retary determines has exhausted its effective taxing and
borrowing capacity, the Secretary shall reduce the non-
Federal share below such percentage or shall waive the
non-Federal share in the case of such a grant for a project
in an area described in section 401(a)(4). In the case of
any community development corporation which the Sec-
retary determines has exhausted its effective borrowing ca-
pacity, the Secretary may reduce the non-Federal share
below such percentage or waive the non-Federal share in
the case of such a grant for a project in an area described
in section 401(a)(4). Supplementary grants shall be made
by the Secretary, in accordance with such regulations as
the Secretary shall prescribe, by increasing the amounts
of direct grants authorized under this section or by the
payment of funds appropriated under this Act to the heads
of the departments, agencies, and instrumentalities of the
Federal Government responsible for the administration of
the applicable Federal programs. Notwithstanding any re-
quirement as to the amount or sources of non-Federal
funds that may otherwise be applicable to the Federal pro-
gram involved, funds provided under this subsection shall
be used for the sole purpose of increasing the Federal con-
tribution to specific projects under such programs above
the fixed maximum portion of the cost of such project oth-
erwise authorized by the applicable law. The term ‘des-
ignated Federal grant-in-aid programs,’ as used in this
subsection, means such existing or future Federal grant-
in-aid programs assisting in the construction or equipping
of facilities as the Secretary may, in furtherance of the
purposes of this Act, designate as eligible for allocation
of funds under this section. In determining the amount
of any supplementary grant available to any project under
this section, the Secretary shall take into consideration the
relative needs of the area and the nature of the project
to be assisted.
‘‘(d) REGULATIONS; FACTORS TO BE CONSIDERED
IN PRESCRIBING REGULATIONS.—The Secretary shall
prescribe regulations and procedures to carry out this sec-
tion which will assure that adequate consideration is given
to the relative needs of eligible areas. In prescribing such
rules, regulations, and procedures the Secretary shall con-
sider among other relevant factors—
‘‘(1) the severity of the rates of unemployment
in the eligible areas and the duration of such unem-
ployment, and
‘‘(2) the income levels of families and the extent
of underemployment in eligible areas.
‘‘(e) REVIEW AND COMMENT UPON PROJECTS BY
LOCAL GOVERNMENTAL AUTHORITIES.—The Secretary
shall prescribe regulations which will assure that appro-
priate local governmental authorities have been given a
reasonable opportunity to review and comment upon pro-
posed projects under this section.
‘‘SEC. 102. LIMITATION OF FUNDS EXPENDED IN ANY 1
STATE.
‘‘Not more than 15 percent of the appropriations
made pursuant to this title may be expended in any 1
State unless the Secretary determines that expenditures
in excess of such limitation are necessary by reason of the
occurrence of a major natural disaster in such State.
‘‘SEC. 103. AUTHORIZATION OF APPROPRIATIONS.
‘‘There is authorized to be appropriated to carry out
this title $160,000,000 for fiscal year 1994 and
$130,924,000 for fiscal year 1995. Such sums shall re-
main available until expended.
‘‘SEC. 104. FINANCIAL ASSISTANCE FOR SEWER FACILITIES.
‘‘No financial assistance shall be extended under this
Act for sewer or other waste disposal facilities unless the
appropriate agency of the State in which the project is
located certifies that such facilities meet applicable Fed-
eral, State, interstate, or local water quality standards.
‘‘SEC. 105. CONSTRUCTION COST INCREASES.
‘‘In any case where a grant (including a supplemental
grant) has been made under this title for a project and
after such grant has been made but before completion of
the project, the cost of such project based upon the de-
signs and specifications which were the basis of the grant
has been increased because of increases in costs, the
amount of such grant may be increased by an amount
equal to the percentage increase, as determined by the
Secretary, in such costs.
‘‘SEC. 106. USE OF FUNDS IN PROJECTS CONSTRUCTED
UNDER PROJECTED COST.
‘‘In any case where a grant (including a supplemental
grant) has been made under this title for a project and
after such grant has been made but before completion of
the project, the cost of such project based upon the de-
signs and specifications which were the basis of the grant
has decreased because of decreases in costs, such
underrun funds may be used to improve the project either
directly or indirectly as determined by the Secretary.
‘‘SEC. 107. CHANGED PROJECT CIRCUMSTANCES.
‘‘In any case where a grant (including a supplemental
grant) has been made under this title for a project and
after such grant has been made but before completion of
the project, the purpose or scope of such project based
upon the designs and specifications which were the basis
of the grant has changed, the Secretary may approve the
use of grant funds on such changed project if the Sec-
retary determines such changes are necessary to enhance
economic development in the area.
‘‘TITLE II—LOANS, LOAN GUAR-
ANTEES, AND ECONOMIC DE-
VELOPMENT 
REVOLVING
FUND
‘‘SEC. 201. PUBLIC WORKS AND DEVELOPMENT FACILITY
LOANS.
‘‘(a) IN GENERAL.—Subject to subsection (b) and
section 401, upon the application of any State, any politi-
cal subdivision of any State, any Indian tribe, or any pri-
vate or public nonprofit organization or association, the
Secretary may purchase evidences of indebtedness and
make loans to assist in financing—
‘‘(1) the purchase or development of land and
improvements for public works, public service, or de-
velopment facility usage, including public works,
public service, and development facility usage, to be
provided by agencies of the Federal Government
pursuant to legislation requiring that non-Federal
entities bear some part of the cost of providing such
works, service, or usage; and
‘‘(2) the acquisition, construction, rehabilita-
tion, alteration, expansion, or improvement of such
facilities, including related machinery and equip-
ment.
