SEDAP Application Guidelines
The 2017 SEDAP Application Cycle closed on May 31st. Please check back when the next application cycle opens in 2018.
Please review the below application guidelines and process as well as eligibility requirements, funding priorities, and distress counties/parishes to assess your eligibility and interest in applying for SEDAP funding. All necessary information for application consideration can be found in the 2017 SEDAP Manual. If interested in applying during the 2018 cycle, contact your local development district.
DRA will announce the opening of the SEDAP cycle as early as Spring of each year. Funding for projects will depend upon the receipt of DRA’s annual appropriation and passage of the DRA budget at the annual Governor’s Quorum Meeting which takes place in late February each year. Each state’s allocation of SEDAP funding shall be made available for eligible projects, provided the state assessed dues have been remitted in full.
Eligible applicants should work with Local Development District (LDD) offices to prepare and submit applications to the DRA. Once project applications are received, a review and determination of project eligibility are made, and projects are then divided into Tier 1 and Tier 2 eligible projects or are considered ineligible to receive funding. Any applicant whose project is found to be ineligible will be allowed to appeal this decision by working with the LDD and/or DRA to provide additional documentation or other supporting documents to address the material issue(s) cited.
Tier 1 projects must meet each of the following three federal priorities, as outlined in the Eligibility Guidelines: 1) job creation and/or retention will be protected with a participation agreement, 2) DRA funds will leverage other sources of public and/or private funds, and 3) the project will have a regional impact. In addition, projects meeting the imminent health or safety threat classification can be considered a Tier 1 project with proper documentation and support from the appropriate state or federal agency (i.e. Department of Environmental Quality). Finally, projects considered to be state economic development priority projects (by the Governor’s office) can be considered a Tier 1 project without meeting all three required federal priorities, provided the Governor’s office: 1) recommends the project for funding, 2) certifies the project, 3) requests a waiver of the unmet Tier 1 criteria and 4) provides to the Federal Co-Chairman justification for the waiver. Tier one projects may be recommended for funding by the state at any time during the announced open funding window. This will provide an expedited pathway for Tier 1 projects.
IMPORTANT: Each state will be required to spend 60 percent of the state allocation on Tier 1 projects, before recommending Tier 2 projects for funding.
Tier 2 projects will encompass all other eligible projects. Should the state not receive enough Tier 1 applications to consider for funding recommendations, Tier 2 projects will be allowed to exceed 40 percent of the state’s allocation. Tier 2 projects shall be considered at any point after 60 percent of funds have been applied to Tier 1 projects or during the last week of the funding window, ending on August 31st.
The months of September through November each year will be considered an “administrative dead period” for SEDAP application activity. Other funding opportunities and the associated eligibility reviews may continue during this time.
*The above process is effective as of May 5, 2016 for the FY 2017 SEDAP.
“Critical Development” projects are defined as projects including $300 million or more in investment (public and/or private), and other than for technology-related projects, 350 or more jobs created and/or retained. These type projects would naturally fit the requirements of the expedited process should the host state so choose to make this request. Projects must have a multiple state impact and result in immediate and long-term benefits for the area served.
Assuming a DRA state has a critical development project, the following guidelines would be implemented. The DRA Board, including each Governor, would be notified of the project developments and the host state’s request. A board vote would be taken to record the affirmative responses of each state and the collective understanding and willingness to forego a certain percent of each state’s allocation for this project. Up to half of the host’s state’s allocation for the particular funding cycle would be utilized for the project and the other seven states would split the difference equally, by percentage, to make up the difference.
“Emergency/Contingency (EC)” funding is defined separately as emergencies related to natural disasters, fire, or unforeseen/unexpected developments which present a health and/or safety risks to communities, which are documented as such by state and or federal agencies; (i.e., Department of Environmental Quality (DEQ, Federal Emergency Management Agency (FEMA), or State Departments of Health). Projects shall include items not covered by insurance.
Contingency projects would fall outside the normal scope and/or timeline of SEDAP. These types of projects would still need to conform to the Eligibility Guidelines but, DRA would reserve the right to waive any note deemed to be unnecessary upon the written request and recommendation of the State. EC projects generally do not exceed $150,000. However, funding for all EC projects is dependent upon the availability of funds and approval of the Federal Co-Chairman.
Due to the nature of Emergency/Contingency projects, a certain level of expediency is required and expected. Project applications originating at the LDD should be forwarded to the State (DRA designee/alternate) for review and certification. The certified application will then be forwarded to the DRA for review and eligibility determination. Eligible projects will be voted on by the DRA Board and award documents will be generated and issued to the successful applicant(s). Under normal circumstances that process can be accomplished within 48 hours.
A “Replacement” project takes the place of a project that fails to materialize within the current SEDAP funding cycle. In an effort to encourage timely economic development efforts, a state may choose to utilize project funding from the current cycle in order to fund a more viable project, if a project fails to materialize or begin work within 12 months from the Notice to Proceed date. A replacement application should be submitted online. Provided the project meets DRA eligibility requirements, the project will be voted on by the DRA Board and award documents will be issued. Replacement projects should be “shovel-ready” and DRA reimbursements should begin within the first 90-days of the new project’s Notice to Proceed.
|February 9||SEDAP funding opportunity announcement|
|February 9 - May 31||Applications are submitted as they are developed:|
|DRA staff will review for eligibility in real-time (within three weeks of receipt) and work with each LDD to provide appropriate appeal documentation for those projects deemed ineligible or Tier 2|
|June 16||DRA staff work complete|
|June 23||Chairman determines eligibility|
|July 7||Board members have met with Governors|
|July 14||Project determination calls held|
|July 28||Certification letters received and project votes closed|
|Announcements, award documents, notices to proceed follow immediately upon receipt of certification letters and are coordinated through DRA communications staff|