News

Rural areas contending with job, infrastructure woes to get major boost under new state spending plan
Gov. Mike Easley has signed a $20.7 billion state budget that has big ramifications for rural areas, including help with water, sewer and technology infrastructure and business development. Statewide, the 2007-2008 spending plan will likely be remembered for its $1 billion education spending increase, as well as the hotly-debated decision to shift Medicaid costs from counties to the state by mid-2009. But in rural North Carolina, the legislative session also will leave an indelible mark in the form of new jobs, new businesses, new opportunities for growth and development and perhaps most significantly – better access to clean drinking water and safer wastewater disposal. Lawmakers signed off on a $100 million appropriation for water and sewer needs in communities dealing with critical infrastructure problems, including dwindling water supplies, water source contamination and state-issued moratoria on wastewater systems. The Rural Center will administer the funds through its Water and Sewer Grants Program over the next 18 months, with the first round of grant applications due in mid-December. Of the $100 million available for water and sewer projects, $2 million will be set aside to help communities conduct infrastructure planning. The remainder will be used to repair, upgrade and improve existing water and sewer systems. The center will host a series of “how to apply” workshops this fall, the dates and locations of which will be posted on the center’s website in the coming weeks.

Center will invest $38.5 million over the next year to create jobs, strengthen economies in rural, distressed areas
Over the last three years, rural communities struggling to compete in today’s global marketplace have proven that, with sufficient investment, they can retool their economies and create jobs for their residents. With more than $54 million invested to date, the center’s N.C. Economic Infrastructure Fund has helped rural communities lay the groundwork needed to attract and sustain business development, creating more than 6,500 new jobs along the way. Based on that success, the N.C. General Assembly has expanded the program for the coming year to include an additional $19 million for severely distressed rural areas. In all, the center will invest $38.5 million over the next year to help rural communities set a new course for their future. Lawmakers have stipulated that the center will invest $19.5 million again this year in N.C. Economic Infrastructure Fund investments, which all 85 rural counties are eligible for, along with $19 million in funding for projects located in areas with high levels of economic distress. Projects awarded in these distressed areas may be similar to traditional EIF-funded projects but will have more flexibility with regard to size, scope and eligibility requirements. For this one-time funding program, the center will give priority to projects that have strong local partnerships within a town or region. Preference will be given to projects that stem from a local planning process, and unlike traditional EIF grants, nonprofit organizations will be eligible to apply. Of the $19 million available under the new funding, lawmakers have directed that up to $3.8 million be set aside for the center’s new Rural Venture Fund. Check the center’s website for further details as they become available. The center will announce guidelines for the expanded Economic Infrastructure Fund at the Rural Partners Forum in October.

Center prepares to launch Rural Venture Fund with series of regional meetings
The Rural Center is preparing to launch a first-of-its-kind rural investment capital fund with a series of regional meetings set to kick off in September. The center’s $6.8 million Rural Venture Fund was announced earlier this year as part of a broader effort to stoke the entrepreneurial fires in North Carolina. Securing working capital to grow and build a business are difficult tasks for any business owner, but prove especially difficult for those struggling to get a business to thrive in rural, distressed areas of the state. The Rural Venture Fund will target existing businesses in Tier 1 counties that have the potential to grow and create jobs in areas of the state that desperately need them. The fund is not intended as seed capital. Investments will be geared to businesses with a history of sound management that require financing in the range of $50,000-$350,000, with a repayment schedule of five to 10 years. Funding options will include equity financing and secondary loans, both of which will have terms that are easier to meet than traditional financing methods. Virtually all of the venture capital firms in North Carolina today are located in urban counties and almost exclusively do business with urban-based businesses. The regional meetings, the dates and locations for which are still being coordinated, will be open to the public and will target local and regional economic development organizations, chambers of commerce, local governments and the banking community. The Rural Venture Fund will begin making investment decisions in the fall. To find out more, contact Ashley Crane in the center’s business development office at (919) 250-4314.

