Article
Economic development grant opportunities within the American Rescue Plan
April 23, 2021
The American Rescue Plan Act of 2021 (ARP) provides local governments with an unprecedented opportunity to access federal funding to support community priorities. The ARP includes direct funding (known as Fiscal Recovery Funds) to state and local governments as well as additional competitive grant programs flowing through various federal agencies.
One component of the ARP is $3 billion allocated to the U.S. Economic Development Administration (EDA). This funding will be released through competitive grants to communities for economic development projects and infrastructure needs. EDA expects to publish grant guidelines within the next several weeks that will provide more information on eligibility and how to apply. This funding opportunity will likely be open to all communities nationwide. The types of eligible projects will likely include:
- Preparation of economic development recovery and resiliency plans
- Construction of infrastructure that supports economic development
- Entrepreneurial programs and facilities
- Projects for communities to address pandemic-related economic losses in the tourism sector (25% of the funding will be directed for this purpose)
Competitive advantage
All communities may be eligible to apply for this competitive funding. Set the stage for success now with the following proactive steps to support community growth and recovery.
- Identify potential projects – Review your economic development strategy, capital improvements program and other plans. Identify high priority projects that are focused on economic development and resiliency. Create a list of three to five projects that have the potential to contribute to economic recovery.
- Connect with your regional partners – EDA gives preference to projects with regional support and that are identified in regional economic development plans. Reach out your regional economic development organization to collaborate and let them know you intend to apply for an EDA grant.
- Contact your EDA representative – Reach out to your region’s EDA office and connect with the staff person assigned to your state. They can be a resource to review your project ideas and guide you during the grant process.
