Economic Recovery Forum The 2018 IEDC Annual Conference

An event summary focused on the 2017-2018 disaster communities prepared by the International Economic Development Council

October 3, 2018

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Contents

Executive Summary .............................................................................................................. 4

Introduction ........................................................................................................................... 6

Welcome from the moderator and IEDC ............................................................................... 7

Community perspectives on economic recovery ................................................................... 8

Volunteer perspectives ....................................................................................................... 10

Federal perspectives .......................................................................................................... 15

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International Economic Development Council

IEDC is the world’s largest membership organization serving the economic development profession, with more than

5,000 members and a network of more than 25,000 economic development professionals and allies. From public to

private, rural to urban, and local to international, our members represent the entire range of economic development

experience. Through a range of services including conferences, training courses, webinars, publications, research and

technical assistance efforts, we strive to provide cutting-edge knowledge to the economic development community and

its stakeholders. For more information about IEDC, visit www.iedconline.org.

Craig J. Richard, CEcD, FM

President & CEO

Tampa Hillsborough Economic Development Corporation, FL

2018 Chairman of the Board, IEDC

Jeffrey A. Finkle, CEcD

President & CEO

International Economic Development Council

Washington, DC

Authors

Primary author

Gareth Potts, PhD – Senior Economic Development Associate, International Economic Development Council

Contributors

Eli Dile - Economic Development Associate, International Economic Development Council

Jasmine Latiolais - Ph. D. student, University of Texas, Dallas

Acknowledgements

IEDC would like to give special thanks to Southwest Airlines, which has been an invaluable partner over the past

several years in providing support for our work in economic recovery and resiliency to assist communities that have

experienced disasters in 2017 and 2018. With Southwest’s help we have brought many volunteers to support disaster-

impacted communities around the U.S. and its territories.

We would also like to thank the U.S. Economic Development Administration for their expertise, guidance and financial

support which supported this event and report, and our ongoing economic recovery work in Florida, Texas, Georgia,

North Carolina, South Carolina, Puerto Rico and the U.S. Virgin Islands.

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Executive Summary

Communities spoke of how:

▪ ED volunteers really can make an impact – including simply helping disaster-hit communities know where to start

▪ it is important to match volunteers with the requisite experience to the needs of the community

▪ it is important to schedule adequate time for the volunteer to meet with key people

▪ planners should look for partners able to run scenarios around possible future extreme weather events

▪ recovery is a long-term process

Volunteers suggested that:

▪ volunteering is sometimes emotional but always beneficial

▪ banks and insurers don’t seem to alter their practices following disasters

▪ housing is vital to the economy, and a critical component to recovery

▪ it is important to have a clear plan about how reconstruction materials will be brought in and distributed

▪ the human toll of disasters is immense, so mental health services are important

▪ signage is important for volunteers (and tourists) to get around when GPS is unreliable

▪ businesses need to know in advance of disasters about schemes that reimburse wages

▪ community planning efforts should encourage discussion about what people’s interpretation of ED is

▪ volunteers should consider attending city council meetings on their visits

▪ volunteers should encourage workshop participants to continue the dialogue after the volunteer visit

The points of most relevance to EDA activity include:

▪ several speakers spoke highly of EDA’s loan guarantee fund

▪ how EDA disaster funding for long-term economic recovery can support technical assistance; infrastructure

repairs; small business financing; and innovation and entrepreneurship

▪ the fact that, although EDA’s maximum allowable grant rate is generally 50 percent of project costs, in cases of

documented economic distress or other adequate justification, EDA may agree to a higher maximum up to 80

percent

▪ the U.S. territories lack the Regional Planning Councils and Economic Development District network typically seen

on the U.S. mainland, but EDA can still work closely with local agencies familiar with on-ground operations

The points of most relevance to FEMA activity include:

▪ a belief, heard several times, that FEMA is making a concerted effort to coordinate disaster response

▪ the fact that FEMA can’t, because of the Stafford Act, directly provide funds for ED

▪ discussion about the FEMA-established National Disaster Recovery Framework (NDRF), including the six

Recovery Support Functions

▪ the NDRF Federal Interagency Operations Plans that streamlines support across agencies

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▪ that FEMA is developing MAX-TRAX, a web-based software program to record, update in real time, and share

community issues, strategies, and actions with federal, state, and local partners.

▪ a belief that states are still struggling to organize around and sustain the NDRF

▪ a belief that Federal Disaster Recovery Coordinators should be employed on a full-time basis.

