(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 request 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 re

ports 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.

AUTHORITY: 1 The provisions of this Part 301 issued under sec. 501, 65 Stat. 290, secs. 214, 302, 701, 79 Stat. 17, 19, 570, 81 Stat. 54; 31 U.S.C. 483a, 40 U.S.C. App. A 214, 302, 42 U.S.C. 3211, 5 U.S.C. 552, Dept. of Commerce Orders 5A, 64, 31 F.R. 16728, 32 F.R. 9734.

Subpart A-Introduction

SOURCE: The provisions of this Subpart A appear at 31 F.R. 11287, Aug. 26, 1966, unless otherwise noted.

The Economic Development Administration was created by order of the Department of Commerce pursuant to the authority vested in the Secretary of Commerce by the Public Works and Economic Development Act of 1965 (P.L. 89-136, Aug. 26, 1965; 79 Stat. 552, 42 U.S.C. 3121). The authority delegated by the Secretary to the Economic Development Administration is vested in the Assistant Secretary for Economic Development. The Secretary has also delegated certain functions under the Appalachian Regional Development Act of 1965 (P.L. 89-4, Mar. 9, 1965; 79 Stat. 5, 40 U.S.C. App. A2) to the Economic Development Administration.

[31 F.R. 16669, Dec. 30, 1966]

(a) Act. "Act" when used without further designation means the Public Works and Economic Development Act of 1965, cited in § 301.1.

(b) Administration. "Administration" when used without further designation means the Economic Development. Administration.

(c) Advisory Committee. "Advisory Committee" when used without further designation means the Advisory Committee on Regional Economic Development appointed by the Secretary in accordance with section 602 of the Act.

(d) Area. "Area" when used without further designation means a geographic area which is being proposed or considered for designation by the Assistant Secretary under the Act and generally refers to a county, a "labor area" (as defined by the Secretary of Labor), or a municipality with a population of over 250,000, whichever the Assistant Secretary may determine to be appropriate.

(e) Assistant Secretary. "Assistant Secretary" when used without further designation means the Assistant Secre

132 F.R. 10836, July 25, 1967.

tary of Commerce for Economic Development.

(f) Center. "Center" when used without further designation means any economic development center or redevelopment center designated by the Assistant Secretary under section 403 of the Act. (See "Economic development center" below.)

"Designated

(g) Designated area. area" when used without further designation means any area or center which has been designated by the Assistant Secretary under sections 102, 401, or 403 of the Act as eligible to apply for financial assistance.

(h) Designation. "Designation" a s used in this chapter generally refers to the act of the Assistant Secretary in designating a geographic area, district, economic development center, or region as eligible to apply for Federal assistance under the Act. It may also refer to the status of an area, district, center, or region so designated. (See "Designated area" above.)

(i) District. See "Economic development district" below.

(j) EDA. "EDA" when used without further designation means the Economic Development Administration, a primary constituent organization of the United States Department of Commerce, created as set forth in § 301.1 above.

(k) Economic development center. "Economic development center" when used without further designation means any geographic area within the United States having a population of 250,000 or less which has been identified as an economic development center in an approved district overall economic development program and which has been specifically designated by the Assistant Secretary as such and as eligible to apply for financial assistance under section 403 of the Act.

(1) Economic development district. "Economic development district" when used without further designation means any area within the United States composed of at least two cooperating redevelopment areas and, where appropriate, designated economic development centers or neighboring counties or communities, which has been designated by the Assistant Secretary as an economic development district.

(m) Eligible area. See "Designated area" above.

(n) Financial assistance. "Financial assistance" when used without further

designation means loan or grant assistance from the Administration in accordance with sections 101, 201, or 202 of the Act.

(0) Local government. "Local government" when used without further designation means any municipality, county, town, parish, or other general purpose political subdivision of a State or territory.

(p) OEDP. "OEDP" when used without further designation means an Overall Economic Development Program (or, plan of action) pertaining to an area, district, or region. Approval of an OEDP by the Assistant Secretary is a prerequisite for designation.

(q) Qualified (or, qualifying) area. "Qualified area" when used without further designation means an area which is qualified under the statistical or related criteria of the Act for designation as a "redevelopment area" or "Title I area," subject to the other provisions of the Act. Qualification is a prerequisite for designation.

(r) Redevelopment area. "Redevelopment area" when used without further designation means any area which has been designated by the Assistant Secretary as a redevelopment area under section 401 of the Act.

(s) Redevelopment center. "Redevelopment center" when used without further designation means any geographic area constituting all or part of a redevelopment area which has been identified in an approved district overall economic development program as having sufficient size and potential to foster the economic growth activities necessary to alleviate the distress of the redevelopment areas composing the district.

(t) Region. "Region" when used without further designation means an economic development region designated by the Secretary of Commerce with the concurrence of the States concerned, pursuant to Title V of the Act.

(u) Secretary. "Secretary" when used in this chapter without further designation means the Secretary of Commerce, the Assistant Secretary for Economic Development when exercising authorities delegated by the Secretary of Commerce in Department Order 5-A, or any person duly authorized to act for the Secretary of Commerce in his name or stead.

(v) Title I area. "Title I area" when used without further designation means any area which has been designated by