This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

31585 

Vol. 86, No. 113 

Tuesday, June 15, 2021 

DEPARTMENT OF AGRICULTURE 

Rural Business-Cooperative Service 

7 CFR Part 4284 

[Docket No. RBS–21–BUSINESS–0007] 

RIN 0570–AB06 

Rural Innovation Stronger Economy 

(RISE) Grant Program 

AGENCY: Rural Business-Cooperative 

Service, USDA. 

ACTION: Final rule; request for comment. 

SUMMARY: The Rural BusinessCooperative Service (RBCS), an agency 

of the Rural Development mission area 

within the U.S. Department of 

Agriculture (USDA), hereinafter referred 

to as the Agency, is issuing a final rule 

to establish the Rural Innovation 

Stronger Economy (RISE) program as 

authorized by Section 6424 of the 

Agriculture Improvement Act of 2018 

(2018 Farm Bill) to improve the ability 

of distressed rural communities to 

create high-wage jobs, accelerate the 

formation of new businesses, and help 

rural communities identify and 

maximize local assets. 

DATES: Effective date: This final rule is 

effective June 15, 2021. 

Comment date: This final rule is being 

issued to allow for immediate 

implementation of this program. 

Although this final rule is effective 

immediately, comments are solicited 

from interested members of the public 

on all aspects of the rule. These 

comments must be submitted 

electronically and received on or before 

August 16, 2021. The Agency will 

consider these comments and the need 

for making any revisions as a result of 

these comments. 

ADDRESSES: Comments may be 

submitted on this rule using the 

following method: Comments may be 

submitted by going to the Federal 

eRulemaking Portal: Go to https:/ 

www.regulations.gov and, in the 

‘‘Search Documents’’ box, enter the 

Docket Number RBS–21–BUSINESS– 

0007 or the RIN # 0570–AB06, and click 

the ‘‘Search’’ button. To submit a 

comment, choose the ‘‘Comment Now!’’ 

button. Information on using 

Regulations.gov, including instructions 

for accessing documents, submitting 

comments, and viewing the docket after 

the close of the comment period, is 

available under the ‘‘Help’’ tab at the 

top of the Home page. Other 

Information: Additional information 

about Rural Development and its 

programs is available on the internet at 

http://www.rd.usda.gov. 

FOR FURTHER INFORMATION CONTACT: 

Sami Zarour, Director, Program 

Management Division, Rural BusinessCooperative Service, U.S. Department of 

Agriculture, STOP 3225, 1400 

Independence Avenue SW, Washington, 

DC 20250–3225; email: sami.zarour@

usda.gov; telephone (202) 720–1400. 

SUPPLEMENTARY INFORMATION: 

Executive Order 12866, and 13563 

Executive Orders 12866 and 13563 

direct agencies to assess all costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches to maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. 

This final rule has been determined to 

be not-significant for purposes of 

Executive Order (E.O.) 12866 and 

therefore has not been reviewed by the 

Office of Management and Budget 

(OMB). 

Executive Order 12988, Civil Justice 

Reform 

This final rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. In accordance with this 

rule: (1) Unless otherwise specifically 

provided, all State and local laws and 

regulations that conflict with this rule 

will be preempted; (2) no retroactive 

effect will be given to this rule unless 

specifically prescribed in the rule; and 

(3) administrative proceeding of the 

National Appeals Division of the 

Department of Agriculture (7 CFR part 

11) must be exhausted before bringing 

suit in court that challenges action taken 

under this rule. 

Executive Order 12372, 

Intergovernmental Review 

This final rule is not subject to the 

requirements of Executive Order 12372, 

‘‘Intergovernmental Review of Federal 

Programs,’’ as implemented under 

USDA’s regulations at 2 CFR part 415, 

subpart C. 

Executive Order 13132, Federalism 

The policies contained in this rule do 

not have any substantial direct effect on 

states, on the relationship between the 

national government and the states, or 

on the distribution of power and 

responsibilities among the various 

levels of government. Nor does this final 

rule impose substantial direct 

compliance costs on state and local 

governments. Therefore, consultation 

with states is not required. 

Executive Order 13175, Consultation 

and Coordination With Indian Tribal 

Governments 

This executive order imposes 

requirements on the Agency in the 

development of regulatory policies that 

have tribal implications or preempt 

tribal laws. The Agency has determined 

that the rule does not have a substantial 

direct effect on one or more Indian 

tribe(s) or on either the relationship or 

the distribution of powers and 

responsibilities between the federal 

government and Indian tribes. Thus, 

this final rule is not subject to the 

requirements of Executive Order 13175. 

If tribal leaders are interested in 

consulting with the Agency on this rule, 

they are encouraged to contact USDA’s 

Office of Tribal Relations or the 

Agency’s Native American Coordinator 

at: AIAN@usda.gov to request such a 

consultation. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (5 

U.S.C. 601 et seq.) (RFA) generally 

requires an agency to prepare a 

regulatory flexibility analysis of any rule 

subject to notice and comment 

rulemaking requirements under the 

Administrative Procedure Act (‘‘APA’’) 

or any other statute. The Administrative 

Procedures Act exempts from notice and 

comment requirements rules ‘‘relating to 

agency management or personnel or to 

public property, loans, grants, benefits, 


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or contracts’’ (5 U.S.C. 553(a)(2)), so 

therefore an analysis has not been 

prepared for this rule. 

National Environmental Policy Act 

In accordance with the National 

Environmental Policy Act of 1969, 

Public Law 91–190, this final rule has 

been reviewed in accordance with 7 

CFR part 1970 (‘‘Environmental Policies 

and Procedures’’). The Agency has 

determined that (i) this action meets the 

criteria established in 7 CFR 1970.53(f); 

(ii) no extraordinary circumstances 

exist; and (iii) the action is not 

‘‘connected’’ to other actions with 

potentially significant impacts, is not 

considered a ‘‘cumulative action’’ and is 

not precluded by 40 CFR 1506.1. 

Therefore, the Agency has determined 

that the action does not have a 

significant effect on the human 

environment, and therefore neither an 

Environmental Assessment nor an 

Environmental Impact Statement is 

required. 

Catalog of Federal Domestic Assistance 

The Catalog of Federal Domestic 

Assistance (CFDA) number assigned to 

this program is 10.755, Rural Innovation 

Stronger Economy (RISE) Grant 

Program. The Catalog is available on the 

internet at https://sam.gov/content/ 

assistance-listings. The Government 

Publishing Office (GPO) prints and sells 

the CFDA to interested buyers. For 

information about purchasing the 

Catalog of Federal Domestic Assistance 

from GPO, call the Superintendent of 

Documents at 202–512–1800 or toll free 

at 866–512–1800, or access GPO’s 

online bookstore at http://

bookstore.gpo.gov. 

E-Government Act Compliance 

Rural Development is committed to 

the E-Government Act, which requires 

government agencies in general to 

provide the public the option of 

submitting information or transacting 

business electronically to the maximum 

extent possible. 

Civil Rights Impact Analysis 

Rural Development has reviewed this 

rule in accordance with USDA 

Regulation 4300–4, ‘‘Civil Rights Impact 

Analysis,’’ to identify any major civil 

rights impacts the rule might have on 

program participants on the basis of age, 

race, color, national origin, sex or 

disability. Based on the review and 

analysis of the rule and available data, 

it has been determined that the program 

purpose, application submission and 

eligibility criteria, or issuance of this 

Final Rule is not likely to negatively 

impact low and moderate-income 

populations, minority populations, 

women, Indian tribes or persons with 

disability, by virtue of their race, color, 

national origin, sex, age, disability, or 

marital or familial status. 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

chapter 35), USDA requested that the 

Office of Management and Budget 

(OMB) conduct an emergency review of 

a new information collection that 

contains the Information Collection and 

Recordkeeping requirements contained 

in this notice by May 28, 2021. An 

emergency clearance approval for this 

information collection is due to the 

following conditions: (1) The time 

sensitive competitive solicitation 

application window; (2) the urgency to 

obligate funds prior to September 30, 

2021; and (3) being able to effectively 

implement the program as quickly as 

possible to benefit rural communities. 

In addition to the emergency 

clearance, the regular clearance process 

is hereby being initiated to provide the 

public with the opportunity to comment 

under a full comment period, as the 

Agency intends to request regular 

approval from OMB for this information 

collection. Comments from the public 

on new, proposed, revised, and 

continuing collections of information 

help us assess the impact of our 

information collection requirements and 

minimize the public’s reporting burden. 

Comments may be submitted regarding 

this information collection through the 

Federal eRulemaking Portal. Go to 

https://www.regulations.gov and, in the 

lower ‘‘Search Regulations and Federal 

Actions’’ box, select ‘‘RBS’’ from the 

agency drop-down menu, then click on 

‘‘Submit.’’ In the Docket ID column, 

select Docket No. RBS–21–CO–OP–0011 

to submit or view public comments and 

to view supporting and related materials 

available electronically. Information on 

using Regulations.gov, including 

instructions for accessing documents, 

submitting comments, and viewing the 

docket after the close of the comment 

period, is available through the site’s 

‘‘User Tips’’ link. Comments on this 

information collection must be received 

by August 16, 2021. 

Title: 7 CFR part 4284, subpart L, 

Rural Innovation Stronger Economy 

(RISE) Grant Program. 

OMB Control Number: 0570–0075. 

The following estimates are based on 

the average over the first 3 years the 

program is in place. 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average 1.52 hours per 

response. 

Respondents: Institutions of higher 

education, private entities, 

governmental entities, nonprofits, 

Indian Tribes, district organizations. 

Estimated Number of Respondents: 

10. 

Estimated Number of Responses per 

Respondent: 32.1. 

Estimated Number of Responses: 321. 

Estimated Total Annual Burden 

(hours) on Respondents: 486.5. 

Copies of this information collection 

may be obtained from Susan Woolard, 

Regulatory Division, Rural Development 

Innovation Center, U.S. Department of 

Agriculture, 1400 Independence Ave. 

SW, Stop 1522, Washington, DC 20250; 

telephone: 202–720–9631; email: 

susan.woolard@usda.gov. All responses 

to this information collection and 

recordkeeping notice will be 

summarized and included in the request 

for OMB approval. All comments will 

also become a matter of public record. 

USDA Non-Discrimination Policy 

In accordance with federal civil rights 

law and USDA civil rights regulations 

and policies, the USDA, its agencies, 

offices, and employees, and institutions 

participating in or administering USDA 

programs are prohibited from 

discriminating based on race, color, 

national origin, religion, sex, gender 

identity (including gender expression), 

sexual orientation, disability, age, 

marital status, family/parental status, 

income derived from a public assistance 

program, political beliefs, or reprisal or 

retaliation for prior civil rights activity, 

in any program or activity conducted or 

funded by USDA (not all bases apply to 

all programs). Remedies and complaint 

filing deadlines vary by program or 

incident. 

Persons with disabilities who require 

alternative means of communication for 

program information (e.g., Braille, large 

print, audiotape, American Sign 

Language, etc.) should contact the 

responsible Agency or USDA’s TARGET 

Center at (202) 720–2600 (voice and 

TTY) or contact USDA through the 

Federal Relay Service at (800) 877–8339. 

Additionally, program information may 

be made available in languages other 

than English. 

To file a program discrimination 

complaint, complete the USDA Program 

Discrimination Complaint Form, AD– 

3027, found online at http://

www.usda.gov/oascr/how-to-file-aprogram-discrimination-complaint and 

at any USDA office or write a letter 

addressed to USDA and provide in the 

letter all of the information requested in 

the form. To request a copy of the 

complaint form, call (866) 632–9992. 