The points of most relevance to HUD activity include a belief that:

▪ HUD has relaxed regulations so that CDBG-DR funds can be used for economic revitalization more often

▪ recent disaster grantees have used CDBG-DR funding for a wide variety of economic revitalization activities

▪ states should not leave management of CDBG-DR to emergency management staff, since they are not typically

equipped to support economic development programs

The points of most relevance to SBA activity include the fact that:

▪ SBA’s Disaster Loan program is a key recovery tool

▪ SBA does not deny disaster loans for lack of collateral

▪ SBA works with Small Business Development Centers (SBDCs), Women’s Business Centers (WBCs), etc., for

outreach and assistance to the business community

▪ SBDCs help affected businesses with SBA disaster loan applications

▪ SBDCs assist SBA in establishing the all-important Business Recovery Centers (BRCs)

Key points about federal activity in general:

▪ FEMA and SBA readily supply data on unmet needs for funding – subject to users adopting protocol

▪ federal collaboration between HUD, FEMA, EPA, Labor, etc., has grown stronger with each disaster

▪ inter-governmental task forces are a resource for grantees whose projects may touch several federal agencies

▪ EDA regional offices can put on workshops that introduce communities to FEMA, SBA, HUD, EDA, etc.

▪ some federal policies have worked against U.S. territories – phased-out tax exemptions, minimum wage rises, and

excise taxes on products manufactured by subsidiaries of U.S. companies=

▪ the Department of Labor disaster grants program is a good program that is under-used

▪ the Department of Commerce made fisheries infrastructure eligible for FEMA assistance. NOAA is also making

some money available

Several resources were referenced, including:

▪ IEDC’s Leadership in Times of Crisis publication https://www.iedconline.org/web-pages/resources-

publications/iedc-releases-new-disaster-recovery-publication

▪ Restore Your Economy website http://restoreyoureconomy.org

▪ HUD Exchange https://www.hudexchange.info/programs/cdbg-dr for additional information on CDBG-DR

legislation, waivers, and a toolkit on how to set up a disaster recovery program

▪ StateBook is donating its data to communities that need it to apply for grants

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Introduction

This report provides a summary of a morning forum that took place in Atlanta, Georgia on October 3, 2018 in connection

with the 2018 IEDC Annual Conference. The purpose was to capture and analyze the insights from economic

developers in disaster-impacted communities and share best practices.

The sessions featured perspectives from:

▪ communities in Puerto Rico, Texas, and the U.S. Virgin Islands

▪ economic recovery volunteers sent to Florida, Texas, Puerto Rico, and the Virgin Islands; and

▪ federal officials from EDA, FEMA, and the SBA Office of Disaster Assistance.

The morning sessions were moderated by John Zakian, Disaster Resilience Grant Program Manager & Chief

Resilience Officer at the City of Minot, North Dakota. Other speakers included Karen Stewart, Redevelopment and

Economic Opportunity Department, Bradenton, Florida, and Calandra Cruikshank, CEO of StateBook.

The executive summary outlines the key takeaways from each session.

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Welcome from the moderator and IEDC

Moderator: John Zakian, CEcD, City of Minot, North Dakota

John Zakian outlined two key federal initiatives. The Stafford Act defines

the roles of FEMA and other federal agencies in response to federally-

declared natural disasters https://www.fema.gov/robert-t-stafford-

disaster-relief-and-emergency-assistance-act-public-law-93-288-

amended.

The National Disaster Recovery Framework has been in effect since

2011. Communities that want to understand the role and limits of federal

agencies should read it: https://www.fema.gov/national-disaster-

recovery-framework

Lynn Knight, CEcD, Vice President of Knowledge Management and Development, IEDC

Lynn Knight, who heads IEDC’s economic recovery and resiliency program gave a quick overview of IEDC’s work and

introduced the program of deploying experienced volunteers to provide technical assistance and capacity building

support to disaster-impacted communities. She outlined two useful IEDC resources:

▪ The Restore Your Economy website http://restoreyoureconomy.org

▪ The Leadership in Times Of Crisis publication https://www.iedconline.org/web-pages/resources-publications/iedc-

releases-new-disaster-recovery-publication/

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Community perspectives on economic recovery

Francisco Garcia, Managing Director FGM Management Group and

former Executive VP of the Puerto Rico Manufacturers Association

Francisco Garcia stressed the importance of manufacturing to the economy or

Puerto Rico, accounting for 48 percent of GDP.

He noted the effectiveness of two IEDC volunteers who served in Puerto Rico in

2018 that he had worked with:

▪ Rodrick Miller, President and CEO of Ascendant Global, championed

business retention and expansion strategies; and

▪ Pedro Garza, a former EDA Regional Director for the Austin Region, shared tips on applying for EDA funding,

noting applicants need an approach of ”how, what, and where” they propose to use funds.

