HR3585-119

What This Bill Does

The Capacity Building for Business Districts Pilot Program Act of 2025 amends the Public Works and Economic Development Act. It directs the Commerce Secretary to establish the Capacity Building for Business Districts Pilot Program within existing section 207 authority. EDA may award competitive grants to specified recipients to run place-based initiatives that provide specialized technical assistance, capacity building, operating grants, and related services to eligible subrecipients supporting business district revitalization in low-income, rural, minority, and Native communities. The Secretary must make multiple awards to multiple organizations, may not run the pilot through a regional office, must ensure broad geographic distribution, and must prioritize applicants serving distressed communities under section 301(a), including rural communities and Indian Tribes, and applicants able to serve multiple states or multiple geographies within a state. Initial grants must last at least two years. Specified recipients are tax-exempt or public organizations operating across multiple EDA regional geographies with expertise in technical assistance and capacity building for business district organizations and similar community-based organizations. Eligible subrecipients are public or tax-exempt business district organizations serving business districts in eligible distressed areas by providing business support services and physical-space enhancements. Reports may be required no more than annually and must cover subrecipient names and addresses, specified recipient fund use, subrecipient fund use for internal operations, direct services, and district revitalization, geographic areas served, NAICS industry information for assisted entities, jobs created and retained, and other information.

Who Benefits and How

Business district organizations benefit from operating grants, technical assistance, training, and capacity building. Small businesses in commercial corridors benefit from stronger local support organizations and district revitalization services. Rural main streets benefit from priority for distressed communities and broad geographic distribution. Native communities benefit because Indian Tribes and Native communities are included in priority areas. Experienced intermediary nonprofits benefit from competitive EDA grants to serve multiple geographies.

Who Bears the Burden and How

EDA program staff must run a national pilot, make multiple awards, avoid regional-office administration, and track reports. Specified recipients must report subrecipients, fund uses, assisted entities, industries, geographies, and jobs. Eligible subrecipients must use funds for business support, internal operations, or district revitalization and document outcomes. Federal taxpayers bear the cost of the pilot grants.

Key Provisions

• Creates the Capacity Building for Business Districts Pilot Program under EDA authority.
• Awards competitive grants to multi-geography intermediary organizations with business-district expertise.
• Funds technical assistance, capacity building, operating grants, and related services for eligible business district organizations.
• Prioritizes distressed, rural, minority, and Native communities and applicants serving multiple geographies.
• Requires annual-or-less-frequent reports on subrecipients, fund uses, assisted entities, industries, geography, and jobs.