applications (SBA Form 459) and instructions (SBA Form 459A) are available at SBA field offices and at the SBA Washington, D.C. office.

(b) An application may be initiated by any institution described in § 128.7-6. Prior to submission, the application and the proposal to perform research under the grant contained therein, may be discussed informally with SBA staff members. When appropriate, SBA staff members may suggest a new proposal or modification of a proposal submitted. If two or more institutions within a State desire to cooperate in carrying out proposals, such combined proposals may be considered. However, only one grant may be authorized. Therefore, the application must designate which of the cooperating institutions is to be the grantee. This institution will be responsible to SBA for carrying out the project in its entirety and SBA will not be obligated in any way to any institution other than the grantee.

(c) Applications must be received by SBA on or before the 31st day of October of the fiscal year for which the grant is requested. Applications received after that date will not be considered.

(d) Six copies of the application shall be submitted to the Director, Office of Management and Research Assistance, Small Business Administration, Washington, D.C., 20416. Applications re

ceived by SBA will not be returned to the applicant.

§ 128.7-8 Method of evaluating and selecting an application.

(a) An application will be reviewed by the Office of Management and Research Assistance for eligibility and other requirements set forth in this part. An application containing a proposal which, on its face, appears eligible and meritorious shall be submitted to the Management Research Advisory Council for a further examination of the merits of the application. The Council will recommend to the Administrator an application which merits a grant. The Administrator may, within his discretion, approve or reject this recommendation.

(b) An application shall be evaluated on the basis of the current need and priority of importance of the anticipated results of the proposal contained therein; the qualifications and experience of the Project Director and staff; the practicability and utility of the proposal; the amount of total direct expenses as compared with overhead expenses; and the amount of added funds to be contributed or arranged for by the institution itself.

(c) Although matching funds are not required, the competing application in any State which is approved will be the one with the greatest amount of matching funds, when other conditions are approximately equal. These matching funds can be measured either in terms of dollar value of services performed (not included as such in the grant) or supplementary contributions of cash to be used in the conduct of the research project. § 128.7-9 Administration of a grant.

(a) Conditions of a grant. The grant agreement as set forth in SBA Form 459 contains express conditions, which when accepted will bind the grantee. The conditions contained in the grant agreement may be amended by mutual agreement of the parties but the amount of the original grant may not be increased as a result of any such amendments to an amount in excess of $40,000.

(b) Grant agreement. The grant agreement as set forth in SBA Form 459 is as follows:

It is understood and agreed by the applicant:

(1) That the project will be performed substantially as described in this application and as approved by SBA, and that the funds granted as a result of your re

quest are to be expended for the purposes set forth herein; (2) That if the project proceeds in accordance with the schedule contained in this application, then the grant funds shall be paid in advance on a semi-annual basis in amounts based on the estimated requirements for the subsequent six month period, up to 90 percent of the grant, and the balance upon completion of the project and receipt by this Agency of a satisfactory final report; (3) That the project shall be directed and supervised by the Project Director named herein and no other Project Director shall be appointed without the approval of SBA; (4) That such accounts shall be kept (in accordance with accepted accounting practices) as are necessary to prepare the financial reports required herein and that inspection and audit by representatives of SBA and the United States General Accounting Office of expenditures under the grant shall be permitted during the life of the grant and for three years thereafter; (5) That written reports of the progress of the project and of the expenditure of funds under the grant will be furnished every six months after the grant has been awarded, or more frequently as SBA may reasonably require; that the project shall be completed and the final report submitted to SBA by the date specified herein; that at least 500 copies of the final report shall be furnished to SBA in such form as SBA may approve; and that a typewritten summary statement of not more than 3,000 words covering the major findings of the project shall be prepared and submitted in triplicate; (6) That the grant may be revoked in whole or in part at any time by the Administrator of the SBA provided that such action shall not affect commitments of funds made prior to the effective date of the revocation if such obligations were made solely for the purposes set forth in this application. If the grant is revoked because of a substantial deviation. not approved by SBA, from the project or this agreement then the amount of the grant then paid may be recovered by SBA.

(c) Establishing the amount of a grant. In considering the budget for a grant, SBA will recognize that substantial contributions may be made by the grantee in such form as space, equipment, library facilities, and, in many cases, as payment of the salaries or parts of the salaries of the Project Director and

staff. SBA normally will include in the grant, funds for such items as the salaries of personnel, materials, necessary travel, publication and other direct costs.