The e-NC Authority to venture into the public television arena with $1 million in funding for PEG channel grants
The work of the e-NC Authority got a $4 million boost from state lawmakers this session, with $1 million set aside for public, educational and government access (PEG) channel grants. Grants will be made from the PEG Channel Fund, which will be created from the $1 million state appropriation along with taxes related to the telecom industry. Local governments are eligible to apply for the program and must match the e-NC Authority’s grant on a dollar-for-dollar basis. Grants of up to $25,000 will be awarded and must be used solely for capital expenditure costs associated with PEG channel programming. For more information on the program, visit the authority’s website at: http://www.e-nc.org. The remainder of the organization’s legislative appropriation will be used to increase the availability of Internet connectivity in underserved areas of the state and to expand funding for e-NC business and technology telecenters. The state’s seven existing telecenters are located in Alleghany, Anson, Cherokee, Martin, Northampton, Rockingham and Rutherford counties. Lawmakers also directed the authority to set aside $290,000 for Windows on the World e-CDC in Washington County. For more information, contact Cary Edgar with the e-NC Authority at (919) 250-4314.

Meetings and Events

ARC to hold Business Incubation and Clean Energy Conference Aug. 19-21 in Johnson City, TN
The Appalachian Regional Commission will hold the “2007 Strategies for Rural Development: Business Incubation and Clean Energy” conference Aug. 19-21 in Johnson City, Tennessee. The conference will focus on how Appalachian communities can increase local job growth through sustainable business incubation and green energy practices and technologies. Participants will learn how they can get a sustainable business incubation facility up and running, and explore how the emerging field of clean and renewable energy can benefit entrepreneurs, incubator managers, and community leaders. Workshops will include sessions on creative revenue generation strategies, maximizing the utility of a feasibility study, and efficient design of incubation facilities. For a conference agenda, or to register online, click here.

Take your business online, start by registering for free e-commerce training sessions
If you’re a small business owner who hasn’t yet explored the possibility of e-commerce, or if you dream of someday starting a business, a series of free seminars can give you the tools you need to make that important leap. The seminars are offered through a partnership between the e-NC Authority and the Rockingham County Business & Technology Center, with funding from the Kellogg Foundation. The sessions will help entrepreneurs and small business owners better understand e-business and discover how they can implement e-commerce and Web-based tools to grow and sustain their operations. The sessions will also cover information on developing a strong Web presence, finding new ways to reach customers, web advertising and e-mail marketing, and selling products and services online. The information will be presented in a technology-neutral, easy-to-understand format. Sessions will be held August 22 at the Northeast Technology and Business Center in Williamston, September 20 at Foothills Connect in Rutherfordton, and on October 24 at the North Raleigh Hilton in Raleigh. To find out more, or to register online, visit the e-NC Authority’s website at www.e-nc.org/calendar.asp. For other questions, call Angie Bailey at (866) 627-8725.

Free seminars will teach small business owners how to use electronic media effectively
A series of free training sessions slated to kick off later this month will help small business owners use electronic media tools – such as webcasting, podcasting, videos and sound files – to enhance their business and better serve clients. This training, offered through a partnership between the e-NC Authority and W.K. Kellogg Foundation, will give participants a broad overview of webcasting and different types of video creation software, touching on the advantages and disadvantages of different methods. A podcasting demonstration will also be included. The sessions are intended for individuals and organizations that may not have a strong technical background, and will be presented in an easy-to-understand format. Sessions will be held Aug. 29 in Wadesboro, Sept. 11 in Rutherdfordton, Sept. 18 in Williamston, and Nov. 27 in Raleigh. To register, visit the e-NC Authority website at http://www.e-nc.org/calendar.asp. For questions, call Angie Bailey at (919) 250-4314.

Oct. 4 entrepreneurship training in Montreat targeted to local officials and rural leaders
A one-day entrepreneurship training for local elected officials and community leaders will be held October 4 at the Montreat Conference Center just east of Asheville. The training, “Building Entrepreneurial Communities: Why, How and What Role for Local Elected Officials and Leaders”, is sponsored by the RUPRI Center for Rural Entrepreneurship in partnership with the School of Government at UNC-Chapel Hill. The training will provide local leaders with a better understanding of entrepreneurship development and their own role in helping build a culture that supports entrepreneurship in their community. The cost of the training is $75. For more information or to register, contact Jennifer Loebenhofer at UNC at Lobenhofer@sog.unc.edu.

