12 Jul Funding Alert! NEW EDA Recompete Pilot Program for Distressed Communities – Part I: Strategy Plan Development

Department of Commerce – Economic Development Administration (EDA)

Attention local governments and economic development-focused organizations! The Department of Commerce (DOC) – Economic Development Administration (EDA) – is releasing a brand-new program to create renewed economic opportunity in communities that have for too long been forgotten. The EDA’s mission is to ensure that all communities have a path to economic prosperity. The Recompete Pilot Program will invest in distressed communities to create and connect workers to good jobs in places that need them most. The program specifically targets distressed communities to spur a new chapter of opportunity in those areas. This includes areas where prominent industries have declined or disappeared, were physically separated by highway construction, or endured decades of disinvestment. These may be urban, suburban, or rural areas that have low labor force participation rates that are holding back prosperity. This post provides an overview of the opportunity, focusing on the Strategy Development Grant track. The Recompete Plan track will be highlighted next week.

Who is eligible to apply?

Eligible applicants include local and tribal governments, political subdivisions of a State or special-purpose entity engaged in economic development activities, nonprofit organizations working in cooperation with previously mentioned entities, and coalitions of any above entities that serve an eligible geographic area.

What is the program goal?

The Distressed Area Recompete Pilot Program (Recompete Pilot Program) aims to alleviate persistent economic distress and support long-term, comprehensive economic development and job creation in places with a high prime-age (25-54 years) employment gap. The program uses the prime-age employment gap (PAEG) as an indicator of economic distress because it accounts for prime-age workers who have stopped looking for jobs and left the labor force, not just those who are currently unemployed. The EDA will seek to invest in programs and organizations that have a clear understanding of local conditions and pathways to create and connect people with good jobs while ensuring the program’s benefits are shared equitably and across diverse geographies.

EDA will run this competition in two phases through two separate Notices of Funding Opportunity (NOFOs). In this Phase 1 NOFO, EDA will fund Strategy Development Grants and will approve Recompete Plans for certain regions. Applicants to this Phase 1 NOFO must choose whether they are pursuing a Strategy Development Grant, approval of a Recompete Plan, or both. Under Phase 2, NOFO EDA will award Implementation funding.

• Strategy Development Grants are for regions with relevant ideas, leaders, and/or assets needing significantly more coordination and planning before pursuing implementation funding. Applicants do not intend to apply for Implementation funding under Phase 2.
• Recompete Plan Approval Projects are for regions ready to apply for Implementaiton funding who do not need additional resources to develop a strong Phase 2 application. Approval is a prerequisite for Implementation funding.
• Both Strategy Development Grants and Plan Approval Projects are for regions that understand how to address low labor force participation and are close to being ready to apply for Implementation funding. Additional resources would strengthen coordination, planning, and Phase 2 application development.

The EDA anticipates awarding $250,000 and $500,000 in Strategy Development Grants and up to $750,000,000 in rare circumstances, for a total of $12,000,000. The period of performance for these projects will depend on the scope of work, ranging from 18-36 months. Phase 1 will approve at least 20 Recompete Plans, and award 4-8 Implementation grants in Phase 2. Grants to local labor markets will average $50,000,000, and grants to local communities will average $20,000,000.

Strategy Development Grants may fund the following types of activities:

• Coordination and execution of an inclusive, locally defined planning process, across jurisdictions and agencies, to develop a comprehensive regional strategy to address high prime-age employment gaps in the regions (i.e., a PAEG strategy);
• Identification and fostering of regional partnerships for developing and implementing a comprehensive regional PAEG strategy;
• Implementation or updating of assessments to determine regional needs and capabilities;
• Development or updating of goals and strategies to implement an existing comprehensive regional PAEG strategy;
• Identification or implementation of planning, local zoning, and other changes to code, law, or policy necessary to implement a comprehensive regional PAEG strategy;
• Development of plans for promoting broad-based economic growth in a region;
• Hiring of the coalition’s RPC to lead the overall effort and other necessary staff;
• Formation of a workforce development strategy, according to the needs for a skilled and diverse technical workforce aligned with the region’s strengths;
• Activities necessary to prepare for strategy implementation, which may include workforce development strategies, environmental, and engineering documentation, if applicable.

See the full NOFO for details of the required components. Proposals are due on Thursday, October 5, 2023.

What makes a project a good fit?

Recompete Pilot Program investments must be located in one of two eligible area types:

• Local Labor Markets (LLMs): a Metropolitan Statistical Area, a Micropolitan Statistical Area, a commuting zone, or Tribal lands. LLMs with a PAEG of at least 2.5% are eligible.
  • For the purposes of this competition, all Tribal lands and Pacific Ocean Territories are considered eligible LLMs.
• Local Communities (LCs): areas served by a general-purpose unit of local government (e.g., county government, municipal government) that is located within but does not cover the entire area of an LLM (as defined above) and meets the following criteria:
  • It exists within an LLM that does not qualify for Recompete funding; and
  • EITHER:
    • The entire area served by the unit of local government on average has a PAEG of at least 5% and a median annual household income of no more than $75,000; or
    • The area served by the unit of local government has five or more contiguous Census tracts that each individually have a PAEG of at least 5% and median annual household income of no more than $75,000. In this instance, the applicant’s service area must be contained within the identified Census tracts.

The strongest applicants will demonstrate the ability to engage broadly in the community and support implementation of a wide range of potential targeted actions related to reducing their area’s PAEG. There are separate application requirements depending on whether an applicant is seeking a Strategy Development Grant or Recompete Plan approval. An applicant seeking both a Strategy Development Grant and Recompete Plan approval must complete both sets of application requirements.

What if I am ready to apply? To move your project forward, take the following action steps as soon as possible:

• Review the full NOFO for additional details and project activities.
• Watch the information webinar or recording on July 11^th at 4:30 EDT;
• Determine eligibility using the Recompete Pilot Program’s Eligibility Mapping Tool;
• Register for an Economic Development Grants Experience (EDGE) account, the EDA’s new grants management platform. Beginning April 6, 2023, the EDA will no longer use Grants.gov to support the grants management process;
• Check out the EDA Recompete Pilot Program page for resources including an application checklist, templates, answers to frequently asked questions, and supplemental guides;
• Read upcoming AGS blogs for additional detail on the Recomplete Plan track;
• Make sure your System for Award Management (SAM) registration is active. You can check your SAM status here: https://sam.gov/content/status-tracker.

What if I need help with this application?

Contact Assel Grant Services (AGS) today! Our team can help with all aspects of preparing the application and managing the grant if you are awarded. If you would like to discuss this possibility, please contact AGS as soon as possible. Julie Assel, GPC, President/CEO, will be happy to talk with you about this opportunity and provide you with a quote for grant services.

What if I am not ready to apply this year?

The EDA also has a variety of other economic development-focused programs available. You can view the full list (and search for other EDA funding programs) here.

How do I learn more about federal grant proposal writing, so my application is more likely to be successful?

AGS is excited to offer a Federal Agency Training Series in 2023! The series is designed to provide insight into federal agencies beyond the typical reading of the solicitation by program officers and provide details you need to be successful. AGS also offers several on demand webinars on a variety of topics to support the full grant cycle. Check out our website to learn more and sign up for our training newsletter.

AGS blogs, funding alerts, and trainings are aligned with the Grant Professional Certification Institute’s Competencies and Skills

Competency #1: Knowledge of how to research, identify, and match funding resources to meet specific needs

Skill 1.2: Identify major trends in public funding and public policy

Skill 1.6: Identify fundable programs and projects for specific organization

Skill 1.7: Determine best matches between funders and specific programs