Economic Development Corporations (EDCs)

Definition

An economic development corporation (EDC) is a public, nonprofit or public-private body formed under state or local law to attract and finance business investment for a city, county or region, often by owning land, making loans or managing incentives. The Public Works and Economic Development Act, as rewritten in 1998, defines the recipients of Economic Development Administration assistance to include cities and other political subdivisions and public or private nonprofit organizations acting in cooperation with officials of a political subdivision, categories that cover many EDCs.^[1]

Federal law

Formed under state law. No Act of Congress creates it; the federal laws below apply to it as described.

1. Economic Development Administration Reform Act of 1998 (rewriting the Public Works and Economic Development Act of 1965), Pub. L. 105-393, title I, § 102, 112 Stat. 3596, 3597. Rewrote the Public Works and Economic Development Act of 1965, including the "eligible recipient" definition for EDA assistance (42 U.S.C. § 3122(4)); does not create or govern EDCs. Official text: govinfo.gov, U.S. Government Publishing Office.