Submit your completed form or letter to 


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Federal Register / Vol. 86, No. 113 / Tuesday, June 15, 2021 / Rules and Regulations 31587 

USDA by: (1) Mail: U.S. Department of 

Agriculture, Office of the Assistant 

Secretary for Civil Rights, 1400 

Independence Avenue SW, Washington, 

DC 20250–9410; or (2) email: OAC@

usda.gov. 

USDA is an equal opportunity 

provider, employer, and lender. 

Background 

Rural Development (RD) is a mission 

area within the United States 

Department of Agriculture (USDA) 

comprised of the Rural Utilities Service 

(RUS), Rural Housing Service (RHS) and 

Rural Business-Cooperative Service 

(RBCS). RD’s mission is to increase 

economic opportunity and improve the 

quality of life for all rural Americans. 

RD meets its mission by providing 

loans, loan guarantees, grants, and 

technical assistance through more than 

40 programs aimed at creating and 

improving housing, businesses, and 

infrastructure throughout rural America. 

Consistent with the above mission, 

the Rural Innovation Stronger Economy 

(RISE) Grant Program is a newly 

authorized program enacted under the 

authority of Section 6424 of the 

Agriculture Improvement Act of 2018 

(Pub. L. 115–34) (2018 Farm Bill) to 

help struggling communities by funding 

job accelerators in low-income rural 

communities. This action is intended to 

implement the provisions provided in 

Section 6424 of the 2018 Farm Bill by 

issuing a final rule. This final rule will 

describe the program purpose, the 

eligible uses of program funds, and 

entities eligible for assistance under the 

RISE Grant Program in alignment with 

the Farm Bill requirements. The new 

regulation will also include competitive 

grant scoring criteria and cost sharing 

requirements of the program, as well as 

administration and servicing of 

outstanding grants. The RISE Grant 

Program will meet a recognized need for 

federal interagency support of jobs 

accelerator partnerships for the fostering 

and promotion of private investment in 

an identified regional economy. The 

flexible use of funds by RISE grant 

recipients allows a region to identify 

and leverage its community assets to 

better assist new and existing industry 

clusters, including the use of broadband 

service for programs of the jobs 

accelerator. RISE will allow eligible 

entities to establish and operate 

innovation centers for job development 

through training and programming 

efforts that will improve the ability of 

rural communities to create high-wage 

jobs, accelerate the formation of rural 

businesses and strengthen regional 

economies. 

Purpose of the Regulatory Action 

The purpose of this regulation is to 

implement Section 6424 of the 2018 

Farm Bill designed to meet a recognized 

need for federal interagency support of 

jobs accelerator partnerships for the 

fostering and promotion of private 

investment in an identified regional 

economy. The flexible use of funds by 

RISE grant recipients allows a region to 

identify and leverage its community 

assets to better assist new and existing 

industry clusters, including the use of 

broadband service for programs of the 

jobs accelerator. 

Discussion of the Rule 

Many of the definitions used in this 

regulation are used in or are consistent 

with other Agency programs; however, 

the Agency calls attention to the 

following new definitions at 

§ 4284.1103: High-wage job, industry 

cluster, jobs accelerator, lead applicant, 

region, rural and rural area, and rural 

jobs accelerator partnership. These 

definitions provide important 

information regarding project eligibility 

as well as requirements for the 

applicant’s organizational structure. 

RISE grants are made for the benefit 

of rural jobs accelerator partnerships 

(partnership). These partnerships are 

working groups that consist of 

community and regional stakeholders 

whose focus is the needs of an 

identified industry cluster. 

Implementation and sustainability of 

the partnership is more likely with a 

broad coalition of stakeholders; to that 

end, the partnership must be made up 

of one or more representatives of the 

groups listed in § 4284.1112(a). 

Additionally, all partnerships must have 

a lead applicant as described in 

§ 4284.1112(b). The lead applicant is 

responsible for the partnership, enters 

into the financial assistance agreement 

with the Agency, administers the grant 

proceeds and activities, and takes 

ownership of any assets purchased with 

grant funds. Only partnerships formed 

on or after December 20, 2018, are 

eligible for awards. 

The partnership and proposed project 

must serve a region as defined in 

§ 4284.1103 and discussed at 

§ 4284.1112(d). The partnership must 

ensure that the region is clearly defined 

and is of a size that enables 

collaboration among members while 

also containing critical elements of the 

industry cluster prioritized by the 

partnership. Eligibility under all other 

provisions of this part is negated if the 

lead applicant meets either provision in 

§ 4284.1109(a) or (b). The lead applicant 

will remain ineligible to receive funds 

until the disqualifying condition has 

been remedied. 

To ensure that all RISE funds are 

being used, in a timely manner, to 

provide the services for which they 

were awarded, the Agency implements, 

at § 4284.1110(a), a satisfactory progress 

requirement. Lead applicants that have 

unexpended funding from previous 

RISE grant(s) must expend 50 percent or 

more of the previous RISE grant funds 

by the time the Agency makes an 

eligibility determination or the 

application will be deemed ineligible 

for that funding cycle. 

Eligible projects for the RISE grant 

program are those that accelerate the 

formation of new businesses with highgrowth potential, improve the ability of 

distressed, rural communities to create 

high-wage jobs, accelerate the formation 

of new businesses and strengthen 

regional economies. Projects must be 

identified at the time of application and 

fall into one of two categories: 

Construction or purchase of buildings or 

equipment; or project support. 

Construction or purchase is limited to 

buildings that will serve as innovation 

centers for jobs accelerator. Equipment 

purchases must be necessary to support 

the functions of the jobs accelerator. 

Specific information on construction 

and purchase is found at § 4284.1113(a). 

It is noted again that any buildings or 

equipment purchased with RISE grant 

proceeds must be owned and controlled 

by the lead applicant. Support covers a 

broad range of activities but includes 

functions for the support of programs 

carried out at or in direct partnership 

with a jobs accelerator or in support of 

jobs accelerator initiatives. The Agency 

provides guidance on acceptable 

activities at § 4284.1113(b). The Agency 

may, from time to time, revise the list 

of acceptable activities through a 

Federal Register notice. 

As detailed at § 4284.1114, the 

Federal share of any activity under the 

RISE grant will be no more than 80 

percent of eligible project costs. The 

non-Federal share is the responsibility 

of the applicant and may be in the form 

of third-party equity contributions, 

including donations and in-kind 

contributions of fairly valued goods or 

services. Evidence of the amount and 

source of the non-Federal funds must be 

provided at the time of application 

submittal with documentation that the 

required non-Federal funds have been 

received or remain committed prior to 

execution of the financial assistance 

agreement by the lead applicant. The 

match is based on eligible project costs 

as outlined at § 4284.1114(c). Grants are 

further restricted at § 4284.1114(a)(1) 

and (2) to a minimum request of not less 


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than $500,000 and a maximum request 

of not more than $2,000,000. 

Restrictions are also placed on indirect 

costs. Costs incurred by the applicant 

associated with administering the RISE 

grant are statutorily restricted to ten 

percent of the RISE grant amount. 

As the Agency wishes to encourage 

projects across a broad geographic area, 

applicants are limited to one application 

per funding cycle, unless otherwise 

notified in a Federal Register notice. 

The contents of a complete application 

may be found at § 4284.1115(b). All 

items must be included or addressed for 

an application to be considered 

complete and to compete for funding. 

The items requested allow the Agency 

to complete an applicant and project 

eligibility determination, as well as 

determine project alignment with 

Agency priorities. 

Based upon comments received 

during the request for public comments 

period, the Agency added a review of 

concept proposal at § 4284.1115(a). 

Applicants may submit, not less than 60 

days prior to the application submittal 

deadline, the items in § 4284.1115(a)(1) 

through (4) for Agency review. The 

Agency will review the submitted items 

and provide feedback regarding any 

weaknesses and a letter of 

encouragement or discouragement. A 

letter of encouragement does not 

guarantee eligibility or funding. 

Similarly, a letter of discouragement 

does not preclude the applicant from 

submitting a complete application. If an 

applicant submits a review request and 

later submits a complete application, 

duplicative items do not have to be 

resubmitted; however, all information 

must be up-to-date and current. 

To ensure that projects begin 

providing the proposed services as 

quickly as possible and that all members 

of the partnership are ready to 

contribute to the success of the 

proposed project, the Agency at 

§ 4284.1115(b)(2)(x) requires that all 

applications include a readiness 

demonstration. The items identified in 

§ 4284.1115(b)(2)(x)(A) through (E) not 

only provide the Agency evidence that 

the partnership is ready and able to 

begin the project but also allows the 

partnership to evaluate the ability of 

their members to provide the services 

necessary, create a marketing and 

reporting plan and finalize a timeline. 

Each complete and eligible 

application for the RISE program will be 

scored based on the priority scoring 

criteria found at § 4284.1117(a) through 

(g). Applications will, unless otherwise 

publicly announced, be reviewed, and 

scored by Agency personnel. The 

scoring criteria are designed to prioritize 

sustainable projects that best meet the 

program criteria set forth in the 2018 

Farm Bill and this regulation. Scored 

applications will be ranked from highest 

to lowest score for funding 

consideration. Due to the variability of 

proposals from year to year, no 

minimum score for funding is provided. 

Regardless of a proposal’s priority score 

or relative ranking, all funding decisions 

are subject to the availability of funds. 

Receipt of funds in one funding cycle 

does not guarantee priority or funding 

in future funding cycles. 

Information specific to the awarding 

of a grant is provided at § 4284.1119. As 

noted previously, the lead applicant is 

responsible for the administration of the 

grant and will, if the application is 

selected for funding, be issued a letter 

of conditions by the Agency. The letter 

establishes conditions that the applicant 

must agree to prior to the obligation of 

funds. Acceptance of the conditions by 

the applicant does not constitute 

commitment or obligation of funds by 

the Agency. The applicant must not 

make any binding commitments until a 

financial assistance agreement has been 

fully executed and the applicant has 

been notified by the Agency of grant 

approval. The grant performance period 

for all grants award under this part is 

four years beginning on the date the 

financial assistance agreement was 

signed by the Agency. At the end of the 

four-year period any unspent grant 

funds are required to be returned to the 

Agency. If circumstances beyond the 

grantee’s control occur, the Agency may, 

at its sole discretion, approve a one-time 

grant performance period extension. 

Any extension will be for a period not 

to exceed two years and must be 

requested by the grantee prior to the 

expiration of the grant performance 

period, as specified in the financial 

assistance agreement. Requests must 

describe the circumstances that 

prohibited the grantee from completing 

the project and show that an active jobs 

accelerator and related programming is 

established. Further discussion of times 

extensions can be found at 

§ 4284.1110(g)(1). 

Discussion of Public Comments for 

Final Rule 

On July 22, 2020, the Agency 

published a request for comments in the 

Federal Register (85 FR 44273) to allow 

stakeholders a platform and sufficient 

time to provide formal comments on 

provisions of the Rural Innovation 

Stronger Economy (RISE) Grant 

Program. Eleven entities provided 

written comments during the formal 

comment period. The Agency also 

conducted listening sessions for 

interested stakeholders on July 28, and 

July 30, 2020, regarding implementation 

of the Final Rule for the RISE program. 

A listening session was also held on 

July 21, 2020, to receive comments from 

Agency staff. The Agency reviewed and 

considered all comments that were 

received. The following discusses 

substantive comments and the Agency’s 

response: 

Comment: Two commenters indicated 

that RISE should have a framework for 

an applicant providing components of 

the application, similar to the 

Department of Commerce’s Economic 

Development Administration’s (EDA) 

process for their programs, including a 

concept proposal to highlight their 

eligibility and scope of work. 

Response: The Agency considered 

this application framework and 

included the concept paper proposal 

suggestion in the application process. 

