What is TAAF?
Trade Adjustment Assistance for Firms (TAAF) is a federal program that provides technical assistance to manufacturers negatively impacted by import competition. Sponsored by the U.S. Department of Commerce, this cost-sharing federal assistance program pays for the costs of consultants or industry-specific experts for knowledge-based projects that improve a firm’s global competitiveness.
What is the difference between TAAF and MATAAC?
The Trade Adjustment Assistance for Firms (TAAF) is a federal program that provides technical assistance to manufacturers negatively impacted by import competition.
The MidAtlantic Trade Adjustment Assistance Center (MATAAC) is one of eleven Trade Adjustment Assistance Centers (TAACs) nationwide that have been chartered by the Economic Development Administration (EDA) of the US Department of Commerce with the responsibility for the management of the Trade Adjustment Assistance for Firms (TAAF) program.
What can the Trade Adjustment Assistance for Firms (TAAF) program do for my company?
Firms participating in the TAAF program have experienced the following benefits: improved business performance, monetary assistance for certain projects, and ongoing support to improve business and profits.
Eligibility
How long must a company have been in business to apply?
At least 24 months.
What are the qualifications for acceptance into the TAAF program?
A negative impact on business volume and labor resulting from imports.
We also produce goods and or services offshore. Can we still apply?
Yes, but only domestic volume and employment will be considered in the process of certifying the company as trade-injured.
I am not sure my company is eligible. How do I find out?
It is our passion and privilege to learn about you and your business. As a manufacturer, you are truly the backbone of the U.S. economy. Let’s set up a 30 minute introductory call to explore the possibilities on how MATAAC can help take your business to the next level.
Are only firms seriously affected by imports able to participate?
MATAAC works with a manufacturers, and direct foreign competition must be an important factor but not the only one. A firm is eligible if it experienced sales and employment declines due to imports over the last two years.
MATAAC’s team is ready to assist firms with all eligibility requirements and will help you to determine what TAAF program qualifications and guidelines to apply to your company’s unique circumstances. Don’t make the mistake of self-disqualifying. Contact MATAAC today to schedule your free Eligibility Consultation.
How do interested firms fill out an application?
They don’t. MATAAC acts as a firm’s advocate and is responsible for preparing the Petition for Certification on the firm’s behalf. All company information is kept confidential when applying for certification.
Privacy
How do I know that competitors and others won’t find out my trade secrets or financial information?
Manufacturers enter the MATAAC program with total peace of mind that your information is completely safe and secure. The entire process is 100% confidential.
The information you submit is exempt from the Freedom of Information Act. Only the company’s name, address, and product manufactured will appear in the Federal Register.
Technical Assistance Guidelines
What restrictions apply?
MATAAC assistance cannot be used to acquire assets such as equipment or machinery as well as used to cover overhead expenses such as salaries, utilities or service debt payments.
What can assistance be used for?
The assistance can be used to upgrade virtually any business process through the implementation of knowledge-based projects by outside experts and consultants, including, but not limited to: marketing, sales, operations, financial management, IT planning, training, new product development, new service development, quality assurance, customer service, and software customization.
What kind of projects does the program pay for?
Funds can be used for virtually anything under the umbrella of general continuous improvement. However, funds can’t be used for assets, salaries, capital expenditures, or normal business expenses.
Can my company purchase equipment with TAAF funds?
TAAF funds are utilized to implement projects that have been identified in the firm’s business recovery plan as essential to ensuring the firm’s success in improving its global competitiveness. Funds may not be utilized for equipment. However, training employees on newly acquired equipment and processes could be a program project.
Exactly what aspect of an improvement project does the program pay for?
MATAAC covers outside consulting services, which can also include engineers, designers, marketers, or other industry-specific experts.
How much assistance from MATAAC can a firm expect to receive?
Levels of assistance depend on various factors, including the size of the firm, the nature of proposed projects, and the availability of program funds. The maximum limit is $150,000 in total project costs, with the TAAF federal share not exceeding $75,000.
How does our partnership with MATAAC work?
What does it cost to apply?
There are no costs to apply.
How is the amount of assistance determined?
The company size, the number of employees, its complexity, the nature of issues facing it, and the robustness of its commitment to upgrade its global competitiveness.
Why does MATAAC need to meet with management?
It is important for us to meet with key personnel. They can bring knowledge and perspective to the strengths and weaknesses of your organization.
Who picks the consultant who will provide services to the firm?
The firm is the primary decision-maker. If it doesn’t know whom to hire, MATAAC can assist in identifying a qualified consultant.
How does the assistance actually reach a participating manufacturer?
MATAAC typically pays 50% of the federal share of the consulting fees directly to the consultant on behalf of the participating manufacturer. Since payment is made directly to the consultant there are no income tax penalties for the client-firm.
What types of manufacturers does MATAAC generally assist with the TAAF program?
No matter what segment of the manufacturing industry your firm is in, if you are experiencing declines in sales and employment due to foreign competition, MATAAC and the TAAF program may be able to assist in your business recovery.