Workshops will help rural communities successfully navigate water and wastewater projects
A series of four free workshops slated to kick off Sept. 20 will help rural communities learn how to work effectively with paid consultants and engineers on water and wastewater projects. The workshops are sponsored in partnership with the N.C. Rural Communities Assistance Project and the Rural Center. Presentations will include: effective development and use of requests for proposals; contract negotiation; capital improvement planning; and ongoing project evaluation. Funders will also be on hand to provide an update on available funding programs for rural water and wastewater projects. Local officials who attend one of these workshops will be eligible to receive 10 bonus points on any future Rural Center infrastructure grant application. Sessions will be held Sept. 20 in Greensboro, Oct. 10 in Asheville, Oct. 20 in Plymouth and Nov. 14 in Kenansville. The workshops are free and lunch is provided, but space is limited. To register or to find out more, visit the N.C. Rural Communities Assistance Project’s website at www.ncrcap.org.

2nd annual Financial Education and Asset Building Conference Oct. 8-9 in Chapel Hill
The 2nd annual Statewide Financial Education and Asset Building Conference will be held Oct. 8-9 at the Friday Center in Chapel Hill. The event is sponsored by the NC IDA Collaborative, EITC Carolinas, North Carolina Cooperative Extension and UNC-Chapel Hill. Participants will primarily learn how to help the working poor become financially independent. Last year’s conference launched the North Carolina Saves initiative and included information on asset building strategies, the role of public policy in helping the working poor achieve financial independence, and financial literacy trainings for community development and human service professionals. Call or visit the NC IDA Collaborative’s website for more details: (919) 341-6418, or http://www.ncidacollaborative.org/.

Blue Ridge Entrepreneurial Council to hold 5th annual Carolina Connect conference on Oct. 11 in Asheville
The Blue Ridge Entrepreneurial Council will hold its 5th annual Carolina Connect conference at Asheville’s Grove Park Inn and Spa on Oct. 11. The agenda is still being developed, but past Carolina Connect conferences have brought together western North Carolina entrepreneurs with private equity investors. Again this year, the focus will be on helping entrepreneurs get more private investor capital, increase sales revenue and learn more about the process of partnering for research grants. For more details, call the Blue Ridge Entrepreneurial Council at (828) 273-9862. Check the website: www.brecnc.com for details as they become available.

Save the Date: Advantage Innovation 2007 conference held in Asheville Dec. 6-7
AdvantageWest will hold its Advantage Innovation 2007: Environmental Related Enterprises conference on December 6-7 in Asheville. This interactive conference will focus on the recruitment and expansion of jobs and investment associated with environmental-related enterprises. Sessions will include: environmental reclamation, green construction, environmental sciences, alternative/renewable energy and environmental conservation. For more details as they become available, contact AdvantageWest Executive Vice-President Scott Hamilton at shamilton@awnc.org.

Reports and Research

Southern Growth releases “2007 Report on the Future of the South: EnterpriseSouth.Biz”
Southern Growth Policies Board's “2007 Report on the Future of the South: EnterpriseSouth.Biz,” recommends a cultural shift in the region to an enterprise economy, characterized by a workforce that is knowledgeable, entrepreneurial and innovative. The report outlines a three-pronged strategy – Convene, Connect, Commit – to create an enterprise economy and workforce. “EnterpriseSouth.biz” includes regional and state-level data on educational attainment and economic achievements as well as profiles of innovative programs. To chronicle Southern state’s progress in implementing the new strategy, Southern Growth has launched the website www.enterprisesouth.biz. The report is available for $20 and can be ordered through the Southern Growth Policies Board website at www.southern.org/pubs.