Comment: Two commenters provided 

suggestions for quantitative scoring 

including evaluation of market 

connections made, new regional 

programs and networks established. 

These scoring criteria indicate that there 

should be not only qualitative but 

quantitative factors when evaluating 

RISE applications. 

Response: The Agency used the 

comments to develop benchmarks of 

success in scoring criteria to make 

awards that will generate the intended 

program outcomes. The Agency 

considered this information and 

therefore included a requirement that 

project performance reports be provided 

twice a year, from the grantee, in order 

to monitor progress on the key metrics 

found in the scope of work. 

Comment: A commenter suggested 

scoring metrics ranging from 

innovation, scope and monetary impact 

of the project to private/public 

partnerships involved in the project was 

provided. The commenter discussed 

including scoring consideration for 

projects in federal Opportunity Zones. 

Response: The Agency considered 

various metrics from innovation to 

scope and monetary impact of the 

project as well as partnership analysis 

and included this in the scoring criteria. 

The Agency may include federal 

initiatives as a criterion under the 

Administrator section of scoring, which 

may be announced in the Federal 

Register in the Notice of Solicitation of 

Applications on an annual basis. 

Comment: A commenter suggested 

that the program provide more 

significant scoring and weighting for 

partnerships that evidence 

commitments to target low-income 

workers for workforce development 

activity. The commenter further 


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recommended that the Agency 

emphasize high impact metrics 

including creation and retention of 

high-wage jobs, private investment 

leveraging, businesses established or 

improved, new products or services 

commercialized, increased regional 

collaboration, the number and dollar 

amount of new loans, improvement of 

income of participating workers, sales of 

participating businesses, and the 

amount of training and education 

activities related to the innovation. 

Response: The Agency considered 

these items and many of these items 

were included in the application 

content and scoring. The Agency 

addressed grant monitoring metrics in 

the servicing section of the regulation. 

The Agency provided an analysis of the 

partnership’s abilities in the application 

and scoring content of the regulation. 

Comment: Three commenters 

indicated that applicants should fully 

demonstrate commitment and 

sustainability of the project in their 

applications. 

Response: The Agency agrees with 

this comment and includes input on 

technology, scope, commitment, and 

sustainability of the project and 

incorporated these items not only in the 

application but also in the scoring 

criteria for the RISE program. 

Comment: One commenter discussed 

the applicant providing details of 

organization, governance, operations, 

and roles of partners in the partnership. 

One commenter discussed what the 

application should consist of including 

a definition of the consortium of 

entities, roles of each partner, business 

plan, description of the region in 

economic terms, activities to be 

performed by the partnership, how the 

partnership will collect metrics of 

performance on itself and a 

communication plan outlining how 

success stories and impacts will be 

outlined. 

Response: The Agency considered 

details of the partnership from 

organization to governance and 

included these components in the 

application requirements and scoring 

criteria. 

Comment: One commenter suggested 

the Agency evaluate proposals by 

different standards. 

Response: The Agency does not agree 

with using different standards for the 

evaluation of applications and will 

evaluate all proposals by the same 

scoring criteria. 

Comment: Two commenters 

discussed an assessment of the 

applicant’s link with rural communities 

to markets, networks, industry clusters 

and other regional opportunities and 

assets plus the characteristics for 

regional readiness and success. 

Response: The Agency considered 

these comments to develop benchmarks 

of readiness and commitment to the 

identified region in scoring criteria to 

make awards that will generate the 

intended program outcomes. 

Comment: Several commenters 

suggested including a rating factor of the 

amount of previous partnership 

activities and resources that will be 

leveraged by the RISE grant activities 

and developing successful benchmarks 

ranging from quantifying prototypes, 

technology and jobs to markets criteria. 

Response: The Agency appreciates the 

suggested metrics and included many of 

these in the regulation and scoring 

criteria. 

Comment: Two commenters 

discussed measurement of outcomebased metrics including business, 

employment and wage growth and job 

training as well as patent applications in 

its grant monitoring. Several 

commenters indicated that grant 

servicing reports should be no more 

frequent than semi-annual due to the 

length of the grant period. 

Response: The Agency addressed 

grant monitoring metrics in the 

servicing section of the regulation. The 

Agency agrees and will monitor 

performance metrics and outcomes of 

grant funds on a semi-annual basis. 

Comment: Commenter discussed the 

statutory requirement of a 20 percent 

cost match of the RISE Program and 

requested the Agency not to require the 

entire portion of the match to be 

demonstrated at the application stage, 

but instead to allow applicants to 

produce the remainder of any cost-share 

commitment up to a year after award. 

Response: The Agency is unable to 

consider an option to delay grant 

matching requirements due to statutory 

requirements of the RISE Program. The 

input of matching funds at grant 

origination demonstrates the applicant’s 

commitment to the project. 

Comment: One commenter discussed 

the Agency extending past the ten 

percent restriction on indirect costs for 

awarded entities. 

Response: The ten percent limitation 

on indirect costs and administrative 

expenses is a statutory requirement and 

cannot be modified as suggested. 

Comment: One commenter discussed 

the ability of innovation centers to be 

virtual in lieu of having a physical 

building centered in one community. 

Response: A virtual option is 

allowable under RISE if a rural region is 

being served and all other eligible 

criteria are met. The Agency did clarify 

that the construction of an innovation 

center must be in a rural area only. 

Comment: One commenter suggested 

allowing grant funding to be spent on 

multiple activities including training 

and support of businesses, support 

research and development activities to 

develop markets, development of 

partnerships to deal with supply issues 

and obtaining resources for workforce 

development programs. 

Response: The Agency developed 

eligible project costs to cover multiple 

activities including the purchase and 

construction of an innovation center, 

costs directly related to the operations 

of an innovation center, costs directly 

associated with support programs to be 

carried out at or in direct partnership 

with job accelerators as well as other 

administrative costs providing the 

ability to cover training and 

development. 

Comment: One commenter suggested 

that the jobs accelerator be able to serve 

multiple communities with populations 

of 50,000 or less. 

Response: The Agency concurs with 

the comment regarding ability to serve 

multiple communities and has a 

statutory responsibility to ensure this. 

Comment: One commenter indicated 

the Agency should ensure a region is 

not too small. 

Response: The Agency addressed the 

definition of a region in the RISE 

regulation in compliance with the 

statutory requirements. 

List of Subjects for 7 CFR Part 4284 

Community development, 

Cooperative development, Grant 

programs, Reporting and recordkeeping 

requirements. 

Accordingly, for reasons set forth in 

the preamble, Chapter XLII of Title 7 of 

the Code of Federal Regulations is 

amended as follows: 

PART 4284—GRANTS 

■ 1. The authority citation for part 4284 

continues to read as follows: 

Authority: 5 U.S.C. 301 and 7 U.S.C. 1989. 

■ 2. Add subpart L, consisting of 

§§ 4284.1101 through 4264.1131, to read 

as follows: 

Subpart L—Rural Innovation Stronger 

Economy (RISE) Grant Program 

Sec. 

4284.1101 Purpose. 

4284.1102 Organization of subpart. 

4284.1103 Definitions. 

4284.1104 Exception authority. 

4284.1105 Review or appeal rights. 

4284.1106 Conflict of interest. 

4284.1107 Statute and regulation 

references. 


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4284.1108 U.S. Department of Agriculture 

departmental regulations and laws that 

contain other compliance requirements 

4284.1109 Ineligible applicants 

4284.1110 General applicant, application, 

and funding provisions. 

4284.1111 Notifications. 

4284.1112 Rural jobs accelerator 

partnership eligibility. 

4284.1113 Project eligibility. 

4284.1114 RISE grant funding. 

4284.1115 RISE grant applications— 

content. 

4284.1116 [Reserved] 

4284.1117 Scoring RISE grant applications. 

4284.1118 Selecting RISE grant applications 

for award. 

4284.1119 Awarding and administering 

RISE grants. 

4284.1120 Servicing RISE grants. 

4284.1121–4284.1130 [Reserved] 

4284.1131 OMB control number. 

§ 4284.1101 Purpose. 

This subpart contains the procedures 

and requirements for providing the 

following financial assistance under the 

Rural Innovation Stronger Economy 

(RISE) program: 

(a) Grants for the purpose of 

constructing, purchasing, or equipping a 

building to serve as an innovation 

center in order to establish job 

accelerators. 

(b) Grants for the purpose of 

establishing and supporting job 

accelerators and related programs. 

§ 4284.1102 Organization of subpart. 

This subpart is organized into distinct 

sections as described in paragraphs (a) 

and (b) of this section. 

(a) Sections 4284.1103 through 

4284.1111 discuss definitions; 

exception authority; review or appeal 

rights; conflict of interest; USDA 

departmental regulations; other 

applicable laws; ineligible applicants; 

general applicant, application, and 

funding provisions; and notifications, 

which are applicable to funding the 

program under this subpart. 

(b) Sections 4284.1112 and 4284.1113 

discuss, respectively, applicant and 

project eligibility. Section 4284.1114 

addresses funding provisions for these 

grants. Sections 4284.1115 through 

4284.1120 address grant application 

content and required documentation, 

scoring, selection, awarding and 

administering grant applications, and 

servicing of grant awards. 

§ 4284.1103 Definitions. 

The following definitions are 

applicable to the terms used in this 

subpart. 

Administrator means the 

Administrator of Rural BusinessCooperative Service (RBCS) within the 

Rural Development mission area of the 

U.S. Department of Agriculture (USDA). 

Agency means RBCS or its successor 

agency assigned by the Secretary of 

Agriculture to administer the RISE grant 

program. References to the National 

Office, Finance Office, State Office, or 

other Agency offices or officials should 

be read as prefaced by ‘‘Agency’’ or 

‘‘Rural Development’’ as applicable. 

Applicant means the lead applicant 

acting on behalf of a rural jobs 

accelerator partnership as stated in 

4282.1112, that is seeking a RISE grant. 

The lead applicant will enter into a 

financial assistance agreement with the 

Agency, receive the RISE grant funding 

and take ownership of any assets 

purchased with grant funds. 

Broadband service. Defined within 

the meaning of Title VI of the Rural 

Electrification Act of 1936 (7 U.S.C. 901 

et seq.), broadband service means any 

technology identified by the 

Administrator as having the capacity to 

provide transmission facilities and 

capacity that enable the subscriber to 

receive a minimum level of broadband 

service. The minimum level of 

broadband service for the purpose of 

reviewing the application will be 

defined by the minimum transmission 

capacity that was required by Title VI of 

the Rural Electrification Act of 1936 (7 

U.S.C. 901 et seq.) at the time the 

application was received by the Agency. 

Complete application means an 

application that contains all parts 

necessary for the Agency to determine 

applicant and project eligibility, the 

financial feasibility and technical merit 

of the project, and contains sufficient 

information to determine a priority 

score for the application. 

Departmental regulations mean the 

regulations of the Agency’s Office of 

Chief Financial Officer (or successor 

office) as codified in 2 CFR chapter IV. 

District organization means an 

organization as defined in Section 300.3 

of Title 13, Code of Federal Regulations 

(or a successor regulation). 

Eligible project costs means the 

portion of total project costs approved 

by the Agency for projects that are 

eligible to be paid with RISE funds. 

Federal fiscal year (FY) means the 12- 

month period beginning October 1 of 

any given year and ending on 

September 30 of the following year; it is 

designated by the calendar year in 

which it ends. 

Financial assistance agreement means 

Form RD 4280–2, ‘‘Rural BusinessCooperative Service Financial 

Assistance Agreement, or successor 

form and is an agreement between the 

Agency and the grantee setting forth the 

provisions under which the grant will 

be administered. 

