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Department of C 2 pp
Memorandum 301 South Park Avenue, Helena, Montana LS ly
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JUL 11'2 002
To: Montana Local and Tribal Governments
From: Fran Viereck, Program Officer, Economic Action Program I IZe-6hK
U?e
Date: July 10, 2002
Subject: Third Round Application Guidelines - Economic Action Program
As many of you know, last year the Montana Department of Commerce (DOC) was
selected to implement and administer three parts of the U.S. Forest Service's National
Fire Plan; DOC received $1.4 in Title IV funding for Community Planning for Fire
Protection, Economic Action Projects and Economic Action Pilot Projects.
A third round of grant application proposals is now being solicited. A total of
$248,656 remains in all combined project areas. Applications are being solicited on a
first come, first served, open cycle basis. Projects are designed to achieve the
following results:
• Expand and develop wood products related businesses and markets that reduce
hazardous forest fuels and retain and/or create local jobs,
• Facilitate the development and/or revision of strategic, interagency and wildfire
risk reduction plans,
• Market development and expansion through fund matching with federal, state,
tribal, non-profit and manufacturing centers to build sustainable businesses that
result in hazardous forest fuels reduction and retain and/or create local jobs, and
• Demonstrate the ability to create, add value to and diversify economic options in
local communities using small diameter and/or traditionally under-utilized wood
products.
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CITY LAUREL
REL
Application guidelines and a budget form are enclosed. If you have questions, please
contact me at (406)841-2736 (or fviereck state.mt.us).
MONTANA DEPARTMENT OF
GRANT APPLICATION POLICIES
ECONOMIC ACTION
COMMUNITY PLANNING
PILOT PROJECTS
During the Summer of 2000, Montana suffered its worst fire season in the past quarter
century. Big Sky Country became "Big Smoke Country" as 30 distinct fires ravaged the
state, leading to the closure of nearly 20 million acres of forests and grasslands. In
addition to actual destruction caused by wildfires, Montana was perceptually "closed for
the season." In the resulting Federal Disaster Declaration, half of the counties in
Montana, and two large Indian Reservations, were classified as major disaster areas.
Adding to the steady decline of communities dependent on natural resource based
economies, the wildfires of 2000 placed a large number of Montana communities in a
high-risk category. The National Fire Plan emphasizes economic actions designed to
mitigate the damage and destruction from the 2000 wildfires by restoration of impacted
areas and reduction of fixture fire hazards affecting residents and communities.
In the late summer of 2001, the Montana Department of Commerce was approved to
implement and administer three components of the National Fire Plan, utilizing $1.4
million in Title IV funding from the United States Forest Service. In close cooperation
with the State and Private Forestry Division in the Northern Regional Office, located in
Missoula, the Commerce Department initiated an Economic Action Program, Community
Planning for Fire Protection Program and an Economic Action Pilot Program. A total of
$1,060,353 has been awarded to date. First come, first served competitive grants are
now being solicited on an open cycle basis for the combined total remainder of
$248,656* (*contact Commerce for current balances before developing applications).
The components of the National Fire Plan, that were a response to the disastrous 2000
wildfires, are designed to stabilize Montana communities and prepare them to better
endure future uncertainties. Economic sustainability and community enhancement will be
the guiding forces for implementation of Montana's Title IV funding.
The Economic Action, Community Planning, and Economic Action Pilot Projects are
designed to achieve the following broad results:
Expand and develop businesses and markets for wood products that result in the
reduction of hazardous fuel in forests and the retention and creation of local jobs;
Facilitate development and revision of strategic, action, and wildfire risk
reduction plans in rural communities;
* Market development and expansion through matching of funds with federal, state,
tribal, nonprofit, and manufacturing centers as needed to build sustainable
businesses that result in hazardous fuels reduction in forests and the retention and
creation of local jobs; and
Demonstrate the ability to create, add value to, and diversify economic options in
local communities using small diameter material and/or traditionally underutilized
wood products.
The following application guideline areas apply to all three categories. Each category will
then be covered independently. Applicants must specify the category applied for in the
application materials.
When preparing applications it is advisable to contact the closest Forest Service resource
person and Commerce Regional Development Officer listed at the end of the guidelines
for initial assistance. Potential applicants may be referred to other technical assistance
resources depending on the nature and scope of the project being considered, such as
local and regional development corporations.