‘‘(b) CONDITIONS.—The Secretary may provide fi-
nancial assistance under subsection (a) only if the Sec-
retary finds that—
‘‘(1) the project for which financial assistance is
sought will directly or indirectly—
‘‘(A) tend to improve the opportunities, in
the area where such project is or will be lo-
cated, for the successful establishment or ex-
pansion of industrial or commercial plants or
facilities,
‘‘(B) otherwise assist in the creation of ad-
ditional long-term employment opportunities for
such area, or
‘‘(C) primarily benefit the long-term unem-
ployed and members of low-income families or
otherwise substantially further the objectives of
the Economic Opportunity Act of 1964;
‘‘(2) the funds requested for such project are
not otherwise available from private lenders or from
other Federal agencies on terms which in the opin-
ion of the Secretary will permit the accomplishment
of the project;
‘‘(3) the amount of the loan plus the amount of
other available funds for such project are adequate
to ensure the completion of the project;
‘‘(4) there is a reasonable expectation of repay-
ment; and
‘‘(5) such area has an approved investment
strategy under section 402 and the project for which
financial assistance is sought is consistent with such
strategy.
‘‘(c) LOAN TERMS; INTEREST RATES.—
‘‘(1) MAXIMUM TERM OF MATURITY.—Subject
to section 601, no loan, including renewals or exten-
sions of any loan, shall be made under this section
for a period exceeding 40 years, and no evidence of
indebtedness maturing more than 40 years from the
date of purchase shall be purchased under this
section.
‘‘(2) INTEREST.—Loans under this section shall
bear interest at a rate not less than a rate deter-
mined by the Secretary of the Treasury taking into
consideration the current average market yield on
outstanding marketable obligations of the United
States with remaining periods to maturity com-
parable to the average maturities of such loans, ad-
justed to the nearest 1⁄8 of 1 percent, minus not to
exceed 1⁄2 of 1 percent per annum.
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There
are hereby authorized to be appropriated such sums as
may be necessary to carry out the provisions of this section
and section 202.
‘‘(e) REGULATIONS.—The Secretary shall prescribe
regulations which will assure that appropriate local gov-
ernmental authorities have been given a reasonable oppor-
tunity to review and comment upon proposed projects
under this section.
‘‘SEC. 202. BUSINESS LOANS AND LOAN GUARANTEES.
‘‘(a) IN GENERAL.—
‘‘(1) FINANCIAL
ASSISTANCE
AUTHORIZED.—
Subject to section 401, the Secretary may assist in
the financing the purchase or development of land
and facilities (including machinery and equipment)
for industrial or commercial usage, including the
construction of new buildings, the rehabilitation of
abandoned or unoccupied buildings, and the alter-
ation, conversion, or enlargement of existing build-
ings by—
‘‘(A) purchasing evidences of indebtedness;
‘‘(B) making loans (which for purposes of
this section shall include participation in loans);
and
‘‘(C) guaranteeing loans made to private
borrowers by private lending institutions, for
any of the purposes referred to in this para-
graph upon application of such institution and
upon such terms and conditions as the Sec-
retary may prescribe, except that no such guar-
antee shall at any time exceed 90 percent of the
amount of the outstanding unpaid balance of
such loan.
‘‘(2) INTEREST SUBSIDY.—
‘‘(A) AUTHORIZATION.—In addition to any
other financial assistance under this sub-
chapter, the Secretary may, in the case of any
loan guarantee under authority of paragraph
(1) of this section, pay to or on behalf of the
private borrower an amount sufficient to reduce
up to 4 percentage points the interest paid by
such borrower on such guaranteed loans.
‘‘(B) MAXIMUM AMOUNT OF BUY-DOWN.—
No payment under this paragraph shall result
in the interest rate being paid by a borrower on
such a guaranteed loan being less than the rate
of interest for such a loan if the loan were
made under section 201.
‘‘(C) FREQUENCY
OF
PAYMENT.—Pay-
ments made to or on behalf of such borrower
shall be made no less often than annually.
‘‘(3) WORKING CAPITAL LOANS AND GUARAN-
TEES.—The Secretary may assist in financing any
industrial or commercial activity by—
‘‘(A) making working capital loans;
‘‘(B) guaranteeing working capital loans
made to private borrowers by private lending
institutions upon application of such institution
and upon such terms and conditions as the Sec-
retary may prescribe, except that no such guar-
antee shall at any time exceed 90 percent of the
amount of the outstanding unpaid balance of
such loan;
‘‘(C) guaranteeing rental payments of
leases for buildings and equipment, except that
no such guarantee shall exceed 90 percent of
the remaining rental payments required by the
lease;
‘‘(D) paying those debts with respect to
which a lien against property has been legally
obtained (including the refinancing of any such
debt) in any case where the Secretary deter-
mines that the payment is essential in order
to—
‘‘(i) save employment in a designated
area;
‘‘(ii) avoid a significant rise in unem-
ployment; or
‘‘(iii) create new or increased employ-
ment.