High-wage job means a job that 

provides a wage that is greater than the 

median wage for the applicable region, 

as determined by the Department of 

Labor. 

Indian tribe means the term as 

defined in 25 U.S.C. 5304(e). 

Industry cluster means a broadly 

defined network of interconnected firms 

and supporting institutions in related 

industries that accelerate innovation, 

business formation, and job creation by 

taking advantage of assets and strengths 

of a region in the business environment. 

Innovation center means a crossfunctional place for the planning and 

creation of new ideas and opportunities 

for individual and group collaboration 

that leads to supporting deployment of 

innovative processes, technologies, 

services and products for economic 

development. Innovation centers may be 

utilized for a wide array of purposes 

including short-term housing for 

business owners or workers; co-working 

space, which may include space for 

remote work; space for business 

utilization with a focus on 

entrepreneurs and small and 

disadvantaged businesses but may 

include collaboration with companies of 

all sizes; job training programs; and 

efforts to utilize the innovation center as 

part of the development of a 

community, among other uses deemed 

appropriate by the Agency. 

Institution of higher education means 

the term as defined in 20 U.S.C. 1002(a). 

Instrumentality means an 

organization recognized, established, 

and controlled by a State, Tribal, or 

local government for a public purpose 

or to carry out special purposes. 

Jobs accelerator means a center or 

program located in or serving a rural 

low-income community that may 

provide co-working space, in-demand 

skills training, entrepreneurship and 

business support, and other initiatives 

as described in Part 4284.1113(b). 

Lead applicant means an entity as 

defined in Part 4284.1112(b) and is 

responsible for the rural jobs accelerator 

partnership plus administration of the 

grant proceeds and activities. 

Letter of conditions means a 

document prepared by the Agency 

establishing conditions that must be 

agreed to by the applicant before any 

obligation of grant funds can occur. 

Low income community means a 

community as defined in section 45D(e) 

of the Internal Revenue Code of 1986, 

and any amendments thereto. 

Matching funds means non-federal 

funds provided to meet the total eligible 

project costs that are not covered by the 

RISE grant proceeds. 


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Person means an individual or an 

entity organized under the laws of a 

state or a Tribe. 

Region means an area identified by 

the applicant that meets the criteria of 

§ 4284.1112(d) with a population of 

50,000 or fewer inhabitants, or for a 

region with a population of more than 

50,000 inhabitants, is comprised of rural 

areas and urbanized areas, if any, are the 

subject of a positive determination by 

the Under Secretary for Rural 

Development with respect to a rural-incharacter petition, including such a 

petition submitted concurrently with 

the application of the partnership for a 

grant under this section. 

Rural and rural area means any area 

of a state not in a city or town that has 

a population of more than 50,000 

inhabitants according to the latest 

decennial census of the United States 

and not in the urbanized area 

contiguous and adjacent to a city or 

town that has a population of more than 

50,000 inhabitants. A rural and rural 

area shall be determined as defined in 

7 U.S.C. 1991(a)(13). 

Rural in character means: 

(1) A determination that an area is 

‘‘rural in character’’ will be made by the 

Under Secretary of Rural Development 

in compliance with 7 U.S.C. 

1991(a)(13)(D). The process to request a 

determination under this provision is 

outlined in this definition. Units of local 

government may petition the Under 

Secretary of Rural Development for a 

‘‘rural in character’’ designation by 

submitting a petition to the 

Administrator on behalf of the Under 

Secretary. The petition shall document 

why the petitioner believes the area is 

‘‘rural in character’’ including, but not 

limited to, the area’s population density, 

demographics, and topography and how 

the local economy is tied to a rural 

economic base. Upon receiving a 

petition, the Administrator will review 

its merits and consult with the 

applicable governor or leader in a 

similar position and request comments 

to be submitted within 5 business days, 

unless such comments were submitted 

with the petition. The petition will be 

forwarded to the Under Secretary who 

will release to the public a notice of a 

petition filed by a unit of local 

government not later than 30 days after 

receipt of the petition by way of 

publication in a local newspaper and 

posting on the Agency’s website. The 

Under Secretary will make a 

determination not less than 15 days, but 

no more than 60 days, after the release 

of the notice. Upon a negative 

determination, the Under Secretary will 

provide to the petitioner an opportunity 

to appeal a determination to the Under 

Secretary, and the petitioner will have 

10 business days to appeal the 

determination and provide further 

information for consideration. The 

Under Secretary will make a 

determination of the appeal in not less 

than 15 days, but no more than 30 days. 

(2) Rural Development State Directors 

may also initiate a request to the Under 

Secretary to determine if an area is 

‘‘rural in character.’’ A written 

recommendation should be sent to the 

Administrator, on behalf of the Under 

Secretary, that documents how the area 

meets the statutory requirements and 

discusses why the State Director 

believes the area is ‘‘rural in character’’ 

including, but not limited to, the area’s 

population density, demographics, 

topography, and how the local economy 

is tied to a rural economic base. Upon 

receipt of such a request, the 

Administrator will review the request 

for compliance with the ‘‘rural in 

character’’ provisions and make a 

recommendation to the Under Secretary. 

Provided a favorable determination is 

made, the Under Secretary will consult 

with the applicable governor or leader 

in a similar position and request 

comments within 10 business days, 

unless gubernatorial comments were 

submitted with the request. A public 

notice will be published by the State 

Office in a local newspaper and the 

request will be posted on the Agency’s 

website. There is no appeal process for 

requests made on the initiative of the 

State Director. 

Rural jobs accelerator partnership 

means a partnership formed on or after 

December 20, 2018, which meets 

eligibility criteria found in § 4284.1112. 

Secretary means the Secretary of 

Agriculture and, to the extent of 

delegated authorities, the Under 

Secretary for Rural Development. 

Small and disadvantaged business 

means a small business concern owned 

and controlled by socially and 

economically disadvantaged individuals 

as defined in Section 8(d)(3)(C) of the 

Small Business Act (15 U.S.C. 

637(d)(3)(C)). 

Small business means: 

(1) An entity that meets Small 

Business Administration (SBA) size 

standards in accordance with 13 CFR 

part 121 and criteria of 13 CFR 121.301 

as applicable to financial assistance 

programs, including paragraph (i) or (ii) 

of this definition. The size of the 

concern alone and the size of the 

concern combined with other entity(ies) 

it controls or entity(ies) it is controlled 

by, must not exceed the size standard 

thresholds designated for the industry 

in which the concern alone or the 

concern and its controlling entity(ies), 

whichever is higher, is primarily 

engaged. 

(2) To be considered a small business, 

either of the following conditions must 

be met: 

(i) The concern’s tangible net worth is 

not in excess of $15 million and average 

net income (excluding carry-over losses) 

for the preceding two completed fiscal 

years is not in excess of $5.0 million; or 

(ii) The size of the concern does not 

exceed the SBA size standard thresholds 

designated for the industry in which it 

is primarily engaged, as measured by 

number of employees or annual 

receipts. Industry size standard 

designations to be utilized are listed in 

the SBA’s table of size standards found 

in 13 CFR 121.201. Number of 

employees and annuals receipts are 

calculated as follows: 

(A) Number of employees is 

calculated as the average number of all 

individuals employed by a concern on 

a full-time, part-time, or other basis, 

based upon numbers of employees for 

each of the pay periods for the 

preceding completed 12 calendar 

months. If a concern has not been in 

business for 12 months, the average 

number of employees is used for each of 

the pay periods during which it has 

been in business. 

(B) Annual receipts are calculated as 

average total income plus cost of goods 

sold for the five most recent years. If a 

concern has been in operation for less 

than 60 months, average annual receipts 

for as long as the concern has been in 

operation are used. 

State means any of the 50 States of the 

United States, the Commonwealth of 

Puerto Rico, the U.S. Virgin Islands, 

Guam, American Samoa, the 

Commonwealth of the Northern Mariana 

Islands, the Republic of Palau, the 

Federated States of Micronesia, and the 

Republic of the Marshall Islands. 

Total project costs mean the sum of 

all costs associated with a completed 

project. 

§ 4284.1104 Exception authority. 

The Administrator may, on a case-bycase basis, grant an exception to any 

requirement or provision of this subpart 

provided that such an exception is in 

the best financial interests of the Federal 

government. Exercise of this authority 

cannot conflict with applicable law. 

§ 4284.1105 Review or appeal rights. 

Agency decisions that are adverse to 

the individual participant are 

appealable, while matters of general 

applicability are not subject to appeal; 

however, such decisions are reviewable 

for appealability by the National 

Appeals Division (NAD). All appeals 


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will be conducted by NAD and will be 

handled in accordance with 7 CFR part 

11. 

§ 4284.1106 Conflict of interest. 

(a) General. A situation in which a 

person has competing personal, 

professional, or financial interests that 

prevents the person from acting 

impartially. 

(b) Assistance to employees, relatives, 

and associates. The Agency will process 

any requests for assistance under this 

subpart in accordance with 7 CFR part 

1900, subpart D. 

(c) Member/Delegate clause. No 

member of or delegate to Congress shall 

receive any share or part of this grant or 

any benefit that may arise therefrom; but 

this provision shall not be construed to 

bar, as a contractor under the grant, a 

publicly held corporation whose 

ownership might include a member of 

Congress. 

§ 4284.1107 Statute and regulation 

references. 

All references to statutes and 

regulations are to include any and all 

successor statutes and regulations. 

§ 4284.1108 U.S. Department of 

Agriculture departmental regulations and 

laws that contain other compliance 

requirements. 

(a) Departmental regulations. All 

projects funded under this subpart are 

subject to the provisions of the 

departmental regulations, as applicable, 

which are incorporated by reference 

herein. 

(b) Equal opportunity and 

nondiscrimination. The Agency will 

ensure that equal opportunity and 

nondiscrimination requirements are met 

in accordance with the Equal Credit 

Opportunity Act, 15 U.S.C. 1691 et seq. 

and 7 CFR part 15d, Nondiscrimination 

in Programs or Activities Conducted by 

the United States Department of 

Agriculture. The Agency will not 

discriminate against applicants on the 

basis of race, color, religion, national 

origin, sex, marital status, or age 

(provided that the applicant has the 

capacity to contract); because all or part 

of the applicant’s income derives from 

any public assistance program; or 

because the applicant has in good faith 

exercised any right under the Consumer 

Credit Protection Act, 15 U.S.C. 1601 et 

seq. 

(c) Civil rights compliance. Recipients 

of grants must comply with the 

Americans with Disabilities Act of 1990, 

42 U.S.C. 12101 et seq., Title VI of the 

Civil Rights Act of 1964, 42 U.S.C. 

2000d et seq., and Section 504 of the 

Rehabilitation Act of 1973, 29 U.S.C. 

794. This includes collection and 

maintenance of data on the race, sex, 

and national origin of the recipient’s 

membership/ownership and employees. 

These data must be available to conduct 

compliance reviews in accordance with 

7 CFR 1901.204. 

(1) Initial compliance reviews will be 

conducted by the Agency prior to funds 

being obligated. 

(2) Grants will require one subsequent 

compliance review following project 

completion. This will occur after the 

last disbursement of grant funds has 

been made. 

(d) Environmental analysis. 7 CFR 

part 1970 outlines environmental 

procedures and requirements for this 

subpart. Prospective applicants are 

advised to contact the Agency to 

determine environmental requirements 

as soon as practicable after they decide 

to pursue any form of financial 

assistance directly or indirectly 

available through the Agency. The 

applicant will be notified of all specific 

compliance requirements, including: 

(1) Any required environmental 

review must be completed by the 

Agency prior to the Agency obligating 

any funds or the applicant taking any 

action; 

(2) A site visit by the Agency may be 

scheduled, if necessary, to determine 

the scope of the review. An 

environmental review may include the 

publication of public notices, and 

consultation with State and Tribal 

Historic Preservation Offices and the 

U.S. Fish and Wildlife Service. 

