---
kind: "section"
citation: "13 C.F.R. § 308.1"
title: "13"
number: "308.1"
heading: "Use of funds in Projects constructed under projected cost."
url: "https://uscodex.org/cfr/13/308.1"
---

# §308.1. Use of funds in Projects constructed under projected cost.

- (a) If the Assistant Secretary determines before closeout of a construction Project funded under parts [305](/cfr/13/part305.md) or [307](/cfr/13/part307.md) of this chapter that the cost of the Project, based on the designs and specifications that were the basis of the Investment Assistance, has decreased because of a decrease in costs, EDA may in its discretion approve the use of the excess funds (or a portion of the excess funds) by the Recipient to:
  - (1) Increase the Investment Rate of the Project to the maximum percentage allowable under [§ 301.4](/cfr/13/301.4.md) of this chapter for which the Project was eligible at the time of the Investment award; or
  - (2) **Further improve the Project consistent with its purpose.**
- (b) EDA, in its sole discretion, may use any amount of excess funds remaining after application of [paragraph (a)](#a) of this section for other eligible Investments.
- (c) In the case of Projects involving funds transferred from other Federal Agencies, EDA will consult with the transferring Agency regarding the use of any excess funds.

## Notes

### Authority

Authority: 42 U.S.C. 3151; 42 U.S.C. 3154a; 42 U.S.C. 3154b; Department of Commerce Delegation Order 10-4.

### Source

Source: 71 FR 56675, Sept. 27, 2006, unless otherwise noted.