He stressed the importance of matching the volunteer with the needs of the area being visited and scheduling adequate

time to meet with key people (those who can benefit from and act on the knowledge the volunteer brings).

Puerto Rico’s manufacturing extension partnership, Primex1 https://www.primexpr.org, has been communicating with

more than 800 manufacturers since the hurricanes, with visits occurring just two weeks after the storm. These visits

were critical to learning companies’ recovery needs and how to reframe messaging to investors.

Finally, Mr. Garcia stressed that regional alliances that connect universities, business, government, etc., are important.

Jordan Robinson, Director of Business Development, Greater Houston

Partnership, Texas

Ms. Jordan Robinson outlined the many initiatives the Houston region has offered

since Hurricane Harvey.

▪ The Partnership became a one-stop shop for business – guiding them to

recovery and resiliency resources.

▪ The Governor’s Office staged an event to promote all the available recovery

resources.

▪ The Partnership conducted a business retention and expansion outreach

campaign.

▪ Houston helped most major manufacturers resume operations within a week of the storm.

▪ Marketing is important to stress that the region is back to business (and not still underwater).

1 PRiMEX is a private nonprofit organization, organized in 1996 through the initiative of Puerto Rico Industrial Development Company (PRIDCO) and the Manufacturing Extension Partnership (MEP), a program under the National Institute of Standards and Technology (NIST). As part of a national network, PRiMEX supports the needs of all Puerto Rico’s small and medium enterprises (SME’s) by providing services to improve their business processes.

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▪ Partnerships were important to passing a $2.5 billion bond to aid in rebuilding and recovery.2

A real estate committee was formed to look at studies that show scenarios around possible future flooding,3 which may

be used to help relocate businesses in the future.

Mark Mitchell, President, Lake Houston Area Economic Development Partnership, Humble, Texas

Mark Mitchell discussed the work of IEDC volunteer Pete Fullerton from Kansas

City, MO who assisted the Lake Houston area develop a contact strategy with its

upstream community neighbors that have loose planning and building codes as

they relate to on-site water retention/detention guidelines (i.e., ‘build and pave’).

Downstream water flows are a significant business and safety detriment to the

Lake Houston area.

Mr. Fullerton also assisted with strategic planning to develop a revolving loan

program for Harvey-impacted businesses. the volunteer’s community had

implemented a successful program in Missouri. Roughly 80 percent of businesses

(and homeowners) did not have flood insurance in the Lake Houston area.

Developing and delivering zero-interest loans and grants are key to helping small

businesses survive the aftermath of Harvey.

The second volunteer, Christine Bryant of Corpus Christi EDC assisted with business retention and expansion (BRE)

work, which involved updating the partnership’s database of 1,000 impacted companies. Bryant helped the Lake

Houston EDP combine multiple databases into a single format to upload into a customized CRM platform for BRE

outreach to impacted businesses.

In the Q&A period, Mr. Mitchell noted that FEMA and SBA will share real-time data if economic developers ask for it.

These data include companies going through the SBA disaster recovery portals for assistance, loan amounts applied

for and received, etc. John Zakian added that it is now standard protocol for FEMA and SBA to look for local government

to partner with, after which, the federal information flows. Mitchell worked with Lake Houston’s local congressional

offices to access data. The offices him regularly thereafter once they trusted the data would be used appropriately.

The data give insight into what companies are being helped, at what stage, and how, and can help economic

developers identify unmet needs. Articulating these unmet needs is crucial to securing HUD CBDG-DR resources.

Partnering with FEMA on housing and public infrastructure and the SBA on the business side is crucial for effectively

using these funds.

2 https://www.houstonchronicle.com/local/gray-matters/article/hurricane-harvey-houston-flood-bond-investment-13217782.php. 3 The area has seen ‘500-year’ floods in a 1 year.

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Mr. Mitchell added that there are many other sources of funds communities can apply for. Lake Houston partnered with

several organizations, such as the LIFT Fund (a 13-state CDFI for a Revolving Loan Fund

https://www.liftfund.com/about/mission) and the Rotary Foundation. The Lake Houston EDP also received funds to be

distributed as grants from Rebuild Texas https://www.rebuildtx.org and the Dell Foundation.

Mr. Mitchell highlighted other issues the community is focused on.

▪ Displaced homes mean displaced workers (so housing is an economic development issue).

▪ There is still plenty of debris left over,4 which is being removed by the Army Corps of Engineers.

During Q&A, Mr. Mitchell also noted that there are still unspent Hurricane Ike dollars available in Texas Further,

communities require a multi-year recovery strategy, not a six-12-month initiative.

Q&A

Much of the discussion centered on workforce issues.

▪ Mark Mitchell noted that the Lake Houston regional planning group meets monthly to share updates, and workforce

actors have a strong presence in these meetings.