(e) Discrimination complaints—(1) 

Who may file. Persons or a specific class 

of persons believing they have been 

subjected to discrimination prohibited 

by this section may file a complaint 

personally, or by an authorized 

representative with USDA, Director, 

Office of Adjudication, 1400 

Independence Avenue SW, Washington, 

DC 20250. 

(2) Time for filing. A complaint must 

be filed no later than 180 days from the 

date of the alleged discrimination, 

unless a request for a waiver of the 180- 

day timeline is requested and the time 

for filing is extended by the designated 

officials of USDA or the Agency. 

(3) Filing a complaint. To file a 

program discrimination complaint, 

complete the USDA Program 

Discrimination Complaint Form, AD– 

3027, found online at https://

www.usda.gov/oascr/how-to-file-aprogram-discrimination-complaint and 

at any USDA office or write a letter 

addressed to USDA and provide in the 

letter all of the information requested in 

the form. To request a copy of the 

complaint form, call (866) 632–9992. 

Submit your completed form or letter to 

USDA by: 

(i) Mail: U.S. Department of 

Agriculture, Office of Adjudication, 

1400 Independence Avenue SW, 

Washington, DC 20250–9410; 

(ii) Fax: (202) 690–7442; or 

(iii) Email: OAC@usda.gov. 

§ 4284.1109 Ineligible applicants. 

Applicants will be ineligible to 

receive funds under this subpart as 

discussed in paragraphs (a) and (b) of 

this section. 

(a) If the applicant has an outstanding 

judgment obtained by the U.S. in a 

Federal Court (other than in the United 

States Tax Court), is delinquent in the 

payment of Federal income taxes, or is 

delinquent on a Federal debt, the 

applicant is not eligible to receive a 

grant until the judgment is paid in full 

or otherwise satisfied or the 

delinquency is resolved. The Agency 

will check the Do Not Pay System to 

verify this information. 

(b) If the applicant is debarred or 

suspended from receiving Federal 

assistance, the applicant is not eligible 

to receive a grant under this subpart. 

The Agency will check the System for 

Award Management (SAM) to determine 

if the applicant has been debarred or 

suspended. 

§ 4284.1110 General applicant, application, 

and funding provisions. 

(a) Satisfactory progress. A lead 

applicant that has received one or more 

grants under this program must make 

satisfactory progress toward completion 

of any previously funded projects before 

the lead applicant will be considered for 

subsequent funding. Satisfactory 

progress is defined as 50% or greater of 

the previous RISE award being 

expended at the time the Agency makes 

its eligibility determination for a 

subsequent application. 

(b) Application submittal. 

Applications must be submitted in 

accordance with the provisions of this 

subpart unless otherwise specified in a 

Federal Register notice. Grant 

applications for financial assistance 

under this subpart may be submitted at 

any time with awards made annually 

based on the application’s score and 

subject to available funding. 

(c) Limit on number of applications. 

An applicant can apply for and compete 

only one RISE project under this subpart 

per Federal fiscal year, unless otherwise 

noted in a Federal Register notice. 

(d) Application modification. Once 

submitted and prior to Agency award, if 

an applicant significantly modifies its 

application or scope of work, the 

application will be treated as a new 


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application. The submission date of 

record for such modified applications 

will be the date the Agency receives the 

modified application, and the 

application will be processed by the 

Agency as a new application under this 

subpart. Applications that are modified 

due only to partial funding being 

available for the selected award are not 

subject to this provision. 

(e) Incomplete applications. 

Applicants must submit a complete 

application in compliance with 

§ 4284.1115 in order to be considered 

for funding. If an application is 

incomplete, the Agency will identify 

those parts of the application that are 

incomplete and return the documents, 

with a written explanation, to the 

applicant for possible future 

resubmission. Upon receipt of a 

complete application by the appropriate 

Agency office, the Agency will complete 

its evaluation and will compete the 

application in accordance with the 

procedures specified in § 4284.1118, as 

applicable. 

(f) Application withdrawal. During the 

period between the submission of an 

application and the execution of grant 

award documents for an application 

selected for funding, the applicant must 

notify the Agency, in writing, if the 

project is no longer viable or the 

applicant is no longer requesting 

financial assistance for the project. 

When an applicant withdrawal request 

is received by the Agency, the selection 

will be rescinded and/or the application 

withdrawn from further processing and 

funding consideration. 

(g) Time limit on use of grant funds. 

Except as provided in paragraph (g)(1) 

of this section, grant funds not 

expended within the initial grant term 

of 4 years from the date the financial 

assistance agreement was signed by the 

Agency will be returned to the Agency. 

(1) Time extensions. The Agency may 

extend the 4-year grant time limit if the 

Agency determines, at its sole 

discretion, that the grantee is unable to 

complete the project for reasons beyond 

the grantee’s control and that the 

grantee has established an active jobs 

accelerator and related programming. 

Grantees must submit a request for the 

no-cost extension no later than 90 days 

before the expiration date of the 

Financial Assistance Agreement. This 

request must describe the extenuating 

circumstances that were beyond its 

control to complete the project for 

which the grant was awarded, elements 

of completion that are required and 

their timeframe, and why an approval is 

in the government’s best interest. The 

Agency may extend the grant term up to 

an additional two-year period. 

Additional extensions will not be 

granted. 

(2) Return of funds to the Agency. 

Funds that exceed the amount the 

grantee is entitled to receive under the 

financial assistance agreement or that 

are remaining after grant closeout will 

be returned to the Agency. 

§ 4284.1111 Notifications. 

(a) Eligibility. If an applicant or its 

project is determined by the Agency to 

be ineligible at any time, the Agency 

will inform the applicant, as applicable, 

in writing of the decision, reasons 

therefore, and any applicable appeal 

rights. No further processing of the 

application or disbursement of grant 

proceeds, if funds have been previously 

awarded, will occur. 

(b) Funding determinations. Each 

applicant, as applicable, will be notified 

of the Agency’s funding decision on its 

application. If the Agency’s decision is 

to not fund an application, the Agency 

will notify the applicant in writing 

including the reasons for the 

determination and any applicable 

appeal or review rights. 

§ 4284.1112 Rural jobs accelerator 

partnership eligibility. 

A rural jobs accelerator partnership 

(Partnership) organizes key community 

and regional stakeholders into a 

working group that focuses on the 

shared goals and needs of the targeted 

industry cluster(s). To be eligible for a 

RISE grant under this subpart, the 

Partnership must be formed on or after 

December 20, 2018, and meet each of 

the criteria specified in paragraphs (a) 

through (d) of this section. The Agency 

will determine a Partnership’s eligibility 

based on the criteria herein. 

(a) The Partnership must include one 

or more representatives of the following: 

(1) A State, Tribal or local 

government; 

(2) A State, Tribal, or local 

government entity; 

(3) A land-grant college or university 

or other institution of higher education, 

as defined in the Higher Education Act 

of 1965 (20 U.S.C. 1001); 

(4) A rural non-profit cooperative; or 

(5) A private entity, which may 

include a business in an industry 

cluster, economic development or 

community development organization, 

financial institution including a 

community development financial 

institution, philanthropic organization 

or labor organization. 

(b) The Partnership must have a lead 

applicant represented by one of the 

following: 

(1) A district organization; 

(2) An Indian Tribe or a political 

subdivision of a Tribe, including a 

special purpose unit of a tribal 

government engaged in economic 

development activities, or a consortium 

of Indian Tribes; 

(3) A State or a political subdivision 

of a State, including a special purpose 

unit of a State or local government 

engaged in economic development 

activities, or a consortium of political 

subdivisions; 

(4) An institution of higher education 

(as defined in section 101 of the Higher 

Education Act of 1965 (20 U.S.C. 1001)) 

or a consortium of institutions of higher 

education; or 

(5) A public or private nonprofit 

organization. 

(c) The Partnership and its project 

must serve a rural region, as defined. 

(d) The Partnership must clearly 

define the region that the partnership 

represents and ensure that the Region 

encompasses each of the following: 

(1) Is large enough to contain critical 

elements of the industry cluster 

prioritized by the partnership; 

(2) Is small enough to enable close 

collaboration among members of the 

partnership; 

(3) Includes a majority of 

communities that are located in the 

following: 

(i) A nonmetropolitan area that 

qualifies as a low-income community; 

and 

(ii) An area that has access to or has 

a plan to achieve broadband service, as 

defined; and 

(4) Has a population of 50,000 or 

fewer inhabitants or, for a region with 

a population of more than 50,000 

inhabitants, is comprised of rural areas 

and urbanized areas, if any, are the 

subject of a positive determination by 

the Under Secretary for Rural 

Development with respect to a rural-incharacter petition, including such a 

petition submitted concurrently with 

the application of the partnership for a 

grant under this section. 

(e) One or more members of the 

Partnership must be located in the 

targeted region. The Partnership may 

consist of industry entities and other 

partners outside of the targeted region. 

§ 4284.1113 Project eligibility. 

For a project to be eligible to receive 

a RISE grant under this subpart, the 

proposed project must meet the 

requirements specified in paragraphs (a) 

through (e) of this section. The 

applicant project outcome must 

accelerate the formation of new 

businesses with high-growth potential, 

improve the ability of rural businesses 

and distressed rural communities to 

create high-wage jobs, and strengthen 

rural regional economies by engaging in 


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one or more of the following eligible 

uses: 

(a) The construction or purchase of a 

building to serve as an innovation 

center located in a rural low-income 

community which establishes and/or 

supports a jobs accelerator and any 

equipment needs of the innovation 

center to support the jobs accelerator; 

(b) Be for the support of programs to 

be carried out at or in direct partnership 

with the jobs accelerator or in support 

of jobs accelerator initiatives including 

one or more of the following: 

(1) Linking rural communities and 

entrepreneurs to markets, networks, 

industry clusters, and other regional 

opportunities to support high-wage job 

creation, new business formation, 

business expansion, and economic 

growth of rural communities; 

(2) Integrating rural small businesses 

into a supply chain; 

(3) Creating or expanding 

commercialization activities for new 

business formation in rural areas; 

(4) Identifying and building assets in 

rural communities that are crucial to 

supporting regional economies; 

(5) Facilitating the repatriations of 

high-wage jobs to the United States; 

(6) Supporting the deployment of 

innovative processes, technologies, and 

products; 

(7) Enhancing the capacity of rural 

small businesses in regional industry 

clusters, including small and 

disadvantaged businesses; 

(8) Increasing United States exports 

and business interaction with 

international buyers and suppliers; 

(9) Developing the skills and expertise 

of local workforces, entrepreneurs, and 

institutional partners in the region to 

meet the needs of employers and 

prepare workers for high-wage jobs in 

the identified industry clusters, 

including the upskilling of incumbent 

workers; 

(10) Ensuring rural communities have 

the capacity and ability to carry out 

projects relating to housing, community 

facilities, infrastructure, or community 

and economic development to support 

regional industry cluster growth; 

(11) Any activities that the Agency 

may determine to be appropriate, as 

specified in a Federal Register notice. 

(c) Not more than 10 percent of a RISE 

grant awarded under this section shall 

be used for indirect costs of the 

applicant associated with administering 

the RISE grant. The Agency may 

increase this percentage as a 

documented exception on a case by case 

basis. 

(d) The innovation center may be 

physically located in a rural area as 

defined in § 4284.1103 or in a non-rural 

area; as long as assistance being 

provided is to residents located in a 

rural area. The innovation center must 

be located in a rural low-income 

community if grant funds are used for 

the construction or purchase of an 

innovation center. 

