COVID-19 Webinar: An Update of the Cares Act

COVID-19 Webinar Recap: An Update of the CARES Act

On May 22, IEDC hosted a webinar entitled, "An Update of the CARES Act”, in which staff from the Economic Development Administration (EDA) and an experienced economic developer detailed EDA’s $1.5 billion in funding to help communities prevent, prepare for and respond to COVID-19, and how communities can apply for funds.  

EDA’s Dana Gartze, Assistant Secretary of Commerce for Economic Development; Dennis Alvord, Deputy Assistant Secretary and Chief Operating Officer; and Bryan Borlik, Director

Performance and National Programs were joined by Brett Doney, President & CEO of Great Falls Development Authority. Amy Clickner, Chief Executive Office of Lake Superior Community Partnership, served as moderator for the presentations and lengthy Q&A session. 

Introduction

Dana Gartzke kicked off the session, with an overview of EDA, the CARES Act, and referenced IEDC’s long-standing relationship with the Agency, including IEDC’s this restoreyoureconomy.org. He then acknowledged the hard work being done by economic development professionals across the country and US territories.  

The Major Points

Dennis Alvord then shared detailed major points about EDA’s CARES Act, most important that the application period has opened. Other highlights Mr. Alvord shard on the ACT include:  

How CARES ACT Dollars Are Allocated / What It Supports - Of the $1.5 billion, $1.467 billion will be used for Economic Adjustment Assistance (EAA) Program grants. The additional funds will be spent on salaries (EDA is hiring up to 80 new positions to manage the program), expenses and oversight.  

The EAA Program supports a wide range of non-construction and construction activities in communities across the country experiencing severe economic dislocations brought about by coronavirus. Examples of eligible projects for funding include: 

  • Economic recovery planning, preparing technical assistance strategies
  • Preparing or updating resiliency plans
  • Capitalization or re-capitalization of Revolving Loan Funds
  • Innovation and Entrepreneurship
  • Constructing public works and facilities to support economic recovery, including deployment of broadband, including supporting telehealth and remote learning for job skills.

But Alvord stressed that this funding is unprecedented, and represents a special need. Essentially, every community in the country is eligible to apply. But applicants must clearly link how the project will prevent, prepare for, or respond to COVID, or the economic injury as a result of COVID. Eligible entities include:

  • District Organizations;
  • Indian Tribes or consortiums of Indian Tribes;
  • State, county, city, or other political subdivision of a State, including a special purpose unit of a State or local government engaged in economic or infrastructure development activities, or a consortium of political subdivisions;
  • Institutions of higher education or consortiums of institutions of higher education; or
  • Public or private non-profit organizations or associations acting in cooperation with officials of a political subdivision of a State.

Alvord concluded by sharing helpful websites for ED professionals, including: 

Streamlined and Non-Competitive Awards

Bryan Borlik noted how EDA is taking measures to ensure that communities receive dollars as quickly as possible. This includes plans to streamline grant applications and, where appropriate. providing non-competitive awards to existing grantees already well-positioned to an urgent economic development need. This would apply to Economic Development Districts, University Centers and Tribal Groups. 

Borlik noted that Revolving Loan Funds, a financing tactic very popular during times of disaster, could be greatly supplemented by the CARES Act. Funds that EDA deems as “high performing” will be able to receive more lending capital. 

“Time is of the essence,” Borlik stressed, since there will be such a high level of applications in response to this unprecedented pandemic. He recommended that EDOs submit applications within 30 days from their invitation letter. 

One Economic Development Organization’s Response to COVID-19

The webinar shifted to Brett Doney and how his organization is addressing economic issues. His major points included:

  • Now is an exciting time for EDOs to get resources, particularly with revolving loan funds. His organization has been closing many loans, which has forced them to allocate more resources to technical assistance. They’ve also increased virtual assistance, such as online meet-ups, e-blasts, webinars and tool kits.
  • “Going ‘All In’ on ED Projects - Doney said while still dealing with the daily priorities of COVID-19 recovery, his team is highly focused on any sort of traditional ED project, due to the fear that many of the jobs lost will not be replaced, so he needs to encourage new local jobs to take their place. 
  • New Priorities - Doney and his Board are now focused on 5 major organizational goals:
    • On-going, real-time data (since the pandemic is changing every day)
    • Capacity of business coaches to help entrepreneurs
    • Increasing daycare options for when his region turns to the next phases of re-opening
    • Localizing Supply Chains to make the region less vulnerable
    • Workforce Development - With a focus on retraining workers in jobs that may not return

Question and Answer Session - Amy Clickner moderated a lengthy session. Some of the Q&A is summarized below. A recording of the webinar is available to hear the full session. 

  • Applicants are able to apply for more than one award. 
  • For most questions, EDA recommends visiting the website (including examples of successful projects) and contacting their Economic Development Representative, which can be located at https://www.eda.gov/contact/.
  • If there is a bonafide need for a revolving loan fund in a region, CARES Act funds can be addressed to launch such a fund. An analysis of existing capital may determine the need for a fund. 
  • CARES Act funds cannot be used for forgivable loans to small businesses. Also, local governments will not be reimbursed for grant dollars distributed to small businesses.
  • Main Street improvements such as streetscapes and infrastructure are eligible projects for CARES Act funding. 
  • Many communities will be launching programs that are new to them, but not new to others. So call upon colleagues, IEDC, etc. for assistance launching such programs. Also, make sure these programs have SOPs/documentation to avoid audits at a later time. 
  • While the funding has rolling admissions, EDA anticipates they will be over-subscribed. It’s best to apply soon. 
  • If you are not in an EDD, are you eligible to apply? Yes. 
  • Successful application often include straight-forward writing. Eliminate acronyms and confusing terminology. Ask someone who isn’t a subject matter to read the application. If a lot of it doesn’t make sense to them, it’s likely too technical or “in the weeds.”