▪ John Zakian noted that the Department of Labor disaster grants program5 is a valuable resource but not universally

used.

Bernadette Menendez noted that her organization, the U.S. Virgin Islands Bureau of Economic Research

http://www.usviber.org, is a good source of forecasting/data, which is used for CDBG-DR grant applications. She noted

too that her organization is responsible for branding strategy and reviving the territory’s tourism industry.

Volunteer perspectives

Moderator: Calandra Cruikshank, CEO, StateBook

Calandra Cruikshank announced that StateBook, a data tool for

economic development and site selection information, is donating

its data to communities that need it to apply for grants. These data

include information about the workforce, taxes, utility rates, and

infrastructure.

4 https://www.houstonchronicle.com/news/houston-texas/houston/article/After-3-months-removal-of-Harvey-debris-nears-end-12376149.php 5 Supported by the Workforce Innovation and Opportunity Act of 2014, Dislocated Worker Grants temporarily expand the service capacity of dislocated worker training and employment programs at the state and local levels by providing funding assistance in response to large, unexpected economic events that cause significant job losses.

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Chris Manegold, CEcD, Economic Development Alliance of Southern Ohio (retired) (volunteered in Florida

Keys)

Chris Manegold volunteered in the Florida Keys to collect data and conduct interviews for a business assessment to

help Monroe County apply for recovery funds after 2017’s Hurricane Irma. He reported on the complex logistical

challenges of these low-lying islands, as well as a policy environment that make reconstruction especially difficult.

There is only one road, US1, in and out of the Keys, which creates a difficult barrier for the movement of people and

materials. Construction materials must be imported in the right order (e.g., concrete before drywall). Rebuilding is

complicated by the fact that materials do not arrive in sequence, and there is often no place to store them. Many

residents had to relocate after the storm, so companies lost workers and businesses lost customers. Further, there

was little space to house temporary workers engaged in rebuild efforts.

Several businesses reported that insurers were slow to settle claims, and Chris’s interviews with banks indicated that

there were no special financing programs for their customers. Therefore, funding for small businesses was (and likely

still is) a critical issue a year after the storm.

Sue Southon, Disaster Recovery Specialist, ICF International (volunteered in Florida; visited Texas and

Puerto Rico)

In addition to her IEDC recovery work, Sue Southon

has been a technical assistance provider for HUD and

is currently working in the U.S. Virgin Islands in that

role. She also volunteered in the Florida Keys. She

was also the Policy Lead for the State of New Jersey’s

$4.2 billion Community Development Block Grant –

Disaster Recovery (CDBG-DR) program.

In working with disaster recovery grantees, Southon

noted that each has its unique set of challenges. For

example, for island grantees, virtually all rebuilding

materials, as well as some of the labor, will need to

come from somewhere else. This adds both time and

cost to recovery efforts.

Apart from the Section 108 program,6 the HUD Community Development Block Grant program has not typically been

used extensively for economic development. Many economic developers view the program as having excessive

regulatory requirements that limit its use as an economic development tool.

HUD has provided waivers and alternative requirements for the use of CDBG-DR funds for economic revitalization that

remove some of the more challenging barriers. Chief among these is a waiver of the “public benefit” requirement that

6 https://www.hudexchange.info/programs/section-108/section-108-program-eligibility-requirements/#overview.

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limits the amount of assistance provided to a business based on the number of jobs created or retained. Direct grants

and forgivable loans to businesses are also permitted.

Recent disaster grantees have used CDBG-DR funding for a wide variety of economic revitalization activities, such as:

▪ Business grants for physical repairs and working capital;

▪ Community and commercial corridor revitalization (including signage, façade improvements, and other

beautification);

▪ Business incubators;

▪ The New Jersey Energy Resilience Bank https://www.state.nj.us/bpu/commercial/erb; and

▪ Tourism marketing (the U.S. Virgin Islands obtained a waiver for this use).

HUD can waive activities that are not statutorily mandated. However, environmental review, the Davis-Bacon Act,7 and

Fair Housing provisions are three areas where waivers cannot be granted.

The FAA Reauthorization Act of 2018 includes a provision that will exempt SBA loans as benefits in HUD’s eyes and

possibly allow for the repayment of SBA loans with CDBG-DR money. This bill has passed Congress but HUD has

not yet issued guidance on how it will impact the “duplication of benefits” calculations.

Ms. Southon praised IEDC’s Restore Your Economy website, as an excellent resource for both businesses and

community leaders. She also recommended the CDBG-DR HUD Exchange

https://www.hudexchange.info/programs/cdbg-dr for additional information on CDBG-DR legislation, waivers, and a

toolkit on how to set up a disaster recovery program.