ELIGIBLE APPLICANTS
Montana's program will be accessible to rural communities, local and regional
development corporations, businesses, credible associations/institutions and tribal
governments. Based on the most recent census data, applicants may be from local
government jurisdictional areas with less than 10,000 population, non-metropolitan
counties, tribal governments and rural zones outside the corporate limits of metropolitan
statistical areas dependent on natural resource economies. Projects should be community
based as much as is reasonably possible. Applicants that document local support through
local or regional development corporations and local governments will be given highest
priority. All areas should be within 100 miles of a National Forest or National Grassland.
All eligible applicants listed above may apply for Economic Action Projects or Economic
Action Pilot Projects directly but should demonstrate local support, preferably through
the local government and/or a community based organization. Applicants for
Community Planning projects must be local governments. If the project is in an
unincorporated area, the county is the eligible applicant.
Special consideration will be given to areas with high unemployment, recent out-
migration and/or recent wood products mill closures, cutbacks, or with mills and wood
products companies at risk. Preference will also be given to areas that demonstrated
significant impacts from the 2000 forest fire season and land closures based on the
business impact survey conducted last year by the Department of Commerce.
APPLICATION POLICIES AND PROCEDURES
All applications must be signed by the recipient entity. Applications that are submitted by
entities that demonstrate extensive experience managing federal grant and loan programs
and document local support through local or regional development corporations and local
governments will be given highest priority. Multiple applications may be submitted from
each entity. Applicants that submit more than one proposal during an application period
must clearly prioritize the proposals. The rationale for submitting more than one proposal
must be conclusively demonstrated, especially if more than one is submitted for a specific
category.
The main application packet narrative cannot exceed 15 pages total (not including
attachments) and must contain an original and 5 copies of the following:
• Name, address and contact information for the applicant in the form of a cover
letter on official letterhead signed by the authorized official.
• Name, address and contact information for any subrecipients or each key
cooperative partner in the form of a letter on official letterhead signed by the
authorized official
NOTE: Letters submitted must contain the following statement:
certifies that the information contained in this application is, to the
best of our knowledge, true and accurately represents the proposed project, and that all
federal and state laws, regulations and requirements associated with this grant application
will be complied with in good faith. We understand that additional information may be
requested.
• Specify Category (a separate application for each category is required)
• Narrative of project plan that is no more than 15 stapled pages, with no binders or
covers, that specifically responds to the criteria and purpose of the category
selected and is organized with the following headings in order:
1. Executive Snmmarv - key elements, concise description
2. Eliibility - describe how the applicant meets the eligibility requirements
3. Need - demonstrate level of community and applicant needs (Eligible Applicants)
4. Purpose - respond to issues contained in category section applied for
5. Work Plan - implementation schedule - outline dates and narrative
6. Management Plan - administrative experience, compliance, reporting
7. Budget/Match - use form, provide narrative, document match
8. Results - describe objective and subjective positive results anticipated
• If the project includes assistance to a for-profit business or businesses, a current
business plan must be submitted for each business as an attachment. Existing
businesses must include the three most recent years of complete financial
statements and a current interim financial statement (balance sheet and profit and
loss statement) that is no more than 90 days old. In addition, a three-year
projection of the balance sheet and profit and loss statement must be prepared and
submitted that includes the total proposed project financing. This information is in
addition to the items listed above and is submitted as an attachment. Start-up
companies must submit the three-year projection. The Department will determine,
on a case-by-case basis, whether more or less information is adequate for review
and analysis.
Projects involving financial assistance, including leases, to businesses must
demonstrate financial viability based on the current and projected strength of the
business. The Department using standard analysis techniques will conduct a
financial analysis. Otherwise strong proposals will not be approved if businesses
cannot demonstrate financial viability past the life of the project. Projects
involving start-up businesses will generally need higher levels of cash match and
owner commitment to be successful in the competition.
All other information submitted should be included as labeled attachments and
stapled separately from the main application items listed above. The Department
of Commerce reserves the right to request additional information if needed during
the review period, especially if the project contains unique items that may require
different information than requested above.
