Rural Innovation Stronger Economy (RISE) Grant Program

• Published date: 15 June 2021
• Citation: 86 FR 31585
• Record Number: 2021-12334
• Section: Rules and Regulations
• Court: Rural Business-cooperative Service

This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

31585

Vol. 86, No. 113

Tuesday, June 15, 2021

DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service

7 CFR Part 4284

[Docket No. RBS–21–BUSINESS–0007]

RIN 0570–AB06

Rural Innovation Stronger Economy

(RISE) Grant Program

AGENCY

: Rural Business-Cooperative

Service, USDA.

ACTION

: Final rule; request for comment.

SUMMARY

: The Rural Business-

Cooperative Service (RBCS), an agency

of the Rural Development mission area

within the U.S. Department of

Agriculture (USDA), hereinafter referred

to as the Agency, is issuing a final rule

to establish the Rural Innovation

Stronger Economy (RISE) program as

authorized by Section 6424 of the

Agriculture Improvement Act of 2018

(2018 Farm Bill) to improve the ability

of distressed rural communities to

create high-wage jobs, accelerate the

formation of new businesses, and help

rural communities identify and

maximize local assets.

DATES

: Effective date: This final rule is

effective June 15, 2021.

Comment date: This final rule is being

issued to allow for immediate

implementation of this program.

Although this final rule is effective

immediately, comments are solicited

from interested members of the public

on all aspects of the rule. These

comments must be submitted

electronically and received on or before

August 16, 2021. The Agency will

consider these comments and the need

for making any revisions as a result of

these comments.

ADDRESSES

: Comments may be

submitted on this rule using the

following method: Comments may be

submitted by going to the Federal

eRulemaking Portal: Go to https:/

www.regulations.gov and, in the

‘‘Search Documents’’ box, enter the

Docket Number RBS–21–BUSINESS–

0007 or the RIN # 0570–AB06, and click

the ‘‘Search’’ button. To submit a

comment, choose the ‘‘Comment Now!’’

button. Information on using

Regulations.gov, including instructions

for accessing documents, submitting

comments, and viewing the docket after

the close of the comment period, is

available under the ‘‘Help’’ tab at the

top of the Home page. Other

Information: Additional information

about Rural Development and its

programs is available on the internet at

http://www.rd.usda.gov.

FOR FURTHER INFORMATION CONTACT

:

Sami Zarour, Director, Program

Management Division, Rural Business-

Cooperative Service, U.S. Department of

Agriculture, STOP 3225, 1400

Independence Avenue SW, Washington,

DC 20250–3225; email: sami.zarour@

usda.gov; telephone (202) 720–1400.

SUPPLEMENTARY INFORMATION

:

Executive Order 12866, and 13563

Executive Orders 12866 and 13563

direct agencies to assess all costs and

benefits of available regulatory

alternatives and, if regulation is

necessary, to select regulatory

approaches to maximize net benefits

(including potential economic,

environmental, public health and safety

effects, distributive impacts, and

equity). Executive Order 13563

emphasizes the importance of

quantifying both costs and benefits, of

reducing costs, of harmonizing rules,

and of promoting flexibility.

This final rule has been determined to

be not-significant for purposes of

Executive Order (E.O.) 12866 and

therefore has not been reviewed by the

Office of Management and Budget

(OMB).

Executive Order 12988, Civil Justice

Reform

This final rule has been reviewed

under Executive Order 12988, Civil

Justice Reform. In accordance with this

rule: (1) Unless otherwise specifically

provided, all State and local laws and

regulations that conflict with this rule

will be preempted; (2) no retroactive

effect will be given to this rule unless

specifically prescribed in the rule; and

(3) administrative proceeding of the

National Appeals Division of the

Department of Agriculture (7 CFR part

11) must be exhausted before bringing

suit in court that challenges action taken

under this rule.

Executive Order 12372,

Intergovernmental Review

This final rule is not subject to the

requirements of Executive Order 12372,

‘‘Intergovernmental Review of Federal

Programs,’’ as implemented under

USDA’s regulations at 2 CFR part 415,

subpart C.

Executive Order 13132, Federalism

The policies contained in this rule do

not have any substantial direct effect on

states, on the relationship between the

national government and the states, or

on the distribution of power and

responsibilities among the various

levels of government. Nor does this final

rule impose substantial direct

compliance costs on state and local

governments. Therefore, consultation

with states is not required.

Executive Order 13175, Consultation

and Coordination With Indian Tribal

Governments

This executive order imposes

requirements on the Agency in the

development of regulatory policies that

have tribal implications or preempt

tribal laws. The Agency has determined

that the rule does not have a substantial

direct effect on one or more Indian

tribe(s) or on either the relationship or

the distribution of powers and

responsibilities between the federal

government and Indian tribes. Thus,

this final rule is not subject to the

requirements of Executive Order 13175.

If tribal leaders are interested in

consulting with the Agency on this rule,

they are encouraged to contact USDA’s

Office of Tribal Relations or the

Agency’s Native American Coordinator

at: AIAN@usda.gov to request such a

consultation.

Regulatory Flexibility Act

The Regulatory Flexibility Act (5

U.S.C. 601 et seq.) (RFA) generally

requires an agency to prepare a

regulatory flexibility analysis of any rule

subject to notice and comment

rulemaking requirements under the

Administrative Procedure Act (‘‘APA’’)

or any other statute. The Administrative

Procedures Act exempts from notice and

comment requirements rules ‘‘relating to

agency management or personnel or to

public property, loans, grants, benefits,

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or contracts’’ (5 U.S.C. 553(a)(2)), so

therefore an analysis has not been

prepared for this rule.

National Environmental Policy Act

In accordance with the National

Environmental Policy Act of 1969,

Public Law 91–190, this final rule has

been reviewed in accordance with 7

CFR part 1970 (‘‘Environmental Policies

and Procedures’’). The Agency has

determined that (i) this action meets the

criteria established in 7 CFR 1970.53(f);

(ii) no extraordinary circumstances

exist; and (iii) the action is not

‘‘connected’’ to other actions with

potentially significant impacts, is not

considered a ‘‘cumulative action’’ and is

not precluded by 40 CFR 1506.1.

Therefore, the Agency has determined

that the action does not have a

significant effect on the human

environment, and therefore neither an

Environmental Assessment nor an

Environmental Impact Statement is

required.

Catalog of Federal Domestic Assistance

The Catalog of Federal Domestic

Assistance (CFDA) number assigned to

this program is 10.755, Rural Innovation

Stronger Economy (RISE) Grant

Program. The Catalog is available on the

internet at https://sam.gov/content/

assistance-listings. The Government

Publishing Office (GPO) prints and sells

the CFDA to interested buyers. For

information about purchasing the

Catalog of Federal Domestic Assistance

from GPO, call the Superintendent of

Documents at 202–512–1800 or toll free

at 866–512–1800, or access GPO’s

online bookstore at http://

bookstore.gpo.gov.

E-Government Act Compliance

Rural Development is committed to

the E-Government Act, which requires

government agencies in general to

provide the public the option of

submitting information or transacting

business electronically to the maximum

extent possible.

Civil Rights Impact Analysis

Rural Development has reviewed this

rule in accordance with USDA

Regulation 4300–4, ‘‘Civil Rights Impact

Analysis,’’ to identify any major civil

rights impacts the rule might have on

program participants on the basis of age,

race, color, national origin, sex or

disability. Based on the review and

analysis of the rule and available data,

it has been determined that the program

purpose, application submission and

eligibility criteria, or issuance of this

Final Rule is not likely to negatively

impact low and moderate-income

populations, minority populations,

women, Indian tribes or persons with

disability, by virtue of their race, color,

national origin, sex, age, disability, or

marital or familial status.

Paperwork Reduction Act

In accordance with the Paperwork

Reduction Act of 1995 (44 U.S.C.

chapter 35), USDA requested that the

Office of Management and Budget

(OMB) conduct an emergency review of

a new information collection that

contains the Information Collection and

Recordkeeping requirements contained

in this notice by May 28, 2021. An

emergency clearance approval for this

information collection is due to the

following conditions: (1) The time

sensitive competitive solicitation

application window; (2) the urgency to

obligate funds prior to September 30,

2021; and (3) being able to effectively

implement the program as quickly as

possible to benefit rural communities.

In addition to the emergency

clearance, the regular clearance process

is hereby being initiated to provide the

public with the opportunity to comment

under a full comment period, as the

Agency intends to request regular

approval from OMB for this information

collection. Comments from the public

on new, proposed, revised, and

continuing collections of information

help us assess the impact of our

information collection requirements and

minimize the public’s reporting burden.

Comments may be submitted regarding

this information collection through the

Federal eRulemaking Portal. Go to

https://www.regulations.gov and, in the

lower ‘‘Search Regulations and Federal

Actions’’ box, select ‘‘RBS’’ from the

agency drop-down menu, then click on

‘‘Submit.’’ In the Docket ID column,

select Docket No. RBS–21–CO–OP–0011

to submit or view public comments and

to view supporting and related materials

available electronically. Information on

using Regulations.gov, including

instructions for accessing documents,

submitting comments, and viewing the

docket after the close of the comment

period, is available through the site’s

‘‘User Tips’’ link. Comments on this

information collection must be received

by August 16, 2021.

Title: 7 CFR part 4284, subpart L,

Rural Innovation Stronger Economy

(RISE) Grant Program.

OMB Control Number: 0570–0075.

The following estimates are based on

the average over the first 3 years the

program is in place.

Estimate of Burden: Public reporting

burden for this collection of information

is estimated to average 1.52 hours per

response.

Respondents: Institutions of higher

education, private entities,

governmental entities, nonprofits,

Indian Tribes, district organizations.

Estimated Number of Respondents:

10.

Estimated Number of Responses per

Respondent: 32.1.

Estimated Number of Responses: 321.

Estimated Total Annual Burden

(hours) on Respondents: 486.5.

Copies of this information collection

may be obtained from Susan Woolard,

Regulatory Division, Rural Development

Innovation Center, U.S. Department of

Agriculture, 1400 Independence Ave.

SW, Stop 1522, Washington, DC 20250;

telephone: 202–720–9631; email:

susan.woolard@usda.gov. All responses

to this information collection and

recordkeeping notice will be

summarized and included in the request

for OMB approval. All comments will

also become a matter of public record.

USDA Non-Discrimination Policy

In accordance with federal civil rights

law and USDA civil rights regulations

and policies, the USDA, its agencies,

offices, and employees, and institutions

participating in or administering USDA

programs are prohibited from

discriminating based on race, color,

national origin, religion, sex, gender

identity (including gender expression),

sexual orientation, disability, age,

marital status, family/parental status,

income derived from a public assistance

program, political beliefs, or reprisal or

retaliation for prior civil rights activity,

in any program or activity conducted or

funded by USDA (not all bases apply to

all programs). Remedies and complaint

filing deadlines vary by program or

incident.

