§2008w Rural Innovation Stronger Economy Grant Program

Summary

Creates a competitive grant program that gives money to rural partnerships to set up "jobs accelerators" that help rural places create more high-wage jobs, start new businesses, and grow local economies. Grants go to eligible rural partnerships formed after December 20, 2018, that bring together colleges, businesses, government, and other local groups, and that are led by an approved organization such as a district organization, an Indian tribe, a State or local government unit, a college, or a nonprofit. The region served must be chosen and approved by the Secretary, be the right size for the industry cluster, mostly low-income nonmetropolitan communities with broadband or a plan for broadband, and usually have 50,000 or fewer people unless the Secretary finds it rural in character. The federal share of project costs may be up to 80 percent, and the rest can be money or donated goods and services. Grants are chosen based on local partner commitment (including investors and workforce/education partners), the ability to provide matching funds, a clear industry focus, links to markets and other federal programs, and plans to keep the accelerator going after the grant ends. Initial grants last 4 years and can be renewed once for up to 2 more years. The program aims to award grants in at least 25 States when possible. Grants must be between $500,000 and $2,000,000. Money can buy or fix up a building and pay for programs that connect businesses to markets, build supply chains, commercialize new products, grow exports, train workers, support small and disadvantaged businesses, bring jobs back to the U.S., and strengthen community infrastructure. No more than 10 percent is normally for indirect administrative costs unless increased case-by-case. Grant recipients must report and evaluate their work starting within 1 year and each year after, using measures like high-wage jobs created or retained, private investment, new businesses, training activities, exports, and wage and income improvements. The law authorized $10,000,000 for each fiscal year 2019 through 2023. Definitions (one line each): Eligible entity — a qualifying rural jobs accelerator partnership; Industry cluster — a network of related businesses and supporting groups; High-wage job — a job that pays more than the region’s median wage; Jobs accelerator — a center or program serving low-income rural communities with training and business support; Small and disadvantaged business — a small business owned by socially and economically disadvantaged individuals.