‘‘(b) TERMS AND CONDITIONS.—Financial assistance
under this section shall be on such terms and conditions
as the Secretary determines, subject to the following re-
strictions and limitations:
‘‘(1) Such financial assistance shall not be ex-
tended to assist establishments relocating from 1
area to another or to assist subcontractors whose
purpose is to divest, or whose economic success is
dependent upon divesting, other contractors or sub-
contractors of contracts theretofore customarily per-
formed by them, except that this limitation shall not
be construed as prohibiting assistance for the expan-
sion of an existing business entity through the estab-
lishment of a new branch, affiliate, or subsidiary of
such entity if the Secretary finds that the establish-
ment of such branch, affiliate, or subsidiary will not
result in an increase in unemployment of the area of
original location or in any other area where such en-
tity conducts business operations, unless the Sec-
retary has reason to believe that such branch, affili-
ate, or subsidiary is being established with the inten-
tion of closing down the operations of the existing
business entity in the area of the business entity’s
original location or in any other area where the
entity conducts such operations.
‘‘(2) Such assistance shall be extended only to
applicants, both private and public (including Indian
tribes), which have been approved for such assist-
ance by an agency or instrumentality of the State or
political subdivision thereof in which the project to
be financed is located, and which agency or instru-
mentality is directly concerned with problems of eco-
nomic development in such State or subdivision.
‘‘(3) The project for which financial assistance
is sought shall be reasonably calculated to provide
more than a temporary alleviation of unemployment
or underemployment within the area in which the
project is or will be located.
‘‘(4) No loan or guarantee may be extended
under this section unless the financial assistance ap-
plied for is not otherwise available from private lend-
ers or from other Federal agencies on terms which
in the opinion of the Secretary will permit the ac-
complishment of the project.
‘‘(5) The Secretary may not make any loan
without a participation unless the Secretary deter-
mines that the loan cannot be made on a participa-
tion basis.
‘‘(6) No evidences of indebtedness may be pur-
chased and no loans may be made or guaranteed un-
less the Secretary is determined that there is reason-
able assurance of repayment.
‘‘(7) Subject to section 601(a)(5), no loan or
guarantee, including any renewal or extension of a
loan or guarantee, may be made under this section
for a term to maturity of more than 25 years and
no evidences of indebtedness which matures more
than 25 years after the date of purchase may be
purchased under this section, except that this para-
graph not apply to securities or obligations received
by the Secretary as a claimant in bankruptcy or eq-
uitable reorganization or as a creditor in other pro-
ceedings attendant upon insolvency of the obligor.
‘‘(8) Loans made and evidences of indebtedness
purchased under this section shall bear interest at a
rate not less than a rate determined by the Sec-
retary of the Treasury taking into consideration the
current average market yield on outstanding market-
able obligations of the United States with remaining
periods to maturity comparable to the average matu-
rities of such loans, adjusted to the nearest 1⁄8 of 1
percent, plus an additional charge, if any, toward
covering other costs of the program as the Secretary
may determine to be consistent with the purpose of
this section.
‘‘(9) Loan assistance (other than for a working
capital loan) shall not exceed 65 percent of the ag-
gregate cost to the applicant (excluding all other
Federal aid in connection with the undertaking) of
acquiring or developing land and facilities (including
machinery and equipment), and of constructing, al-
tering, converting, rehabilitating, or enlarging the
building or buildings of the particular project, and
shall, among others, be on the condition that—
‘‘(A) other funds are available in an
amount which, together with the assistance pro-
vided under this section, shall be sufficient to
pay such aggregate cost;
‘‘(B) not less than 15 percent of such ag-
gregate cost be supplied as equity capital or as
a loan repayable in no shorter period of time
and at no faster an amortization rate than the
Federal financial assistance extended under this
section is being repaid, and if such a loan is se-
cured, the security for the loan shall be subordi-
nate and inferior to the lien or liens securing
such Federal financial assistance;
‘‘(C) except with respect to projects involv-
ing financial participation by Indian tribes, not
less than 5 percent of such aggregate cost shall
be supplied by the State or any agency, instru-
mentality, or political subdivision of a State, or
by a community or area organization which is
nongovernmental in character, unless the Sec-
retary shall determine in accordance with objec-
tive standards prescribed by regulation that all
or part of such funds are not reasonably avail-
able to the project because of the economic dis-
tress of the area or for other good cause, in
which case the Secretary may waive the require-
ment of this provision to the extent of such un-
availability, and allow the funds required by
this subsection to be supplied by the applicant
or by such other non-Federal source as may
reasonably be available to the project; and
‘‘(D) to the extent the Secretary finds such
action necessary to encourage financial partici-
pation in a particular project by other lenders
and investors, and except as otherwise provided
in subparagraph (B), any Federal financial as-
sistance extended under this section may be re-
payable only after other loans made in connec-
tion with such project have been repaid in full,
and the security, if any, for such Federal finan-
cial assistance may be subordinate and inferior
to the lien or liens securing other loans made
in connection with the same project.
‘‘SEC. 203. ECONOMIC DEVELOPMENT LIQUIDATING FUND.
‘‘The Economic Development Revolving Fund estab-
lished before the date of the enactment of the Economic
Development and Financing Act of 1994 shall continue
to be available to the Secretary as a liquidating account
as defined under section 502 of the Federal Credit Reform
Act of 1990 for payment of obligations and costs in con-
nection with financial assistance extended under this Act
before October 1, 1991.