(e) The applicant is cautioned against 

taking any actions or incurring any 

obligations prior to the Agency 

completing the environmental review 

that would either limit the range of 

alternatives to be considered or that 

would have an adverse effect on the 

environment, such as the initiation of 

construction. If the applicant takes any 

such actions or incurs any such 

obligations, it could result in project 

ineligibility. Projects involving the 

construction of an innovation center as 

an eligible purpose are subject to the 

environmental requirements of 7 CFR 

part 1970. 

§ 4284.1114 RISE grant funding. 

(a) Grant amounts. The amount of 

grant funds that will be made available 

to a Partnership under this subpart will 

not exceed 80 percent of eligible project 

costs. The Federal share of the cost of 

any activity carried out using a grant 

under this section shall not be greater 

than 80 percent. 

(1) Minimum request. Unless 

otherwise specified in a Federal 

Register notice, the minimum request 

for a RISE grant application is $500,000. 

(2) Maximum request. Unless 

otherwise specified in a Federal 

Register notice, the maximum request 

for a RISE grant application is 

$2,000,000. 

(b) Matching funds. The applicant is 

responsible for securing the matching 

funds for total eligible project costs that 

are not covered by grant funds. The nonFederal share of the total eligible project 

costs of any activity carried out using a 

grant under this section may be in the 

form of third-party equity contributions 

including donations and in-kind 

contributions of fairly-valued goods or 

services. 

(c) Eligible project costs. Eligible 

project costs are only those costs 

incurred after a complete application 

has been received by the Agency and are 

associated with the items identified in 

paragraphs (c)(1) through (6) of this 

section. The applicant is responsible for 

any expenses incurred in developing its 

application. Each item identified in 

paragraphs (c)(1) through (6) of this 

section is only an eligible project cost if 

it is directly related to, and its use and 

purpose is limited to the RISE grant 

project. Any building or equipment 

purchased with grant proceeds must be 

owned and controlled by the lead 

applicant. The following is a list of 

eligible project costs: 

(1) Costs directly related to the 

purchase or construction of an 

innovation center; 

(2) Costs directly related to operations 

of an innovation center including 

purchase of equipment, office supplies, 

and administrative costs including 

salaries directly related to the project; 

(3) Costs directly associated with 

support programs to be carried out at or 

in direct partnership with job 

accelerators; 

(4) Reasonable and customary travel 

expenses directly related to job 

accelerators and at rates in compliance 

with 2 CFR 200.474; 

(5) Utility costs, operating expenses of 

the innovation center and job 

accelerator programs and associated 

programs; 

(6) Administrative costs of the grantee 

will not exceed 10% of the grant 

amount for the duration of the project. 

(d) Ineligible project costs. Ineligible 

project costs and uses of funds for RISE 

projects include, but are not limited to: 

(1) Costs associated with preparation 

of an application package under this 

notice; 

(2) Costs incurred prior to Agency 

receipt of a complete application for the 

grant request made under a funding 

notice; 

(3) Funding of any political or 

lobbying activities; 

(4) Payment for assistance to any 

private business enterprise which does 

not create and/or support jobs in a rural 

area of the United States; 

(5) Payment of any judgment or debt 

owed to the United States; 

(6) Duplicate current services or 

substitute support previously provided. 

If the current service is inadequate, 

however, grant funds may be used to 

expand the level of effort or services 

beyond what is currently being 

provided; 

(7) To fund a part of a project that is 

dependent on other funding unless 

there is a firm commitment of the other 

funding to ensure completion of the 

project; 

(8) Pass through grants; and 

(9) costs associated with hemp 

production, unless a hemp producer has 

a valid license issued from an approved 

State, Tribal or Federal plan as per 

Section 10113 of the Agriculture 

Improvement Act of 2018, Public Law 

115–334 (verification of valid hemp 

licenses will occur at the time of award). 

§ 4284.1115 RISE grant applications— 

content. 

(a) A potential applicant for RISE may 

submit a concept proposal not less than 


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60 days in advance of the application 

submittal deadline as published in the 

Federal Register for review by the 

Agency. This concept proposal will be 

evaluated, and an encouragement or 

discouragement letter will be issued to 

the potential applicant. If a 

discouragement letter is issued, it will 

detail any weaknesses evaluated in the 

Agency’s review, though a complete 

application may still be submitted prior 

to the application deadline. The concept 

proposal may be up to 10 pages in 

length using a minimum of 11-point 

font. The concept proposal should be in 

a narrative format and must include the 

following: 

(1) Partnership information including 

the members and structure of the 

Partnership, the date formalized, and 

the governance or leadership board. The 

information will identify the lead 

applicant and each partner’s ties to the 

region, their roles in the delivery of the 

RISE program and any history of 

previous collaboration between 

partners. The amount and source of 

anticipated matching funds will also be 

provided. 

(2) Describe the geographic region to 

be served including the total 

population, economic characteristics of 

the region such as unemployment rates 

and income levels. Industry sectors, 

their status, size and economic 

contribution to the region and all 

communities including metropolitan 

statistical areas and nonmetro low 

income communities within the region 

should be identified. The availability 

and planned enhancements of 

broadband service and other assets of 

the region should also be identified. If 

the region to be served has a population 

of more than 50,000 inhabitants, the 

applicant must document why they 

believe the area is ‘‘rural in character’’ 

including, but not limited to, the area’s 

population density, demographics, and 

topography and how the local economy 

is tied to a rural economic base. 

(3) Identify the industry cluster(s) that 

will be prioritized by the Partnership 

with information on the firms and 

support industries in those clusters. 

Describe the status of the industry (as 

emerging, existing, or declining) any 

existing interconnection and networks 

within the industry cluster and describe 

participation and scale of small and 

disadvantaged businesses within the 

industry cluster. Describe the 

opportunities or potential of industry 

growth in the region and competitive 

advantages of the region and industry 

cluster should be highlighted along with 

opportunities within the industry for 

the creation of or upgrading to highwage jobs. 

(4) An executive summary, project 

plan and scope of work must be 

provided with the applicant’s strategy, 

activities, budget, goals and objectives 

for the use of RISE funds. The applicant 

should also provide information on the 

sustainability of the partnership and 

jobs accelerator at the conclusion of the 

RISE grant period. 

(b) Unless otherwise specified in a 

Federal Register notice, applicants may 

only submit one RISE grant application 

each Federal fiscal year. 

(1) The lead applicant must be 

registered in the System for Award 

Management (SAM) and is responsible 

for submitting a complete application as 

specified in (b)(2)(i) through (b)(2)(xiv) 

of this section. 

(2) There are no specific limitations 

on the number of pages or other 

formatting requirements of an 

application. Applicants, who submitted 

a concept proposal to the Agency, will 

not need to resubmit the information 

found in (b)(2)(ix) below. The Agency 

will review and retain this information 

for application submittal. A complete 

application will consist of the following 

components unless otherwise specified 

in a Federal Register notice: 

(i) Form SF–424, ‘‘Application for 

Federal Assistance;’’ 

(ii) Form SF–424A, ‘‘Budget 

Information—Non-Construction 

Programs,’’ if applicable; 

(iii) Form SF–424C, ‘‘Budget 

Information—Construction Programs,’’ 

if applicable; 

(iv) Form SF–424D, ‘‘Assurances— 

Construction Programs,’’ if applicable; 

(v) RD Form 400–1, ‘‘Equal 

Opportunity Agreement,’’ for 

construction projects only; 

(vi) Identify the ethnicity, race, and 

gender characteristics of the lead 

applicant’s leadership. This information 

is optional and is not a required 

component for a complete application; 

(vii) Certification that the lead 

applicant is a legal entity in good 

standing (as applicable) and operating 

in accordance with the laws of the 

State(s) or Tribe where the applicant 

exists; 

(viii) The lead applicant must identify 

whether or not the lead applicant has a 

known relationship or association with 

an Agency employee and, if there is a 

known relationship, the lead applicant 

must identify each Agency employee 

with whom the lead applicant has a 

known relationship; 

(ix) All items required in paragraph 

(a) of this section must be provided with 

the application (applicants must 

provide updates, as appropriate, to any 

items previously submitted as a concept 

proposal under paragraph (a)); 

(x) Readiness demonstration, which 

shall be comprised of the following 

items: 

(A) Description of readiness of all 

partners of the Partnership to contribute 

to the project including their ability to 

coordinate activities, finances and 

outcomes of the project. 

(B) Evidence of a formal agreement 

among partners of the Partnership for 

delivery of the RISE program. 

(C) Evidence of demonstrated 

readiness in administering the RISE 

grant, if awarded, including 

demonstration of potential success in 

establishment of a jobs accelerator 

project, which targets an industry 

cluster and the initiatives of the RISE 

grant. The application should indicate 

when activities related to the expected 

outcomes will commence. 

(D) Description of how the project 

will be marketed in the region and how 

the Partnership will capture any 

program impacts and success stories; 

and 

(E) Timeline describing the proposed 

tasks to be accomplished and the 

schedule for implementation of each 

task. 

(xi) Provide documentation on how 

the RISE project will impact the 

initiatives below, as applicable, 

including a brief description of how and 

when the initiative will be delivered: 

(A) Linking rural communities and 

entrepreneurs to markets, networks, 

industry clusters, and other regional 

opportunities to support high-wage job 

creation, new business formation, 

business expansion, and economic 

growth; 

(B) Integrating small businesses into a 

supply chain; 

(C) Creating or expanding 

commercialization activities for new 

business formation; 

(D) Identifying and building assets in 

rural communities that are crucial to 

supporting regional economies; 

(E) Facilitating the repatriation of 

high-wage jobs to the United States; 

(F) Supporting the deployment of 

innovative processes, technologies, and 

products; 

(G) Enhancing the capacity of small 

businesses in regional industry clusters, 

including small and disadvantaged 

businesses; 

(H) Increasing United States exports 

and business interaction with 

international buyers and suppliers; 

(I) Developing the skills and expertise 

of local workforces, entrepreneurs, and 

institutional partners to meet the needs 

of employers and prepare workers for 

high-wage jobs in the identified 

industry clusters, including the 

upskilling of incumbent workers; 


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(J) Ensuring rural communities have 

the capacity and ability to carry out 

projects related to housing, community 

facilities, infrastructure, or community 

and economic development to support 

regional industry cluster growth; 

(xii) Potential to produce high-wage 

jobs and benefit rural small and 

disadvantaged businesses, including a 

description of the following: 

(A) Describe how the project will 

develop the skills and expertise of the 

local workforce, entrepreneurs and 

institutional partners to meet the needs 

of employers and prepare high-wage 

jobs in the targeted industry cluster(s), 

which may also include the upskilling 

of incumbent worker; 

(B) Demonstrate how the project will 

benefit the skills and expertise of small 

and disadvantaged businesses, as 

applicable; 

(C) Demonstrate any participation of 

higher education, applied research 

institutions, workforce development 

entities and community-based 

organizations, that are willing to partner 

with the project to provide workers with 

skills relevant to the industry cluster 

needs of the region, with an emphasis 

on the use of on-the-job training, 

classroom occupational training or 

incumbent worker training, as 

applicable; and 

(D) Demonstrate any participation of 

investment organizations, venture 

development organizations, venture 

capital firms, revolving loan funders, 

angel investment groups, community 

lenders, community development 

financial institutions, rural business 

investment companies, small business 

companies (as defined in Section 103 of 

the Small Business Investment Act of 

1958 (15 U.S.C. 662)), philanthropic 

organizations, and other institutions 

focused on expanding access to capital, 

are committed partners in the job 

accelerator partnership and willing to 

potentially invest in projects emerging 

from the jobs accelerator. 