Persons with disabilities who require

alternative means of communication for

program information (e.g., Braille, large

print, audiotape, American Sign

Language, etc.) should contact the

responsible Agency or USDA’s TARGET

Center at (202) 720–2600 (voice and

TTY) or contact USDA through the

Federal Relay Service at (800) 877–8339.

Additionally, program information may

be made available in languages other

than English.

To file a program discrimination

complaint, complete the USDA Program

Discrimination Complaint Form, AD–

3027, found online at http://

www.usda.gov/oascr/how-to-file-a-

program-discrimination-complaint and

at any USDA office or write a letter

addressed to USDA and provide in the

letter all of the information requested in

the form. To request a copy of the

complaint form, call (866) 632–9992.

Submit your completed form or letter to

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USDA by: (1) Mail: U.S. Department of

Agriculture, Office of the Assistant

Secretary for Civil Rights, 1400

Independence Avenue SW, Washington,

DC 20250–9410; or (2) email: OAC@

usda.gov.

USDA is an equal opportunity

provider, employer, and lender.

Background

Rural Development (RD) is a mission

area within the United States

Department of Agriculture (USDA)

comprised of the Rural Utilities Service

(RUS), Rural Housing Service (RHS) and

Rural Business-Cooperative Service

(RBCS). RD’s mission is to increase

economic opportunity and improve the

quality of life for all rural Americans.

RD meets its mission by providing

loans, loan guarantees, grants, and

technical assistance through more than

40 programs aimed at creating and

improving housing, businesses, and

infrastructure throughout rural America.

Consistent with the above mission,

the Rural Innovation Stronger Economy

(RISE) Grant Program is a newly

authorized program enacted under the

authority of Section 6424 of the

Agriculture Improvement Act of 2018

(Pub. L. 115–34) (2018 Farm Bill) to

help struggling communities by funding

job accelerators in low-income rural

communities. This action is intended to

implement the provisions provided in

Section 6424 of the 2018 Farm Bill by

issuing a final rule. This final rule will

describe the program purpose, the

eligible uses of program funds, and

entities eligible for assistance under the

RISE Grant Program in alignment with

the Farm Bill requirements. The new

regulation will also include competitive

grant scoring criteria and cost sharing

requirements of the program, as well as

administration and servicing of

outstanding grants. The RISE Grant

Program will meet a recognized need for

federal interagency support of jobs

accelerator partnerships for the fostering

and promotion of private investment in

an identified regional economy. The

flexible use of funds by RISE grant

recipients allows a region to identify

and leverage its community assets to

better assist new and existing industry

clusters, including the use of broadband

service for programs of the jobs

accelerator. RISE will allow eligible

entities to establish and operate

innovation centers for job development

through training and programming

efforts that will improve the ability of

rural communities to create high-wage

jobs, accelerate the formation of rural

businesses and strengthen regional

economies.

Purpose of the Regulatory Action

The purpose of this regulation is to

implement Section 6424 of the 2018

Farm Bill designed to meet a recognized

need for federal interagency support of

jobs accelerator partnerships for the

fostering and promotion of private

investment in an identified regional

economy. The flexible use of funds by

RISE grant recipients allows a region to

identify and leverage its community

assets to better assist new and existing

industry clusters, including the use of

broadband service for programs of the

jobs accelerator.

Discussion of the Rule

Many of the definitions used in this

regulation are used in or are consistent

with other Agency programs; however,

the Agency calls attention to the

following new definitions at

§ 4284.1103: High-wage job, industry

cluster, jobs accelerator, lead applicant,

region, rural and rural area, and rural

jobs accelerator partnership. These

definitions provide important

information regarding project eligibility

as well as requirements for the

applicant’s organizational structure.

RISE grants are made for the benefit

of rural jobs accelerator partnerships

(partnership). These partnerships are

working groups that consist of

community and regional stakeholders

whose focus is the needs of an

identified industry cluster.

Implementation and sustainability of

the partnership is more likely with a

broad coalition of stakeholders; to that

end, the partnership must be made up

of one or more representatives of the

groups listed in § 4284.1112(a).

Additionally, all partnerships must have

a lead applicant as described in

§ 4284.1112(b). The lead applicant is

responsible for the partnership, enters

into the financial assistance agreement

with the Agency, administers the grant

proceeds and activities, and takes

ownership of any assets purchased with

grant funds. Only partnerships formed

on or after December 20, 2018, are

eligible for awards.

The partnership and proposed project

must serve a region as defined in

§ 4284.1103 and discussed at

§ 4284.1112(d). The partnership must

ensure that the region is clearly defined

and is of a size that enables

collaboration among members while

also containing critical elements of the

industry cluster prioritized by the

partnership. Eligibility under all other

provisions of this part is negated if the

lead applicant meets either provision in

§ 4284.1109(a) or (b). The lead applicant

will remain ineligible to receive funds

until the disqualifying condition has

been remedied.

To ensure that all RISE funds are

being used, in a timely manner, to

provide the services for which they

were awarded, the Agency implements,

at § 4284.1110(a), a satisfactory progress

requirement. Lead applicants that have

unexpended funding from previous

RISE grant(s) must expend 50 percent or

more of the previous RISE grant funds

by the time the Agency makes an

eligibility determination or the

application will be deemed ineligible

for that funding cycle.

Eligible projects for the RISE grant

program are those that accelerate the

formation of new businesses with high-

growth potential, improve the ability of

distressed, rural communities to create

high-wage jobs, accelerate the formation

of new businesses and strengthen

regional economies. Projects must be

identified at the time of application and

fall into one of two categories:

Construction or purchase of buildings or

equipment; or project support.

Construction or purchase is limited to

buildings that will serve as innovation

centers for jobs accelerator. Equipment

purchases must be necessary to support

the functions of the jobs accelerator.

Specific information on construction

and purchase is found at § 4284.1113(a).

It is noted again that any buildings or

equipment purchased with RISE grant

proceeds must be owned and controlled

by the lead applicant. Support covers a

broad range of activities but includes

functions for the support of programs

carried out at or in direct partnership

with a jobs accelerator or in support of

jobs accelerator initiatives. The Agency

provides guidance on acceptable

activities at § 4284.1113(b). The Agency

may, from time to time, revise the list

of acceptable activities through a

Federal Register notice.

As detailed at § 4284.1114, the

Federal share of any activity under the

RISE grant will be no more than 80

percent of eligible project costs. The

non-Federal share is the responsibility

of the applicant and may be in the form

of third-party equity contributions,

including donations and in-kind

contributions of fairly valued goods or

services. Evidence of the amount and

source of the non-Federal funds must be

provided at the time of application

submittal with documentation that the

required non-Federal funds have been

received or remain committed prior to

execution of the financial assistance

agreement by the lead applicant. The

match is based on eligible project costs

as outlined at § 4284.1114(c). Grants are

further restricted at § 4284.1114(a)(1)

and (2) to a minimum request of not less

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than $500,000 and a maximum request

of not more than $2,000,000.

Restrictions are also placed on indirect

costs. Costs incurred by the applicant

associated with administering the RISE

grant are statutorily restricted to ten

percent of the RISE grant amount.

As the Agency wishes to encourage

projects across a broad geographic area,

applicants are limited to one application

per funding cycle, unless otherwise

notified in a Federal Register notice.

The contents of a complete application

may be found at § 4284.1115(b). All

items must be included or addressed for

an application to be considered

complete and to compete for funding.

The items requested allow the Agency

to complete an applicant and project

eligibility determination, as well as

determine project alignment with

Agency priorities.

Based upon comments received

during the request for public comments

period, the Agency added a review of

concept proposal at § 4284.1115(a).

Applicants may submit, not less than 60

days prior to the application submittal

deadline, the items in § 4284.1115(a)(1)

through (4) for Agency review. The

Agency will review the submitted items

and provide feedback regarding any

weaknesses and a letter of

encouragement or discouragement. A

letter of encouragement does not

guarantee eligibility or funding.

Similarly, a letter of discouragement

does not preclude the applicant from

submitting a complete application. If an

applicant submits a review request and

later submits a complete application,

duplicative items do not have to be

resubmitted; however, all information

must be up-to-date and current.

To ensure that projects begin

providing the proposed services as

quickly as possible and that all members

of the partnership are ready to

contribute to the success of the

proposed project, the Agency at

§ 4284.1115(b)(2)(x) requires that all

applications include a readiness

demonstration. The items identified in

§ 4284.1115(b)(2)(x)(A) through (E) not

only provide the Agency evidence that

the partnership is ready and able to

begin the project but also allows the

partnership to evaluate the ability of

their members to provide the services

necessary, create a marketing and

reporting plan and finalize a timeline.

Each complete and eligible

application for the RISE program will be

scored based on the priority scoring

criteria found at § 4284.1117(a) through

(g). Applications will, unless otherwise

publicly announced, be reviewed, and

scored by Agency personnel. The

scoring criteria are designed to prioritize

sustainable projects that best meet the

program criteria set forth in the 2018

Farm Bill and this regulation. Scored

applications will be ranked from highest

to lowest score for funding

consideration. Due to the variability of

proposals from year to year, no

minimum score for funding is provided.

Regardless of a proposal’s priority score

or relative ranking, all funding decisions

are subject to the availability of funds.

Receipt of funds in one funding cycle

does not guarantee priority or funding

in future funding cycles.

Information specific to the awarding

of a grant is provided at § 4284.1119. As

noted previously, the lead applicant is

responsible for the administration of the

grant and will, if the application is

selected for funding, be issued a letter

of conditions by the Agency. The letter

establishes conditions that the applicant

must agree to prior to the obligation of

funds. Acceptance of the conditions by

the applicant does not constitute

commitment or obligation of funds by

the Agency. The applicant must not

make any binding commitments until a

financial assistance agreement has been

fully executed and the applicant has

been notified by the Agency of grant

approval. The grant performance period

for all grants award under this part is

four years beginning on the date the

financial assistance agreement was

signed by the Agency. At the end of the

four-year period any unspent grant

funds are required to be returned to the

Agency. If circumstances beyond the

grantee’s control occur, the Agency may,

at its sole discretion, approve a one-time

grant performance period extension.

Any extension will be for a period not

to exceed two years and must be

requested by the grantee prior to the

expiration of the grant performance

period, as specified in the financial

assistance agreement. Requests must

describe the circumstances that

prohibited the grantee from completing

the project and show that an active jobs

accelerator and related programming is

established. Further discussion of times

extensions can be found at

§ 4284.1110(g)(1).

Discussion of Public Comments for

Final Rule

On July 22, 2020, the Agency

published a request for comments in the

Federal Register (85 FR 44273) to allow

stakeholders a platform and sufficient

time to provide formal comments on

provisions of the Rural Innovation

Stronger Economy (RISE) Grant

Program. Eleven entities provided

written comments during the formal

comment period. The Agency also

conducted listening sessions for

interested stakeholders on July 28, and

July 30, 2020, regarding implementation

of the Final Rule for the RISE program.