North Carolina slightly better than average on foundation assets, report finds
A new report in this month’s Philanthropy Journal focuses on the ‘philanthropic divide’ that exists between states with large foundation assets and those without. The report was released just prior to a first-of-its-kind rural philanthropy summit in Montana earlier this month called by Montana Sen. Max Baucus. The senator began speaking out publicly on the disparities in grant making to rural areas about a year ago, and with good reason: his home state ranks next-to-last in a 50-state survey of foundation assets. North Carolina ranks 15th in that survey. Baucus issued a challenge to foundations whose giving is often skewed to urban and metro areas, asking them to increase investments in those areas and pledging that, in return, he will do all that he can to make federal programs designed to help rural America more effective. The Washington, D.C.-based Council on Foundations joined with Baucus in bringing more than 170 philanthropic and government leaders together in Missoula August 6-9 for the summit, “Creating the 21st Century Agenda for Philanthropy and Rural America.” The conference examined the current state of philanthropy in rural America and identified challenges to foundations. At the conclusion of the four-day event, philanthropy leaders were well on the way to developing a plan that will guide philanthropic giving to rural areas in the years ahead. Rural development experts believe the plan is sorely needed as a projected $41 trillion in U.S. wealth shifts from this generation to the next. To read the Philanthropy Journal’s report, “Small Town Philanthropy,” click here.

Farmshoring: Linking Rural and Urban Economies
A new report from Virginia Tech looks at the potential for what it calls ‘farmshoring,’ or domestic, rather than overseas, outsourcing to low-cost communities. The report calls on economic developers to take on new roles as matchmakers, connecting firms in urban areas with lower-cost rural communities within the state. The report emphasizes that a broader statewide conversation on urban-rural economic linkages must begin before such a strategy could be put into place effectively. To read the full report, click here.

At the Rural Center

Center’s Agricultural Advancement Consortium to lead major equine impact study
Horses are big business in North Carolina. Just how big no one knows for sure, though the state Department of Agriculture estimates equine numbers at around 225,000 head. In fact, U.S. statistics on the equine industry rank North Carolina eighth in the nation in the number of horses that live, breed and earn an annual income for their owners. It’s safe to say that horses are a multi-million dollar industry in North Carolina, and state leaders agree the time has come to undertake a comprehensive effort to understand both the current and potential future impact of the industry. Lawmakers have charged the center’s Agricultural Advancement Consortium with overseeing a $500,000 impact study that will give the state a clear picture as to the number and value of horses in the state today, where those horses are located, and the direct and indirect impact of the industry on the state’s economy. The consortium will convene a panel of agricultural leaders and industry experts in developing a comprehensive plan to maximize the economic opportunities presented by the industry. To find out more, contact consortium director Billy Guillet at (919) 250-4314.

From the N.C. Press

The Robesonian: Farmers hit hard by recent hot, dry weather
The dry, hot weather hitting North Carolina this week is expected to cost farmers millions of dollars in field crop losses. In Robeson County alone, about a quarter of what's in the fields now -- roughly worth $20 million -- has been lost to the drought conditions, according to the director of the county's Agriculture Cooperative Extension Service. Everett Davis said he is trying to win support from Gov. Mike Easley to have the county declared a disaster area so farmers can apply for government aid, such as feed stock for animals or low-interest loans. Like two-thirds of the counties statewide, Robeson County is in moderate drought, according to the North Carolina Drought Management Advisory Council. In the southwestern part of the state, 27 counties are in severe to extreme drought. Six coastal counties are classified as extremely dry. Corn, tobacco, wheat, soybeans, cotton and other field crops normally generate between $75 million and $80 million in gross receipts for county farmers. This year, they'll be lucky to get half that, said Kent Wooten, an agent with the county's extension service. The agency expects the area to lose up to 60 percent of its corn, 70 percent of the soybeans, 50 percent of wheat and 25 percent of cotton. "This is the worst we've seen," Wooten said. "With temperatures as they are right now, plants are having a hard time surviving. Basically, with corn, it's done what it's going to do."

Copyright by N.C. Rural Economic Development Center, Inc. 2007. We encourage you to share this UPDATE with interested individuals, organizations, or agencies. Material may be reproduced in electronic or print form. We ask that you please cite the Rural Center as the source.

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The mission of the North Carolina Rural Economic Development Center is to develop, promote, and implement sound economic strategies that improve the quality of life of rural North Carolinians, with a special focus on individuals with low to moderate incomes and communities with limited resources.

N.C. Rural Economic Development Center
Michelle Taylor, UPDATE editor
Courtney Tieman, UPDATE production manager
Elaine Matthews, senior vice president
4021 Carya Drive, Raleigh, NC 27610
(919) 250-4314 Fax: (919) 250-4325
www.ncruralcenter.org