SEDAP Application Guidelines
The 2021 SEDAP Application Cycle opens March 1, 2021 and closes June 6, 2021.
SEDAP Application and Selection Process
Funding for projects will depend upon the receipt of DRA’s annual appropriation and passage of the DRA budget at the annual Governors' 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 utilizing a participation agreement, 2) include other sources of public and/or private funds, and 3) 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 50 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 50 percent of the state’s allocation. Tier 2 projects shall be considered at any point after 50 percent of funds have been applied to Tier 1 projects or during the last week of the funding window, ending on June 30th.
The months of September through December 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 March 2, 2020 for the FY 2020 SEDAP cycle.
Other Types of Funding
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.
2021 SEDAP Timeline
|SEDAP funding opportunity announcement|
|March 1st to June 6th||Deadline to submit applications to LDDs|
|June 20th||LDDs complete technical assistance work with applicants and submit final applications to DRA|
|July 11th||DRA staff work complete|
|August 1st||Designees have met with Governors|
Project determination calls are held
Certification letters received and projects votes closed
|Announcements, award documents, notices to proceed follow immediately upon receipt of certification letters and are coordinated through DRA communications staff|