Understanding Local Share or Matching Share: A Legal Overview

Q: Can third parties contribute to the Local Share?

Yes, contributions can come from third parties as long as they are approved by the EDA.

Q: Is there a minimum requirement for Local Share?

The minimum requirement varies by project and should be confirmed with the EDA guidelines.

Definition & Meaning

The term Local Share or Matching Share refers to the non-federal funds and in-kind contributions that are required by the Economic Development Administration (EDA) as part of a financial investment. This contribution can come from recipients or third parties and must be approved by the EDA. Additionally, funds from other federal agencies may be included as part of the Matching Share if there is a statute that permits such use, as interpreted by the EDA.

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Legal Use & context

This term is primarily used in the context of federal funding, particularly in economic development projects. It is relevant in areas such as public finance, grant management, and economic assistance. Understanding the requirements for Local Share is crucial for organizations seeking federal funding, as it can affect the eligibility and approval of their projects. Users can manage their applications and compliance with the help of legal templates provided by US Legal Forms.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Example 1: A local government is applying for a federal grant to improve infrastructure. They plan to contribute $100,000 in local tax revenue as their Local Share, along with $50,000 worth of volunteer labor (in-kind contribution) to meet EDA requirements.

Example 2: A nonprofit organization seeks funding for a community project and includes $20,000 from a state grant as part of their Matching Share, which is permissible under the relevant statute. (hypothetical example)

State-by-state differences

Examples of state differences (not exhaustive):

State	Local Share Requirements
California	Local agencies must provide at least 25% of the project cost as Local Share.
Texas	Matching Share can include funds from state programs, subject to specific guidelines.
New York	In-kind contributions are encouraged but must be documented thoroughly.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term	Definition	Key Differences
Local Share	Non-federal funds and approved in-kind contributions for federal projects.	Must be approved by EDA; includes contributions from third parties.
Matching Share	Funds that match federal contributions, including potential federal funds.	Can include federal funds if authorized by law; broader than Local Share.

Common misunderstandings

What to do if this term applies to you

If you are involved in a project requiring Local Share or Matching Share, ensure you understand the funding requirements. Gather documentation for both cash and in-kind contributions and seek approval from the EDA. Consider using US Legal Forms to access templates that can help you prepare necessary documents. If your situation is complex, consulting with a legal professional may be beneficial.

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Quick facts

Typical Local Share: Varies by project, often around 10-25%.
Jurisdiction: Federal funding programs administered by EDA.
Possible penalties: Non-compliance may result in denial of funding or repayment obligations.