Legal Definitions - Economic Development Administration

The Economic Development Administration (EDA) is an agency within the U.S. Department of Commerce. Its primary mission is to support and stimulate local economies across the United States, particularly in regions experiencing significant economic hardship and persistent unemployment.

The EDA achieves this by providing financial assistance, mainly through grants, for projects that fall into two main categories: public works and development facilities. These projects are strategically designed to create jobs, attract private investment, and build a stronger, more resilient economic foundation in areas that need it most.

• Example 1: Rural Infrastructure Upgrade

  Imagine a small, rural county in the Midwest that has seen its agricultural sector decline, leading to a significant loss of jobs and a shrinking population. The county government identifies an opportunity to attract a new food processing plant, but the existing roads are in poor condition and there's a lack of modern wastewater treatment facilities. The county could apply for an EDA grant to fund the necessary upgrades to its road network and expand its wastewater treatment plant capacity.

  This example illustrates the EDA's role in providing grants for "public works" (roads, wastewater facilities) in an "economically distressed area" (a rural county with declining industry and job loss) to "develop local economies" and "reduce persistent unemployment" by creating the infrastructure needed to attract new businesses and jobs.

• Example 2: Urban Job Training Center

  Consider an older industrial city neighborhood with a high unemployment rate, where many residents lack the skills required for today's growing technology and healthcare sectors. A local non-profit organization, in partnership with the city, proposes to build a new vocational training center equipped with state-of-the-art labs for coding, medical assisting, and renewable energy installation. They seek funding to construct and equip this facility.

  Here, the EDA could provide a grant for the construction and outfitting of this "development facility" (the vocational training center) in a "distressed area" (the urban neighborhood with high unemployment). The goal is to "reduce persistent unemployment" by equipping residents with in-demand skills, thereby fostering "economic development" and creating pathways to new careers.

• Example 3: Post-Disaster Economic Recovery

  A coastal community in the Southeast, heavily reliant on its fishing industry and tourism, suffers extensive damage to its port and marina facilities after a severe hurricane. The destruction prevents fishing boats from docking and significantly impacts tourism, leading to widespread job losses and economic paralysis. The local government needs immediate assistance to rebuild critical infrastructure to restore economic activity.

  In this scenario, the EDA could provide grants to help reconstruct the damaged port and marina, which are essential "public works" for the community's economy. This support helps the area, now "economically distressed" due to the disaster, to "develop its local economy" and "reduce persistent unemployment" by enabling key industries to resume operations and bring back jobs.