A listening session was also held on

July 21, 2020, to receive comments from

Agency staff. The Agency reviewed and

considered all comments that were

received. The following discusses

substantive comments and the Agency’s

response:

Comment: Two commenters indicated

that RISE should have a framework for

an applicant providing components of

the application, similar to the

Department of Commerce’s Economic

Development Administration’s (EDA)

process for their programs, including a

concept proposal to highlight their

eligibility and scope of work.

Response: The Agency considered

this application framework and

included the concept paper proposal

suggestion in the application process.

Comment: Two commenters provided

suggestions for quantitative scoring

including evaluation of market

connections made, new regional

programs and networks established.

These scoring criteria indicate that there

should be not only qualitative but

quantitative factors when evaluating

RISE applications.

Response: The Agency used the

comments to develop benchmarks of

success in scoring criteria to make

awards that will generate the intended

program outcomes. The Agency

considered this information and

therefore included a requirement that

project performance reports be provided

twice a year, from the grantee, in order

to monitor progress on the key metrics

found in the scope of work.

Comment: A commenter suggested

scoring metrics ranging from

innovation, scope and monetary impact

of the project to private/public

partnerships involved in the project was

provided. The commenter discussed

including scoring consideration for

projects in federal Opportunity Zones.

Response: The Agency considered

various metrics from innovation to

scope and monetary impact of the

project as well as partnership analysis

and included this in the scoring criteria.

The Agency may include federal

initiatives as a criterion under the

Administrator section of scoring, which

may be announced in the Federal

Register in the Notice of Solicitation of

Applications on an annual basis.

Comment: A commenter suggested

that the program provide more

significant scoring and weighting for

partnerships that evidence

commitments to target low-income

workers for workforce development

activity. The commenter further

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recommended that the Agency

emphasize high impact metrics

including creation and retention of

high-wage jobs, private investment

leveraging, businesses established or

improved, new products or services

commercialized, increased regional

collaboration, the number and dollar

amount of new loans, improvement of

income of participating workers, sales of

participating businesses, and the

amount of training and education

activities related to the innovation.

Response: The Agency considered

these items and many of these items

were included in the application

content and scoring. The Agency

addressed grant monitoring metrics in

the servicing section of the regulation.

The Agency provided an analysis of the

partnership’s abilities in the application

and scoring content of the regulation.

Comment: Three commenters

indicated that applicants should fully

demonstrate commitment and

sustainability of the project in their

applications.

Response: The Agency agrees with

this comment and includes input on

technology, scope, commitment, and

sustainability of the project and

incorporated these items not only in the

application but also in the scoring

criteria for the RISE program.

Comment: One commenter discussed

the applicant providing details of

organization, governance, operations,

and roles of partners in the partnership.

One commenter discussed what the

application should consist of including

a definition of the consortium of

entities, roles of each partner, business

plan, description of the region in

economic terms, activities to be

performed by the partnership, how the

partnership will collect metrics of

performance on itself and a

communication plan outlining how

success stories and impacts will be

outlined.

Response: The Agency considered

details of the partnership from

organization to governance and

included these components in the

application requirements and scoring

criteria.

Comment: One commenter suggested

the Agency evaluate proposals by

different standards.

Response: The Agency does not agree

with using different standards for the

evaluation of applications and will

evaluate all proposals by the same

scoring criteria.

Comment: Two commenters

discussed an assessment of the

applicant’s link with rural communities

to markets, networks, industry clusters

and other regional opportunities and

assets plus the characteristics for

regional readiness and success.

Response: The Agency considered

these comments to develop benchmarks

of readiness and commitment to the

identified region in scoring criteria to

make awards that will generate the

intended program outcomes.

Comment: Several commenters

suggested including a rating factor of the

amount of previous partnership

activities and resources that will be

leveraged by the RISE grant activities

and developing successful benchmarks

ranging from quantifying prototypes,

technology and jobs to markets criteria.

Response: The Agency appreciates the

suggested metrics and included many of

these in the regulation and scoring

criteria.

Comment: Two commenters

discussed measurement of outcome-

based metrics including business,

employment and wage growth and job

training as well as patent applications in

its grant monitoring. Several

commenters indicated that grant

servicing reports should be no more

frequent than semi-annual due to the

length of the grant period.

Response: The Agency addressed

grant monitoring metrics in the

servicing section of the regulation. The

Agency agrees and will monitor

performance metrics and outcomes of

grant funds on a semi-annual basis.

Comment: Commenter discussed the

statutory requirement of a 20 percent

cost match of the RISE Program and

requested the Agency not to require the

entire portion of the match to be

demonstrated at the application stage,

but instead to allow applicants to

produce the remainder of any cost-share

commitment up to a year after award.

Response: The Agency is unable to

consider an option to delay grant

matching requirements due to statutory

requirements of the RISE Program. The

input of matching funds at grant

origination demonstrates the applicant’s

commitment to the project.

Comment: One commenter discussed

the Agency extending past the ten

percent restriction on indirect costs for

awarded entities.

Response: The ten percent limitation

on indirect costs and administrative

expenses is a statutory requirement and

cannot be modified as suggested.

Comment: One commenter discussed

the ability of innovation centers to be

virtual in lieu of having a physical

building centered in one community.

Response: A virtual option is

allowable under RISE if a rural region is

being served and all other eligible

criteria are met. The Agency did clarify

that the construction of an innovation

center must be in a rural area only.

Comment: One commenter suggested

allowing grant funding to be spent on

multiple activities including training

and support of businesses, support

research and development activities to

develop markets, development of

partnerships to deal with supply issues

and obtaining resources for workforce

development programs.

Response: The Agency developed

eligible project costs to cover multiple

activities including the purchase and

construction of an innovation center,

costs directly related to the operations

of an innovation center, costs directly

associated with support programs to be

carried out at or in direct partnership

with job accelerators as well as other

administrative costs providing the

ability to cover training and

development.

Comment: One commenter suggested

that the jobs accelerator be able to serve

multiple communities with populations

of 50,000 or less.

Response: The Agency concurs with

the comment regarding ability to serve

multiple communities and has a

statutory responsibility to ensure this.

Comment: One commenter indicated

the Agency should ensure a region is

not too small.

Response: The Agency addressed the

definition of a region in the RISE

regulation in compliance with the

statutory requirements.

List of Subjects for 7 CFR Part 4284

Community development,

Cooperative development, Grant

programs, Reporting and recordkeeping

requirements.

Accordingly, for reasons set forth in

the preamble, Chapter XLII of Title 7 of

the Code of Federal Regulations is

amended as follows:

PART 4284—GRANTS

■1. The authority citation for part 4284

continues to read as follows:

Authority: 5 U.S.C. 301 and 7 U.S.C. 1989.

■2. Add subpart L, consisting of

§§ 4284.1101 through 4264.1131, to read

as follows:

Subpart L—Rural Innovation Stronger

Economy (RISE) Grant Program

Sec.

4284.1101 Purpose.

4284.1102 Organization of subpart.

4284.1103 Definitions.

4284.1104 Exception authority.

4284.1105 Review or appeal rights.

4284.1106 Conflict of interest.

4284.1107 Statute and regulation

references.

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4284.1108 U.S. Department of Agriculture

departmental regulations and laws that

contain other compliance requirements

4284.1109 Ineligible applicants

4284.1110 General applicant, application,

and funding provisions.

4284.1111 Notifications.

4284.1112 Rural jobs accelerator

partnership eligibility.

4284.1113 Project eligibility.

4284.1114 RISE grant funding.

4284.1115 RISE grant applications—

content.

4284.1116 [Reserved]

4284.1117 Scoring RISE grant applications.

4284.1118 Selecting RISE grant applications

for award.

4284.1119 Awarding and administering

RISE grants.

4284.1120 Servicing RISE grants.

4284.1121–4284.1130 [Reserved]

4284.1131 OMB control number.

§ 4284.1101 Purpose.

This subpart contains the procedures

and requirements for providing the

following financial assistance under the

Rural Innovation Stronger Economy

(RISE) program:

(a) Grants for the purpose of

constructing, purchasing, or equipping a

building to serve as an innovation

center in order to establish job

accelerators.

(b) Grants for the purpose of

establishing and supporting job

accelerators and related programs.

§ 4284.1102 Organization of subpart.

This subpart is organized into distinct

sections as described in paragraphs (a)

and (b) of this section.

(a) Sections 4284.1103 through

4284.1111 discuss definitions;

exception authority; review or appeal

rights; conflict of interest; USDA

departmental regulations; other

applicable laws; ineligible applicants;

general applicant, application, and

funding provisions; and notifications,

which are applicable to funding the

program under this subpart.

(b) Sections 4284.1112 and 4284.1113

discuss, respectively, applicant and

project eligibility. Section 4284.1114

addresses funding provisions for these

grants. Sections 4284.1115 through

4284.1120 address grant application

content and required documentation,

scoring, selection, awarding and

administering grant applications, and

servicing of grant awards.

§ 4284.1103 Definitions.

The following definitions are

applicable to the terms used in this

subpart.

Administrator means the

Administrator of Rural Business-

Cooperative Service (RBCS) within the

Rural Development mission area of the

U.S. Department of Agriculture (USDA).

Agency means RBCS or its successor

agency assigned by the Secretary of

Agriculture to administer the RISE grant

program. References to the National

Office, Finance Office, State Office, or

other Agency offices or officials should

be read as prefaced by ‘‘Agency’’ or

‘‘Rural Development’’ as applicable.

Applicant means the lead applicant

acting on behalf of a rural jobs

accelerator partnership as stated in

4282.1112, that is seeking a RISE grant.

The lead applicant will enter into a

financial assistance agreement with the

Agency, receive the RISE grant funding

and take ownership of any assets

purchased with grant funds.

Broadband service. Defined within

the meaning of Title VI of the Rural

Electrification Act of 1936 (7 U.S.C. 901

et seq.), broadband service means any

technology identified by the

Administrator as having the capacity to

provide transmission facilities and

capacity that enable the subscriber to

receive a minimum level of broadband

service. The minimum level of

broadband service for the purpose of

reviewing the application will be

defined by the minimum transmission

capacity that was required by Title VI of

the Rural Electrification Act of 1936 (7

U.S.C. 901 et seq.) at the time the

application was received by the Agency.

Complete application means an

application that contains all parts

necessary for the Agency to determine

applicant and project eligibility, the

financial feasibility and technical merit

of the project, and contains sufficient

information to determine a priority

score for the application.

Departmental regulations mean the

regulations of the Agency’s Office of

Chief Financial Officer (or successor

office) as codified in 2 CFR chapter IV.

District organization means an

organization as defined in Section 300.3

of Title 13, Code of Federal Regulations

(or a successor regulation).

Eligible project costs means the

portion of total project costs approved

by the Agency for projects that are

eligible to be paid with RISE funds.

