I
103D CONGRESS
2D SESSION
H. R. 5113
To amend the Public Works and Economic Development Act of 1965 to
establish a Competitive Communities Demonstration Program to assist
distressed communities in developing a competitive economic base, and
for other purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 27, 1994
Mr. WISE introduced the following bill; which was referred jointly to the Com-
mittees on Public Works and Transportation and Banking, Finance and
Urban Affairs
A BILL
To amend the Public Works and Economic Development
Act of 1965 to establish a Competitive Communities
Demonstration Program to assist distressed communities
in developing a competitive economic base, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Competitive Commu-
nities Demonstration Act of 1994’’.
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS.—Congress finds the following:
(1) Traditionally, the Economic Development
Administration has primarily helped communities
develop the necessary public infrastructure to enable
such communities to foster private sector investment
and in many communities public infrastructure re-
mains a critical enabler to economic development.
(2) However, in many distressed communities
the primary economic development challenge is not
a lack of public infrastructure but rather a lack of
supporting high growth, globally competitive private
sector activities as a generator of quality jobs.
(3) Therefore, building upon its existing net-
work of programs, the Economic Development Ad-
ministration should institute a Competitive Commu-
nities Demonstration Program to assist distressed
communities develop the necessary economic base to
compete in the global marketplace.
(b) PURPOSES.—The purposes of this Act include the
following:
(1) To enable the Economic Development Ad-
ministration to become a more active partner in
bringing community leadership together with com-
petitive growth businesses to build a new competitive
economic base in communities outside the main-
stream of economic growth.
(2) To raise the economic aspirations of such
communities beyond the retention of the existing
economic base to building a new competitive eco-
nomic base for the future.
SEC. 3. COMPETITIVE COMMUNITIES DEMONSTRATION
PROGRAM.
Title IX of the Public Works and Economic Develop-
ment Act of 1965 (42 U.S.C. 3241–3245) is amended—
(1) by redesignating section 905 as section 908;
and
(2) by inserting after section 904 the following:
‘‘SEC. 905. COMPETITIVE COMMUNITIES DEMONSTRATION
PROGRAM.
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish and carry out a Competitive Communities Demonstra-
tion Program (hereinafter in this section referred to as
the ‘program’) under which the Secretary may make
grants to eligible intermediaries in accordance with the re-
quirements of this section.
‘‘(b) ELIGIBLE INTERMEDIARY DEFINED.—In this
section, the term ‘eligible intermediary’ means an eco-
nomic development district established under title IV of
this Act, an Indian tribe, a State, a city or other political
subdivision of a State, a nonprofit organization, or a con-
sortium of any of such entities which demonstrate the fi-
nancial expertise, ability, and legal authority to make in-
vestments under the program, as well as the ability to de-
velop and implement a community investment strategy.
‘‘(c) USE OF GRANTS.—A grant made to an eligible
intermediary under the program shall be used by the eligi-
ble intermediary to provide financial assistance to high
growth businesses in a distressed community. Such finan-
cial assistance may include loans, loan guarantees, and
payments to reduce interest on loan guarantees.
‘‘(d) 
GRANT
APPLICATIONS.—An 
eligible
intermediary seeking a grant under the program shall sub-
mit to the Secretary a grant application which—
‘‘(1) identifies proposed uses of the grant
amounts;
‘‘(2) demonstrates that receipt of the grant
amounts would be a determining factor in a business
decision to proceed with an investment in a high
growth business in a distressed community;
‘‘(3) demonstrates that the proposed uses of the
grant amounts are part of a community investment
strategy for economic development;
‘‘(4) contains assurances satisfactory to the
Secretary that the proceeds from the repayment of
loans made by the eligible intermediary under the
program will be used for purposes which are consist-
ent with the purposes of the program; and
‘‘(5) is in such form and contains such addi-
tional information as the Secretary may prescribe.
‘‘(e) PANEL OF EXPERTS.—
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish a panel of experts to review grant applica-
tions submitted to the Secretary under the program.
Such panel shall consist of 7 members as follows:
‘‘(A) The Secretary (or the Secretary’s
designee).
‘‘(B) The Assistant Secretary for Eco-
nomic Development.
‘‘(C) 1 Regional Director of the Economic
Development Administration appointed by the
Secretary.
‘‘(D) 1 Economic Development Represent-
ative of the Economic Development Administra-
tion appointed by the Secretary.
‘‘(E) 3 private citizens with economic de-
velopment and business expertise appointed by
the Secretary.
‘‘(2) DIVERSITY OF MEMBERS.— In making ap-
pointments under paragraph (1), the Secretary shall