‘‘TITLE 
III—STRATEGIC 
PLAN-
NING, RESEARCH, INFORMA-
TION, AND TECHNICAL AS-
SISTANCE
‘‘Subtitle 
A—Strategic 
Economic
Development 
Planning, 
Re-
search, and Information
‘‘SEC. 301. OFFICE OF STRATEGIC ECONOMIC DEVELOP-
MENT PLANNING AND POLICY.
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish an Office of Strategic Economic Development Plan-
ning and Policy (hereafter in this section referred to as
‘the Office’).
‘‘(b) DUTIES.—The duties of the administrator of the
Office are as follows:
‘‘(1) 
RESEARCH, 
EVALUATION
AND
DEM-
ONSTRATION.—To support research, evaluation and
demonstration projects to study and assess best
practices in economic development and to examine
trends and changes in economic conditions that ef-
fect regional development.
‘‘(2) POLICY DEVELOPMENT.—To develop rec-
ommendations on both short- and long-term policies
regarding economic development issues and pro-
grams, to help foster the diffusion of innovative, best
practices in economic development throughout the
Department of Commerce.
‘‘(3) COORDINATION.—To take a leading role in
developing and promoting means for greater coordi-
nation among States, regions and local communities
in the design and implementation of economic devel-
opment strategies, and shall work in conjunction
with Federal agencies on developing and implement-
ing means for reducing fragmentation and increase
coordination among Federal programs that provide
economic development assistance.
‘‘(4) INFORMATION DISSEMINATION.—To spon-
sor and support conferences, workshops, and other
forums to bring together the best scholars and prac-
titioners in the field to effectively disseminate knowl-
edge of the state-of-the-art in economic development
to Federal, State, and local development organiza-
tions. It shall also disseminate information on all as-
pects of economic development through electronic
and printed media, making such information widely
accessible.
‘‘(c) RESEARCH IN CAUSES OF LONG-TERM ECO-
NOMIC DETERIORATION.—
‘‘(1) IN GENERAL.—To assist in the long-range
accomplishment of the purposes of this Act, the Sec-
retary, in cooperation with other agencies having
similar functions, shall establish and conduct a con-
tinuing program of study, training, and research
to—
‘‘(A) assist in determining the causes of
unemployment, 
underemployment, 
under-
development, and chronic depression in the var-
ious areas and regions of the Nation,
‘‘(B) assist in the formulation and imple-
mentation of national, State, and local pro-
grams which will raise income levels and other-
wise produce solutions to the problems resulting
from these conditions, and
‘‘(C) assist in providing the personnel
needed to conduct such programs.
‘‘(2) MANNER OF PROVIDING STUDY, ASSIST-
ANCE.—The program of study, training, and re-
search 
may 
be 
conducted 
by 
the 
Secretary
through—
‘‘(A) members of the Secretary’s staff;
‘‘(B) the payment of funds authorized for
this section to other departments or agencies of
the Federal Government;
‘‘(C) the employment of private individ-
uals, partnerships, firms, corporations, or suit-
able institutions;
‘‘(D) contracts entered into for such pur-
poses;
‘‘(E) grants to such individuals, organiza-
tions, or institutions as the Secretary deter-
mines to be appropriate; or
‘‘(F) conferences and similar meetings or-
ganized for such purposes.
‘‘(3) AVAILABILITY
OF
RESULTS
OF
RE-
SEARCH.—The Secretary shall make available to in-
terested individuals and organizations the results of
such research.
‘‘(4) ANNUAL
REPORT
OF
SECRETARY.—The
Secretary shall include in the annual report under
section 606 a detailed statement concerning the
study and research conducted under this section to-
gether with the Secretary’s findings and conclusions
and such recommendations for legislative and other
action as the Secretary may consider appropriate.
‘‘(d) GEOGRAPHIC ANALYSIS TOOL.—
‘‘(1) IN GENERAL.—The Secretary shall, in co-
operation with other appropriate Federal agencies
develop a computerized geographic analysis tool that
all Federal departments and agencies and grant re-
cipients may use to evaluate the success of these
programs.
‘‘(2) REPORT.—Not later than 6 months after
the date of the enactment of the Economic Develop-
ment and Financing Act of 1994, the Secretary shall
transmit to Congress a report on use of the comput-
erized geographic analysis tool developed pursuant to
paragraph (1) by Federal departments and agencies.
‘‘(e) INDEPENDENT ADVISORY COMMITTEE.—The
Secretary shall establish an advisory committee made up
of representatives from major State, local, and nonprofit
economic development organizations as well as nationally
recognized experts on innovative approaches to economic
development to advise and make recommendations to the
Office.
‘‘(f) FEDERAL COORDINATING COUNCIL FOR ECO-
NOMIC DEVELOPMENT.—
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish a Federal Coordinating Council for Economic
Development (hereafter in this section referred to as
the ‘Council’).
‘‘(2) COMPOSITION OF COUNCIL.—The Council
shall be composed of representatives from the Fed-
eral agencies involved in matters that affect regional
economic development.
‘‘(3) DUTIES.—The council shall assist in pro-
viding a unifying framework for economic and re-
gional development efforts and develop a govern-
mentwide strategic plan for economic development.
‘‘(g) GRANTS AND CONTRACTS FOR DEMONSTRATION
PROJECTS; PURPOSES.—The Secretary may make grants,
enter into contracts, or otherwise provide funds for any
demonstration project in an eligible area which the Sec-
retary determines is designed to foster regional productiv-
ity and growth, prevent outmigration, and otherwise carry
out the purposes of this Act.