Federal fiscal year (FY) means the 12-

month period beginning October 1 of

any given year and ending on

September 30 of the following year; it is

designated by the calendar year in

which it ends.

Financial assistance agreement means

Form RD 4280–2, ‘‘Rural Business-

Cooperative Service Financial

Assistance Agreement, or successor

form and is an agreement between the

Agency and the grantee setting forth the

provisions under which the grant will

be administered.

High-wage job means a job that

provides a wage that is greater than the

median wage for the applicable region,

as determined by the Department of

Labor.

Indian tribe means the term as

defined in 25 U.S.C. 5304(e).

Industry cluster means a broadly

defined network of interconnected firms

and supporting institutions in related

industries that accelerate innovation,

business formation, and job creation by

taking advantage of assets and strengths

of a region in the business environment.

Innovation center means a cross-

functional place for the planning and

creation of new ideas and opportunities

for individual and group collaboration

that leads to supporting deployment of

innovative processes, technologies,

services and products for economic

development. Innovation centers may be

utilized for a wide array of purposes

including short-term housing for

business owners or workers; co-working

space, which may include space for

remote work; space for business

utilization with a focus on

entrepreneurs and small and

disadvantaged businesses but may

include collaboration with companies of

all sizes; job training programs; and

efforts to utilize the innovation center as

part of the development of a

community, among other uses deemed

appropriate by the Agency.

Institution of higher education means

the term as defined in 20 U.S.C. 1002(a).

Instrumentality means an

organization recognized, established,

and controlled by a State, Tribal, or

local government for a public purpose

or to carry out special purposes.

Jobs accelerator means a center or

program located in or serving a rural

low-income community that may

provide co-working space, in-demand

skills training, entrepreneurship and

business support, and other initiatives

as described in Part 4284.1113(b).

Lead applicant means an entity as

defined in Part 4284.1112(b) and is

responsible for the rural jobs accelerator

partnership plus administration of the

grant proceeds and activities.

Letter of conditions means a

document prepared by the Agency

establishing conditions that must be

agreed to by the applicant before any

obligation of grant funds can occur.

Low income community means a

community as defined in section 45D(e)

of the Internal Revenue Code of 1986,

and any amendments thereto.

Matching funds means non-federal

funds provided to meet the total eligible

project costs that are not covered by the

RISE grant proceeds.

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Person means an individual or an

entity organized under the laws of a

state or a Tribe.

Region means an area identified by

the applicant that meets the criteria of

§ 4284.1112(d) with a population of

50,000 or fewer inhabitants, or for a

region with a population of more than

50,000 inhabitants, is comprised of rural

areas and urbanized areas, if any, are the

subject of a positive determination by

the Under Secretary for Rural

Development with respect to a rural-in-

character petition, including such a

petition submitted concurrently with

the application of the partnership for a

grant under this section.

Rural and rural area means any area

of a state not in a city or town that has

a population of more than 50,000

inhabitants according to the latest

decennial census of the United States

and not in the urbanized area

contiguous and adjacent to a city or

town that has a population of more than

50,000 inhabitants. A rural and rural

area shall be determined as defined in

7 U.S.C. 1991(a)(13).

Rural in character means:

(1) A determination that an area is

‘‘rural in character’’ will be made by the

Under Secretary of Rural Development

in compliance with 7 U.S.C.

1991(a)(13)(D). The process to request a

determination under this provision is

outlined in this definition. Units of local

government may petition the Under

Secretary of Rural Development for a

‘‘rural in character’’ designation by

submitting a petition to the

Administrator on behalf of the Under

Secretary. The petition shall document

why the petitioner believes the area is

‘‘rural in character’’ including, but not

limited to, the area’s population density,

demographics, and topography and how

the local economy is tied to a rural

economic base. Upon receiving a

petition, the Administrator will review

its merits and consult with the

applicable governor or leader in a

similar position and request comments

to be submitted within 5 business days,

unless such comments were submitted

with the petition. The petition will be

forwarded to the Under Secretary who

will release to the public a notice of a

petition filed by a unit of local

government not later than 30 days after

receipt of the petition by way of

publication in a local newspaper and

posting on the Agency’s website. The

Under Secretary will make a

determination not less than 15 days, but

no more than 60 days, after the release

of the notice. Upon a negative

determination, the Under Secretary will

provide to the petitioner an opportunity

to appeal a determination to the Under

Secretary, and the petitioner will have

10 business days to appeal the

determination and provide further

information for consideration. The

Under Secretary will make a

determination of the appeal in not less

than 15 days, but no more than 30 days.

(2) Rural Development State Directors

may also initiate a request to the Under

Secretary to determine if an area is

‘‘rural in character.’’ A written

recommendation should be sent to the

Administrator, on behalf of the Under

Secretary, that documents how the area

meets the statutory requirements and

discusses why the State Director

believes the area is ‘‘rural in character’’

including, but not limited to, the area’s

population density, demographics,

topography, and how the local economy

is tied to a rural economic base. Upon

receipt of such a request, the

Administrator will review the request

for compliance with the ‘‘rural in

character’’ provisions and make a

recommendation to the Under Secretary.

Provided a favorable determination is

made, the Under Secretary will consult

with the applicable governor or leader

in a similar position and request

comments within 10 business days,

unless gubernatorial comments were

submitted with the request. A public

notice will be published by the State

Office in a local newspaper and the

request will be posted on the Agency’s

website. There is no appeal process for

requests made on the initiative of the

State Director.

Rural jobs accelerator partnership

means a partnership formed on or after

December 20, 2018, which meets

eligibility criteria found in § 4284.1112.

Secretary means the Secretary of

Agriculture and, to the extent of

delegated authorities, the Under

Secretary for Rural Development.

Small and disadvantaged business

means a small business concern owned

and controlled by socially and

economically disadvantaged individuals

as defined in Section 8(d)(3)(C) of the

Small Business Act (15 U.S.C.

637(d)(3)(C)).

Small business means:

(1) An entity that meets Small

Business Administration (SBA) size

standards in accordance with 13 CFR

part 121 and criteria of 13 CFR 121.301

as applicable to financial assistance

programs, including paragraph (i) or (ii)

of this definition. The size of the

concern alone and the size of the

concern combined with other entity(ies)

it controls or entity(ies) it is controlled

by, must not exceed the size standard

thresholds designated for the industry

in which the concern alone or the

concern and its controlling entity(ies),

whichever is higher, is primarily

engaged.

(2) To be considered a small business,

either of the following conditions must

be met:

(i) The concern’s tangible net worth is

not in excess of $15 million and average

net income (excluding carry-over losses)

for the preceding two completed fiscal

years is not in excess of $5.0 million; or

(ii) The size of the concern does not

exceed the SBA size standard thresholds

designated for the industry in which it

is primarily engaged, as measured by

number of employees or annual

receipts. Industry size standard

designations to be utilized are listed in

the SBA’s table of size standards found

in 13 CFR 121.201. Number of

employees and annuals receipts are

calculated as follows:

(A) Number of employees is

calculated as the average number of all

individuals employed by a concern on

a full-time, part-time, or other basis,

based upon numbers of employees for

each of the pay periods for the

preceding completed 12 calendar

months. If a concern has not been in

business for 12 months, the average

number of employees is used for each of

the pay periods during which it has

been in business.

(B) Annual receipts are calculated as

average total income plus cost of goods

sold for the five most recent years. If a

concern has been in operation for less

than 60 months, average annual receipts

for as long as the concern has been in

operation are used.

State means any of the 50 States of the

United States, the Commonwealth of

Puerto Rico, the U.S. Virgin Islands,

Guam, American Samoa, the

Commonwealth of the Northern Mariana

Islands, the Republic of Palau, the

Federated States of Micronesia, and the

Republic of the Marshall Islands.

Total project costs mean the sum of

all costs associated with a completed

project.

§ 4284.1104 Exception authority.

The Administrator may, on a case-by-

case basis, grant an exception to any

requirement or provision of this subpart

provided that such an exception is in

the best financial interests of the Federal

government. Exercise of this authority

cannot conflict with applicable law.

§ 4284.1105 Review or appeal rights.

Agency decisions that are adverse to

the individual participant are

appealable, while matters of general

applicability are not subject to appeal;

however, such decisions are reviewable

for appealability by the National

Appeals Division (NAD). All appeals

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will be conducted by NAD and will be

handled in accordance with 7 CFR part

11.

§ 4284.1106 Conflict of interest.

(a) General. A situation in which a

person has competing personal,

professional, or financial interests that

prevents the person from acting

impartially.

(b) Assistance to employees, relatives,

and associates. The Agency will process

any requests for assistance under this

subpart in accordance with 7 CFR part

1900, subpart D.

(c) Member/Delegate clause. No

member of or delegate to Congress shall

receive any share or part of this grant or

any benefit that may arise therefrom; but

this provision shall not be construed to

bar, as a contractor under the grant, a

publicly held corporation whose

ownership might include a member of

Congress.

§ 4284.1107 Statute and regulation

references.

All references to statutes and

regulations are to include any and all

successor statutes and regulations.

§ 4284.1108 U.S. Department of

Agriculture departmental regulations and

laws that contain other compliance

requirements.

(a) Departmental regulations. All

projects funded under this subpart are

subject to the provisions of the

departmental regulations, as applicable,

which are incorporated by reference

herein.

(b) Equal opportunity and

nondiscrimination. The Agency will

ensure that equal opportunity and

nondiscrimination requirements are met

in accordance with the Equal Credit

Opportunity Act, 15 U.S.C. 1691 et seq.

and 7 CFR part 15d, Nondiscrimination

in Programs or Activities Conducted by

the United States Department of

Agriculture. The Agency will not

discriminate against applicants on the

basis of race, color, religion, national

origin, sex, marital status, or age

(provided that the applicant has the

capacity to contract); because all or part

of the applicant’s income derives from

any public assistance program; or

because the applicant has in good faith

exercised any right under the Consumer

Credit Protection Act, 15 U.S.C. 1601 et

seq.

(c) Civil rights compliance. Recipients

of grants must comply with the

Americans with Disabilities Act of 1990,

42 U.S.C. 12101 et seq., Title VI of the

Civil Rights Act of 1964, 42 U.S.C.

2000d et seq., and Section 504 of the

Rehabilitation Act of 1973, 29 U.S.C.

794. This includes collection and

maintenance of data on the race, sex,

and national origin of the recipient’s

membership/ownership and employees.

These data must be available to conduct

compliance reviews in accordance with

7 CFR 1901.204.

(1) Initial compliance reviews will be

conducted by the Agency prior to funds

being obligated.

(2) Grants will require one subsequent

compliance review following project

completion. This will occur after the

last disbursement of grant funds has

been made.

