* * * * *
(b) Maximum Investment Rate--(1) General rule. Except as otherwise provided by this paragraph (b) or paragraph (c) of this section, the maximum EDA Investment Rate for all Projects shall be determined in accordance with Table 1 in paragraph (b)(1)(ii) of this section. The maximum EDA Investment Rate shall not exceed the sum of 50 percent, plus up to an additional 30 percent based on the relative needs of the Region in which the Project is located, as determined by EDA.
* * * * *
(ii) Table 1. Table 1 of this paragraph sets forth the maximum allowable Investment Rate for Projects located in Regions subject to certain levels of economic distress. In cases where Table 1 produces divergent results (i.e., where Table 1 produces more than one maximum allowable Investment Rate based on the Region's levels of economic distress), the higher Investment Rate produced by Table 1 shall be the maximum allowable Investment Rate for the Project.
Table 1------------------------------------------------------------------------
Maximum
allowable
Projects located in regions in which: investment
rates
(A) The 24-month unemployment rate is at least 225% of 80
the national average; or...............................(B) The per capita income is not more than 50% of the 80
national average.......................................(C) The 24-month unemployment rate is at least 200% of 70
the national average; or...............................(D) The per capita income is not more than 60% of the 70
national average.......................................(E) The 24-month unemployment rate is at least 175% of 60
the national average; or...............................(F) The per capita income is not more than 65% of the 60
national average.......................................(G) The 24-month unemployment rate is at least one 50
percentage point greater than the national average; or.(H) The per capita income is not more than 80% of the 50
national average.......................................------------------------------------------------------------------------
(2) Projects subject to a Special Need. EDA shall determine the maximum allowable Investment Rate for Projects subject to a Special Need (as determined by EDA pursuant to Sec. 301.3(a)(1)(iii)) based on the actual or threatened overall economic situation of the Region in which the Project is located. However, unless the Project is eligible for a higher Investment Rate pursuant to paragraph (b)(5) of this section, the maximum allowable Investment Rate for any Project subject to a Special Need shall be 80 percent.
(3) * * *
(i) The minimum Investment Rate for Projects under part 303 of this chapter shall be 50 percent.
(ii) Except as otherwise provided in paragraph (b)(3)(iii) of this section or in paragraph (b)(5) of this section, the maximum allowable Investment Rate for Projects under part 303 of this chapter shall be the maximum allowable Investment Rate set forth in Table 1 for the most economically distressed county or other equivalent political unit (e.g., parish) within the Region. The maximum allowable Investment Rate shall not exceed 80 percent.
(iii) In compelling circumstances, the Assistant Secretary may waive the application of the first sentence in paragraph (b)(3)(ii) of this section.
(4) Projects under part 306. Except as otherwise provided in paragraph (b)(5) of this section, the maximum allowable Investment Rate for Projects under part 306 of this chapter shall generally be determined based on the relative needs (as determined under paragraph (b)(1) of this section) of the Region which the Project will serve. As specified in section 204(c)(3) of PWEDA, the Assistant Secretary has the discretion to establish a maximum Investment Rate of up to 100 percent where the Project:
(i) * * *
(ii) * * *
(5) Special Projects. Table 2 of this paragraph sets forth the maximum allowable Investment Rate for certain special Projects as follows:
Table 2------------------------------------------------------------------------
Maximum
allowable
Projects investment
rates
(percentage)------------------------------------------------------------------------Projects that involve broad Regional planning and 80
coordination with other entities outside the Eligible
Applicant's political jurisdiction or area of
authority, under special circumstances determined by
EDA, and Projects that effectively leverage other
Federal Agency resources...............................Projects of Indian Tribes............................... 100Projects for which EDA receives appropriations under 100
section 703 of PWEDA (42 U.S.C. 3233) and Projects to
address and implement post-disaster economic recovery
efforts in Presidentially Declared Disaster areas in a
timely manner..........................................Projects of States or political subdivisions of States 100
that the Assistant Secretary determines have exhausted
their effective taxing and borrowing capacity, or
Projects of non-profit organizations that the Assistant
Secretary determines have exhausted their effective
borrowing capacity.....................................Projects under parts 305 or 307 that receive performance 100
awards pursuant to Sec. 308.2 of this chapter.........Projects located in a District that receive planning 100
performance awards pursuant to Sec. 308.3 of this
chapter................................................------------------------------------------------------------------------
(c) Federal Funding Opportunity announcements may provide additional Investment Rate criteria and standards to ensure that the level of economic distress of a Region, rather than a preference for a geographic area or a specific type of economic distress, is the primary factor in allocating Investment Assistance.