CARES Act funding for economic recovery

New funding from the federal Economic Development Administration will be available for planning and implementing economic recovery strategies in response to the coronavirus pandemic.

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) includes $1.5 billion for the Economic Development Administration to administer grants through its established Economic Adjustment Assistance program.

In recent years, the Economic Adjustment Assistance program has been used to fund economic recovery and resiliency efforts following natural disasters.  It can also be used to help communities facing other abrupt economic changes such as a plant closure.

States, local governments, Tribes, institutions of higher education and nonprofit organizations acting in cooperation with officials of a political subdivision are eligible for funding.

Examples of efforts that could be funded include:

  • “Strategy grants” to create or update a Comprehensive Economic Development Strategy or disaster recovery plans

  • Construction or upgrades to public infrastructure, including broadband

  • Construction and operations of business incubators

  • Capitalization of revolving loan funds, which generally assist small businesses, and other initiatives to improve access to and utilization of private capital

  • Activities that support the creation of businesses and jobs, including economic diversification strategies

  • Market or industry research studies, technical assistance, training, and capacity-building efforts

See this concise overview for more information:  https://crsreports.congress.gov/product/pdf/IN/IN11303

If you need help engaging with the EDA on funding possibilities, contact Jason Thibedeau, PSRC’s Principal Economic Development Manager, at jthibedeau@psrc.org.