(d) Environmental analysis. 7 CFR

part 1970 outlines environmental

procedures and requirements for this

subpart. Prospective applicants are

advised to contact the Agency to

determine environmental requirements

as soon as practicable after they decide

to pursue any form of financial

assistance directly or indirectly

available through the Agency. The

applicant will be notified of all specific

compliance requirements, including:

(1) Any required environmental

review must be completed by the

Agency prior to the Agency obligating

any funds or the applicant taking any

action;

(2) A site visit by the Agency may be

scheduled, if necessary, to determine

the scope of the review. An

environmental review may include the

publication of public notices, and

consultation with State and Tribal

Historic Preservation Offices and the

U.S. Fish and Wildlife Service.

(e) Discrimination complaints—(1)

Who may file. Persons or a specific class

of persons believing they have been

subjected to discrimination prohibited

by this section may file a complaint

personally, or by an authorized

representative with USDA, Director,

Office of Adjudication, 1400

Independence Avenue SW, Washington,

DC 20250.

(2) Time for filing. A complaint must

be filed no later than 180 days from the

date of the alleged discrimination,

unless a request for a waiver of the 180-

day timeline is requested and the time

for filing is extended by the designated

officials of USDA or the Agency.

(3) Filing a complaint. To file a

program discrimination complaint,

complete the USDA Program

Discrimination Complaint Form, AD–

3027, found online at https://

www.usda.gov/oascr/how-to-file-a-

program-discrimination-complaint and

at any USDA office or write a letter

addressed to USDA and provide in the

letter all of the information requested in

the form. To request a copy of the

complaint form, call (866) 632–9992.

Submit your completed form or letter to

USDA by:

(i) Mail: U.S. Department of

Agriculture, Office of Adjudication,

1400 Independence Avenue SW,

Washington, DC 20250–9410;

(ii) Fax: (202) 690–7442; or

(iii) Email: OAC@usda.gov.

§ 4284.1109 Ineligible applicants.

Applicants will be ineligible to

receive funds under this subpart as

discussed in paragraphs (a) and (b) of

this section.

(a) If the applicant has an outstanding

judgment obtained by the U.S. in a

Federal Court (other than in the United

States Tax Court), is delinquent in the

payment of Federal income taxes, or is

delinquent on a Federal debt, the

applicant is not eligible to receive a

grant until the judgment is paid in full

or otherwise satisfied or the

delinquency is resolved. The Agency

will check the Do Not Pay System to

verify this information.

(b) If the applicant is debarred or

suspended from receiving Federal

assistance, the applicant is not eligible

to receive a grant under this subpart.

The Agency will check the System for

Award Management (SAM) to determine

if the applicant has been debarred or

suspended.

§ 4284.1110 General applicant, application,

and funding provisions.

(a) Satisfactory progress. A lead

applicant that has received one or more

grants under this program must make

satisfactory progress toward completion

of any previously funded projects before

the lead applicant will be considered for

subsequent funding. Satisfactory

progress is defined as 50% or greater of

the previous RISE award being

expended at the time the Agency makes

its eligibility determination for a

subsequent application.

(b) Application submittal.

Applications must be submitted in

accordance with the provisions of this

subpart unless otherwise specified in a

Federal Register notice. Grant

applications for financial assistance

under this subpart may be submitted at

any time with awards made annually

based on the application’s score and

subject to available funding.

(c) Limit on number of applications.

An applicant can apply for and compete

only one RISE project under this subpart

per Federal fiscal year, unless otherwise

noted in a Federal Register notice.

(d) Application modification. Once

submitted and prior to Agency award, if

an applicant significantly modifies its

application or scope of work, the

application will be treated as a new

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application. The submission date of

record for such modified applications

will be the date the Agency receives the

modified application, and the

application will be processed by the

Agency as a new application under this

subpart. Applications that are modified

due only to partial funding being

available for the selected award are not

subject to this provision.

(e) Incomplete applications.

Applicants must submit a complete

application in compliance with

§ 4284.1115 in order to be considered

for funding. If an application is

incomplete, the Agency will identify

those parts of the application that are

incomplete and return the documents,

with a written explanation, to the

applicant for possible future

resubmission. Upon receipt of a

complete application by the appropriate

Agency office, the Agency will complete

its evaluation and will compete the

application in accordance with the

procedures specified in § 4284.1118, as

applicable.

(f) Application withdrawal. During the

period between the submission of an

application and the execution of grant

award documents for an application

selected for funding, the applicant must

notify the Agency, in writing, if the

project is no longer viable or the

applicant is no longer requesting

financial assistance for the project.

When an applicant withdrawal request

is received by the Agency, the selection

will be rescinded and/or the application

withdrawn from further processing and

funding consideration.

(g) Time limit on use of grant funds.

Except as provided in paragraph (g)(1)

of this section, grant funds not

expended within the initial grant term

of 4 years from the date the financial

assistance agreement was signed by the

Agency will be returned to the Agency.

(1) Time extensions. The Agency may

extend the 4-year grant time limit if the

Agency determines, at its sole

discretion, that the grantee is unable to

complete the project for reasons beyond

the grantee’s control and that the

grantee has established an active jobs

accelerator and related programming.

Grantees must submit a request for the

no-cost extension no later than 90 days

before the expiration date of the

Financial Assistance Agreement. This

request must describe the extenuating

circumstances that were beyond its

control to complete the project for

which the grant was awarded, elements

of completion that are required and

their timeframe, and why an approval is

in the government’s best interest. The

Agency may extend the grant term up to

an additional two-year period.

Additional extensions will not be

granted.

(2) Return of funds to the Agency.

Funds that exceed the amount the

grantee is entitled to receive under the

financial assistance agreement or that

are remaining after grant closeout will

be returned to the Agency.

§ 4284.1111 Notifications.

(a) Eligibility. If an applicant or its

project is determined by the Agency to

be ineligible at any time, the Agency

will inform the applicant, as applicable,

in writing of the decision, reasons

therefore, and any applicable appeal

rights. No further processing of the

application or disbursement of grant

proceeds, if funds have been previously

awarded, will occur.

(b) Funding determinations. Each

applicant, as applicable, will be notified

of the Agency’s funding decision on its

application. If the Agency’s decision is

to not fund an application, the Agency

will notify the applicant in writing

including the reasons for the

determination and any applicable

appeal or review rights.

§ 4284.1112 Rural jobs accelerator

partnership eligibility.

A rural jobs accelerator partnership

(Partnership) organizes key community

and regional stakeholders into a

working group that focuses on the

shared goals and needs of the targeted

industry cluster(s). To be eligible for a

RISE grant under this subpart, the

Partnership must be formed on or after

December 20, 2018, and meet each of

the criteria specified in paragraphs (a)

through (d) of this section. The Agency

will determine a Partnership’s eligibility

based on the criteria herein.

(a) The Partnership must include one

or more representatives of the following:

(1) A State, Tribal or local

government;

(2) A State, Tribal, or local

government entity;

(3) A land-grant college or university

or other institution of higher education,

as defined in the Higher Education Act

of 1965 (20 U.S.C. 1001);

(4) A rural non-profit cooperative; or

(5) A private entity, which may

include a business in an industry

cluster, economic development or

community development organization,

financial institution including a

community development financial

institution, philanthropic organization

or labor organization.

(b) The Partnership must have a lead

applicant represented by one of the

following:

(1) A district organization;

(2) An Indian Tribe or a political

subdivision of a Tribe, including a

special purpose unit of a tribal

government engaged in economic

development activities, or a consortium

of Indian Tribes;

(3) A State or a political subdivision

of a State, including a special purpose

unit of a State or local government

engaged in economic development

activities, or a consortium of political

subdivisions;

(4) An institution of higher education

(as defined in section 101 of the Higher

Education Act of 1965 (20 U.S.C. 1001))

or a consortium of institutions of higher

education; or

(5) A public or private nonprofit

organization.

(c) The Partnership and its project

must serve a rural region, as defined.

(d) The Partnership must clearly

define the region that the partnership

represents and ensure that the Region

encompasses each of the following:

(1) Is large enough to contain critical

elements of the industry cluster

prioritized by the partnership;

(2) Is small enough to enable close

collaboration among members of the

partnership;

(3) Includes a majority of

communities that are located in the

following:

(i) A nonmetropolitan area that

qualifies as a low-income community;

and

(ii) An area that has access to or has

a plan to achieve broadband service, as

defined; and

(4) Has a population of 50,000 or

fewer inhabitants or, for a region with

a population of more than 50,000

inhabitants, is comprised of rural areas

and urbanized areas, if any, are the

subject of a positive determination by

the Under Secretary for Rural

Development with respect to a rural-in-

character petition, including such a

petition submitted concurrently with

the application of the partnership for a

grant under this section.

(e) One or more members of the

Partnership must be located in the

targeted region. The Partnership may

consist of industry entities and other

partners outside of the targeted region.

§ 4284.1113 Project eligibility.

For a project to be eligible to receive

a RISE grant under this subpart, the

proposed project must meet the

requirements specified in paragraphs (a)

through (e) of this section. The

applicant project outcome must

accelerate the formation of new

businesses with high-growth potential,

improve the ability of rural businesses

and distressed rural communities to

create high-wage jobs, and strengthen

rural regional economies by engaging in

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one or more of the following eligible

uses:

(a) The construction or purchase of a

building to serve as an innovation

center located in a rural low-income

community which establishes and/or

supports a jobs accelerator and any

equipment needs of the innovation

center to support the jobs accelerator;

(b) Be for the support of programs to

be carried out at or in direct partnership

with the jobs accelerator or in support

of jobs accelerator initiatives including

one or more of the following:

(1) Linking rural communities and

entrepreneurs to markets, networks,

industry clusters, and other regional

opportunities to support high-wage job

creation, new business formation,

business expansion, and economic

growth of rural communities;

(2) Integrating rural small businesses

into a supply chain;

(3) Creating or expanding

commercialization activities for new

business formation in rural areas;

(4) Identifying and building assets in

rural communities that are crucial to

supporting regional economies;

(5) Facilitating the repatriations of

high-wage jobs to the United States;

(6) Supporting the deployment of

innovative processes, technologies, and

products;

(7) Enhancing the capacity of rural

small businesses in regional industry

clusters, including small and

disadvantaged businesses;

(8) Increasing United States exports

and business interaction with

international buyers and suppliers;

(9) Developing the skills and expertise

of local workforces, entrepreneurs, and

institutional partners in the region to

meet the needs of employers and

prepare workers for high-wage jobs in

the identified industry clusters,

including the upskilling of incumbent

workers;

(10) Ensuring rural communities have

the capacity and ability to carry out

projects relating to housing, community

facilities, infrastructure, or community

and economic development to support

regional industry cluster growth;

(11) Any activities that the Agency

may determine to be appropriate, as

specified in a Federal Register notice.

(c) Not more than 10 percent of a RISE

grant awarded under this section shall

be used for indirect costs of the

applicant associated with administering

the RISE grant. The Agency may

increase this percentage as a

documented exception on a case by case

basis.

(d) The innovation center may be

physically located in a rural area as

defined in § 4284.1103 or in a non-rural

area; as long as assistance being

provided is to residents located in a

rural area. The innovation center must

be located in a rural low-income

community if grant funds are used for

the construction or purchase of an

innovation center.