Ms. Southon concluded by saying that federal collaboration - HUD, FEMA, EPA, Labor - has grown stronger with each

disaster and that the intergovernmental task forces are an excellent resource for grantees dealing with projects that

may touch several federal agencies.

Marva Bryan, Economic Development Manager, CEcD EDFP, Fulton County, Georgia (volunteered in the U.S.

Virgin Islands)

Marva Bryan volunteered in the U.S. Virgin Islands, where she taught economic recovery workshops in July 2018. She

encouraged the territory to develop and execute a business retention survey focused on gathering ideas about

companies’ funds, insurance coverage, equipment, loans, and employees. In addition, she conducted several informal

interviews, talking to visitors leaving cruise ships to get their impressions of their experience in the islands.

Ms. Bryan highlighted the human toll of disasters and noted that mental health is often overlooked. After a disaster

many islanders leave to stay with friends and family on the mainland, which creates a workforce vacuum. She

welcomed the fact that a business improvement district is being established in downtown Charlotte Amalie on St.

Thomas. Not all businesses are participating yet, but she feels others will come on board once the project gets

7 The Davis–Bacon Act of 1931 is a federal law that establishes the requirement for paying the local prevailing wages on public works projects for laborers and mechanics.

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established. Marva also highlighted the need for improved signage to make getting around easier for an outsider at a

time when GPS was often unreliable.

Finally, Ms. Bryan noted that the CDBG Section 108 loan program could have more uptake and suggested more people

use it.

Allison Thompson CEcD, EDFP, Director of Economic Development at Cedar Hill Economic Development

Corporation (volunteered in Puerto Rico)

Allison Thompson commented on the strength of IEDC’s volunteer program, especially its ability to advise on areas

such as data and finance. She conducted outreach for IEDC and met with multiple organizations in Puerto Rico tasked

with recovery. One exemplary organization she highlighted was Caguas-based INTECO, a STEM school and business

incubator strengthening the community’s innovation and technology clout. During her stay in the island, she also met

with the Foundation for Puerto Rico, Comena66, the Hotel Association, the Puerto Rico Manufacturers Association,

InvestPR, and visited the Joint Field Office of federal agencies.

Dr. Cynthia Johnson, Director of the Florida Small Business Development Center at Pinellas County Economic

Development (volunteered in Texas)

Dr. Cynthia Johnson noted that volunteering is the

ultimate service for a public administrator. Sometimes it

is emotional, but always beneficial. Her first experience

volunteering post disaster was in Homestead, FL, post-

Andrew and again in post-Katrina New Orleans.

In New Orleans, she encountered companies that had

paid out workforce and staff payment incentives but could

not get reimbursements for which they were eligible, as

they didn’t understand the process. The best-case

scenario is for businesses to get to know these

processes in advance of a disaster.

Dr. Cynthia Johnson and Allison Thompson

Her most recent deployment was to Port Arthur, Texas, where she noticed a lot of siloed recovery efforts.

Dr. Johnson had done some preliminary work before travelling to Port Arthur, including talking to key stakeholders.

The centerpiece of her contribution was a two-day strategic planning session, which saw an impressive 85 percent

return rate on day two. The mayor, local university president, and representatives of big employers were present. SBA

and EDA were there to highlight available resources.

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The first thing the session sought to do was establish how residents envision economic development in their community

– looking to find similarities between different groups. Dr. Johnson went to city council meeting and fed this information

into the second day’s discussions. She also travelled around the community to assess its physical layout. All

participants committed to continuing the dialogue and meeting at offices of different stakeholders.

Cynthia also told the Port Arthur Economic Development Corporation about the federal resources available to them.

Port Arthur subsequently secured a $4.7 million EDA grant to establish an incubator center to help with future resiliency.

From left to right: Dr. Cynthia Johnson, Allison Thompson, Marva Bryan, Sue Southon, Chris Manegold

Moderator concluding remarks

Moderator John Zakian wrapped up the session by observing that:

▪ Long-term economic recovery continues long after the health and safety emergency has been stabilized. It

has, for example, taken more than 10 years to recover from Hurricane Katrina and six and counting from

Hurricane Sandy;

▪ EDA’s loan guarantee fund is a great source of help;

▪ FEMA can’t, because of the Stafford Act, directly provide funds for ED;

▪ FEMA is a phenomenal resource for data; and

▪ IEDC’s economic recovery program has delivered long-term results. After Katrina, the New Orleans

Business Alliance came out of the work of EDA-supported IEDC volunteers.

