Assistance to Nonrubber Shoe Firms

CED-77-51: Published: Mar 4, 1977. Publicly Released: Mar 4, 1977.

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The Trade Adjustment Assistance Program was set up to provide loans and technical assistance to help firms, hurt by increased imports of their products, to retool to make new or different products and to keep from going out of business. Assistance provided to the nonrubber footwear industry under this program was investigated.

A few administrative problems may have kept some nonrubber shoe firms from getting loans as quickly as possible. Although the Department of Commerce first thought that more than 200 nonrubber shoe firms might apply for assistance, only 25 firms petitioned and 16 were certified. About $3.3 million in loans was authorized to four of these firms, and technical assistance costing about $230,000 was provided to one firm and the footwear industries association. The most prevalent reason given by nonpetitioning firms for not applying was that they did not need assistance. The certification and application requirements of the Trade Adjustment Assistance Program, with few exceptions, were reasonable and consonant with the Trade Act of 1974 and other legislation.

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