(e) The applicant is cautioned against

taking any actions or incurring any

obligations prior to the Agency

completing the environmental review

that would either limit the range of

alternatives to be considered or that

would have an adverse effect on the

environment, such as the initiation of

construction. If the applicant takes any

such actions or incurs any such

obligations, it could result in project

ineligibility. Projects involving the

construction of an innovation center as

an eligible purpose are subject to the

environmental requirements of 7 CFR

part 1970.

§ 4284.1114 RISE grant funding.

(a) Grant amounts. The amount of

grant funds that will be made available

to a Partnership under this subpart will

not exceed 80 percent of eligible project

costs. The Federal share of the cost of

any activity carried out using a grant

under this section shall not be greater

than 80 percent.

(1) Minimum request. Unless

otherwise specified in a Federal

Register notice, the minimum request

for a RISE grant application is $500,000.

(2) Maximum request. Unless

otherwise specified in a Federal

Register notice, the maximum request

for a RISE grant application is

$2,000,000.

(b) Matching funds. The applicant is

responsible for securing the matching

funds for total eligible project costs that

are not covered by grant funds. The non-

Federal share of the total eligible project

costs of any activity carried out using a

grant under this section may be in the

form of third-party equity contributions

including donations and in-kind

contributions of fairly-valued goods or

services.

(c) Eligible project costs. Eligible

project costs are only those costs

incurred after a complete application

has been received by the Agency and are

associated with the items identified in

paragraphs (c)(1) through (6) of this

section. The applicant is responsible for

any expenses incurred in developing its

application. Each item identified in

paragraphs (c)(1) through (6) of this

section is only an eligible project cost if

it is directly related to, and its use and

purpose is limited to the RISE grant

project. Any building or equipment

purchased with grant proceeds must be

owned and controlled by the lead

applicant. The following is a list of

eligible project costs:

(1) Costs directly related to the

purchase or construction of an

innovation center;

(2) Costs directly related to operations

of an innovation center including

purchase of equipment, office supplies,

and administrative costs including

salaries directly related to the project;

(3) Costs directly associated with

support programs to be carried out at or

in direct partnership with job

accelerators;

(4) Reasonable and customary travel

expenses directly related to job

accelerators and at rates in compliance

with 2 CFR 200.474;

(5) Utility costs, operating expenses of

the innovation center and job

accelerator programs and associated

programs;

(6) Administrative costs of the grantee

will not exceed 10% of the grant

amount for the duration of the project.

(d) Ineligible project costs. Ineligible

project costs and uses of funds for RISE

projects include, but are not limited to:

(1) Costs associated with preparation

of an application package under this

notice;

(2) Costs incurred prior to Agency

receipt of a complete application for the

grant request made under a funding

notice;

(3) Funding of any political or

lobbying activities;

(4) Payment for assistance to any

private business enterprise which does

not create and/or support jobs in a rural

area of the United States;

(5) Payment of any judgment or debt

owed to the United States;

(6) Duplicate current services or

substitute support previously provided.

If the current service is inadequate,

however, grant funds may be used to

expand the level of effort or services

beyond what is currently being

provided;

(7) To fund a part of a project that is

dependent on other funding unless

there is a firm commitment of the other

funding to ensure completion of the

project;

(8) Pass through grants; and

(9) costs associated with hemp

production, unless a hemp producer has

a valid license issued from an approved

State, Tribal or Federal plan as per

Section 10113 of the Agriculture

Improvement Act of 2018, Public Law

115–334 (verification of valid hemp

licenses will occur at the time of award).

§ 4284.1115 RISE grant applications—

content.

(a) A potential applicant for RISE may

submit a concept proposal not less than

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60 days in advance of the application

submittal deadline as published in the

Federal Register for review by the

Agency. This concept proposal will be

evaluated, and an encouragement or

discouragement letter will be issued to

the potential applicant. If a

discouragement letter is issued, it will

detail any weaknesses evaluated in the

Agency’s review, though a complete

application may still be submitted prior

to the application deadline. The concept

proposal may be up to 10 pages in

length using a minimum of 11-point

font. The concept proposal should be in

a narrative format and must include the

following:

(1) Partnership information including

the members and structure of the

Partnership, the date formalized, and

the governance or leadership board. The

information will identify the lead

applicant and each partner’s ties to the

region, their roles in the delivery of the

RISE program and any history of

previous collaboration between

partners. The amount and source of

anticipated matching funds will also be

provided.

(2) Describe the geographic region to

be served including the total

population, economic characteristics of

the region such as unemployment rates

and income levels. Industry sectors,

their status, size and economic

contribution to the region and all

communities including metropolitan

statistical areas and nonmetro low

income communities within the region

should be identified. The availability

and planned enhancements of

broadband service and other assets of

the region should also be identified. If

the region to be served has a population

of more than 50,000 inhabitants, the

applicant must document why they

believe the area is ‘‘rural in character’’

including, but not limited to, the area’s

population density, demographics, and

topography and how the local economy

is tied to a rural economic base.

(3) Identify the industry cluster(s) that

will be prioritized by the Partnership

with information on the firms and

support industries in those clusters.

Describe the status of the industry (as

emerging, existing, or declining) any

existing interconnection and networks

within the industry cluster and describe

participation and scale of small and

disadvantaged businesses within the

industry cluster. Describe the

opportunities or potential of industry

growth in the region and competitive

advantages of the region and industry

cluster should be highlighted along with

opportunities within the industry for

the creation of or upgrading to high-

wage jobs.

(4) An executive summary, project

plan and scope of work must be

provided with the applicant’s strategy,

activities, budget, goals and objectives

for the use of RISE funds. The applicant

should also provide information on the

sustainability of the partnership and

jobs accelerator at the conclusion of the

RISE grant period.

(b) Unless otherwise specified in a

Federal Register notice, applicants may

only submit one RISE grant application

each Federal fiscal year.

(1) The lead applicant must be

registered in the System for Award

Management (SAM) and is responsible

for submitting a complete application as

specified in (b)(2)(i) through (b)(2)(xiv)

of this section.

(2) There are no specific limitations

on the number of pages or other

formatting requirements of an

application. Applicants, who submitted

a concept proposal to the Agency, will

not need to resubmit the information

found in (b)(2)(ix) below. The Agency

will review and retain this information

for application submittal. A complete

application will consist of the following

components unless otherwise specified

in a Federal Register notice:

(i) Form SF–424, ‘‘Application for

Federal Assistance;’’

(ii) Form SF–424A, ‘‘Budget

Information—Non-Construction

Programs,’’ if applicable;

(iii) Form SF–424C, ‘‘Budget

Information—Construction Programs,’’

if applicable;

(iv) Form SF–424D, ‘‘Assurances—

Construction Programs,’’ if applicable;

(v) RD Form 400–1, ‘‘Equal

Opportunity Agreement,’’ for

construction projects only;

(vi) Identify the ethnicity, race, and

gender characteristics of the lead

applicant’s leadership. This information

is optional and is not a required

component for a complete application;

(vii) Certification that the lead

applicant is a legal entity in good

standing (as applicable) and operating

in accordance with the laws of the

State(s) or Tribe where the applicant

exists;

(viii) The lead applicant must identify

whether or not the lead applicant has a

known relationship or association with

an Agency employee and, if there is a

known relationship, the lead applicant

must identify each Agency employee

with whom the lead applicant has a

known relationship;

(ix) All items required in paragraph

(a) of this section must be provided with

the application (applicants must

provide updates, as appropriate, to any

items previously submitted as a concept

proposal under paragraph (a));

(x) Readiness demonstration, which

shall be comprised of the following

items:

(A) Description of readiness of all

partners of the Partnership to contribute

to the project including their ability to

coordinate activities, finances and

outcomes of the project.

(B) Evidence of a formal agreement

among partners of the Partnership for

delivery of the RISE program.

(C) Evidence of demonstrated

readiness in administering the RISE

grant, if awarded, including

demonstration of potential success in

establishment of a jobs accelerator

project, which targets an industry

cluster and the initiatives of the RISE

grant. The application should indicate

when activities related to the expected

outcomes will commence.

(D) Description of how the project

will be marketed in the region and how

the Partnership will capture any

program impacts and success stories;

and

(E) Timeline describing the proposed

tasks to be accomplished and the

schedule for implementation of each

task.

(xi) Provide documentation on how

the RISE project will impact the

initiatives below, as applicable,

including a brief description of how and

when the initiative will be delivered:

(A) Linking rural communities and

entrepreneurs to markets, networks,

industry clusters, and other regional

opportunities to support high-wage job

creation, new business formation,

business expansion, and economic

growth;

(B) Integrating small businesses into a

supply chain;

(C) Creating or expanding

commercialization activities for new

business formation;

(D) Identifying and building assets in

rural communities that are crucial to

supporting regional economies;

(E) Facilitating the repatriation of

high-wage jobs to the United States;

(F) Supporting the deployment of

innovative processes, technologies, and

products;

(G) Enhancing the capacity of small

businesses in regional industry clusters,

including small and disadvantaged

businesses;

(H) Increasing United States exports

and business interaction with

international buyers and suppliers;

(I) Developing the skills and expertise

of local workforces, entrepreneurs, and

institutional partners to meet the needs

of employers and prepare workers for

high-wage jobs in the identified

industry clusters, including the

upskilling of incumbent workers;

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(J) Ensuring rural communities have

the capacity and ability to carry out

projects related to housing, community

facilities, infrastructure, or community

and economic development to support

regional industry cluster growth;

(xii) Potential to produce high-wage

jobs and benefit rural small and

disadvantaged businesses, including a

description of the following:

(A) Describe how the project will

develop the skills and expertise of the

local workforce, entrepreneurs and

institutional partners to meet the needs

of employers and prepare high-wage

jobs in the targeted industry cluster(s),

which may also include the upskilling

of incumbent worker;

(B) Demonstrate how the project will

benefit the skills and expertise of small

and disadvantaged businesses, as

applicable;

(C) Demonstrate any participation of

higher education, applied research

institutions, workforce development

entities and community-based

organizations, that are willing to partner

with the project to provide workers with

skills relevant to the industry cluster

needs of the region, with an emphasis

on the use of on-the-job training,

classroom occupational training or

incumbent worker training, as

applicable; and

(D) Demonstrate any participation of

investment organizations, venture

development organizations, venture

capital firms, revolving loan funders,

angel investment groups, community

lenders, community development

financial institutions, rural business

investment companies, small business

companies (as defined in Section 103 of

the Small Business Investment Act of

1958 (15 U.S.C. 662)), philanthropic

organizations, and other institutions

focused on expanding access to capital,

are committed partners in the job

accelerator partnership and willing to

potentially invest in projects emerging

from the jobs accelerator.

(xiii) Describe the targeted region,

including the following information:

(A) Provide the latest Census Bureau

information on the targeted region’s

median household income.

