13 CFR 301.4 - Investment rates.

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§ 301.4 Investment rates.
(a) Minimum Investment Rate. There is no minimum Investment Rate for a Project.
(b) Maximum Investment Rate—
(1) General rule. Except as otherwise provided by this paragraph (b) or paragraph (c) of this section, the maximum EDA Investment Rate for all Projects shall, after the application of Table 1 in paragraph (b)(1)(ii) of this subsection, not exceed the sum of: (x) Fifty (50) percent, plus (y) up to an additional thirty (30) percent based on the relative needs of the Region in which the Project is located, as determined by EDA.
(i)
(A) Relative needs. In determining the relative needs of the Region in which the Project is located, EDA will prioritize allocations of its Investment Assistance to ensure that the level of economic distress of a Region, rather than a preference for a specific geographic area or a specific type of economic distress, is the primary factor in allocating its Investment Assistance. In making this determination, EDA will take into consideration the following measures of economic distress:
(1) The severity of the unemployment rate and the duration of the unemployment in the Region;
(2) The per capita income levels and the extent of underemployment in the Region;
(3) The outmigration of population and the extent to which such outmigration is causing economic injury in the Region; and
(4) Such other factors as EDA deems relevant in determining the relative needs of the Region in which the Project is located.
(B) A Project is eligible for the maximum allowable Investment Rate as determined by EDA between the time EDA receives the application for Investment Assistance and the time that EDA awards Investment Assistance to the Project; however, the burden is on the Eligible Applicant to establish the relative needs of the Region in which the Project is located.
(ii) Table 1. Table 1 of this paragraph sets forth the maximum allowable Investment Rate for Projects located in Regions subject to certain levels of economic distress. In cases where Table 1 produces divergent results (i.e., where Table 1 produces more than one (1) maximum allowable Investment Rate based on the Region's levels of economic distress), the higher Investment Rate produced by Table 1 shall be the maximum allowable Investment Rate for the Project.
Table 1
Projects located in regions in which: Maximumallowable investment rates (percentage)
(A) The twenty-four (24) month unemployment rate is at least 225% of the national average; or 80
(B) The per capita income is not more than 50% of the national average 80
(C) The twenty-four (24) month unemployment rate is at least 200% of the national average; or 70
(D) The per capita income is not more than 60% of the national average 70
(E) The twenty-four (24) month unemployment rate is at least 175% of the national average; or 60
(F) The per capita income is not more than 65% of the national average 60
(G) The twenty-four (24) month unemployment rate is at least 1 percentage point greater than the national average; or 50
(H) The per capita income is not more than 80% of the national average 50
(2) Projects subject to a Special Need. EDA shall determine the maximum allowable Investment Rate for Projects subject to a Special Need (as determined by EDA pursuant to § 301.3(a)(1)(iii)) based on the actual or threatened overall economic situation of the Region in which the Project is located. However, unless the Project is eligible for a higher Investment Rate pursuant to paragraph (b)(5) of this section, the maximum allowable Investment Rate for any Project subject to a Special Need shall be eighty (80) percent.
(3) Projects under part 303.
(i) The minimum Investment Rate for Projects under part 303 of this chapter shall be fifty (50) percent.
(ii) Except as otherwise provided in paragraph (b)(3)(iii) of this section or in paragraph (b)(5) of this section, the maximum allowable Investment Rate for Projects under part 303 of this chapter shall be the maximum allowable Investment Rate set forth in Table 1 for the most economically distressed county or other equivalent political unit (e.g., parish) within the Region. The maximum allowable Investment Rate shall not exceed eighty (80) percent.
(iii) In compelling circumstances, the Assistant Secretary may waive the application of the first sentence in paragraph (b)(3)(ii) of this section. The Assistant Secretary shall not delegate the authority to grant a waiver under this paragraph.
(4) Projects under part 306. Except as otherwise provided in paragraph (b)(5) of this section, the maximum allowable Investment Rate for Projects under part 306 of this chapter shall generally be determined based on the relative needs (as determined under paragraph (b)(1) of this section) of the Region which the Project will serve. As specified in section 204(c)(3) of PWEDA, the Assistant Secretary has the discretion to establish a maximum Investment Rate of up to one hundred (100) percent where the Project:
(i) Merits, and is not otherwise feasible without, an increase to the Investment Rate; or
(ii) Will be of no or only incidental benefit to the Eligible Recipient.
(5) Special Projects. Table 2 of this paragraph sets forth the maximum allowable Investment Rate for certain special Projects as follows:
Table 2
Projects Maximumallowable investment rates (percentage)
Projects of Indian Tribes 100
Projects under part 307 of this chapter located in Presidentially-Declared Disaster areas for which EDA receives an application for Investment Assistance for post-disaster economic recovery efforts pursuant to a supplemental appropriation within eighteen (18) months of the date of such declaration 100
Projects of States or political subdivisions of States that the Assistant Secretary determines have exhausted their effective taxing and borrowing capacity, or Projects of non-profit organizations that the Assistant Secretary determines have exhausted their effective borrowing capacity 100
Projects under parts 305 or 307 that receive performance awards pursuant to § 308.2 of this chapter 100
Projects located in a District that receive planning performance awards pursuant to § 308.3 of this chapter 100
(c) Federal Funding Opportunity notices may provide additional Investment Rate criteria and standards to ensure that the level of economic distress of a Region, rather than a preference for a geographic area or a specific type of economic distress, is the primary factor in allocating Investment Assistance.
[71 FR 56675, Sept. 27, 2006, as amended at 73 FR 62865, Oct. 22, 2008; 75 FR 4262, Jan. 27, 2010]

Title 13 published on 2014-01-01

no entries appear in the Federal Register after this date.