When you hear about a grant being awarded by the state for a local project, such as Albright’s Library renovation (coming soon) or Shuman Development Group’s 35 N 6th Street Food Court, these grants are called RACP’s – Redevelopment Assistance Capital Program grants.
Many businesses and non-profits leap into the fray of winning one of these grants without understanding the strings, of which there are many. BerksIDA has partnered with local legislators to offer one-on-one guidance on the strengths and limitations of RACP. Serving as a Grantee for over a dozen projects in Berks County totaling over $50M in capital investment, BerksIDA is a veteran to the program and strives to make Berks County the best at successfully using RACP funds to support local projects.
If you are interested in RACP funds for your project, below are some key guidelines to know:
- A 50 percent match is required – match can include land value (recent appraisal required) and soft costs. Proof of match will be necessary upfront.
- To get awarded, your project needs to have a PA Budget line item – if you do not have a line item already, you will need to work with a local Grantee such as BerksIDA to use an existing line item they have in place. Otherwise you will not be able to apply for RACP funds until the next year.
- Competitive Bid – Competitive bidding must occur at either the General Contractor (GC) or sub-level for all work in the scope. At least three bids must be solicited.
- All steel needs to be US sourced – some exemptions can be granted for machinery not produced domestically, but in nearly all cases US steel mill certifications will be required on all steel used for a project.
- The entire project must meet prevailing wage requirements.
- No more than 30 percent of RACP funds can be applied to acquisition and/or equipment.
There is much more to RACP than what has been noted above. To learn more about, contact BerksIDA today!