16 Jul Funding Alert! NEW EDA Recompete Pilot Program for Distressed Communities – Part II: Plan Approval Track

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 with low labor force participation rates holding back prosperity. This post provides an overview of the opportunity, focusing on the Recompete Plan Approval track. Read more about the Strategy Development Grants track here.

Who is eligible to apply?

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

The competition includes two phases through separate NOFOs: a proposal for strategy development and/or plan approval, and a proposal for an implementation grant. 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.

The EDA will approve at least 20 Recompete Plans to apply for a Phase 2 Implementation Grant; approval is a prerequisite. There will be 4-8 Implementation grants awarded after Phase 2. Grants to local labor markets will average $50,000,000, and grants to local communities will average $20,000,000.

A competitive Recompete Plan will demonstrate the following six elements:

1. Understanding of regional conditions and needs – Detail the contributing local conditions, employment barriers for different targeted populations, job quality, and geographic considerations.
2. Strength of strategy and quality of potential investments – Recompete Plans should clearly articulate a strategy to address causes of the local high prime-age employment gap identified in element #1 above and the particular geographic locations to be targeted.
3. Equity, inclusivity, accessibility, and diversity – actively engage underserved communities in planning and ensure benefits are shared equitably across all affected populations.
4. Regional assets – This may include industries, natural assets, educational institutions (including community colleges and other educational institutions, etc.), or other organizations that have the potential to change the regional economic dynamics (e.g., unions, workforce entities, community and faith-based organizations, etc.).
5. Targeted geographic approach – Applicants should specifically identify their service area within the eligible geography and how the proposed interventions will create long-term, sustained benefits to that area.
6. Partnerships and potential commitments – show how key local, regional, and state partners, including underleveraged or underrepresented organizations and residents, are engaged, or will be engaged, and that they are committed to reducing the PAEG.

Recompete Plans submitted for approval will identify programs and activities that would be carried out with Implementation Grants; understanding what EDA may fund with Implementation Grants is critical. Implementation Grants will fund two general economic development intervention approaches: creating new good jobs in the region and connecting people to existing jobs. The specific projects necessary to accomplish these types of interventions may differ.

EDA’s investments are most effective when combined with local action to change or reform policies, practices, and outcomes that make it harder for people to access work. Regardless of whether an applicant is connecting workers to jobs or creating new jobs, EDA anticipates all successful Phase 2 awardees will have credible, specific, and timely commitments to making such changes in their communities.

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 the 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 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 recording;
• 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; and
• 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.

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