‘‘SEC. 302. OFFICE OF ECONOMIC DEVELOPMENT INFORMA-
TION.
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish the Office of Economic Development Information
(hereafter in this section referred to as the ‘Office’) within
the Office of Strategic Economic Development Planning
and Policy.
‘‘(b) DUTIES.—The duties of the administrator of the
Office shall be to—
‘‘(1) serve as a central information clearing-
house on matters relating to economic development,
economic adjustment, industrial retention, disaster
recovery, and defense conversion programs and ac-
tivities of the Federal and State governments, in-
cluding political subdivisions of the States; and
‘‘(2) help potential and actual applicants for
economic development, economic adjustment, disas-
ter recovery, industrial retention, and defense con-
version assistance under Federal, State and local
laws in locating and applying for such assistance, in-
cluding financial and technical assistance.
‘‘(c) INFORMATION DATA BASES.—
‘‘(1) USES.—The Office shall develop informa-
tion data bases for use by Federal departments and
agencies, State and local governmental agencies,
public and private entities, and individuals to assist
such agencies, entities, and individuals in the proc-
ess of identifying and applying for assistance and re-
sources under economic development, economic ad-
justment, disaster recovery, industrial retention, and
defense conversion programs and activities of the
Federal, State, and local governments.
‘‘(2) SPECIFIC
KINDS
OF
INFORMATION
RE-
QUIRED TO BE INCLUDED.—The data bases shall in-
clude the following kinds of information:
‘‘(A) A comprehensive compilation of all
relevant information concerning available eco-
nomic development, economic adjustment, disas-
ter recovery, industrial retention, and defense
conversion programs of the Federal Govern-
ment, including key contact people, descriptions
of the application process, eligibility require-
ments and criteria, selection and followup pro-
cedures, and other such relevant information.
‘‘(B) A compilation of major State and
local governmental economic development, eco-
nomic adjustment, disaster relief, industrial re-
tention, and defense conversion assistance pro-
grams, including lists of appropriate offices, of-
ficers, and contact personnel connected with, or
involved in, such programs.
‘‘(C) A compilation of relevant economic
data and trends, including information about
the national, regional and local impacts of trade
agreements, defense spending and downsizing,
technological change, and other sources of sub-
stantial economic dislocation.
‘‘(D) A compilation of case studies and
‘best practices’ in economic development, ad-
justment and conversion.
‘‘(E) A compilation of technology develop-
ment, deployment, diffusion, and commer-
cialization programs, assistance and resources
provided by Federal agencies, including listings
of patents, licenses, and technologies, and proc-
esses owned, or held in part, by the Federal
Government, and other such information as re-
ferred to in section 722 and any other relevant
information, such as major State and local pro-
grams, to assist technology development, de-
ployment and commercialization in economic de-
velopment, adjustment and conversion efforts.
‘‘(F) A compilation of published works
(books, reports, articles, videos, and tapes), and
selected texts of such works, related to all fac-
ets of economic development, economic adjust-
ment and defense conversion.
‘‘(G) A compilation of information on case
studies on early warning and intervention
efforts.
‘‘(3) POINTS OF PUBLIC ACCESS.—
‘‘(A) IN GENERAL.—The Office shall es-
tablish several mechanisms to assure easy, ac-
cess by the public and others to such data
bases, and to assure that the data bases be as
accessible, user-friendly, culturally neutral, and
affordable as possible.
‘‘(B) OUTREACH.—The Office shall con-
duct an extensive outreach to States and com-
munities, and to a wide range of constituencies,
including State and local government officials,
chambers of commerce, industrial organizations,
labor unions, and community-based organiza-
tions, to publicize the existence of the data
banks and other assistance and services pro-
vided under this section, and how to acquire
such assistance and services, and access such
data banks.
‘‘(C) MEANS OF ACCESS.—Access to the
Office’s data services shall include the following
means:
‘‘(i) A toll-free nationwide telephone
number to provide direct phone access to
the public.
‘‘(ii) On-line electronic access through
existing computer network services and
publicly available computer data base ac-
cess facilities, such as at repository librar-
ies and by direct call-in via modem.
‘‘(iii) Printed manuals and orientation
materials.
‘‘(iv) Periodic orientation workshops
available to the public.
‘‘(v) On-call information specialists to
address special problems requiring person-
to-person assistance.
‘‘(d) CONSULTATIVE MEETINGS.—The Office shall
conduct, on an annual basis, consultative meetings and
briefings with constituencies from several different types
of distressed areas and regions, drawn from local and
State governments, economic development districts, Indian
tribes, business, labor, community and public interest or-
ganizations and academic institutions. Such meetings and
briefings shall be held in these different areas to introduce
the Office’s programs and receive comments and rec-
ommendations concerning the Office’s services and how to
expand and improve them.
‘‘(e) INTERAGENCY COORDINATION.—The Secretary
shall enter into such agreements and understandings as
may be necessary with other Federal departments and
agencies to coordinate the accomplishment of the objec-
tives of this section.
‘‘SEC. 303. UNIFORM GRANT APPLICATION FORM.
‘‘(a) DEVELOPMENT.—The Secretary shall, in co-
operation with the heads of appropriate Federal depart-
ments and agencies, develop a general, simplified applica-
tion form for grant assistance under this Act which may
be used by all Federal departments and agencies which
provide grant assistance.