Fundine Limits
The ceiling for Community Fire Planning grants is $25,000. EAP** and EAPP
application amounts must range between $10,000 and $100,000. Emotions will only be
granted for situations where well-defined reasonable justification is conclusively
demonstrated. Funds will be drawn on a reimbursement basis. Billing, invoices, or
vouchers must accompany requests for payment. Funding requests must comply with
applicable State and Federal requirements, including OMB A-87-Cost Principles, OMB
A-102, and OMB A-133 Single Audit Requirements. **Based upon currently available
funds, EAP grant applications can be no larger than $71,510.
Matching Funds
A documented 20% minimum match of the entire project cost is required for program
applications. The match may be cash, in-kind donations, or any combination. All
matching funds must be directly related to planning, implementation, and/or operation of
the respective project. Federal funds may not be used to meet the minimum match but can
be part of the project. Funds expended prior to the application submittal date will not be
considered as match and are not reimbursable with grant funds. Receipts, invoices,
timesheets, or other written evidence must document matching funds during the course of
project implementation.
Project applications that demonstrate a higher level of matching cash (instead of in-kind)
and an overall match percentage exceeding the minimum required will be given
significantly higher priority. This is especially true of business applications, which should
provide significant cash matches to be competitive.
Progress reports will be required with each request for funding and as deemed
appropriate by the Montana Department of Commerce. A final report must be submitted
upon project completion.
Elieible Costs - specifically needed for project
• Personnel, including travel, for completing identified projects
• Equipment items
• Supply items
• Contractual services
• Construction
• Other eligible costs directly associated with project
• Matching funds for other related State and foundation grants (excluding other
Federal programs)
Funds used primarily for local administration of the project should not exceed 10% of the
total project cost. Afplications that maximize the use of funds for activity costs will
receive higher prigEb.
Any equipment purchased with grant funds that costs more than $5,000 may become the
property of the Forest Service at its discretion. after the project is completed Loans and
grants made for the purchase of equipment must be collateralized adequately with a
written agreement for recovery of the equipment or its equivalent cost if full payment is
not made or in cases of poor performance by the subrecipient. Businesses may want to
consider alternative sources for equipment. Business applications can be made for other
Wecific project-related purposes such as job training, feasibility studies (such as required
by Rural Business Services), marketing of wood products, product development, etc.
Feasibility studies must be directly related to an existing business or the actual start-up of
a new business that conclusively demonstrates that it has a feasible business plan.
Application Deadline
The third-round application deadline will be open with applications reviewed and
awarded on a first come, first served basis. Applications should be mailed to:
Fran Viereck, Program Officer
Business Resources Division
Montana Department of Commerce
Post Office Box 200505
Helena, Montana 59620-0505
(406) 841-2736
Questions may also be directed to: Gary Morehouse (406) 841-2732.
Web Address: http://commerce.state.mt.us/BRD/BRD EAP html
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ECONOMIC ACTION PROGRAM
There is $69,687* available in this category (*contact Commerce for current balances
before developing applications). The purpose of the Economic Action Program (EAP)
program is to expand and develop businesses and markets for wood products resulting
from fuel removal, provide technical and financial assistance to help communities
develop opportunities and enterprises through diversified uses of forest resources, and
develop and expand businesses and markets for traditionally underutilized wood as a tool
to enhance efficient use of the removed fuels from the forest. The Mgram is not intended
to be used duectl fagging and hazardous material removal projects. The program is
intended to increase the long term demand for wood products by assisting value adding
businesses that utilize wood products, especially hazardous fuels. Priority will be given
to:
Projects that increase the use of small diameter logs and underutilized wood
material in manufacturing and other similar applications that could include (but
not be limited to); furniture, structures and other construction activities, bark
bagging, bio-energy applications, mulch, pellets, animal bedding, bridges, rails,
etc.
Activities that help build and maintain sustainable businesses and increase
markets that expand the usage of small diameter and underutilized material
through market analyses, trade shows, feasibility studies, business plan
development, training workshops, network development, wood product and
business directories, cooperative development for purchasing and marketing, and
other business development activities that result in the retention and creation of
local jobs.
COMMUNITY PLANNING FOR FIRE PROTECTION
There is $40,896* available in this category (*contact Commerce for current balances
before developing applications). The primary purpose of this category is to encourage,
enhance and facilitate community planning for immediate and future change specifically
related to wildfire risk reduction management plans. Applications should be for
community planning activities that result in the development of a comprehensive growth
and development plan with a specific section that addresses wildfire risk management.
