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Frequently Asked Questions
Following are some of the most frequently asked questions that we receive about the Trade Adjustment Assistance (TAA) program. If you still have questions, please feel free to contact us to discuss how your firm, or one familiar to you, can use this unique grant-based program.
General FAQs
Eligibility
TAA Program
Project Implementation
If You Work with Manufacturers
Timeline
Privacy
Funding Uses
Financial Responsibilities
General FAQs
Q. What is the Trade Adjustment Assistance for Firms Program?
A. The Trade Adjustment Assistance (TAA) for Firms program assists manufacturers in regaining profitable growth lost, due in part, to the negative impact of import competition. The program's sponsor, The Department of Commerce, shares the cost of hiring third party consultants' who can assist in strengthening your firm's operations and sharpen your competitiveness in the global economy.
Q. What can Trade Adjustment Assistance (TAA) do for my firm?
A. A firm gains:
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An objective, in-depth analysis of its business, competition, and industry
- Monetary assistance for projects to increase sales and productivity
- Ongoing support to improve business and profits in order to compete more effectively in a global economy
Q. Where do I get more information about the program?
A. The program is managed by 11 regional offices nationwide. The MidAtlantic Trade Adjustment Assistance Center (MATAAC) serves Delaware, the District of Columbia, Maryland, New Jersey, Pennsylvania, Virginia, and West Virginia. To find other Regional Centers, click here. Call MATAAC toll free at (800) 566-7522 or simply fill out the request form for assistance.
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Eligibility
Q. How long must a firm have been in business to apply for this assistance?
A. Petitioning firms must show at least 24 months of sales and employment data.
Q. What are the qualifications for acceptance into the TAA program?
A. A firm may be eligible for TAA grant funds if it is a U.S. manufacturer that has experienced: a significant number or proportion of its workers totally or partially separated from their employment, or were threatened to become so; AND a decline in total sales or production, or in a product line that accounted for not less than 25% of total sales. Both must have occurred in the most recent 12-month period compared with the same period in the prior year, as the result of customers reducing their purchases in favor of imported products, or because of quotations or bids lost in favor of imported products.
Q. We manufacture some products off shore; can we apply?
A. A firm's eligibility is based on all products manufactured and sold in the United States. If a firm also manufactures off shore, the sales and employees associated with those goods will not be included in the certification evaluation. All TAA assistance must go toward enhancing U.S. manufacturing efforts.
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TAA Program
Q. If my firm qualifies for assistance, who will help me throughout the duration of the program?
A. MATAAC serves as a liaison and advocate for mid-Atlantic manufacturers. We guide our clients through each step of the way-from eligibility assessment through project completion.
Q. When Can I Apply?
A. Applications for assistance under the TAA program can be made at any time of the year. And, if a firm is not immediately eligible for the program, it can apply at a later time if conditions change.
Q. Why does MATAAC need to meet our firm's management?
A. It is important for MATAAC to meet with key personnel to effectively identify where the grant money is most needed. These key decision makers can bring knowledge and perspective to the strengths and challenges of each organization.
Q. What is an Adjustment Plan?
A. First, MATAAC staff conducts a diagnostic analysis of the firm, reviewing all of its functional areas, competition and industry trends. The Adjustment Plan provides a synopsis of this diagnostic analysis along with suggestions to improve the firm's global competitiveness. Specific consulting projects, along with estimated total and shared costs are included in the Plan. The Plan is similar to a grant proposal and is written by MATAAC for the review of the U. S. Department of Commerce TAA staff in Washington, D.C., who will reach a decision on the acceptability of the firm's request for assistance.
Q. Who decides which projects need to be done?
A. The assessment of a firm and its Adjustment Plan is a collaborative effort between the firm's management team and MATAAC's technical assistance team. The Plan will not be submitted for U.S. Department of Commerce review and approval until the firm is in support of it. While the proposed projects in the Plan are highly recommended, a firm may choose to take a different course of action, with mutual agreement from MATAAC.
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Project Implementation
Q. How is the consultant chosen?
A. Most often, the participating firm chooses the consultant with concurrence from MATAAC. The program does not limit a firm to our list of consultants. However, a consultant must be legitimate, with fees in line with the scope of work. We can assist a firm in selecting consultants, as well as prepare and coordinate requests for proposals from multiple bidders.
A firm's representative and one of MATAAC's Project Managers will evaluate each proposal and make a joint decision about the consultant selection. We'll also help the firm to negotiate contracts. The completed contract(s) will be agreed to and signed by all three parties: the firm, the consultant, and MATAAC.
Q. How does the consultant get paid for completed work?
A. The manufacturing firm will make its payment portion to the consultant or vendor. Once this payment is confirmed, MATAAC will issue a matching payment directly to the consultant.
