Federal Assistance Program for Manufacturers to Sunset to New Applicants
Published on by Brad Sack in Assurance, Manufacturing
A long-time federal assistance program for manufacturers hurt by import competition will no longer be available to new applicants after June 30, 2022.
Trade Adjustment Assistance for Firms (TAAF) is a federal program that provides financial assistance to U.S. manufacturing and service companies that have been negatively affected by import competition. The TAAF program was established in 1974 and is sponsored by the U.S. Economic Development Administration (EDA), through the U.S. Department of Commerce.
The TAAF program is managed by eleven regional, non-profit organizations known as Trade Adjustment Assistance Centers (TAACs). The TAAC will assist the manufacturing entity with the program application (phase 1), the development of a customized business recovery plan (phase 2), and the implementation of the plan (phase 3).
A firm is eligible for the program if it experienced sales and employment declines due to import competition over the last two years.
If eligible, the EDA will typically pay 50% percent of the consulting fees incurred by the manufacturer to develop and implement a recovery plan. EDA will pay up to $75,000 of the consulting fees incurred.
Eligible companies can use TAA for various development projects, which frees up company resources for other obligations and expenses that are not covered by the federal program, including equipment and material purchases.
One important thing to note is that TAA is not a “reimbursement” program. An eligible company will be held responsible for only half of the project costs, while TAA will pay the consultant the remainder of the project costs.
If interested, contact one of the eleven regional TAACs soon; as noted above, the EDA cannot accept applications from new applicants under the program after June 30, 2022.
About The Trade Adjustment Assistance for Firms (TAAF)
The Trade Adjustment Assistance for Firms (TAAF) (PDF) program helps import-impacted U.S. firms develop and implement projects to regain global competitiveness, expand markets, strengthen operations, and increase profitability, thereby increasing U.S. jobs.
The TAAF program was established by Congress under the Trade Expansion Act of 1962. The Trade Act of 1974 (Trade Act), as amended, included a more extensive TAA program for firms that expanded eligibility, increased authorized funding levels, and provided greater flexibility for a firm to demonstrate eligibility for assistance.
If you’d like to know more, you can connect with a member of the Barnes Dennig team for a free consultation. You can call us at 513.241.8313, or drop us a line via our website. We’re here to help.