(xiii) Describe the targeted region, 

including the following information: 

(A) Provide the latest Census Bureau 

information on the targeted region’s 

median household income. 

(B) Provide the latest Census Bureau 

information on the targeted region’s 

educational attainment, specifically the 

percentage of the population who hold 

a bachelor’s degree. 

(C) Discuss how any direct career 

training will be provided to existing 

residents of the region (existing 

residents being those persons who live 

in the region at the time of application 

submission). 

(D) Discuss any local support for the 

RISE project. 

(E) Discuss the entrepreneurial 

commitment to the RISE project. 

(F) Discuss any innovative processes 

and technologies to be utilized in the 

targeted industry cluster(s) of the RISE 

project. 

(G) Discuss the initial and continuing 

capital investment in the RISE project. 

(H) Discuss any demand for regional 

and global markets of the product and/ 

or service provided by the targeted 

industry cluster. 

(I) Discuss if the region contains any 

areas or communities that qualify for 

federal initiatives. 

(J) Elaborate on the current broadband 

service within the region and any plans 

to leverage the current broadband 

service or enhance broadband service in 

the region through the RISE project. 

(xiv) Financial information, including 

the following: 

(A) Identification of matching funds 

and other sources of funds for the 

project. Provide written commitments 

for matching funds and other sources of 

funds at the time the application is 

submitted. 

(B) Current financial statements and a 

narrative description demonstrating 

financial feasibility and sustainability of 

the project, all of which demonstrate 

sufficient resources and expertise to 

undertake and complete the project and 

how the project will be sustained 

following completion. 

(c) Upon receipt of a complete 

application, the Agency will determine 

if the applicant and project are eligible 

and whether the intended outcomes 

described meet the requirements of the 

RISE program. If the application is 

ineligible or not feasible, the Agency 

will inform the applicant in writing of 

the reasons for the Agency’s 

determination and no further evaluation 

of the application will occur. 

§ 4284.1116 [Reserved] 

§ 4284.1117 Scoring RISE grant 

applications. 

The Agency will score each complete 

and eligible RISE application using the 

criteria specified in paragraphs (a) 

through (g) of this section, unless 

otherwise specified in a Federal 

Register notice, with a maximum score 

of 100 points possible. Points will be 

allowed only for factors indicated by 

well documented, reasonable plans 

which, in the opinion of the Agency, 

provide assurance that the items have a 

high probability of being accomplished. 

Points shall be awarded at the discretion 

of the Agency to scoring criteria with a 

minimum and maximum number of 

points available. Applicants that 

demonstrate the experience or ability to 

deliver the stated criteria will be 

awarded higher points in that criteria. 

(a) Demonstrated readiness. The 

Partnership demonstrated readiness in 

administering the RISE grant 

successfully and shows strong 

documentation indicating the potential 

for success in establishing a jobs 

accelerator project which targets an 

industry cluster and the initiative(s) of 

the RISE grant program. Points are 

awarded on a scale of 0 to 10 with a 

maximum of 10 points being awarded. 

(b) Targeted initiatives. A maximum 

of 15 points will be awarded for this 

criterion based on meeting the targeted 

initiatives as stated in 

§ 4284.1115(b)(2)(xi) with action 

narratives outlined in the application on 

how and when the initiatives will be 

delivered. More points will be awarded 

for reasonable initiatives that can be 

delivered within 12 months of the grant 

award and for those projects leveraging 

improvements in high-speed broadband 

service to the region. 

(c) Project support. Points will be 

awarded for the strength of local 

support of the RISE project and 

entrepreneurial commitment. A 

maximum of 15 points can be awarded 

for application materials that indicate 

the strength of support for the RISE 

project. Points will be awarded from the 

partnership’s demonstration of its 

sources of funding, personnel and 

technical resources committed to the 

project, and a focus on the inclusion of 

institutional partners expanding access 

to capital and willingness to potentially 

invest in projects emerging from the jobs 

accelerator. Points shall also be awarded 

for demonstrated resources that will 

sustain the project beyond the term of 

the RISE grant period. 

(d) Targeted region. A maximum of 20 

points will be awarded for this criterion 

based on the region’s demographics 

according to the latest census 

information. The applicant must 

provide adequate documentation to the 

latest census information to receive 

points. 

(1) If the targeted region has a median 

household income of: 

(i) 50% or less of state median 

household income; 5 points will be 

awarded; 

(ii) Over 50% and up to 80% of state 

median household income; 3 points will 

be awarded. 

(2) If the targeted region residents 

have the educational attainment of a 

bachelor’s degree by: 

(i) 10% or less of the population; 5 

points will be awarded; 

(ii) Over 10% and up to 30% of the 

population; 3 points will be awarded. 


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(3) Existing residents of the targeted 

region will receive direct career training 

for new employment or upscaling to a 

high-wage job; 5 points will be awarded. 

(4) If the identified region has fewer 

than 50,000 residents according to the 

most recent decennial census; 5 points 

will be awarded. 

(e) RISE grant funds requested. A 

maximum of 10 points will be awarded 

for this criterion if: 

(1) The RISE grant request is for 

$500,000 to $750,000; 10 points will be 

awarded. 

(2) The RISE grant request is for over 

$750,000 and up to $1,000,000; 5 points 

will be awarded. 

(f) Regional impact. Points are 

awarded on a scale of 0 to 5 points for 

each category, with a total maximum of 

20 points being awarded for this 

criterion. To receive points, the 

applicant must provide documentation 

to warrant strength on the following 

criteria, with points awarded for each: 

(1) Targeted industry(ies) in the 

region is classified as an emerging 

industry; 

(2) Applicant demonstrates that the 

targeted industry(ies) in the region hold 

a competitive advantage or will enhance 

their competitive advantage through the 

RISE project; 

(3) Applicant demonstrates that 

industry provides significant support of 

regional assets, including broadband, 

and provides community and economic 

development support within the region; 

(4) The RISE project’s forecasted 

outcomes align with RISE objectives; 

and 

(5) The RISE project will target 

support to existing industry(ies), whose 

significance in the region may be 

stagnant or on the decline but can be 

enhanced through the benefits of the 

RISE project. 

(g) Administrator points. A maximum 

of 10 points will be awarded, with 

justification, at the discretion of the 

Agency Administrator, as announced in 

a Federal Register notice. 

§ 4284.1118 Selecting RISE grant 

applications for award. 

Unless otherwise provided for in a 

Federal Register notice, RISE grant 

applications will be evaluated, assigned 

priority points as described in 

§ 4284.1117 and ranked from highest to 

lowest score for funding consideration, 

subject to the availability of funding. 

§ 4284.1119 Awarding and Administering 

RISE Grants. 

The Agency will award and 

administer RISE grants in accordance 

with departmental regulations and with 

the procedures and requirements 

specified in this part. 

(a) Bonding and insurance. The 

applicant must provide satisfactory 

evidence to the Agency that all officers 

of the applicant organization are 

authorized to receive and/or disburse 

Federal funds and are covered by such 

bonding and/or insurance requirements 

as are normally required by the 

applicant. 

(b) Letter of conditions. A letter of 

conditions will be prepared by the 

Agency, establishing conditions that 

must be agreed to by the applicant 

before any obligation of funds can 

occur. Upon reviewing the conditions 

and requirements in the letter of 

conditions, the applicant must 

complete, sign, and return the Form RD 

1942–46, ‘‘Letter of Intent to Meet 

Conditions,’’ and Form RD 1940–1, 

‘‘Request for Obligation of Funds,’’ to 

the Agency if it accepts the conditions 

of the grant; or if certain conditions 

cannot be met, the applicant may 

propose alternate conditions in writing 

to the Agency. The Agency must resolve 

or concur with any changes proposed by 

the applicant to the letter of conditions 

before the application will be further 

processed. 

(c) Evidence of matching funds. The 

applicant is responsible for providing 

documentation that the required 

matching funds for the project have 

been received or remain committed at 

the date a financial assistance agreement 

is executed with the Agency. 

(d) SAM requirements. Each applicant 

applying for grant funds (unless an 

exception, as outlined in 2 CFR 

25.110(a) through (d), is approved by 

the Agency) is required to: 

(1) Be registered in SAM before 

submitting its application; 

(2) Provide a valid unique entity 

identifier in its application; and 

(3) Continue to maintain an active 

SAM registration with current 

information at all times during which it 

has an active Federal award or an 

application or plan under consideration 

by a Federal awarding agency. 

(e) Financial assistance agreement. 

Once the requirements specified in 

paragraphs (a) through (d) of this section 

have been met, the financial assistance 

agreement can be executed by the lead 

applicant and the Agency. The 

applicant must abide by all 

requirements contained in the financial 

assistance agreement, this subpart, and 

any other applicable Federal statutes or 

regulations. Failure to follow these 

requirements might result in 

termination of the grant and adoption of 

other available remedies. 

(f) Grant approval. The lead applicant 

will be sent an executed copy of the 

executed Form RD 1940–1, ‘‘Obligation 

of Funds,’’ and the financial assistance 

agreement. 

§ 4284.1120 Servicing RISE grants. 

The Agency will service RISE grants 

in accordance with the requirements 

specified in departmental regulations, 

the financial assistance agreement, 7 

CFR part 1951, subparts E and O, other 

than 7 CFR 1951.709(d)(1)(i)(B)(iv), and 

the requirements in § 4284.1120, except 

as specified in paragraphs (a) through 

(d) of this section. 

(a) Inspections. Grantees must permit 

periodic inspection of the project 

records and operations by a 

representative of the Agency. 

(b) Programmatic changes. Grantees 

may make changes to an approved 

project’s costs, scope, contractor, or 

vendor subject to the provisions 

specified in paragraphs (b)(1) through 

(3) of this section. If the changes result 

in lowering the project’s score to below 

what would have qualified the 

application for an award, the Agency 

will not approve the changes. 

(1) Prior Agency approval. The 

grantee must obtain prior Agency 

approval for any change to the scope, 

contractor, or vendor of the approved 

project. Changes in project cost will 

require Agency approval as outlined in 

paragraph (b)(1)(iii) of this section. 

(i) Grantees must submit requests for 

programmatic changes in writing to the 

Agency for Agency approval. 

(ii) Failure to obtain prior Agency 

approval of any such change could 

result in such remedies as suspension, 

termination, and recovery of grant 

funds. 

(iii) Prior Agency approval is required 

for all increases in project costs. Prior 

Agency approval is required for a 

decrease in project cost only if the 

decrease would have a negative effect 

on the long-term viability of the project. 

A decrease in project cost that does not 

have a negative impact on long-term 

viability requires Agency notification 

prior to disbursement of funds. If project 

costs decrease, the Agency will reduce 

the grant amount, if necessary, to 

maintain a maximum grant amount of 

no greater than 80 percent of total 

project activities as required in 

§ 4284.1114(a). 

(2) Changes in project cost or scope. 

If there is a significant change in project 

cost or any change in project scope, then 

the grantee’s funding needs, eligibility, 

and scoring, as applicable, will be 

reassessed. Any decreases in Agency 

funds will be based on revised project 

costs and other factors, including 

Agency regulations used at the time of 

grant approval. 


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31598 Federal Register / Vol. 86, No. 113 / Tuesday, June 15, 2021 / Rules and Regulations 

(3) Change of contractor or vendor. 

When seeking a change, the grantee 

must submit a written request to the 

Agency for approval. The proposed new 

contractor or vendor must have 

qualifications and experience acceptable 

to the Agency. The written request must 

contain sufficient information to 

demonstrate to the Agency’s satisfaction 

that such change maintains project 

integrity. If the Agency determines that 

project integrity continues to be 

demonstrated, the grantee will be 

allowed to make the change. If the 

Agency determines that project integrity 

is no longer demonstrated, the change 

will not be approved and the grantee 

has the following options: 

(i) Continue with the original 

contractor or vendor; 

(ii) Find another contractor or vendor 

that has qualifications and experience 

acceptable to the Agency to complete 

the project; or 

(iii) Terminate the grant by providing 

a written request to the Agency. No 

additional funding will be available 

from the Agency if costs for the project 

have increased. Any Agency decision 

will be provided in writing to the lead 

applicant. 