‘‘(b) REPORT.—Not later than 6 months after the
date of the enactment of this section, the Secretary shall
transmit to Congress a report on use of the form devel-
oped pursuant to subsection (a) by Federal departments
and agencies.
‘‘Subtitle B—Technical Assistance
and 
Economic 
Development
Planning
‘‘SEC. 311. TECHNICAL ASSISTANCE.
‘‘(a) IN GENERAL.—In carrying out the duties of the
Secretary under this Act, the Secretary may provide tech-
nical assistance which would be useful in alleviating or
preventing conditions of excessive unemployment or
underemployment to areas which the Secretary finds have
substantial need for such assistance, including assistance
for project planning and feasibility studies, management
and operational assistance, and studies evaluating the
needs of, and developing potentialities for, economic
growth of such areas.
‘‘(b) PROCEDURES AND TERMS.—
‘‘(1) MANNER OF PROVIDING ASSISTANCE.—As-
sistance 
may 
be 
provided 
by 
the 
Secretary
through—
‘‘(A) members of the Secretary’s staff;
‘‘(B) the payment of funds authorized for
this section to other departments or agencies of
the Federal Government;
‘‘(C) the employment of private individ-
uals, partnerships, firms, corporations, or suit-
able institutions;
‘‘(D) contracts entered into for such pur-
poses; or
‘‘(E) grants-in-aid to appropriate public or
private nonprofit State, area, district, or local
organizations.
‘‘(2) REPAYMENT
TERMS.—The Secretary, in
the Secretary’s discretion, may require the repay-
ment of assistance provided under this subsection
and prescribe the terms and conditions of such re-
payment.
‘‘(c) GRANTS
COVERING
ADMINISTRATIVE
EX-
PENSES.—
‘‘(1) IN GENERAL.—The Secretary may make
grants to defray not to exceed 75 percent of the ad-
ministrative expenses of organizations which he de-
termines to be qualified to receive grants-in-aid
under subsection (a), except that in the case of a
grant under this subsection to an Indian tribe the
Secretary is authorized to defray up to 100 percent
of such expenses.
‘‘(2) 
DETERMINATION
OF
NON-FEDERAL
SHARE.—In determining the amount of the non-Fed-
eral share of administrative costs or expenses, the
Secretary shall give due consideration to all con-
tributions both in cash and in kind, fairly evaluated,
including space, equipment, and services.
‘‘(3) 
USE
OF
GRANTS
WITH
PLANNING
GRANTS.—Where practicable, grants-in-aid author-
ized under this subsection shall be used in conjunc-
tion with other available planning grants, such as
urban planning grants authorized under the Housing
Act of 1954 and highway planning and research
grants authorized under the Federal Aid Highway
Act of 1962, to assure adequate and effective plan-
ning and economical use of funds.
‘‘(d) AVAILABILITY OF TECHNICAL INFORMATION;
FEDERAL PROCUREMENT.—The Secretary shall aid areas
by furnishing to interested individuals, communities, in-
dustries, and enterprises within such areas any assistance,
technical information, market research, or other forms of
assistance, information, or advice which would be useful
in alleviating or preventing conditions of excessive unem-
ployment or underemployment within such areas. The Sec-
retary may furnish the procurement divisions of the var-
ious departments, agencies, and other instrumentalities of
the Federal Government with a list containing the names
and addresses of business firms which are desirous of ob-
taining Government contracts for the furnishing of sup-
plies or services, and designating the supplies and services
such firms are engaged in providing.
‘‘SEC. 312. ECONOMIC DEVELOPMENT PLANNING.
‘‘(a) DIRECT GRANTS.—
‘‘(1) IN GENERAL.—The Secretary may, upon
application of any State, or city, or other political
subdivision of a State, or sub-State planning and de-
velopment organization (including an economic de-
velopment district or any area described in section
401(a)(4)), to make direct grants to such State, city,
other political subdivision, or organization pay up to
80 percent of the cost for economic development
planning.
‘‘(2) PLANNING
PROJECTS
SPECIFICALLY
IN-
CLUDED.—The planning for cities, other political
subdivisions, and sub-State planning and develop-
ment organizations (including an economic develop-
ment district or an area described in section
401(a)(4)) assisted under this section shall include
systematic efforts to reduce unemployment and in-
crease incomes.
‘‘(3) PLANNING PROCESS.—The planning shall
be a continuous process involving public officials and
private citizens in analyzing local economies, defin-
ing development goals, determining project opportu-
nities, and formulating and implementing a develop-
ment program.
‘‘(4) COOPERATIVE DEVELOPMENT OF INVEST-
MENT
STRATEGY.—Any State investment strategy
prepared with assistance under this section shall be
prepared cooperatively by the State, the political
subdivisions of the State, and the economic develop-
ment districts and areas described in section
401(a)(4) located in whole or in part within such
State.
‘‘(5) STATE CERTIFICATION.—Upon completion
of any such strategy, the State shall certify to the
Secretary that—
‘‘(A) in the preparation of such State in-
vestment strategy, the local and economic devel-
opment district strategies were considered and,
to the fullest extent possible, such State strat-
egy is consistent with such local and economic
development district strategies; and
‘‘(B) such State strategy is consistent with
such local and economic development district
strategies, or, if such State strategy is not con-
sistent with such local and economic develop-
ment district strategies, all of the inconsist-
encies of the State strategy with the local and
economic development district strategies, and
the justification for each of these inconsist-
encies.