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Federal perspectives

Keynote: Dennis Alvord, EDA Deputy Assistant Secretary for Regional Affairs

Deputy Assistant Secretary Dennis Alvord began by noting that

2017 and 2018 had seen historic levels of hurricane activity (Harvey,

Irma, Maria, Lane, Florence) and that EDA was very active and

continues to be so. He acknowledged the excellent work of his staff

– including their work with IEDC.

He touched on the FEMA-established NDRF

https://www.fema.gov/national-disaster-recovery-framework and

the six Recovery Support Functions that it introduced

https://www.fema.gov/recovery-support-functions.

EDA disaster funding is available for long-term economic recovery

including:

▪ technical assistance;

▪ infrastructure repairs;

▪ small business financing; and

▪ acceleration of innovation and entrepreneurship.

These are offered with the aim of strengthening and diversifying local and regional economies.

Mr. Alvord noted that EDA also supports disaster recovery planning and that, post-disaster, the Economic Adjustment

Assistance (EAA) program https://www.eda.gov/pdf/about/Economic-Adjustment-Assistance-Program-1-Pager.pdf

helps with strategic planning grants, access to capital, and construction assistance. EAA can be used for strategy and

projects such as construction and capitalizing revolving loan funds.

Mr. Alvord concluded his remarks by announcing a new $100,000 grant of EDA-Atlanta to IEDC to assist with Northern

Carolina’s economic recovery from 2018’s Hurricane Florence.

Linda Cruz-Carnall, Regional Director, EDA Philadelphia

Regional Office

Linda Cruz-Carnall noted that in the Bipartisan Budget Act of 2018,

Congress appropriated $600 million in supplemental funding to

EDA to provide “disaster relief, long-term recovery, and restoration

of infrastructure in areas that received a major disaster

designation…in calendar year 2017.”

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Of that amount, $191 million has been allocated to the Philadelphia Regional Office, primarily for response to the effects

of Hurricanes Irma and Maria on Puerto Rico and the U.S. Virgin Islands.

On April 10, 2018, EDA issued its FY 2018 EDA Disaster Supplemental Notice of Funding Opportunity (NOFO).

Applicants must propose a project located in or serving one or more communities or regions impacted by Hurricanes

Harvey, Irma, or Maria, wildfires, or other federally-declared natural disasters occurring in calendar year 2017.

Construction projects and activities (including design and engineering) must be located within an eligible municipality

or county.

EDA disaster recovery funding priorities:

1. Recovery & resilience: Projects that assist with economic resilience and long-term recovery from natural

disasters.

2. Critical infrastructure: Projects that establish the fundamental building blocks of a prosperous economy,

including physical and other economic infrastructure.

3. Workforce development & manufacturing: Projects that support the planning and implementation of

infrastructure for skills-training centers and related facilities that address the hiring needs of the business.

4. Exports & FDI: Primarily infrastructure projects that enhance community assets to support growth in U.S.

exports and increased foreign direct investment.

Examples of eligible disaster activities:

1. Economic recovery strategic planning grants.

2. Resiliency projects to increase the ability of a community to anticipate, withstand, and bounce back from future

disasters.

3. Construction activities, including the restoration of damaged infrastructure and building new resilient

infrastructure.

4. Implementation of job creation and economic diversification strategies targeted towards affected workers and

businesses.

5. Enhancing access to and use of broadband services.

6. Facilitating and promoting market access for goods and services created and manufactured by businesses in

the impacted community/region.

7. Facilitating access to private capital investment and providing related capacity building and technical

assistance.

An applicant must include a standalone narrative attachment, not to exceed one page, describing the nexus between

the proposed project and disaster recovery and resiliency. The narrative should consider the consequences of the

relevant disaster and how the intended project outcome fulfills the community’s post-disaster recovery needs. The

strength of the Disaster Nexus is a competitive factor in funding decisions and is drawn from the consequences of the

relevant disaster and the intended project outcomes that fulfill the community’s specific post-disaster needs.

Most Disaster Supplemental grants will be required to provide matching fund support, either cash or in-kind. Generally,

EDA’s maximum allowable grant rate is 50 percent of project costs. In cases of documented economic distress or other

adequate justification, EDA may agree to a higher maximum up to 80 percent. In most cases, projects in Puerto Rico

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and the Virgin Islands qualify for an 80 percent grant rate based on economic distress. For Disaster Projects, EDA

does have the authority to increase the investment rate up to a maximum of 100 percent. Applicants must justify a

request for a grant rate in excess of 80 percent, which will generally be approved only for highly competitive projects

or in cases of extreme need.

In Fiscal Year 2018, EDA’s Philadelphia Regional Office awarded over $27 million dollars to respond to the 2017

disasters.

That total is roughly equal to PRO’s annual allocation for EDA’s Public Works program. PRO made a total of 12 grants

to 11 separate grantees. The average grant amount was $2,275,450 and the average grant rate was 82 percent.