Community based plans that are broad-based and include sections on economic
development and growth management as well as social and environmental issues will be
given priority. Community plans must contain specific actions to be taken to reduce fire
hazards to communities and must address how the community plans to deal with future
wildfire and other catastrophic events. Plans should assess at least the infrastructure
needs for response to wildfires such as dry fire hydrants, fire halls, water systems,
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personnel and equipment. The community must be. able to demonstrate that it can monitor
and evaluate outcomes from the planning process.
Communities which demonstrate that planning functions are coordinated locally will be
given priority. Planning activities such as those required by the Department of Commerce
Certified Community program, the Economic Development Administration Community
Economic Development Strategy planning process, land use comprehensive planning
conducted by planning boards, and other similar programs must be shown to be
coordinated at the time of application, or will be as a goal of the project described.
Activities should include expansion of community-led outreach and education to
homeowners and the community about fire prevention and fire hazard risk reduction.
Planning should include coordination with all local entities, state, federal, and especially
fire fighting entities.
ECONOMIC ACTION PILOT PROJECTS
There is $138,073* available in this category (*contact Commerce for current balances
before developing applications). Although this category is similar to the Economic
Action Program, the main difference is that the Economic Action Pilot Program (EAPP)
is targeted to demonstration projects that are unique and original and that result in a new
process or concept that can be disseminated widely and used elsewhere as a model.
The purpose of the EAPP program is to provide technical and financial assistance to help
communities develop opportunities and enterprises through diversified uses of forest
resources and develop and expand businesses and markets for traditionally underutilized
wood as a tool to enhance efficient use of the removed fuels from the forest resulting in
the retention and creation of local jobs. The program is not intended to be used direct
for logging and hazardous material removal projects The program is intended to increase
the long term demand for wood products by assisting value adding businesses that utilize
wood products, especially hazardous fuels. Priority will be given to:
• Projects that increase the use, particularly in new and unique ways, of small
diameter logs and underutilized wood material in manufacturing and other similar
applications that could include (but are not limited to); furniture, structures and
other construction activities, bark bagging, bio-energy applications, mulch,
pellets, animal bedding, bridges, rails, etc.
Activities that help build and maintain sustainable businesses and increase
markets that expand the usage of small diameter and underutilized material
through market analyses, trade shows, feasibility studies, business plan
development, training workshops, network development, wood product and
business directories, cooperative development for purchasing and marketing, and
other wood products business development demonstration projects.
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• All projects must be able to serve as a model for others to follow and include
plans to disseminate and share what is learned through the pilot or demonstration
project.
• Funds can be used to design or purchase unique wood processing equipment for
demonstration applications. Any equipment purchased that costs more than
$5,000 may become the property of the Forest Service, at its discretion, after the
project is completed. Secured loans for equipment may be determined an
exception on a case-by-case basis.
FUNDING CRITERIA ECONOMIC ACTION, PLANNING. PILOT PROGRAMS
The following list provides the key criteria discussed above that the Department uses to
make decisions on applications submitted during each application cycle.
• Preference will be given to projects that conclusively demonstrate that
quantifiable results can be achieved and measured as a direct result of the project,
especially the creation and retention of local jobs.
• Project applications that demonstrate a higher level of matching cash (instead of
in-kind) and an overall match percentage exceeding the minimum required will be
given significantly higher priority. Applicants should maximize other funding as
much as possible.
• Projects should be community-based as much as is reasonably possible.
Applicants that document local support through local or regional development
corporations and local governments will be given highest priority.
• Applications that are complete as submitted and follow the format and
instructions provided are more likely to be funded. Clarity and completeness are
measures of the applicant's ability to successfully administer a project.
• Applications must demonstrate that projects are ready to proceed upon award and
document a sound, well-reasoned proposal with a strong chance of success if
funds are received.
• Proposals must closely match the purpose and intent of the category being applied
for and be eligible.
• Projects must be financially and conceptually feasible.
• Projects involving assistance to businesses must demonstrate financial viability
based on the current and projected strength of the business. The Department will
conduct a financial analysis, using standard analysis techniques. Otherwise strong
proposals will not be approved if businesses cannot demonstrate financial
viability past the life of the project.
