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ECONOMIC DEVELOPMENT ADMINISTRATION (EDA) 5/89 ECONOMIC ADJUSTMENT (TITLE IX) PROGRAM (Long-Term Economic Deterioration (LTED/RLF) Component) PROGRAM GOALS Grants are provided to establish or expand revolving loan funds (RLF) in depressed areas. The program is designed to help areas overcome specific capital market gaps and to encourage greater private sector participation in economic development activities. PROJECT TYPES/ELIGIBLE APPLICANTS In concert with private lenders, RLF grantees make fixed asset and/or working capital loans to area businesses. RLF projects support such activities as small business development, including start-ups and expansions; business and job retention; redevelopment of blighted land and vacant facilities for productive use; and support for growth industries and high-tech firms. Potential RLFs must be located in LTED eligible areas. To be eli- gible, an area must be experiencing at least one of three problems: very high unemployment, low per capita income, or chronic distress (i.e., failure to keep pace with national economic growth trends over the last five years). Eligibility status is available from EDA's Regional Offices. The applicant must be one of the following: a designated EDA redevelopment area eRA) or a nonprofit organization determined by EDA to be the representative of an RA; an economic development district; a State; a political subdivision of a State or a consortium of such units; or an Inciian tribe. SELECTION CRITERIA Key selection factors include the economic and financial neecis of the project area; the anticipated benefits (such as filling specific gaps in the local capital market); and the applicant's ability to manage an RLF effectively. FUNDING LEVELS (000) FY 86: $11,484 Maximum/average FY 88 grant: $500/$341 FY 87: $13,091 Maximum/average FY 88 recap. grant: $300/$222 FY 88: $12,203 Range of 1988 RLF grants: $ 37-$500 FY 89: $12,203 Range of 1988 RLF recap. grants: $150-$300 APPLICATION PROCESS Eligible applicants should contact the Economic Development Representative for the area or the appropriate EDA Regional Office for an LTED proposal outline. EDA screens proposals before deciding whether to invite a formal application. After inv--iting an applica- tion, EDA conducts one or more preapplication conferences to assist wi th its preparation. Average time from application submission to a final funding decision is four to six months. Complete program information appears annually in the Fede~al Register.