(c) Transfer of Applicant or 

Ownership. Any change to the jobs 

accelerator partnership prior to the 

obligation of funds must be approved by 

the Agency and will only be considered 

if the partnership entities are eligible in 

accordance with § 4284.1112. After the 

project is obligated and operational, the 

applicant grantee may request, in 

writing, a transfer of the financial 

assistance agreement to another entity. 

Subject to Agency approval provided in 

writing, the financial assistance 

agreement may be transferred to another 

entity provided: 

(1) The entity is determined by the 

Agency to be an eligible lead applicant 

entity under this subpart; and 

(2) The scope of the project for which 

the Agency funds will be used remain 

unchanged. 

(d) Disposition of acquired property. 

Grantees must abide by the disposition 

of acquired asset requirements as 

outlined in 2 CFR part 200 and 

departmental regulations. 

(e) Financial management system and 

records. The grantee must provide for 

financial management systems and 

maintain records as specified in 

paragraphs (e)(1) and (2) of this section. 

(1) Financial management system. 

The grantee will provide for a financial 

system that will include: 

(i) Accurate, current, and complete 

disclosure of the financial results of 

each grant; 

(ii) Records that identify adequately 

the source and application of funds for 

grant-supporting activities, together 

with documentation to support the 

records. Those records must contain 

information pertaining to grant awards 

and authorizations, obligations, 

unobligated balances, assets, liabilities, 

outlays, and income; and 

(iii) Effective control over and 

accountability for all funds. The grantee 

must adequately safeguard all such 

assets and must ensure that funds are 

used solely for authorized purposes. 

(2) Records. The grantee will retain 

financial records, supporting 

documents, statistical records, and all 

other records pertinent to the grant for 

a period of at least three (3) years after 

completion of the grant period, except 

that the records must be retained 

beyond the 3-year period if audit 

findings have not been resolved or if 

directed by the United States. The 

Agency and the Comptroller General of 

the United States, or any of their duly 

authorized representatives, must have 

access to any books, documents, papers, 

and records of the grantee that are 

pertinent to the specific grant for the 

purpose of making audit, examination, 

excerpts, and transcripts. 

(f) Audit requirements. If applicable, 

grantees must provide an annual audit 

in accordance with 2 CFR part 200, 

subpart F. The Agency may exercise its 

right to do a program audit after the end 

of the project to ensure that all funding 

supported eligible project costs. 

(g) Grant disbursement. The Agency 

will determine, based on the applicable 

departmental regulations, whether 

disbursement of a grant will be by 

advance or reimbursement. Any funds 

disbursed in advance of the expense 

shall be used within three months and 

the financial need substantiated in 

writing by the grantee. Form SF–270 or 

Form SF–271 must be completed by the 

grantee and submitted to the Agency no 

more often than monthly to request 

either an advance or reimbursement of 

funds. 

(h) Reporting Requirements. Financial 

and project performance reports must be 

provided by grantees and contain the 

information specified in paragraphs (h) 

(1) and (2) of this section. 

(1) Federal Financial Reports. 

Between grant approval and completion 

of project (i.e., construction), SF–425, 

‘‘Federal Financial Report’’ will be 

required of all grantees as applicable on 

a semiannual basis. The grantee will 

complete the project within the total 

sums available to it, including the grant, 

in accordance with the scope of work 

and any necessary modifications thereof 

prepared by grantee and approved by 

the Agency. 

(2) Performance reports. Grantees 

shall submit a performance report semiannually for the first two years, and 

then annually thereafter, with the first 

report submitted no later than six 

months after receiving a grant under this 

section. This report will include, but not 

be limited to, the following: 

(i) All activities funded with the grant 

funds; 

(ii) Evaluation of progress towards 

strategic initiatives identified in the 

application for the grant, including a 

discussion of any issues which may 

have occurred; 

(iii) Measurement of progress using 

performance measures during the 

project period, which may include the 

following: 

(A) High-wage jobs created; 

(B) High-wage jobs retained; 

(C) Private investment leveraged; 

(D) Businesses improved; 

(E) Businesses retained; 

(F) New business formations; 

(G) New products, prototypes and/or 

services commercialized; 

(H) Improvement of the value of 

existing products or services under 

development; 

(I) Regional collaboration as measured 

by the number of organizations actively 

engaged in the industry cluster and/or 

the number of symposia held by the 

industry cluster, including 

organizations that are not located in the 

immediate region defined by the 

partnership and/or the number of 

further cooperative agreements; 

(J) Number of educations and training 

activities relating to the innovation; 

(K) Number of innovative products, 

services and/or prototypes launched; 

(L) Number of jobs relocated from 

outside of the United States to the 

region; 

(M) Amount and number of new 

equity investments in industry cluster 

firms; 

(N) Amount and number of new loans 

to industry cluster firms; 

(O) Dollar increase in exports 

resulting from the project activities; 

(P) Percentage of employees for which 

training was provided; 

(Q) Improvement in sales of 

participating businesses; 

(R) Improvement in wages paid at 

participating businesses; 

(S) Improvement in income of 

participating workers; 

(T) Any measure determined 

appropriate by the Agency; and 

(U) Broadband development in the 

targeted region. 

(iv) Initiatives and timetable 

established for the next reporting 

period; and 


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Federal Register / Vol. 86, No. 113 / Tuesday, June 15, 2021 / Rules and Regulations 31599 

(v) Any additional information as 

found in the annual Federal Register 

notice. 

§§ 4284.1121—4284.1130 [Reserved] 

§ 4284.1131 OMB control number. 

The information collection 

requirements in this subpart are 

approved by the Office of Management 

and Budget (OMB) and assigned OMB 

control number 0570–0075. 

Mark Brodziski, 

Acting Administrator, Rural BusinessCooperative Service. 

[FR Doc. 2021–12334 Filed 6–14–21; 8:45 am] 

BILLING CODE 3410–XY–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2021–0183; Project 

Identifier MCAI–2020–01408–T; Amendment 

39–21589; AD 2021–12–02] 

RIN 2120–AA64 

Airworthiness Directives; De Havilland 

Aircraft of Canada Limited (Type 

Certificate Previously Held by 

Bombardier, Inc.) Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule. 

SUMMARY: The FAA is adopting a new 

airworthiness directive (AD) for certain 

De Havilland Aircraft of Canada Limited 

Model DHC–8–400 series airplanes. 

This AD was prompted by a report that 

a number of nacelle A-frames were not 

manufactured in accordance with 

engineering drawings. This AD requires, 

depending on airplane configuration, 

removing the fasteners on the nacelle Aframe side brace sub-assemblies, doing 

an eddy current inspection for cracking, 

cold-working the holes, installing 

oversize fasteners, re-identifying the 

reworked side brace fitting and A-frame, 

and repair if necessary. The FAA is 

issuing this AD to address the unsafe 

condition on these products. 

DATES: This AD is effective July 20, 

2021. 

The Director of the Federal Register 

approved the incorporation by reference 

of certain publication listed in this AD 

as of July 20, 2021. 

ADDRESSES: For service information 

identified in this final rule, contact De 

Havilland Aircraft of Canada Limited, 

Q-Series Technical Help Desk, 123 

Garratt Boulevard, Toronto, Ontario 

M3K 1Y5, Canada; telephone 416–375– 

4000; fax 416–375–4539; email thd@

dehavilland.com; internet https://

dehavilland.com. You may view this 

service information at the FAA, 

Airworthiness Products Section, 

Operational Safety Branch, 2200 South 

216th St., Des Moines, WA. For 

information on the availability of this 

material at the FAA, call 206–231–3195. 

It is also available on the internet at 

https://www.regulations.gov by 

searching for and locating Docket No. 

FAA–2021–0183. 

Examining the AD Docket 

You may examine the AD docket on 

the internet at https://

www.regulations.gov by searching for 

and locating Docket No. FAA–2021– 

0183; or in person at Docket Operations 

between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

The AD docket contains this final rule, 

any comments received, and other 

information. The address for Docket 

Operations is U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE, 

Washington, DC 20590. 

FOR FURTHER INFORMATION CONTACT: 

Antariksh Shetty, Aerospace Engineer, 

Airframe and Propulsion Section, FAA, 

New York ACO Branch, 1600 Stewart 

Avenue, Suite 410, Westbury, NY 

11590; telephone 516–228–7300; fax 

516–794–5531; email 9-avs-nyaco-cos@

faa.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

Transport Canada Civil Aviation 

(TCCA), which is the aviation authority 

for Canada, has issued TCCA AD CF– 

2020–39, dated October 14, 2020 (TCCA 

AD CF–2020–39) (also referred to as the 

Mandatory Continuing Airworthiness 

Information, or the MCAI), to correct an 

unsafe condition for certain De 

Havilland Aircraft of Canada Limited 

Model DHC–8–400 series airplanes. You 

may examine the MCAI in the AD 

docket on the internet at https://

www.regulations.gov by searching for 

and locating Docket No. FAA–2021– 

0183. 

The FAA issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 by adding an AD that would 

apply to certain De Havilland Aircraft of 

Canada Limited Model DHC–8–400 

series airplanes. The NPRM published 

in the Federal Register on March 22, 

2021 (86 FR 15149). The NPRM was 

prompted by a report that a number of 

nacelle A-frames were not manufactured 

in accordance with engineering 

drawings. The holes in the side brace 

sub-assemblies were not cold-worked as 

required. As a result the side brace 

fitting might not meet its fatigue life, 

and cracking of the A-frame bottom 

flange may result. The NPRM proposed 

to require, depending on airplane 

configuration, removing the fasteners on 

the nacelle A-frame side brace subassemblies, doing an eddy current 

inspection for cracking, cold-working 

the holes, installing oversize fasteners, 

re-identifying the reworked side brace 

fitting and A-frame, and repair if 

necessary. The FAA is issuing this AD 

to address possible cracking of the Aframe. This condition, if not addressed, 

may lead to collapse of the main landing 

gear (MLG). See the MCAI for additional 

background information. 

Comments 

The FAA gave the public the 

opportunity to participate in developing 

this final rule. The FAA has considered 

the comment received. The Air Line 

Pilots Association, International 

(ALPA), stated that it supports the 

NPRM. 

Conclusion 

The FAA reviewed the relevant data, 

considered the comment received, and 

determined that air safety and the 

public interest require adopting this 

final rule as proposed, except for minor 

editorial changes. The FAA has 

determined that these minor changes: 

• Are consistent with the intent that 

was proposed in the NPRM for 

addressing the unsafe condition; and 

• Do not add any additional burden 

upon the public than was already 

proposed in the NPRM. 

Related Service Information Under 1 

CFR Part 51 

De Havilland Aircraft of Canada 

Limited has issued Service Bulletin 84– 

54–32, dated October 10, 2019. This 

service information describes 

procedures, depending on airplane 

configuration, for removing the fasteners 

on the nacelle A-frame side brace subassemblies, doing an eddy current 

inspection for cracking, cold-working 

the holes, installing oversize fasteners, 

and re-identifying the reworked side 

brace fitting and A-frame. 

This service information is reasonably 

available because the interested parties 

have access to it through their normal 

course of business or by the means 

identified in the ADDRESSES section. 

Costs of Compliance 

The FAA estimates that this AD 

affects 41 airplanes of U.S. registry. The 


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