To provide trade adjustment assistance to firms and
industries adversely affected by increased imports.
TYPES OF ASSISTANCE:
Project Grants. Place Cursor Here for Definition
USES AND USE RESTRICTIONS:
Under Chapter 3 of Title II, of the Trade Act of 1974, as amended, a firm may
petition the Economic Development Administration (EDA) of the Department of
Commerce for certification as being impacted by import competition. Interested
firms that believe they meet this requirement may contact EDA or one of the 12
EDA funded Trade Adjustment Assistance Centers (TAACs). TAACs will assist
firms, at no cost, in completing and submitting a petition to EDA's Planning
and Development Assistance Division (PDAD). Before a firm receives technical
assistance under the program, the firm must have an adjustment plan approved
by EDA. Usually the adjustment proposal, which includes an unbiased diagnostic
of the firm's strengths, weaknesses, opportunities and threats, is prepared by
the TAAC in cooperation with the firm. The adjustment proposal also identifies
technical assistance tasks, which when implemented, will guide the firm toward
economic recovery. The adjustment proposal must also demonstrate that the
implementation of the technical assistance tasks has a reasonable chance
helping the firm recover. The firm must pay at least 25 percent of the TAAC's
cost of the preparation of the adjustment proposal. After a firm's adjustment
proposal is accepted by EDA, the firm is authorized to apply for technical
assistance to implement the recovery strategy. The technical assistance is
usually provided by a private consultant, who is jointly hired by the
certified firm and the TAAC. The certified firm and the TAAC each typically
pay one half of the consultant's fee. The TAAC's total share of technical
assistance for a firm, however, is generally limited to $75,000. Organizations
representing trade-injured industries are eligible under the Trade Act to EDA
for industry-wide assistance. However, since fiscal year 1996 EDA has
allocated all of the program funds to support the activities of the national
TAAC network. The only recent exception was assistance to the Alaskan Salmon
industry, which was funded under a special appropriation for fiscal year 1999.
ELIGIBILITY REQUIREMENTS:
Applicant Eligibility: The statute (19 U.S.C. ss
2343 (b)) provides that grants may be awarded to "intermediary
organizations (including Trade Adjustment Assistance Centers)" to provide
assistance to trade-injured firms. For an industry association or other
organizations to be eligible for industry assistance, evidence must be
submitted demonstrating that the industry faces import competition and
includes a substantial number of Trade Act certified firms or worker groups.
Beneficiary Eligibility: Only firms certified by
EDA on behalf of the Secretary of Commerce are eligible for trade adjustment
assistance under the program. Industries that can demonstrate they have been
injured by imports and have a substantial number of Trade Act certified firm
or worker groups may also benefit.
Credentials/Documentation: The TAACs act as
intermediaries for this program between EDA and the firm. Entities seeking
industry wide assistance must contact PDA staff to discuss their needs,
describe the import injury and determine if funding is available for industry
wide projects.
Pre-application Coordination: This program is
excluded from coverage under E.O. 12372.
Application Procedure: The 12 TAACs apply each
year for funding for the coming fiscal year. Industry associations or other
organizations seeking industry assistance must submit an application Standard
Form 424, if invited to do so as a result of the meeting with EDA
representatives.
Award Procedure: Awards to TAACs are made based
upon applications and previous performance. Awards to industries are made
based on conformance with program requirements and availability of funds.
Deadlines: There are no deadlines, as long as the
application allows enough time for processing to receive fiscal year funds.
Range of Approval/Disapproval Time: A decision on
a firm's petition for certification is usually made by EDA within 30 to 45
days of receipt of its receipt from the TAAC. Decision on adjustment proposals
are typically made within two to three weeks of receipt by EDA. Decisions on
TAAC applications or industry wide assistance requests are normally made
within two months of receipt of a full and complete application by EDA.
Appeals: There is no appeal procedure.
Renewals: TAAC grants are usually renewed;
industry grants usually are not renewed.
ASSISTANCE CONSIDERATIONS:
Formula and Matching Requirements: Federal funds can
be used by TAACs for up to 100 percent of administrative expenses in providing
technical assistance to firms. The Federal share of implementation assistance
to firms is usually 50 percent and normally does exceed $75,000 per firm.
Generally, a minimum of 50 percent share (half of which must be in cash) is
required for industry assistance cooperative agreements.
Length and Time Phasing of Assistance: Generally
one year for TAAC grants and the amount of time needed to complete the project
for industry grants.
POST ASSISTANCE REQUIREMENTS:
Reports: Periodic reporting of operating results and
progress, financial statements, and summary of funds spent.
Audits: In accordance with the provisions of OMB
Circular No. A-133 (Revised June 24, 1997), recipients that are States, Local
Government, Nonprofit Organizations (to include Hospitals), and Institutions
of Higher Learning shall be subject to the audit requirements contained in the
Single Audit Act Amendments of 1996 (31 U.S.C. 7501-7507). Commercial
organizations shall be subject to the audit requirements as stipulated in the
award documents. States, local governments, and nonprofit governments that
expend $300,000 or more in a year in Federal awards shall have a single or
program-specific audit conducted for that year.
Records: Records are required to be maintained
for 3 years. All financial and programmatic records, supporting documents,
statistical reports, and other records of grantees or subgrantees are required
to be maintained by the terms of the agreement. The grantee must retain
records for 3 years after completion of the project or submission of the final
financial report, whichever is later, and have them readily available for
inspection and audit.
FINANCIAL INFORMATION:
Account Identification: 13-2050-0-1-452.
Obligations: (Cooperative Agreements) FY 01
$10,477,000; FY 02 est $10,500,000; and FY 03 est $13,000,000.
Range and Average of Financial Assistance: TAAC
grants FY 02 $610,000 to $1,090,000.
In fiscal year 2001, the TAACs provided assistance to firms as follows: 179
firms were certified eligible to receive trade adjustment assistance, 118
adjustment proposals were accepted.
REGULATIONS, GUIDELINES, AND LITERATURE:
Copies of pertinent regulations, guidelines, a TAA information package, and
forms are available from the Planning and Development Assistance Division, the
Trade Adjustment Assistance Centers (TAACs), or their website,
www.taacenters.org.
INFORMATION CONTACTS:
Regional or Local Office: Local Department of
Commerce District Offices are listed in Appendix IV of the Catalog.
Headquarters Office: For Firm and Industry
Assistance Information: Anthony J. Meyer, U. S. Department of Commerce, Room
H7315 Economic Development Administration, Planning and Development Assistance
Division, 14th & Constitution Avenue, NW., Washington, DC 20230.
Telephone: (202) 482-2127. FAX No. (202) 482-0466. Use the same number for FTS.
Web Site Address: http://www.doc.gov/eda/
and www.taacenters.org.
EXAMPLES OF FUNDED PROJECTS:
There are 12 funded Trade Adjustment Assistance Centers (TAACs), which cover
the 50 States and the District of Columbia. The TAACs receive cooperative
agreement to help firms become certified and receive trade adjustment
assistance. Common types of technical assistance firms receive under the
program include market research, quality assurance completion (ISO-9000
designation, for example) and management information systems guidance.
Industries have been aided in developing new manufacturing machines and
procedures, technological innovations, expanding exporting opportunities,
marketing studies, product diversification, etc.
CRITERIA FOR SELECTING PROPOSALS:
TAAC funding priority is given to existing TAACs which have successfully
carried out previous cooperative agreements. Industries must have a
substantial number of TAA certified firms and have developed a proposal
providing meaningful near-term benefit to their industry to receive assistance.
