U.S. Travel Update: CDBG/EDA Grant Information

PUBLIC AFFAIRS UPDATE From Tori Emerson Barnes at 3:44 PM on April 24:

We have recently received important updates on the process for accessing Community Development Block Grants (CDBG) and Economic Development Administration (EDA) Disaster Grants. Please see below for a summary of each as well as resources to help you obtain available funding.

Overview

• The first round of CDBG funding has been released (list of grantees can be found here). We encourage you to reach out ASAP to a state or local grantee in your region, as grantees determine how funds will be spent.
• Links to template letters to 1) request a subgrant from a grantee can be found here and 2) for the grantee to request a waiver from the Secretary of Housing and Urban Development (HUD) for tourism promotion here.
• You can find region-specific stats on the economic impact of travel to use in the template letters here.
• Find a full summary of eligible CDBG uses here. We expect to receive more detailed guidance in the coming days.

Summary: Community Development Block Grants – Coronavirus (CDBG-CV)

The CARES Act provides $5 billion to be allocated to and among states and localities in three tranches:

1. $2 billion to states and localities has been distributed (list of grantees here).
   • Reach out to a grantee ASAP to seek subgrants: If your organization wishes to seek a subgrant from a CDBG grantee, we recommend that you reach out to a state or local grantee in your area ASAP. Grantees have the ability to determine how funds will be spent within the eligibility guidelines.
     • A template letter requesting funding from a grantee can be found here.
     • A template letter from a grantee to HUD seeking a waiver for tourism promotion can be found here.
     • Region-specific stats that can be used in the letters can be found here.
     • NOTE: Waivers for tourism promotion must be requested by the grantee. DMOs cannot receive CDBG grants directly from HUD or seek a waiver on their own.
   • Funding will be VERY competitive, spent quickly and likely focus on public health activities: The CARES Act lifted the 15% cap on how much states and local governments can spend on public services (e.g. public health, child care, elderly services, etc.). HUD is also allowing CDBG funds to be used for reimbursing costs already spent on eligible activities. This means the competition for dollars will be significant.
   • Summary guidance for how states and local CDBG funds can be spent can be found here. HUD will issue more detailed and final guidance very soon. Since tourism promotion requires a waiver, it is not listed in the summary of eligible uses of CDBG funds.
2. $1 billion to states and insular areas (to be made available within 3 weeks).
   • It is unclear how HUD will distribute funding among the states at this time. The formula is likely to consider COVID-19 infections and healthcare needs, but could also include some elements of economic disruption.
   • Guidance on how these CDBG funds can be spent is still forthcoming.
3. $2 billion to states and locals by formula (no estimated timeline for when these funds will be distributed).
   • It is unclear how HUD will distribute funding among the states at this time. The formula is likely to consider COVID-19 infections and healthcare needs, but could also include some elements of economic disruption.
   • Guidance on how these CDBG funds can be spent is still forthcoming.

Summary: Economic Development Administration Disaster Grants

The CARES Act provided $1.5 billion total for EDA's Economic Adjustment Assistance program.

1. A notice of funding opportunity (NOFO) is likely to be released within the next week.
   • Once the NOFO is released, eligible grantees must submit grant applications to an EDA regional office, which then decides which grant applications to fund. There are six regional offices nationwide.
   • EDA is in the process of finalizing its NOFO (grant process) and the final process should be available soon.
2. Focus of these grants will be on long-term economic development.
   • EDA's program is focused on long-term economic development based on a locality's or region's economic development plan.
   • It is important to reach out to your regional economic development authority ASAP if you want to be a recipient of these grants.
3. Nonprofits are eligible, but MUST partner with a state or local government.
   • Eligible EDA grantees include state and local governments and nonprofits. However, a nonprofit cannot apply without the support of the local or state government. This is a locally driven process and we encourage you to reach out to a local economic development authority in your region to begin these conversations ASAP.

DMO Relief Now and What's Next

On Tuesday, April 28, at 12:00 p.m. ET, we will hold a second DMO-focused webinar to cover relief options that are available specifically for your organizations as of now, including the CDBG and EDA grants. Alejandro Contreras, director of preparedness, communication and coordination at the Small Business Administration (SBA), will be speaking about how to navigate the funding that is available through the SBA.

Please feel free to submit questions in advance here.

We hope this guidance is helpful to you as you consider the best relief options for your organization. We will continue to fight tirelessly for more relief in the coming weeks.

Best,

Tori Emerson Barnes
Executive Vice President, Public Affairs and Policy
U.S. Travel Association