The three key investments from the Philadelphia office are:

▪ an IEDC program to bring talent and expertise;

▪ additional grant assistance to ensure a stabilization project first funded earlier in the year; and

▪ additional relief relative to EDA's Revolving Loan Fund8 program to give more time to work with businesses.

8 https://www.eda.gov/rlf.

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The office has also reached out within the Joint Field Offices in PR and USVI – Linda’s colleague Phil Saputo is there

to identify needs on the ground.

Linda noted how islands lack the Regional Planning Councils and Economic Development Districts9 network typically

seen on the U.S. mainland, so EDA instead works closely with the United States Virgin Islands Economic Development

Authority (VIEDA), U.S. Virgin Islands Bureau of Economic Research (VIBER), and several NGOs familiar with on-

ground operations and with capacity to respond, primarily to business.

EDA also work closely with:

▪ The University of Puerto Rico-Mayaguez – to which it gives funding;

▪ Puerto Rico Manufacturing Extension (PRIMEX).

The four key investments made to date are:

1] PUERTO RICO TRADE AND EXPORT COMPANY

EDA $1,624,000

APPLICANT $ 406,000

TOTAL PROJECT COST $2,030,000

Establishes an entrepreneurial assistance and acceleration program that will deliver technical assistance and support

through centers located in San Juan, Ponce, and Mayaguez. Existing small and medium-sized businesses will be

provided with co-working space, access to shared services, business training, and technical assistance. This project

will support business continuity, the expansion of Puerto Rico's entrepreneurial ecosystem, and the recovery from the

impacts of hurricanes Irma and Maria.

2] PUERTO RICO SCIENCE, TECHNOLOGY AND RESEARCH TRUST

EDA $4,442,000

APPLICANT $1,110,500

TOTAL PROJECT COST $5,552,500

Supports the construction of PRSTRT’s Forward Center. The Forward Center will house co-location space for up to 60

high-technology ventures graduating from Parallel18 Ventures’ highly successful start-up incubation program. It will

also house Bio-nuclear of Puerto Rico, providing space to conduct research and development and prototyping activity

for neuro-modulator medical devices. This investment is expected to create 687 jobs.

9 https://www.eda.gov/edd.

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3] FOUNDATION FOR PUERTO RICO

EDA $5,584,880

APPLICANT $1,396,220

TOTAL PROJECT COST $6,981,100

Supports the Foundation’s “Destination Puerto Rico” visitor-based tourism project. Provides technical assistance to

businesses and long-term recovery planning for six regions outside metropolitan San Juan. The project will facilitate

the creation of a Destination Plan for each region to build the capacity of existing SMEs and assist with the creation of

new tourism-related business. It will also provide workshops promoting business continuity and preparedness, as well

as technical assistance to improve sustainability.

4] UNIVERSIDAD DEL SAGRADO CORAZÓN

Construction Non-Construction

EDA $1,915,000 $400,000

APPLICANT $ 478,750 $100,000

TOTAL PROJECT COST $2,393,750 $500,000

This construction investment funds the renovation of two warehouses to provide space for 14 small companies in the

creative industries. It is expected to create 75 new jobs and leverage $1,505,000 in private sector investment. The non-

construction investment funds a technical assistance program to support entrepreneurial/business development in the

creative industries to develop products and grow companies. The combined projects are expected to save 50 existing

jobs, create 125 new jobs, and leverage over $3,000,000 in private investment.

Robert Haywood, FEMA Long-Term Recovery

Bob Haywood suggested that there is a need to simplify FEMA programs and

that states are still struggling with how to organize around and sustain the

NDRF. He noted that FEMA is pushing for the State Disaster Recovery

Coordinator to work with the Federal Disaster Recovery Coordinator and

that, if this is to work, the latter should not be employed on a part-time basis.

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Other aspirations/recommendations include the need for:

▪ states to develop frameworks so that they are ‘good to go’ when disaster strikes;

▪ strengthening of federal inter-agency coordination;

▪ helping states cover their costs of recovery and to leverage resources;

▪ sharing data and explaining what the data mean;

▪ more focus on outcome-based recovery - build in long-term objectives on the front end;

▪ focusing resources on where the risks lie - e.g., hurricane, earthquake etc.;

▪ plans and framework at the state level;

▪ states to use CDBG-DR for housing (community capacity would also be developed by this); and

▪ states not to leave management of CDBG to emergency management staff.

FEMA is developing MAX-TRAX, a web-based software program to record, update in real time, and share community

issues, strategies, and actions with federal, state, and local partners. This will help break down silos of knowledge -

e.g., EDA is not involved with housing but needs to work with housing providers due to inter-dependencies between

the economy and housing.