(d) Grant period. The Act limits SBA to making one grant within any one States in any one year; however, the project does not have to be completed within the year but may be for a period of longer duration as provided in the grant agreement. When progress of research under the grant is delayed and circumstances make it necessary to request an extension of the grant period without additional funds, SBA may, upon written request of the grantee, permit extensions in time. Such an extension, however, may require a spread out of the remaining payments under the grant.

(e) Payment of a grant. In general, payment will be made in advance to the grantee only, based on the estimated requirements for the subsequent six month period, up to 90 per cent of the grant, and the balance upon completion of the project and approval and acceptance by SBA of the final report.

(f) Accounting procedures and audit. While no particular classification of accounts is required, a grantee shall keep such accounts for each project (in accordance with generally accepted accounting practices) as are necessary to permit it to prepare the required financial reports as required in paragraph (g) of this section, and to make possible a determination by SBA that the grant has been used for the purposes for which the grant was made. All accounting records relating to expenditures under the grant are subject to inspection and audit by representatives of SBA and the United States General Accounting Office during the life of the grant and for three years thereafter.

(g) Reports. (1) Progress and financial reports must be made to SBA on work financed by the grant. Specific conditions regarding frequency of submission and nature of reports will be set forth in each grant agreement.

(2) The final report on the project must be submitted to SBA within the time allowed. From time to time, SBA representatives may visit the project sites and, at such time, verbal reports will be expected.

§ 128.7-10 Revocation of a grant.

Each grant will be made subject to a condition that it may be revoked in

whole or in part. A revocation shall not affect any commitment of funds made by the grantee which was made in accordance with the project prior to the effective date of revocation. Any substantial deviation from the project not approved

by SBA will be deemed to be a breach of the grant agreement and grounds for termination of the grant in its entirety. In this event SBA assumes no responsibility for any commitment of funds made by the grantee.

"Act" used in this chapter means the Public Works and Economic Development Act of 1965, as amended.

"Administration," "Agency," or "EDA” means the Economic Development Administration.

"Advisory Committee” means the Committee on Regional Economic Development appointed by the Secretary in accordance with section 602 of the Act.

"Alaskan Native Village" means town or village sites occupied and used by natives of Alaska-Indians, Eskimos, and Aleuts-pursuant to the 1926 Native Townsite Act.

"ARA" means the Area Redevelopment Administration (now expired) which was an experimental program designed to cope with the problems of long-term unemployment and underemployment.

"Assistant Secretary" means the Assistant Secretary of Commerce for Economic Development.

"Designated Area" means any area or center which has been determined by the Assistant Secretary pursuant to sections 102, 401, or 403 of the Act as eligible to apply for financial assistance.

"Designation" means the act of the Assistant Secretary whereby a geographic area, district or economic development center is determined to be eligible to apply for assistance under the Act. "Disaster Area" means areas designated under Titles I or IV of the Act and designated by the President under the Disaster Relief Act of 1970 (Public Law 91-606). The disaster area shall remain such for as long a period as it retains both EDA and Disaster designations, and such concurrent designations have not exceeded 1 year in duration.

"Economic Development Center" means any geographic area within the United States having a population of 250,000 or less, not located in a redevelopment area, which has been identified in an approved district overall economic development program as having the potential for economic growth and the ability to alleviate the economic distress of the redevelopment areas within the district.

"Economic Development District” means a geographic area composed of adjoining and economically related areas which are of proper size to permit effective economic planning, including at least two redevelopment areas and one or more economic growth center (s) and having been designated by the Assistant Secretary.

"Economic Growth Center" means an economic development center or redevelopment center, designated or recognized by the Assistant Secretary, whose growth may be reasonably expected to contribute significantly to the alleviation of distress in the district's redevelopment areas.

"Indian Tribe" means the governing body of a tribe, nonprofit Indian corporation (restricted to Indians), Indian authority or other tribal organization or entity or Alaskan Native Village.

"Local Government" means any municipality, county, town, parish, or other general purpose political subdivision of a State.

"OEDP" means an Overall Economic Development Program (or orderly plan of action) pertaining to an area district.

or

"Planning Grants" means grants for administrative expenses to eligible applicants under section 301(b) of the Act for planning purposes.

"Public Works Impact Program Area” means any community or neighborhood (defined without regard to political or