‘‘(6) COMPREHENSIVE
PLANNING
PROCESS.—
The development of any State investment strategy
shall be a part of a comprehensive planning process
that shall consider the provisions of public works
to—
‘‘(A) stimulate and channel development,
economic opportunities, and choices for individ-
uals;
‘‘(B) support sound land use;
‘‘(C) enhance and protect the environment
including the conservation and preservation of
open spaces and environmental quality;
‘‘(D) provide public services; and
‘‘(E) balance physical and human re-
sources through the management and control of
physical development.
‘‘(7) COORDINATION
OF
ASSISTANCE
UNDER
311(c).—The assistance available under this section
may be provided in addition to assistance available
under section 311(c) but shall not supplant such
assistance.
‘‘(8) ANNUAL
REPORT
BY
RECIPIENT.—Each
State receiving assistance under this subsection shall
submit to the Secretary an annual report on the
planning process assisted under this subsection.
‘‘(b) COMPLIANCE WITH REVIEW PROCEDURE.—The
planning assistance authorized under this title shall be
used in conjunction with any other available Federal plan-
ning assistance to assure adequate and effective planning
and economical use of funds.
‘‘SEC. 313. BUSINESS OUTREACH CENTER DEMONSTRATION
PROJECT.
‘‘(a) IN GENERAL.—The Secretary shall conduct a
project in each of fiscal years 1994 through 1996 with
funds made available under this title for the purpose of
demonstrating methods of assisting isolated small busi-
nesses to access small business services provided by Fed-
eral, State, and local governments.
‘‘(b) ESTABLISHMENT OF CENTERS.—In conducting
the demonstration project under this section, the Sec-
retary shall establish 3 business outreach centers.
‘‘(c) PURPOSE OF CENTERS.—It shall be the purpose
of each business outreach center established under this
section—
‘‘(1) to provide a one-stop clearinghouse to as-
sist isolated small businesses in accessing small busi-
ness services provided by Federal, State, and local
governments; and
‘‘(2) to improve efficiency in the delivery of
such services.
‘‘(d) SERVICES TO BE PROVIDED.—Each business
outreach center established under this section shall pro-
vide the following services:
‘‘(1) Outreach to isolated small businesses.
‘‘(2) Assessment of the need of isolated small
businesses for assistance services.
‘‘(3) Referral of isolated small businesses to
small business assistance agencies.
‘‘(4) Preparation of materials required by iso-
lated small businesses for participation in small
business assistance programs.
‘‘(5) Case management to assure follow up and
quality control of business services.
‘‘(6) Coordination of networking among isolated
small businesses.
‘‘(7) Quality control of small business assist-
ance services.
‘‘(e) ISOLATED SMALL BUSINESS DEFINED.—For
the purposes of this section, the term ‘isolated small busi-
ness’ means a small business that is unable to effectively
access small business services provided by Federal, State,
and local governments due to linguistic, cultural, or geo-
graphic barriers.
‘‘SEC. 314. AUTHORIZATION OF APPROPRIATIONS.
‘‘There is authorized to be appropriated to carry out
this title $37,100,000 for fiscal year 1994 and
$50,000,000 for fiscal year 1995. Such sums shall remain
available until expended.
‘‘TITLE IV—ELIGIBILITY AND
INVESTMENT STRATEGIES
‘‘SEC. 401. AREA ELIGIBILITY.
‘‘(a) CERTIFICATION.—In order to be eligible for as-
sistance under title I or II, an applicant seeking assistance
to undertake a project shall certify, as part of an applica-
tion for such assistance, that, as of the date of submission
of such application, the area in which the project is located
meets 1 or more of the following criteria:
‘‘(1) The area has a per capita income of 80
percent or less of the national average.
‘‘(2) The area has an unemployment rate 1 per-
cent above the national average percentage for the
most recent 24-month period for which statistics are
available.
‘‘(3) The area has experienced or is about to
experience a sudden economic dislocation resulting
in job loss that is significant both in terms of the
number of jobs eliminated and the effect upon the
employment rate of the area.
‘‘(4) The area is a community or neighborhood
(defined without regard to political or other subdivi-
sions or boundaries) which the Secretary determines
has 1 or more of the following conditions:
‘‘(A) A large concentration of low-income
persons.
‘‘(B) Rural areas having substantial out-
migration.
‘‘(C) Substantial unemployment.
‘‘(b) DOCUMENTATION.—A certification made under
subsection (a) shall be supported by Federal data, when
available, and in other cases by data available through the
State government. Such documentation shall be accepted
by the Secretary unless it is determined to be inaccurate.
The most recent statistics available shall be used.
‘‘(c) SPECIAL RULE.—No area which meets the cri-
teria of subsection (a) shall be subject to the requirements
of subparagraphs (A) and (C) of section 101(a)(1).
‘‘(d) PRIOR DESIGNATIONS.—Any designation of a
redevelopment area under this title made before the date
of the enactment of the Economic Development and Fi-
nancing Act of 1994 shall not be effective after such date
of enactment.
‘‘(e) DEFINITION.—For purposes of this Act, the
term ‘large concentration of low-income persons’ means an
area with a median family income of not more than 80
percent of the national median family income.
‘‘SEC. 402. INVESTMENT STRATEGY.