Some of the manufacturing industries MATAAC has worked with includes manufacturers of specialty products such as:
- machining and machine shops
- custom engineered gear drives
- leather products
- men’s and women’s hats
- cork products
- dental instruments
- sheet metal and metal stamping
- wooden cabinets
- shoe manufacturer
- furniture
- specialty dies and tools
- bar stools
- knives
- navigation systems
- lighting shades
- battery covers
- emergency power electronics
- architectural wall panels
- motor vehicle chassis
- electrotherapy devices
- powdered metals
- industrial models
- window blinds and shades
- window shutters
- lighting
- screws and bolts
- custom plastic parts
- adhesives
- fabricated rubber products
- ball and roller bearings
- sheet glass
- software
- wood flooring
- clocks
- cremation urns
- printed circuit boards
- steel wire products
- high performance wires
- sports apparel
- commercial printing
- air conditioning units
- lighting
- prefabricated awnings
- laminated labels
- decorative glass
- swimming pools
- shrink wrap, o-rings
- beverage containers
- commercial refrigerators
- elastic and lace
- plumbing fixtures
- countertops
- printed circuit boards
- communications equipment
- outerwear
- steel pressure valves
- wood pallets
- flat rolled carbon steel
- medical devices
- decking
- fishing lures
- railway fixtures
- blended yarns
- transport containers
- weighing equipment
- pillows and chair cushions
- bedroom furniture
….the list of specialty manufacturers continues.
Will your firm be one of the many manufacturing firms added to this list?
Cost-Share
Is there a cost share?
Yes. Depending on the firm’s specific circumstances, firms will cost-share based upon the level of funding required. Firms will match between 25% and 50% of the assistance for project implementation.
For a Business Recovery Plan requiring $30,000 or less, firms would be responsible for 25% or $7,500.
For a Business Recovery Plan up to $150,000, firms would cost-share at 50% or up to $75,000.
What is the firm’s financial responsibility during the cost-sharing portion of the TAAF program?
Cost sharing begins after the firm has been certified into the program and is broken down into two segments:
- MATAAC will collaborate with the firm in the development of a Business Recovery Plan a cover 75% of the cost of the plan
- Once the Recovery Plan is approved, project implementation begins. For a Business Recovery Plan requiring $30,000 or less, firms would be responsible for 25% or $7,500. For a Business Recovery Plan up to $150,000, firms would cost-share at 50% or up to $75,000.
Is a participating firm limited to cost sharing just one project?
No. Most firms receive assistance for more than just one project, depending on the nature and cost of each project.
Your list of typical MATAAC projects is extensive but not exhaustive.
Are there other types of eligible projects?
Yes. Since we take a customized approach to assisting firms, there are many other industry-specific and company-specific projects that are potentially cost shareable. 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.
Timeline
How long does it take to get approved?
Each company’s circumstances are unique. Your experience may be longer or may be shorter depending on your needs.
How long is the assistance available for me?
Your firm will be expected to start a project within 6 months of your recovery plan’s approval, and projects must be fully implemented within 5 years.
How to grow your company with MATAAC?
What’s the best way for your company to start engaging with MATAAC?
“Hello” and an introduction. After all, all the best things happen after “hello”.
Are there any tools or strategies you consistently recommend to your client-firms?
Each client-firm is unique and all of our recommendations and strategies are always tailored to the individual and specific needs of our client-firms.
How do you guide manufacturers to recognize the exciting opportunities by partnering with MATAAC?
At MATAAC, we simply provide the information about the Trade Adjustment Assistance for Firms (TAAF) program and are available to answer any questions a company may have.
The benefits of participating in the program are:
- MATAAC prepares your Petition for Certification to participate in the program at no cost to the company.
- Once certified to participate, we work with company management to create their Business Recovery Plan. MATAAC covers 75% of the cost in creating the business recovery plan.
- MATAAC cost-shares intangible projects identified to support recovery either at a:25% firm / 75% MATAAC cost-share for projects under $30,000
Or,
50% firm / 50% MATAAC cost-share for projects up to $150,000
How does MATAAC help manufacturers make sense of the resources available to them through this exciting program?
Each client-firm we have the opportunity to work with is unique, with its own specific situations. Once we identify their specific issues together, we introduce them to our resource partners who can provide the required expertise and assistance. This allows for a layered approach to recovery, supported by a team of experts.
How do you measure the success of a firm’s participation in the TAAF program?
The success of a client-firm’s participation is measured by comparing their at-certification performance metrics to program completion performance metrics at project close and for two years after completion. Performance metrics include percent increase in sales, percent increase in employment, and percent increase in operating earnings, as well as other performance metrics.
What’s the first step a struggling manufacturer should take to improve their situation?
The key word in this question is “struggling”. It does not matter if you are struggling personally, professionally or as a business. When one is “struggling” the first step should always be “to ask for help.”
What is MATAAC’s Service Area?
The MidAtlantic Trade Adjustment Assistance Center (MATAAC) service area consists of Delaware, Maryland, Pennsylvania, Virginia, West Virginia, and Washington, DC.
The TAAF program is a national program with 11 Trade Adjustment Assistance Centers serving all 50 states, the District of Columbia, and the Commonwealth of Puerto Rico. MATAAC can assist you and provide introductions to your firm’s Trade Adjustment Assistance Center.