Capacity Building for Business Districts Pilot Program Act of 2025

Bill Number

H.R. 3585

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Commerce

Status

Introduced

Latest Action

2025-05-24: Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management.

Last Updated

2026-04-30T08:06:31Z

AI-Generated Summary

Purpose

The legislation aims to strengthen business districts in underserved communities by establishing a pilot program under the Economic Development Administration (EDA, a federal agency that supports economic growth). It recognizes business districts as key to community vitality, job creation, and attracting investment, particularly in low-income, rural, minority, and Native areas. The program addresses gaps in existing federal support by providing technical assistance and funding to local organizations that lack access to traditional EDA resources.

Key Provisions

• Pilot Program Establishment: Creates the "Capacity Building for Business Districts Pilot Program" within the EDA's existing technical assistance authority. The EDA Secretary awards competitive grants to "specified recipients" (experienced nonprofit organizations operating across multiple regions) to deliver specialized support, such as training, advice, and operating grants, to "eligible subrecipients" (local business district organizations).
• Focus Areas: Targets place-based initiatives (efforts tied to specific locations) for business district revitalization, including technical assistance, capacity building (enhancing organizational skills), and services to small businesses in distressed areas.
• Award Process: Requires multiple awards to various organizations for broad geographic coverage. Prioritizes applicants serving distressed communities (as defined in existing law), rural areas, Indian Tribes, and those with multi-state or multi-geographic reach. Grants must last at least 2 years.
• Administration: Bypasses EDA regional offices; handled centrally. No funds for construction or large-scale projects—focus on operations and support.
• Reporting Requirements: Specified recipients must submit annual reports detailing subrecipients served, fund uses (e.g., technical aid, pass-through grants), geographic areas, businesses assisted (including industry types via the North American Industry Classification System, a standard business categorization), jobs created/retained, and other metrics aligned with the program's goals.
• Definitions:
• Business District: A concentrated area of small businesses and economic activity, such as urban neighborhoods, rural main streets, or commercial corridors.
• Business District Organization: A public or nonprofit entity promoting the district through investment attraction, job creation, and physical improvements.
• Eligible Subrecipient: Nonprofit or public organizations (tax-exempt under IRS Section 501(c)(3)-(6)) providing economic development services in distressed areas.
• Specified Recipient: Multi-regional nonprofits with expertise in business district support.

Significant Changes to Existing Law

This bill amends Section 207 of the Public Works and Economic Development Act of 1965 (a law authorizing EDA programs for economic development). It adds a new subsection (c) to expand the EDA's technical assistance program by introducing this targeted pilot for business districts. Previously, small-scale local organizations struggled to access EDA funds due to their limited scope; this creates a streamlined pathway via intermediaries, without altering core EDA structures like regional offices for this program.

Potential Impacts

• Government Agencies: The EDA gains a new tool for targeted economic support but must manage competitive grants and reporting centrally, potentially increasing administrative workload without additional funding specified.
• Citizens and Communities: Could boost local economies in underserved areas by revitalizing business districts, creating jobs, attracting residents and businesses, and providing services to small, minority-owned, or rural enterprises. Benefits low-income, rural, and Native populations through enhanced entrepreneurship and community identity.
• International Relations: No direct impacts; the program is domestic-focused.

Main Stakeholders Affected

• Federal Level: Economic Development Administration (implements and oversees the program).
• Nonprofit and Local Organizations: Specified recipients (intermediary nonprofits with multi-regional expertise) and eligible subrecipients (local business district groups serving distressed areas).
• Communities and Businesses: Residents, small business owners, and entrepreneurs in low-income, rural, minority, and Native communities, who gain access to technical aid and revitalization support.
• State and Local Governments: Indirectly benefit through partnerships with business district organizations for economic planning and development.

Notable Legal, Constitutional, or Political Implications

• Legal: Aligns with existing EDA authority under the 1965 Act, using competitive grants to nonprofits and public entities without creating new entitlements or mandates. Reporting ensures accountability but avoids overly burdensome requirements. No challenges to tax-exempt status or federal spending rules apparent.
• Constitutional: Supports Congress's spending power for economic welfare (Article I, Section 8) and promotes equal access for underserved groups, potentially advancing equal protection principles without raising discrimination concerns.
• Political: Encourages bipartisan economic development by focusing on local, community-driven growth in politically sensitive areas like rural and minority districts. As a pilot, it allows testing before broader expansion, minimizing fiscal risks amid debates on federal aid to small-scale initiatives.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Ezell, Mike [R-MS-4]

Cosponsors (7)

Rep. Carter, Troy A. [D-LA-2], Rep. Amodei, Mark E. [R-NV-2], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. McBride, Sarah [D-DE-At Large], Rep. Kelly, Trent [R-MS-1], Rep. Schmidt, Derek [R-KS-2], Rep. Peters, Scott H. [D-CA-50]

Recent Actions

• 2025-05-24: Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management.
• 2025-05-23: Referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-05-23: Referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-05-23: Introduced in House
• 2025-05-23: Introduced in House

Bill Versions

• Capacity Building for Business Districts Pilot Program Act of 2025 — issued 2025-05-23 — PDF (9 pages)