The NDRF has companion documents called Federal Interagency Operations Plans (FIOPs). There is one for recovery,

mitigation, etc. These outline what the federal government can and can’t do.

FEMA mitigation teams help the agency work with states before a disaster strikes.

Most coastal areas have a Governor’s Coastal Group - e.g., the Southeast Disaster Recovery Partnership in North

Carolina https://secoora.org/sdrp.

In some cases, FEMA will only fund 30 percent of projects, so partnerships are key.

Mark Ihenacho, Public Affairs Specialist, U.S. Small Business Administration Office of Disaster Assistance,

Atlanta

The SBA lent more than $10.9 billion post-Katrina. Ihenacho outlined the Disaster Loan Program as an important part

of assistance available to businesses to recover from a declared disaster.

Details include:

▪ low-interest loans to businesses of all sizes, home-owners, and nonprofits (only for uninsured losses);

▪ interest rates as low as 4 percent, 2.5 percent for nonprofits, and 2 percent for homeowners;

▪ businesses can get up to $2 million for physical damage;

▪ working capital is available to small businesses and nonprofits – businesses may have lost clientele, lost

revenues, etc.;

▪ homeowners can get up to $200,000 to repair or replace primary homes;

▪ homeowners and renters can get up to $40,000 for personal property - including automobiles;

▪ lending criteria is not as stringent as in the private sector – SBA looks at credit history and repayment ability

(law requires borrower to reasonably show that they can repay an SBA loan).

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Ihenacho also explained collateral requirements.

▪ SBA does not deny disaster loans for lack of collateral but not pledging available collateral could result in loan

denial.

▪ Loans for physical damage of $25,000 or less will be a signature loan - no need for collateral.

▪ No collateral is required for working capital loans of less than $25,000.

▪ A business can get up to $50,000 unsecured ($25,000 for physical damage and $25,000 for working capital).

SBA works with resource partners (Small Business Development Centers (SBDCs); Women’s Business Centers

(WBCs), etc.) for outreach and assistance to the business community. SBDCs help affected businesses with their SBA

disaster loan applications.

Resource partners assist SBA in establishing Business Recovery Centers (BRCs). SBA representatives at BRCs can

provide information, answer questions about disaster loans, and help businesses complete the SBA application.

The SBA typically takes two-three weeks, from the time of application, to make a loan decision.

There is no obligation to take an approved SBA disaster loan. Even if a business turns down the loan, they can still

change their mind within six months and request reinstatement of the loan.

In terms of promoting the disaster loan program, SBA finds the media to be very helpful. SBA also works with elected

officials, chambers of commerce, federal, state, and local stakeholders, and faith-based and community organizations

in sharing disaster loan program information with the public.

Ihenacho said that SBA is good at sharing disaster loan data with entities engaged in providing financing to businesses

for unmet needs and cited, as an example, collaboration with the Florida Department of Economic Opportunity during

Hurricane Irma.

As part of SBA’s commitment to promote public awareness of disaster preparedness, SBA teamed with the Insurance

Institute of Home and Business Safety (IBHS) to encourage businesses and individuals to protect their assets and

develop effective business plans for continuity operations.

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Jorge Ayala, Regional Director, EDA Austin Regional Office

Ayala gave a quick intro to the EDA-supported, IEDC-

managed volunteer visits. He promoted the one-page form

through which professionals can sign up to volunteer their

services: http://restoreyoureconomy.org/volunteers.

Ayala has received positive reports from those visited by

IEDC volunteers and that, because disaster-hit

communities often don't know where to start, such input is

very valuable.

From left to right: Phil Paradice, Jorge Ayala, Linda Cruz-Carnall

Phil Paradice, Regional Director, EDA Atlanta Regional Office

Phil Paradice called for the quick creation of disaster coordinators among

Economic Development Districts (EDDs), as this relieves the burden on the many

local government staff who will be committed to emergency response operations.

He noted that Asa Williams (EDA’s field coordinator for the Economic Recovery

Support Functions) worked closely with IEDC to put on workshops that introduced

Hurricane Irma-impacted communities throughout Florida to FEMA, SBA, HUD,

EDA, and gave these the opportunities to identify projects. Mr. Paradice noted that

EDA Atlanta had received requests for over $300 million in grants. With the total

pot at $147 million, there is healthy competition for funds.

From left to right: FEMA’s Bob Haywood, EDA-Atlanta Phillip Paradice, EDA-Philadelphia Linda Cruz-Carnal, EDA

Deputy Assistant Secretary Dennis Alvord, EDA-Austin Jorge Ayala, IEDC’s Lynn Knight, CEcD