|- What is Trade Adjustment
|- What can Trade
Adjustment Assistance do for my firm?
|- Who is eligible for assistance?
|- I am not sure
if my company is eligible. How can I find out?
|- Do you charge to help my company
complete the application and/or petition forms?
|- What is the
cost of the program?
|- Is the information about my
business going to be shared with the Internal Revenue Service or other
|- How much money
can my firm receive from the Western TAAC?
|- What is going to prevent my
competitors from finding out my trade secrets or financial information?
|- Who decides
what projects need to be done?
|- How long does it take before my
firm can get started on consulting projects?
|- Can my company
use the assistance money to implement projects ourselves?
|- How does my firm find the
consultants? Who picks the consultants? What happens if my firm doesn't
like the consultant?
|- How does the
consultant get paid? Does my firm pay first and get reimbursed?
|- Can my firm buy equipment?
|- Can my company
buy software for our new MIS or to improve our efficiency?
|- Can my firm use funds to attend
|- Can my company
build molds and tooling with these funds?
|- Can my firm use the funds for
|- My company
wants to use TAA funds for ISO 9000 certification. How much will you
|- How can my firm use
|- Does my
company have to do all the projects at the same time?
|- Will my company have to report
every detail about our business to the government? for how long?
Trade Adjustment Assistance?
The Trade Adjustment Assistance program was established by Congress in
1974 and placed under the direction of the U.S. Department of Commerce
to help American manufacturers who have been hurt by direct import
competition. A network of Trade Adjustment Assistance Centers (TAACs)
across the country provides services to import-impacted manufacturers in
the areas of marketing, production, and management systems.
Trade Adjustment Assistance do for my firm?
Working closely with company management, the Western TAAC staff will
identify your firm's strengths and weaknesses, and develop a customized
adjustment plan designed to stimulate recovery and growth. The program
pays up to 75% of the cost of developing the adjustment plan. When the
plan has been approved, the company management identify consultants with the specific expertise
required to assist your firm. The program pays up to 50% of the cost of
these consultants when implementing the adjustment plan.
eligible for assistance?
U.S. manufacturers that have experienced a decline in sales and a
decline, or impending decline, in employment or worker hours may be
eligible for Trade Adjustment Assistance. These declines must be the
result of increased imports of directly competitive products.
I am not
sure if my company is eligible. How can I find out?
There have been variations to these qualifications over the years that
may increase your firm's potential for eligibility. The Western TAAC staff
will help you determine if your firm is eligible, and can apply the
latest interpretations to your company's circumstances. There is no
charge for certification assistance.
charge to help my company complete the application?
No. The help we provide to prepare the petition for certification is
done at no charge.
the cost of the program?
The cost of the program is shared between the company and the U.S.
Department of Commerce Economic Development Administration. The cost to
the firm is 25% of the cost of the diagnostic analysis and adjustment
plan, and usually 50% of the cost of implementation. The total amount of
implementation assistance is based on the number of employees or sales
revenue, with the government share capped at $75,000. Certification
assistance is provided free of charge.
information about my business going to be shared with the Internal
Revenue Service or other government agencies?
None of the information you provide is disclosed to any other federal,
state or local agency. All proprietary and financial information is
exempt from the Freedom and Information Act. When a firm is certified,
law require that the firm name be published in the Federal Register. It
is the only information that is released to the public.
much money can my firm get from the Western TAAC?
There is no money given directly to the company. The funds are used to
subsidize the cost of a consultant to implement approved project(s). As
described above, the total assistance is based on the number of
employees or sales revenue. The program will pay up to 50% of the cost
of these projects, with a maximum share of $75,000.
going to prevent my competitors from finding out my trade secrets or
As mentioned earlier, the Western TAAC is prevented from releasing
information about your firm without your permission. Outsiders cannot
access information because all proprietary and financial information is
exempt from the Freedom of Information Act.
decides which projects need to be done?
The preparation of the Adjustment Plan is done in
close coordination with a firm representative. They will have a great
deal of input in the document and review it prior to submission to the
Washington staff for approval. No work will be preformed without the
concurrence of the firm principal.
does it take before my firm can get started on consulting projects?
The average time is three to six (3-6) months. The certification process
is required to be completed in sixty days after the petition is
notarized and submitted. The preparation of the diagnostic
analysis/adjustment plan can take two to three months to prepare and be
reviewed by the firm depending on the complexity of the firm. It will
take at least two weeks for the adjustment plan to be reviewed and acted
upon by the Washington D.C. staff.
company use the assistance money to implement the projects ourselves?
There will be no direct exchange of money or funds from the Western TAAC to the
firm. All consulting work must be performed by outside, professional
my firm find the consultants? Who picks the consultants? What happens if
my firm doesn't like the consultants?
The Western TAAC will prepare a Request for Proposal (RFP) that will be
sent to consultants interested in bidding for the job. The list of
consultants will come from your firm, if you have any recommendations,
and from the Western TAAC. Each consultant will be asked to submit a
proposal with a not to exceed price. A firm representative, the Western
TAAC Project Manager, and the Western TAAC Director will evaluate each
proposal using the same evaluation worksheet and make a joint decision
about the consultant selection. A three-party contract is signed by the
firm, the consultant, and the University of Southern California (USC). It
contains a clause that allow any one of these parties to terminate the
contract with written notice.
the consultant get paid? Does my firm pay first and get reimbursed?
As part of the signed contract, the consultant agrees to bill the firm
and the Western TAAC for its share of the cost. Before the Western TAAC pays its share, the consultant must verify that s/he has
received payment from the firm.
firm buy equipment?
No. The funds cannot be used for capital expenditure.
company buy software for our new MIS or to improve our efficiency?
No. The funds cannot be used to purchase "off the shelf" software
programs. However, your firm can use funds to customize any such
software to adapt it to your firms needs.
firm use the funds to attend trade shows?
No. However, the funds can be used to develop a new trade show display.
company build molds and tooling with these funds?
The funds can be used in the design stage to develop new molds and
tooling but not for the actual end products.
firm use the funds for employee training?
Yes, the funds can be used for customized training of staff on site or
off site. However, the funds cannot be used to subsidize the salary of
company wants to use TAA funds for ISO 9000 certification. How much will
The Western TAAC will pay its share of implementation costs for the
training, document preparation, and the pre-assessment audit. We will
also pay for the initial registration audit. Payment for subsequent
audits will be the responsibility or your firm.
my firm use the funds?
Generally, the adjustment plan will specify several projects to be
implemented by the firm. It is not necessary, however, to request more
than one project. There are three things that cannot be funded by the
Western TAAC : (1) loans or loan guarantees, (2) capital equipment
purchases and (3) modifications to existing equipment.
company have to do all the projects at the same time?
No. The projects can be performed sequentially in accordance with your
priorities and your cash flow. Generally, we would like to have all
projects completed within the two year period starting from the date of
company have to report every detail about our business to the
government? For how long?
The Cost Share Agreement you sign requires your firm to provide follow
up information to the Western TAAC for three years. A form will be
provided to you to complete and sign. Only three items will need to be
reported: (1) the current revenues, (2) the current employment level and
(3) the total profits for the current year.