‘‘The Secretary may provide assistance under this
Act to an applicant for a project to be undertaken in an
area only if the applicant submits to the Secretary, as part
of an application for such assistance, and the Secretary
approves an investment strategy which—
‘‘(1) identifies the economic development prob-
lems to be addressed using such assistance;
‘‘(2) identifies past, present, and projected fu-
ture economic development investments in such area
and public and private participants and sources of
funding for such investments;
‘‘(3) sets forth a strategy for addressing the
economic problems identified pursuant to paragraph
(1) and describes how the strategy will solve such
problems;
‘‘(4) provides a description of the project nec-
essary to implement the strategy, estimates of costs
and time tables; and
‘‘(5) provides a summary of public and private
resources expected to be available for such project.
‘‘SEC. 403. DEFINITION.
‘‘For purposes of this Act, the term ‘economic devel-
opment district’ means—
‘‘(1) an economic development district des-
ignated before the date of enactment of the Eco-
nomic Development and Financing Act of 1994
under section 403(a) of the Public Works and Eco-
nomic Development Act of 1965, as in effect on the
day before such date; and
‘‘(2) any district within a State which—
‘‘(A) is designated by the Secretary;
‘‘(B) is of sufficient size or population and
contains sufficient resources to foster economic
development on a scale involving more than 1
county; and
‘‘(C) does not contain within its boundaries
any part of another economic development dis-
trict designated under subparagraph (A).
‘‘SEC. 404. FUNDING.
‘‘Amounts authorized to be appropriated under other
sections of this Act shall be available for the purposes of
carrying out this title.
‘‘TITLE V—ADMINISTRATION
‘‘SEC. 501. APPOINTMENT OF ASSISTANT SECRETARY OF
COMMERCE AND ADMINISTRATOR FOR ECO-
NOMIC DEVELOPMENT; COMPENSATION.
‘‘(a) ADMINISTRATION OF ACT.—The Secretary shall
administer this Act and, with the assistance of an Assist-
ant Secretary of Commerce, in addition to those already
provided for, shall supervise and direct the Administrator
appointed pursuant to subsection (c).
‘‘(b) APPOINTMENT OF ASSISTANT SECRETARY.—
‘‘(1) IN
GENERAL.—The Assistant Secretary
whose position is established under subsection (a)
shall be appointed by the President, by and with the
advice and consent of the Senate.
‘‘(2) DUTIES.—The Assistant Secretary ap-
pointed under paragraph (1) shall perform such
functions as the Secretary may prescribe.
‘‘(c) ADMINISTRATOR
FOR ECONOMIC DEVELOP-
MENT.—There shall be appointed by the President, by and
with the advice and consent of the Senate, an Adminis-
trator for Economic Development who—
‘‘(1) shall be compensated at the rate provided
for level V of the Federal Executive Salary Schedule
under section 5316 of title 5, United States Code;
and
‘‘(2) shall perform such duties as are assigned
by the Secretary.
‘‘SEC. 502. CONSULTATION OF SECRETARY WITH OTHER
PERSONS AND AGENCIES.
‘‘(a) CONSULTATION ON PROBLEMS RELATING TO
UNEMPLOYMENT.—The Secretary may, from time to time,
call together and confer with any persons, including rep-
resentatives of labor, management, agriculture, and gov-
ernment, who can assist in meeting the problems of area
and regional unemployment or underemployment.
‘‘(b) CONSULTATION ON ADMINISTRATION OF ACT.—
The Secretary may make provision for such consultation
with interested departments and agencies as he may deem
appropriate in the performance of the functions vested in
him by this Act.
‘‘SEC. 503. ADMINISTRATION, OPERATION, AND MAINTE-
NANCE.
‘‘No Federal assistance shall be approved under this
Act unless the Secretary is satisfied that the project for
which Federal assistance is granted will be properly and
efficiently administered, operated, and maintained.
‘‘SEC. 504. EXPEDITED PROCESSING OF APPLICATIONS.
‘‘(a) GUIDELINES.—Not later than 60 days after the
date of the enactment of the Economic Development and
Financing Act of 1994, the Assistant Secretary for Eco-
nomic Development shall—
‘‘(1) publish guidelines to expedite the process-
ing of applications for assistance under this Act; and
‘‘(2) transmit to the Committee on Public
Works and Transportation and the Committee on
Banking, Finance and Urban Affairs of the House
of Representatives and the Committee on Environ-
ment and Public Works and the Committee on
Banking, Housing, and Urban Affairs of the Senate
a report containing such guidelines.
‘‘(b) CONTENTS.—Guidelines to be published under
subsection (a) shall, at a minimum, provide for the
following:
‘‘(1) Increased reliance on self-certification by
applicants to establish compliance with other Fed-
eral laws.
‘‘(2) Greater use of uniform application forms
and procedures.
‘‘(3) Delegation of decisionmaking authority to
regional offices.
‘‘(4) Reduction in the time and number of re-
views conducted by other offices of the Department
of Commerce.
‘‘SEC. 505. PERFORMANCE EVALUATIONS OF GRANT RE-
CIPIENTS.
‘‘(a) IN GENERAL.—At least once every 2 years, the
Secretary shall conduct an evaluation of each university
center and economic development district receiving grant
assistance under this Act to assess the recipient’s perform-
ance and contribution toward job creation.
‘‘(b) CRITERIA.—
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish criteria for use in conducting evaluations
under subsection (a).
‘‘(2) CRITERIA
FOR
UNIVERSITY
CENTERS.—
The criteria for evaluation of a university center
shall, at a minimum, provide for an assessment of
the center’s contribution to providing technical as-