(B) Provide the latest Census Bureau

information on the targeted region’s

educational attainment, specifically the

percentage of the population who hold

a bachelor’s degree.

(C) Discuss how any direct career

training will be provided to existing

residents of the region (existing

residents being those persons who live

in the region at the time of application

submission).

(D) Discuss any local support for the

RISE project.

(E) Discuss the entrepreneurial

commitment to the RISE project.

(F) Discuss any innovative processes

and technologies to be utilized in the

targeted industry cluster(s) of the RISE

project.

(G) Discuss the initial and continuing

capital investment in the RISE project.

(H) Discuss any demand for regional

and global markets of the product and/

or service provided by the targeted

industry cluster.

(I) Discuss if the region contains any

areas or communities that qualify for

federal initiatives.

(J) Elaborate on the current broadband

service within the region and any plans

to leverage the current broadband

service or enhance broadband service in

the region through the RISE project.

(xiv) Financial information, including

the following:

(A) Identification of matching funds

and other sources of funds for the

project. Provide written commitments

for matching funds and other sources of

funds at the time the application is

submitted.

(B) Current financial statements and a

narrative description demonstrating

financial feasibility and sustainability of

the project, all of which demonstrate

sufficient resources and expertise to

undertake and complete the project and

how the project will be sustained

following completion.

(c) Upon receipt of a complete

application, the Agency will determine

if the applicant and project are eligible

and whether the intended outcomes

described meet the requirements of the

RISE program. If the application is

ineligible or not feasible, the Agency

will inform the applicant in writing of

the reasons for the Agency’s

determination and no further evaluation

of the application will occur.

§ 4284.1116 [Reserved]

§ 4284.1117 Scoring RISE grant

applications.

The Agency will score each complete

and eligible RISE application using the

criteria specified in paragraphs (a)

through (g) of this section, unless

otherwise specified in a Federal

Register notice, with a maximum score

of 100 points possible. Points will be

allowed only for factors indicated by

well documented, reasonable plans

which, in the opinion of the Agency,

provide assurance that the items have a

high probability of being accomplished.

Points shall be awarded at the discretion

of the Agency to scoring criteria with a

minimum and maximum number of

points available. Applicants that

demonstrate the experience or ability to

deliver the stated criteria will be

awarded higher points in that criteria.

(a) Demonstrated readiness. The

Partnership demonstrated readiness in

administering the RISE grant

successfully and shows strong

documentation indicating the potential

for success in establishing a jobs

accelerator project which targets an

industry cluster and the initiative(s) of

the RISE grant program. Points are

awarded on a scale of 0 to 10 with a

maximum of 10 points being awarded.

(b) Targeted initiatives. A maximum

of 15 points will be awarded for this

criterion based on meeting the targeted

initiatives as stated in

§ 4284.1115(b)(2)(xi) with action

narratives outlined in the application on

how and when the initiatives will be

delivered. More points will be awarded

for reasonable initiatives that can be

delivered within 12 months of the grant

award and for those projects leveraging

improvements in high-speed broadband

service to the region.

(c) Project support. Points will be

awarded for the strength of local

support of the RISE project and

entrepreneurial commitment. A

maximum of 15 points can be awarded

for application materials that indicate

the strength of support for the RISE

project. Points will be awarded from the

partnership’s demonstration of its

sources of funding, personnel and

technical resources committed to the

project, and a focus on the inclusion of

institutional partners expanding access

to capital and willingness to potentially

invest in projects emerging from the jobs

accelerator. Points shall also be awarded

for demonstrated resources that will

sustain the project beyond the term of

the RISE grant period.

(d) Targeted region. A maximum of 20

points will be awarded for this criterion

based on the region’s demographics

according to the latest census

information. The applicant must

provide adequate documentation to the

latest census information to receive

points.

(1) If the targeted region has a median

household income of:

(i) 50% or less of state median

household income; 5 points will be

awarded;

(ii) Over 50% and up to 80% of state

median household income; 3 points will

be awarded.

(2) If the targeted region residents

have the educational attainment of a

bachelor’s degree by:

(i) 10% or less of the population; 5

points will be awarded;

(ii) Over 10% and up to 30% of the

population; 3 points will be awarded.

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(3) Existing residents of the targeted

region will receive direct career training

for new employment or upscaling to a

high-wage job; 5 points will be awarded.

(4) If the identified region has fewer

than 50,000 residents according to the

most recent decennial census; 5 points

will be awarded.

(e) RISE grant funds requested. A

maximum of 10 points will be awarded

for this criterion if:

(1) The RISE grant request is for

$500,000 to $750,000; 10 points will be

awarded.

(2) The RISE grant request is for over

$750,000 and up to $1,000,000; 5 points

will be awarded.

(f) Regional impact. Points are

awarded on a scale of 0 to 5 points for

each category, with a total maximum of

20 points being awarded for this

criterion. To receive points, the

applicant must provide documentation

to warrant strength on the following

criteria, with points awarded for each:

(1) Targeted industry(ies) in the

region is classified as an emerging

industry;

(2) Applicant demonstrates that the

targeted industry(ies) in the region hold

a competitive advantage or will enhance

their competitive advantage through the

RISE project;

(3) Applicant demonstrates that

industry provides significant support of

regional assets, including broadband,

and provides community and economic

development support within the region;

(4) The RISE project’s forecasted

outcomes align with RISE objectives;

and

(5) The RISE project will target

support to existing industry(ies), whose

significance in the region may be

stagnant or on the decline but can be

enhanced through the benefits of the

RISE project.

(g) Administrator points. A maximum

of 10 points will be awarded, with

justification, at the discretion of the

Agency Administrator, as announced in

a Federal Register notice.

§ 4284.1118 Selecting RISE grant

applications for award.

Unless otherwise provided for in a

Federal Register notice, RISE grant

applications will be evaluated, assigned

priority points as described in

§ 4284.1117 and ranked from highest to

lowest score for funding consideration,

subject to the availability of funding.

§ 4284.1119 Awarding and Administering

RISE Grants.

The Agency will award and

administer RISE grants in accordance

with departmental regulations and with

the procedures and requirements

specified in this part.

(a) Bonding and insurance. The

applicant must provide satisfactory

evidence to the Agency that all officers

of the applicant organization are

authorized to receive and/or disburse

Federal funds and are covered by such

bonding and/or insurance requirements

as are normally required by the

applicant.

(b) Letter of conditions. A letter of

conditions will be prepared by the

Agency, establishing conditions that

must be agreed to by the applicant

before any obligation of funds can

occur. Upon reviewing the conditions

and requirements in the letter of

conditions, the applicant must

complete, sign, and return the Form RD

1942–46, ‘‘Letter of Intent to Meet

Conditions,’’ and Form RD 1940–1,

‘‘Request for Obligation of Funds,’’ to

the Agency if it accepts the conditions

of the grant; or if certain conditions

cannot be met, the applicant may

propose alternate conditions in writing

to the Agency. The Agency must resolve

or concur with any changes proposed by

the applicant to the letter of conditions

before the application will be further

processed.

(c) Evidence of matching funds. The

applicant is responsible for providing

documentation that the required

matching funds for the project have

been received or remain committed at

the date a financial assistance agreement

is executed with the Agency.

(d) SAM requirements. Each applicant

applying for grant funds (unless an

exception, as outlined in 2 CFR

25.110(a) through (d), is approved by

the Agency) is required to:

(1) Be registered in SAM before

submitting its application;

(2) Provide a valid unique entity

identifier in its application; and

(3) Continue to maintain an active

SAM registration with current

information at all times during which it

has an active Federal award or an

application or plan under consideration

by a Federal awarding agency.

(e) Financial assistance agreement.

Once the requirements specified in

paragraphs (a) through (d) of this section

have been met, the financial assistance

agreement can be executed by the lead

applicant and the Agency. The

applicant must abide by all

requirements contained in the financial

assistance agreement, this subpart, and

any other applicable Federal statutes or

regulations. Failure to follow these

requirements might result in

termination of the grant and adoption of

other available remedies.

(f) Grant approval. The lead applicant

will be sent an executed copy of the

executed Form RD 1940–1, ‘‘Obligation

of Funds,’’ and the financial assistance

agreement.

§ 4284.1120 Servicing RISE grants.

The Agency will service RISE grants

in accordance with the requirements

specified in departmental regulations,

the financial assistance agreement, 7

CFR part 1951, subparts E and O, other

than 7 CFR 1951.709(d)(1)(i)(B)(iv), and

the requirements in § 4284.1120, except

as specified in paragraphs (a) through

(d) of this section.

(a) Inspections. Grantees must permit

periodic inspection of the project

records and operations by a

representative of the Agency.

(b) Programmatic changes. Grantees

may make changes to an approved

project’s costs, scope, contractor, or

vendor subject to the provisions

specified in paragraphs (b)(1) through

(3) of this section. If the changes result

in lowering the project’s score to below

what would have qualified the

application for an award, the Agency

will not approve the changes.

(1) Prior Agency approval. The

grantee must obtain prior Agency

approval for any change to the scope,

contractor, or vendor of the approved

project. Changes in project cost will

require Agency approval as outlined in

paragraph (b)(1)(iii) of this section.

(i) Grantees must submit requests for

programmatic changes in writing to the

Agency for Agency approval.

(ii) Failure to obtain prior Agency

approval of any such change could

result in such remedies as suspension,

termination, and recovery of grant

funds.

(iii) Prior Agency approval is required

for all increases in project costs. Prior

Agency approval is required for a

decrease in project cost only if the

decrease would have a negative effect

on the long-term viability of the project.

A decrease in project cost that does not

have a negative impact on long-term

viability requires Agency notification

prior to disbursement of funds. If project

costs decrease, the Agency will reduce

the grant amount, if necessary, to

maintain a maximum grant amount of

no greater than 80 percent of total

project activities as required in

§ 4284.1114(a).

(2) Changes in project cost or scope.

If there is a significant change in project

cost or any change in project scope, then

the grantee’s funding needs, eligibility,

and scoring, as applicable, will be

reassessed. Any decreases in Agency

funds will be based on revised project

costs and other factors, including

Agency regulations used at the time of

grant approval.

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(3) Change of contractor or vendor.

When seeking a change, the grantee

must submit a written request to the

Agency for approval. The proposed new

contractor or vendor must have

qualifications and experience acceptable

to the Agency. The written request must

contain sufficient information to

demonstrate to the Agency’s satisfaction

that such change maintains project

integrity. If the Agency determines that

project integrity continues to be

demonstrated, the grantee will be

allowed to make the change. If the

Agency determines that project integrity

is no longer demonstrated, the change

will not be approved and the grantee

has the following options:

(i) Continue with the original

contractor or vendor;

(ii) Find another contractor or vendor

that has qualifications and experience

acceptable to the Agency to complete

the project; or

(iii) Terminate the grant by providing

a written request to the Agency. No

additional funding will be available

from the Agency if costs for the project

have increased. Any Agency decision

will be provided in writing to the lead

applicant.