Q. What happens if my firm doesn't like the consultant(s)?
A. Any party may terminate the contract with written notice at any time.
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If You Work With Manufacturers
Q. I work with manufacturers. How can I learn more about the program?
A. Trade associations, banks, economic development groups, consulting firms, and any other organizations working with manufacturers, referred to here as "consultant", can refer firms to MATAAC. Simply make them aware of our website or have them contact us directly. If preferred, a consultant can discuss a firm's situation with us before referral. We can also make a presentation with a consultant to its clients and/or members about this unique federal assistance program's many benefits to help promote it. If a consultant's clients/members are not based in the mid-Atlantic region, there are ten other regional TAA Centers available to help.
Q. Why should I refer clients or members to the program?
A. Pointing clients or members in the direction of proven, tangible TAA assistance and MATAAC's expert help in qualifying, applying, and implementing projects is a way to become recognized as a valuable resource provider. Making positive contributions to your region's manufacturing community can also reinforce and enhance your image, help you retain and attract new clients and/or members, and gain new business opportunities.
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Timeline
Q. How long does it take to become certified into the TAA program?
A. The certification process can take from 4-6 weeks.
Q. How long does the Diagnostic Analysis/Adjustment Plan take?
A. It will take approximately 6-12 weeks for the approval of the Adjustment Plan.
Q. How long does it take before my firm can get started implementing consulting projects?
A. The total average time to get started implementing projects is three (3) months. A firm must start a project within 6 months of approval of their Diagnostic Plan.
Q. Does my firm have to do all the projects at the same time?
A. No. The projects can be performed sequentially in accordance with a firm's priorities and cash flow.
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Privacy
Q. What is going to prevent my competitors and other government agencies from finding out my trade secrets or financial information?
A. None of the information provided by a firm is disclosed to any other federal, state, or local agency. All of the proprietary and financial information is exempt from the Freedom of Information Act. The only information required by law to be released to the public is the firm's name, address and short product-line description, which appear in The Federal Register when a firm is certified.
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Funding Uses
Q. What kinds of projects does the program pay for?
A. MATAAC can help fund a wide range of projects, such as lean manufacturing, engineering, MIS upgrades, quality improvements, new product development, marketing, etc. Click here for a more specific list of possible projects.
Q. What types of projects are not covered?
A. MATAAC funds cannot be used for:
. Equipment purchases
. Salaries
. Property expansions
. Off-the-shelf software
Q. Your list of typical TAA projects is extensive, but not exhaustive. Are there other types of eligible projects?
A. Yes. Since we take a customized approach to assisting firms, there are many other industry-specific and company-specific projects that are not included in this list. MATAAC will work with the firm to identify just the right mix of projects to enhance a firm's overall competitiveness, not just the import-impacted areas of the business.
Q. Is a participating firm limited to cost sharing just one project?
A. No. Generally, the adjustment plan will specify several projects that can be implemented by the firm. It is not necessary, however, to request more than one project.
Q. Do I have to complete all designated projects?
A. No. Projects are only started and completed based on the cash flow of the firm and the firm's comfort in moving forward.
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Financial Responsibilities
Q. How is the grant amount determined?
A. A firm's grant is dependent on several factors, including size of the company (the number of employees or sales revenue), proposed projects, and the ability to reinvest in itself. MATAAC will help determine how much a specific firm can expect from the program.
Q. What is a firm's cost to apply?
A. MATAAC pays 100% of the application petition for certification that it completes on the firm's behalf. It is only after the firm is approved that the cost-sharing portion of the program begins.
Q. How much TAA assistance can a firm expect to receive and what are the firm's financial responsibilities during the cost-share portion of the program?
A. The cost sharing between the firm and MATAAC applies to the planning and implementation segments:
1. Once a firm's application is approved, MATAAC pays 75% of the Diagnostic Analysis/Adjustment Plan preparation cost and the firm pays 25%. The actual cost varies and is dependent upon the scope of the project. At the first scheduled appointment the firm will be presented with a Cost Share Agreement that estimates the number of hours and their total cost.
2. Project implementation costs are also shared between the firm and MATAAC.
Q. Will my firm have to repay the grant back to the Department of Commerce?
A. No. The implementation projects are cost-shared. Both MATAAC and the firm will be issued an invoice from the consultant for 50% of the total project cost. The firm is financially responsible for paying their cost-share amount.
Q. Can my firm use the assistance money to implement the projects ourselves?
A. There is no money given directly to the firm. The funds are used to subsidize the cost of third-party professional consultant(s), which may include engineers, designers or other industry-specific experts, to implement the approved project(s).
Q. How long do I have to spend the money awarded to me?
A. Firms receiving this assistance must spend all grant monies awarded in two to three years and may conduct multiple projects during that time.
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