• Projects involving start-up businesses will need higher levels of match and owner
commitment to be successful in the competition.
• Projects involving loans to for-profit businesses will only be approved if they
involve local or regional development entities with extensive lending experience
using government funded revolving loan programs such as the Commerce.
Community Development Block Grant program, Commerce Micro Business loan
program, federal Intermediary Re-lending program, Economic Development
Administration revolving loan funds and/or others. The application must include
the complete financial analysis that is conducted locally for a specific business
proposal and evidence that the local review board has tentatively approved the
loan pending a funding decision from the Department.
Special consideration will be given to areas with high unemployment, recent out-
migration and/or recent wood products mill closures, cutbacks, or with mills and
wood products companies at risk. Preference will also be given to areas that
demonstrated significant impacts from the 2000 forest fire season and land
closures based on the business impact survey conducted that year by the
Department of Commerce.
Applications that are submitted by entities that demonstrate extensive experience
managing federal grant programs or involve contracting and coordinating with
experienced grant or loan administrators will be given highest priority.
Funds used primarily for local administration of the project should not exceed
10% of the total project cost. Applications that maximize the use of funds for
activity costs will receive higher priority.
REGIONAL DEVELOPMENT OFFICERS
• Eric Hanson (Northwest Montana)
2 Main Street, Suite #202
Kalispell, MT 59901
(406) 257-2259
(406) 257-2259 FAX
erjhanson@centurytel.net
Randy Hanson (North Central Montana)
48 2nd Street, Room 211
Post Office Box 311
Havre, MT 59501
(406) 262-9579
(406) 262-9581 FAX
hanson@ibic.org
• Tod Kasten (Eastern Montana)
Post Office Box 520
Circle, MT 59215
(406) 485-3374
(406) 485-3376 FAX
kranches@midrivers.com
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• Terry Dimock (Southwest Montana)
Montana Department of Commerce
301 South Park Avenue 4102A
Helena, MT 59620
(406) 841-2737
(406) 841-2731 FAX
tdimock@state.mt.us
• Al Jones (South Central Montana)
2004 Miles Avenue
Billings, MT 59102
(406) 655-1696 (home)
(406) 962-3914 (RC&D)
(406) 655-0899 FAX
aljonesrdo@home.com
FOREST SERVICE CONTACTS
• Beaverhead-Deerlodge NF area contact
Margie Ewing
Building 24, Fort Missoula
Missoula, MT 59804
(406) 329-3848
• Bitterroot NF area contact
Nancy Christianson
1801 North 1 st Street
Hamilton, MT 59840
(406) 363-7113
• Custer NF area contact:
Larry Timchak
1310 Main Street
Billings, MT 59105
(406) 657-6200
• Flathead NF area contact
Margie Ewing
Building 24, Fort Missoula
Missoula, MT 59804
(406) 329-3848
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• Gallatin NF and General FS EAP contact
Dave Atkins
Building 24, Fort Missoula
Missoula, MT 59804
(406) 329-3134
• Helena NF area contact
Amy Teegarden
2880 Skyway Drive
Helena, MT 59601
(406) 449-5201
• Kootenai NF area contact:
Margie Ewing
Building 24, Fort Missoula
Missoula, MT 59804
(406) 329-3848
Lewis and Clark NF area contact:
Lynn Johnson
Post Office Box 869
1101 15th Street North
Great Falls, MT 59403
(406) 791-7709
• Lolo NF area contact:
Margie Ewing
Building 24, Fort Missoula
Missoula, MT 59804
(406) 329-3848
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Montana Department of Commerce
Economic Action Program
PROJECT BUDGET
Grant Applicant:
Budget Form for EAP Projects
(Sources and Uses)
ADMINISTRATION EAP$ CASH$ '--IN-KIND$ TOTAL$
PERSONAL SERVICES
Salaries, Wages and
Benefits
OFFICE COSTS
Supplies
Postage and Printing
Telephone
PROFESSIONAL SERVICES
Administrative Services
Consulting Services
Contracted Services
OTHER
Travel and Training
Total Administration
ACTIVITY
Total Activity
TOTAL PROJECT BUDGET
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