(c) Transfer of Applicant or

Ownership. Any change to the jobs

accelerator partnership prior to the

obligation of funds must be approved by

the Agency and will only be considered

if the partnership entities are eligible in

accordance with § 4284.1112. After the

project is obligated and operational, the

applicant grantee may request, in

writing, a transfer of the financial

assistance agreement to another entity.

Subject to Agency approval provided in

writing, the financial assistance

agreement may be transferred to another

entity provided:

(1) The entity is determined by the

Agency to be an eligible lead applicant

entity under this subpart; and

(2) The scope of the project for which

the Agency funds will be used remain

unchanged.

(d) Disposition of acquired property.

Grantees must abide by the disposition

of acquired asset requirements as

outlined in 2 CFR part 200 and

departmental regulations.

(e) Financial management system and

records. The grantee must provide for

financial management systems and

maintain records as specified in

paragraphs (e)(1) and (2) of this section.

(1) Financial management system.

The grantee will provide for a financial

system that will include:

(i) Accurate, current, and complete

disclosure of the financial results of

each grant;

(ii) Records that identify adequately

the source and application of funds for

grant-supporting activities, together

with documentation to support the

records. Those records must contain

information pertaining to grant awards

and authorizations, obligations,

unobligated balances, assets, liabilities,

outlays, and income; and

(iii) Effective control over and

accountability for all funds. The grantee

must adequately safeguard all such

assets and must ensure that funds are

used solely for authorized purposes.

(2) Records. The grantee will retain

financial records, supporting

documents, statistical records, and all

other records pertinent to the grant for

a period of at least three (3) years after

completion of the grant period, except

that the records must be retained

beyond the 3-year period if audit

findings have not been resolved or if

directed by the United States. The

Agency and the Comptroller General of

the United States, or any of their duly

authorized representatives, must have

access to any books, documents, papers,

and records of the grantee that are

pertinent to the specific grant for the

purpose of making audit, examination,

excerpts, and transcripts.

(f) Audit requirements. If applicable,

grantees must provide an annual audit

in accordance with 2 CFR part 200,

subpart F. The Agency may exercise its

right to do a program audit after the end

of the project to ensure that all funding

supported eligible project costs.

(g) Grant disbursement. The Agency

will determine, based on the applicable

departmental regulations, whether

disbursement of a grant will be by

advance or reimbursement. Any funds

disbursed in advance of the expense

shall be used within three months and

the financial need substantiated in

writing by the grantee. Form SF–270 or

Form SF–271 must be completed by the

grantee and submitted to the Agency no

more often than monthly to request

either an advance or reimbursement of

funds.

(h) Reporting Requirements. Financial

and project performance reports must be

provided by grantees and contain the

information specified in paragraphs (h)

(1) and (2) of this section.

(1) Federal Financial Reports.

Between grant approval and completion

of project (i.e., construction), SF–425,

‘‘Federal Financial Report’’ will be

required of all grantees as applicable on

a semiannual basis. The grantee will

complete the project within the total

sums available to it, including the grant,

in accordance with the scope of work

and any necessary modifications thereof

prepared by grantee and approved by

the Agency.

(2) Performance reports. Grantees

shall submit a performance report semi-

annually for the first two years, and

then annually thereafter, with the first

report submitted no later than six

months after receiving a grant under this

section. This report will include, but not

be limited to, the following:

(i) All activities funded with the grant

funds;

(ii) Evaluation of progress towards

strategic initiatives identified in the

application for the grant, including a

discussion of any issues which may

have occurred;

(iii) Measurement of progress using

performance measures during the

project period, which may include the

following:

(A) High-wage jobs created;

(B) High-wage jobs retained;

(C) Private investment leveraged;

(D) Businesses improved;

(E) Businesses retained;

(F) New business formations;

(G) New products, prototypes and/or

services commercialized;

(H) Improvement of the value of

existing products or services under

development;

(I) Regional collaboration as measured

by the number of organizations actively

engaged in the industry cluster and/or

the number of symposia held by the

industry cluster, including

organizations that are not located in the

immediate region defined by the

partnership and/or the number of

further cooperative agreements;

(J) Number of educations and training

activities relating to the innovation;

(K) Number of innovative products,

services and/or prototypes launched;

(L) Number of jobs relocated from

outside of the United States to the

region;

(M) Amount and number of new

equity investments in industry cluster

firms;

(N) Amount and number of new loans

to industry cluster firms;

(O) Dollar increase in exports

resulting from the project activities;

(P) Percentage of employees for which

training was provided;

(Q) Improvement in sales of

participating businesses;

(R) Improvement in wages paid at

participating businesses;

(S) Improvement in income of

participating workers;

(T) Any measure determined

appropriate by the Agency; and

(U) Broadband development in the

targeted region.

(iv) Initiatives and timetable

established for the next reporting

period; and

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(v) Any additional information as

found in the annual Federal Register

notice.

§§ 4284.1121—4284.1130 [Reserved]

§ 4284.1131 OMB control number.

The information collection

requirements in this subpart are

approved by the Office of Management

and Budget (OMB) and assigned OMB

control number 0570–0075.

Mark Brodziski,

Acting Administrator, Rural Business-

Cooperative Service.

[FR Doc. 2021–12334 Filed 6–14–21; 8:45 am]

BILLING CODE 3410–XY–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA–2021–0183; Project

Identifier MCAI–2020–01408–T; Amendment

39–21589; AD 2021–12–02]

RIN 2120–AA64

Airworthiness Directives; De Havilland

Aircraft of Canada Limited (Type

Certificate Previously Held by

Bombardier, Inc.) Airplanes

AGENCY

: Federal Aviation

Administration (FAA), Department of

Transportation (DOT).

ACTION

: Final rule.

SUMMARY

: The FAA is adopting a new

airworthiness directive (AD) for certain

De Havilland Aircraft of Canada Limited

Model DHC–8–400 series airplanes.

This AD was prompted by a report that

a number of nacelle A-frames were not

manufactured in accordance with

engineering drawings. This AD requires,

depending on airplane configuration,

removing the fasteners on the nacelle A-

frame side brace sub-assemblies, doing

an eddy current inspection for cracking,

cold-working the holes, installing

oversize fasteners, re-identifying the

reworked side brace fitting and A-frame,

and repair if necessary. The FAA is

issuing this AD to address the unsafe

condition on these products.

DATES

: This AD is effective July 20,

2021.

The Director of the Federal Register

approved the incorporation by reference

of certain publication listed in this AD

as of July 20, 2021.

ADDRESSES

: For service information

identified in this final rule, contact De

Havilland Aircraft of Canada Limited,

Q-Series Technical Help Desk, 123

Garratt Boulevard, Toronto, Ontario

M3K 1Y5, Canada; telephone 416–375–

4000; fax 416–375–4539; email thd@

dehavilland.com; internet https://

dehavilland.com. You may view this

service information at the FAA,

Airworthiness Products Section,

Operational Safety Branch, 2200 South

216th St., Des Moines, WA. For

information on the availability of this

material at the FAA, call 206–231–3195.

It is also available on the internet at

https://www.regulations.gov by

searching for and locating Docket No.

FAA–2021–0183.

Examining the AD Docket

You may examine the AD docket on

the internet at https://

www.regulations.gov by searching for

and locating Docket No. FAA–2021–

0183; or in person at Docket Operations

between 9 a.m. and 5 p.m., Monday

through Friday, except Federal holidays.

The AD docket contains this final rule,

any comments received, and other

information. The address for Docket

Operations is U.S. Department of

Transportation, Docket Operations, M–

30, West Building Ground Floor, Room

W12–140, 1200 New Jersey Avenue SE,

Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT

:

Antariksh Shetty, Aerospace Engineer,

Airframe and Propulsion Section, FAA,

New York ACO Branch, 1600 Stewart

Avenue, Suite 410, Westbury, NY

11590; telephone 516–228–7300; fax

516–794–5531; email 9-avs-nyaco-cos@

faa.gov.

SUPPLEMENTARY INFORMATION

:

Background

Transport Canada Civil Aviation

(TCCA), which is the aviation authority

for Canada, has issued TCCA AD CF–

2020–39, dated October 14, 2020 (TCCA

AD CF–2020–39) (also referred to as the

Mandatory Continuing Airworthiness

Information, or the MCAI), to correct an

unsafe condition for certain De

Havilland Aircraft of Canada Limited

Model DHC–8–400 series airplanes. You

may examine the MCAI in the AD

docket on the internet at https://

www.regulations.gov by searching for

and locating Docket No. FAA–2021–

0183.

The FAA issued a notice of proposed

rulemaking (NPRM) to amend 14 CFR

part 39 by adding an AD that would

apply to certain De Havilland Aircraft of

Canada Limited Model DHC–8–400

series airplanes. The NPRM published

in the Federal Register on March 22,

2021 (86 FR 15149). The NPRM was

prompted by a report that a number of

nacelle A-frames were not manufactured

in accordance with engineering

drawings. The holes in the side brace

sub-assemblies were not cold-worked as

required. As a result the side brace

fitting might not meet its fatigue life,

and cracking of the A-frame bottom

flange may result. The NPRM proposed

to require, depending on airplane

configuration, removing the fasteners on

the nacelle A-frame side brace sub-

assemblies, doing an eddy current

inspection for cracking, cold-working

the holes, installing oversize fasteners,

re-identifying the reworked side brace

fitting and A-frame, and repair if

necessary. The FAA is issuing this AD

to address possible cracking of the A-

frame. This condition, if not addressed,

may lead to collapse of the main landing

gear (MLG). See the MCAI for additional

background information.

Comments

The FAA gave the public the

opportunity to participate in developing

this final rule. The FAA has considered

the comment received. The Air Line

Pilots Association, International

(ALPA), stated that it supports the

NPRM.

Conclusion

The FAA reviewed the relevant data,

considered the comment received, and

determined that air safety and the

public interest require adopting this

final rule as proposed, except for minor

editorial changes. The FAA has

determined that these minor changes:

•Are consistent with the intent that

was proposed in the NPRM for

addressing the unsafe condition; and

•Do not add any additional burden

upon the public than was already

proposed in the NPRM.

Related Service Information Under 1

CFR Part 51

De Havilland Aircraft of Canada

Limited has issued Service Bulletin 84–

54–32, dated October 10, 2019. This

service information describes

procedures, depending on airplane

configuration, for removing the fasteners

on the nacelle A-frame side brace sub-

assemblies, doing an eddy current

inspection for cracking, cold-working

the holes, installing oversize fasteners,

and re-identifying the reworked side

brace fitting and A-frame.

This service information is reasonably

available because the interested parties

have access to it through their normal

course of business or by the means

identified in the

ADDRESSES

section.

Costs of Compliance

The FAA estimates that this AD

affects 41 airplanes of U.S. registry. The

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