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Trade Adjustment Assistance for Firms

Trade Adjustment Assistance for Firms
Number: 11.313
Agency: Department of Commerce
Office: Economic Development Administration

Program Information 

Program Number/Title (010):
11.313 Trade Adjustment Assistance for Firms
Federal Agency (030):
Economic Development Administration, Department of Commerce
Authorization (040):
Trade Act of 1974, as amended (19 U.S.C. § 2341 et seq.).
Objectives (050):
The Trade Adjustment Assistance for Firms (TAAF) program helps economically distressed U.S. business in building strategies to increase exports and thereby create jobs. The program provides technical assistance to U.S. businesses that have lost sales and employment due to increased imports of similar goods and services. Technical assistance is provided through a nationwide network of eleven Economic Development Administration (EDA) funded Trade Adjustment Assistance Centers (TAACs).
Types of Assistance (060):
Cooperative Agreements
Uses and Use Restrictions (070):
Under Chapters 3 and 5 of Title II of Trade Act of 1974, as amended (19 U.S.C. § 2341 et seq.), a firm may apply to the applicable TAAC supported by the Economic Development Administration (EDA) of the Department of Commerce for certification of eligibility to apply for trade adjustment assistance (TAA) related technical assistance. Interested firms that believe they meet the requirements set forth in 13 CFR part 315 may contact EDA or one of the EDA-funded TAACs. TAACs will assist firms, at no cost, in completing and submitting a petition (Form ED-840P or any successor form) to EDA. Before a firm receives technical assistance under the program, the firm must have an adjustment proposal 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 certified 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 cost of preparing 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 fees. Actual provision of TAA will depend on the feasibility of the firm's adjustment proposal, compliance with the requirements of the Trade Act, EDA's regulations and guidelines, and the availability of funds. Organizations representing trade-injured industries are eligible under the Trade Act to apply to EDA for industry-wide assistance.
Eligibility Requirements (080)
Applicant Eligibility (081):
Section 253 of the Trade Act (19 U.S.C. § 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 under section 265 of the Trade Act (19 U.S.C. § 2355(a)), the applicant must submit evidence demonstrating that the industry faces import competition and includes a substantial number of Trade Act-certified firms or worker groups.
Beneficiary Eligibility (082):
Only firms certified by EDA on behalf of the Secretary of Commerce are eligible for assistance under the TAAF 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. The principal benefit is cost-shared technical assistance: the TAA program pays up to one-half of the cost of assistance by private-sector consultants and contractors for operational improvements at certified firms.
Credentials/Documentation (083):
The TAACs act as intermediaries for this program between EDA and the firm. Entities seeking industry-wide assistance must contact EDA staff to discuss their needs, describe the import injury and determine if funding is available for industry-wide projects. OMB Circular No. A-87 applies to this program.
Application and Award Process (090)
Preapplication Coordination (091):
Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.
Application Procedures (092):
OMB Circular No. A-102 applies to this program. OMB Circular No. A-110 applies to this program. The nationwide network of 11 TAACs apply to EDA each year for funding for the coming fiscal year. Industry associations or other organizations seeking industry assistance must submit adjustment proposals to the applicable TAAC center.
Award Procedure (093):
Awards to TAACs are made based upon submitted applications, previous performance under cooperative agreements with EDA, and the availability of funds. Acceptance of an application or amended application for a cooperative agreement does not ensure funding by EDA.
Deadlines (094):
Contact the headquarters or regional office, as appropriate, for application deadlines.
Range of Approval/Disapproval Time (095):
EDA is statutorily required to review petitions for certification of eligibility under the program within 40 days of petition acceptance; and has 60 days to make a final determination on an adjustment proposal.
Appeals (096):
Not Applicable.
Renewals (097):
EDA Cooperative Agreements are renewed annually.
Assistance Consideration (100)
Formula and Matching Requirements (101):
This program has no statutory formula.
This program has no matching requirements.
This program does not have MOE requirements.
Length and Time Phasing of Assistance (102):
Generally, the cooperative agreement to the TAAC is to provide one year of services to import-impact firms. The TAA program is a nationwide federal program designed to help U.S. firms that have experienced business decline and loss of employment due to imports of like or directly competitive products. See the following for information on how assistance is awarded/released: Generally, grants are awarded annually. Grantees receive awards either in advance or monthly reimbursment.
Post Assistance Requirements (110)
Reports (111):
Periodic reporting of operating results and progress, financial statements, and summary of funds spent, consistent with EDA’s Government Performance Results Act (GPRA) reporting requirements. No cash reports are required. TAACs are required to submit quarterly reports on their progress. EDA requires the submission a Form SF-425 Federal Financial Report. EDA reserves the right to conduct site visits.
Audits (112):
In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133.
Records (113):
Records are required to be maintained for at least three years. All financial and programmatic records, supporting documents, statistical reports, and other records of recipients or sub-recipients are required to be maintained by the terms of the agreement. The recipient must retain records for at least three years after submission of the final financial report, and have them readily available for inspection and audit.
Financial Information (120)
Obligations (122):
(Cooperative Agreements) FY 12 Not Available; FY 13 Estimate Not Available; and FY 14 Estimate Not Available
Range and Average of Financial Assistance (123):
Awards range between $1M-$1.6M.
Program Accomplishments (130):
Fiscal Year 2012: $15.8 million. Fiscal Year 2013: $15.8 million. Fiscal Year 2014: N/A.
Regulations, Guidelines, and Literature (140):
Copies of pertinent regulations (13 C.F.R. Part 315), guidelines, and forms are available from EDA, the TAACs or the TAAC website at Allowable costs will be determined in accordance with OMB Circular A-87 for State, local, and Indian Tribal governments; OMB Circular A-122 for nonprofit organizations; OMB Circular A-21 for educational institutions; and 48 CF.R. Part 31 for commercial organizations. Uniform administrative requirements will be in accordance with 15 C.F.R. Part 14 for institutions of higher education and other non-profit and commercial organizations, and with 15 CF.R. Part 24 for State and local governments.
Information Contacts (150)
Regional or Local Office (151) :
See Regional Agency Offices.
Headquarters Office (152):
Miriam J. Kearse 1401 Constitution Avenue NW, Room 71030, Washington, District of Columbia 20230 Email: Phone: (202) 482-3963 Fax: (202) 482-2838
Website Address (153):
Examples of Funded Projects (170):
Not Applicable.
Criteria for Selecting Proposals (180):
EDA invites existing (currently funded) TAACs to submit either new or amended applications provided they have performed successfully and complied with previous conditions in their cooperative agreements with EDA and contingent upon the availability of funds. EDA also may invite new TAACs to submit applications through an applicable Federal Funding Opportunity (FFO) announcement. EDA generally evaluates existing (currently funded) TAACs based on: (i) performance under cooperative agreements with EDA and compliance with terms and conditions if such cooperative agreements; (ii) proposed scope of work, budget and application or amended application; and (iii) availability of funds.