Regional Economic Development Act of 1985

Regional Economic Development Act of 1985 - Title I: Development Assistance - Amends the Public Works and Economic Development Act of 1965 to cite such Act as the Regional Economic Development Act of 1985 and to revise the emphasis of such Act from primary Federal initiative to coordination of investments between the public and the private sectors. Sets forth the findings of Congress.

Authorizes the Secretary of Commerce, upon the application of an eligible State, economic development district, unit of local government, Indian tribe, or nonprofit economic development organization, to make a grant for a portion of the cost of projects submitted in a development investment strategy. Sets forth eligible activities for such development investment assistance, including repairs, rehabilitation, and small business establishment.

Sets forth specific eligibility criteria for applicants for such assistance.

Requires an application for a grant under this Act to include: (1) a certification that the area concerned meets certain distress requirements; (2) a certification of any responsibilities which the Secretary has agreed to perform; and (3) a development investment strategy prepared in accordance with this Act.

Requires the Secretary to consider specified purposes of this Act in approving applications.

Lists as criteria any one of which an area must meet in order to be eligible for a grant under this Act: (1) a per capita income of 80 percent or less of the national average; (2) an unemployment rate above the national average for the most recent 24 month period; and (3) a sudden economic dislocation resulting in job loss.

Sets forth the information to be contained in a grant applicant's development investment strategy.

Authorizes the Secretary to make grants to establish a revolving loan fund for making or guaranteeing loans to small businesses for initial or working capital, or the purchase of facilities or equipment. Limits to $1,000,000 the amount of any such grant.

Limits the amount of any grant under this Act to a maximum 50 percent of the cost of completing the project as determined at the time of the grant application. Permits the Secretary to reduce or waive the non-Federal share of a project in the case of an Indian tribe.

Limits expenditures in any one State to a maximum 15 percent of the appropriations made pursuant to this Act.

Requires the Secretary, each fiscal year, to obligate minimum amounts of funds for such grants.

Authorizes appropriations through FY 1988.

Title II: Investment Strategy, Planning, Evaluation, and Demonstration - Authorizes the Secretary to make economic development planning grants (including grants for preparing development investment strategies) to: States, economic development districts, Indian tribes, distress counties, and certain units of local government. Requires States receiving assistance under this section to submit an annual report to the Secretary on the planning process involved. Requires such planning by an economic development district or an eligible local government unit to be consistent with the appropriate State economic development plan.

Earmarks such grants for coordination of investment for community facilities, economic development, manpower training, and transportation services.

Authorizes the Secretary to evaluate Federal, State, and local development investment efforts.

Authorizes the Secretary to conduct any demonstration program to test the feasibility of new ways to increase productivity, foster innovative technology, match the labor force with projected labor markets, or encourage economic diversity and regional balance.

Limits the amount of any such grant to not more than 75 percent of the cost of economic development planning or of investment strategy preparation.

Authorizes appropriations through FY 1988.

Title III: Administration - Declares that the Secretary of Commerce shall administer this Act with the assistance of a specified Assistant Secretary of Commerce.

Authorizes the Secretary to consult with other persons and agencies.

Prohibits the approval of any grant unless the Secretary is satisfied that the project concerned will be properly and efficiently administered, operated, and maintained.

Sets forth the powers of the Secretary under this Act.

Permits the Secretary to discharge any of his responsibilities relative to a project by accepting a certification of the grant applicant's performance of such responsibilities.

Requires the Secretary to make a comprehensive annual report to Congress detailing operations under this Act.

Requires all laborers and mechanics employed by contractors or subcontractors on projects assisted under this Act to be paid the prevailing rate of wage in the locality.

Sets forth recordkeeping requirements for the Secretary and for grant recipients.

Authorizes appropriations through FY 1988.