Tools › Industries › Public Administration › Grant Agreement

Economic Development Grant Agreement for Public Administration

Administration of Economic Programs · NAICS 926 · Grant Agreement

This Grant Agreement template is designed specifically for public administration agencies administering economic development programs, such as those funded by the U.S. Economic Development Administration (EDA) or state commerce departments. It goes beyond a generic grant agreement by incorporating clauses that address the unique compliance, reporting, and audit requirements of economic development grants, including cost share, program income, and environmental review. Using this template, you can quickly draft an agreement that aligns with federal and state regulations, reducing the risk of noncompliance and ensuring that all parties clearly understand their obligations.

When you need this document

When your agency is awarding a discretionary grant to a local government, nonprofit, or business for economic development projects.
When you need to formalize a grant under a federal formula or competitive program, such as EDA's Public Works program.
When the grant involves construction or infrastructure that triggers environmental review or Davis-Bacon prevailing wage requirements.
When you must document cost-share commitments and program income expectations for a revolving loan fund or similar activity.
When your agency requires a standard agreement for multiple subawards under a larger federal grant.

What the generated draft includes

Parties and recitals identifying the grant program and authority
Definitions of key economic development terms
Grant amount, cost share, and payment schedule
Period of performance and extension conditions
Allowable and unallowable costs per 2 CFR 200 or state rules
Reporting and audit requirements, including SF-425 and performance reports
Compliance clauses for environmental review, Davis-Bacon, and lobbying
Program income and revenue sharing provisions

Frequently asked questions

What is the difference between a grant agreement and a cooperative agreement?

A grant agreement is used when the grantor agency does not expect substantial involvement in the project's implementation. In contrast, a cooperative agreement is used when the agency will be actively involved. Economic development grants can be either, but this template focuses on the grant agreement format.

How does 2 CFR 200 affect my economic development grant agreement?

2 CFR 200, also known as the Uniform Guidance, sets uniform administrative requirements, cost principles, and audit requirements for federal grants. If your grant is federally funded, you must incorporate these requirements into your agreement, including clauses on allowable costs, records retention, and subaward monitoring.

What is program income and how is it handled?

Program income is gross income earned by the grantee that is directly generated by the grant-supported activity, such as fees for services or loan repayments. The agreement must specify whether program income is added to the grant, used as a cost share, or deducted from the total project cost, depending on the program's rules.

Self-help document generator: you get a structured draft based on the facts you provide. It is not legal, tax, or financial advice; verify jurisdiction-specific rules before sending.