News

More than 600 on hand as center, state leaders announce $138.5 million in rural development funds
The Rural Center kicked off one of the largest and most comprehensive grant-making periods in its 20-year history at the 2007 Rural Partners Forum, held Oct. 24-25 in Raleigh. Lt. Gov. Beverly Perdue, House Speaker Joe Hackney and other state leaders joined the center in announcing $138.5 million in rural development funds approved by state lawmakers earlier this year. The funds will be awarded over the next 18 months through several grant programs, with the majority set aside for water and sewer projects. Specifically, $100 million in grants will be awarded from the Clean Water Partners Infrastructure Program, which is designed to meet the water and wastewater needs of rural communities with serious public health and environmental problems. Lawmakers directed that $10 million of that be set aside for rural communities in dire need of help with drinking water supplies, including drought-related problems. The remaining $38.5 million will help rural communities improve their infrastructure and create jobs, with about half set aside for projects in economically distressed communities. Those funds are broken down as follows: $15 million for water and sewer projects that result in job growth; $13.7 million for programs that support small town revitalization, test economic development strategies and encourage entrepreneurship; $6 million to renovate and reuse vacant commercial property for new and expanding companies; and $3.8 million to capitalize the center’s new Rural Venture Fund. To find out more, click here.

First round of grant applications due in mid-December
Rural Center staff took to the road after the Rural Partners Forum, holding five meetings at sites across the state to give rural leaders detailed information on available grant funds and to help them navigate the application process. More than 1,000 rural leaders turned out for the meetings, held in Raleigh, Pembroke, Lumberton, Wilkesboro and Waynesville. As directed by state law, the center will invest all $138.5 million appropriated by the 2007 General Assembly within 18 months. For the Clean Water Partners Infrastructure Program, a notice of intent to apply must be submitted by Nov. 30 with the full application due Dec. 17. Applications to this program will be considered only if the applicant, or a representative of the local unit of government, attended one of the five "how to apply" workshops. Awards will be announced no later than June 2008. This schedule has one exception: applications related to water supply crises may be submitted at any time. The first grant applications under the Economic Innovations Program are due Dec. 17, with awards to be announced in February. These grants include economic stimulus investments, for large-scale economic development projects, and community innovation investments, to spark economic transition in small rural communities. Applications for a second round of economic innovation grants will be due Feb. 22, with awards to be made in April. The center will expand its Small Town Economic Prosperity Demonstration Program (NC STEP) to include 10 new small towns in early 2008. Applications are due Feb. 15, with selections to be announced in April. Grant awards under the Building Reuse and Restoration Program will be made through two grant periods. Applications in the first round are due Dec. 17, with awards to be made in February. Second round applications are due Feb. 22, with awards to be made in April. Applications for job-creating water and sewer projects under the N.C. Economic Infrastructure Fund will be accepted on an ongoing basis. For application guidelines and forms, click here.

Rural Venture Fund up and running
A first-of-its-kind rural venture capital fund is officially up and running, with its first investment decisions expected this fall. The Rural 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. The Rural Venture Fund will target existing businesses in Tier 1 counties that have the potential to grow and create jobs. 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 to $350,000. Funding options will include equity financing and secondary loans. Investments carry the expectation of a return, but on less demanding terms than required by traditional venture capital. Investment decisions will be made on a quarterly basis. To date, the fund has been capitalized by $3.8 million from the N.C. General Assembly, a $2.5 million from the Rural Center and $500,000 from the Golden LEAF Foundation. The UNC System has committed $75,000 for specialized technical assistance. The center held the first of several planned regional meetings about the fund Nov. 14 in Jones County. Dates and locations for subsequent meetings are being finalized. The meetings, which are open to the public, will target local and regional economic development organizations, chambers of commerce, local governments and the banking community. To find out more, contact Ashley Crane in the center’s business development office at (919) 250-4314.

Trade Adjustment Assistance bill clears U.S. House
A bill that would beef up a federal program designed to get dislocated workers back on their feet has passed the U.S. House of Representatives. Under the Trade Adjustment Assistance program, certain categories of displaced workers are eligible for long-term training, extended unemployment benefits and tax credits for health insurance premiums. The TAA Reform Act, or H.R. 3920, would increase funding for training and career guidance, increase the health coverage tax credit and boost the number of workers who qualify for TAA services. A similar measure has been introduced in the Senate. The reforms would be especially helpful to workers in North Carolina. Over the past five years, North Carolina has lost more trade-related jobs than any other state. Currently, more than 11,600 North Carolinians participate in TAA services. North Carolina Reps. Robin Hayes and Mike McIntyre and Sen. Elizabeth Dole have been pushing TAA reform this session. TAA reform was a key recommendation of the Rural Center's Dislocated Worker Advisory Committee in 2005.

U.S. House passes bill to create Southeast Crescent Regional Commission
The U.S. House of Representatives has passed a bill that would create a regional economic development commission covering North Carolina and six other southeastern states. The Southeast Crescent Regional Commission would facilitate federal-state cooperation on economic development initiatives along the lines of the Appalachian Regional Commission. It would encompass all the counties of Virginia, North Carolina, South Carolina, Georgia, Alabama, Mississippi and Florida not already covered by the Appalachian or the Delta regional commissions. The Regional Economic and Infrastructure Development Act of 2007 (H.R. 3246) also would establish two other new regional commissions and reauthorize two existing ones. (The ARC is not affected.) Funding for each commission is set at $40 million for fiscal year 2008, increasing to $60 million in 2012. The bill's cosponsors included Congressmen Mike McIntyre and Robin Hayes. It has now gone to the Senate, where it was referred to the Committee on Environment and Public Works. President Bush has threatened to veto the measure. Supporters in Congress and in the seven affected states have been working to establish the Southeast Crescent commission since 2002. The effort grew out of a study by East Carolina University detailing the high concentration of persistent poverty in the region.

Meetings and Events

Emerging biotech opportunities for southeastern growers, producers the focus of Nov. 20 event
A luncheon and networking opportunity Nov. 20 in Clinton will focus on emerging opportunities for biotechnology in plant and animal agriculture. Hosted by the Sampson County Economic Development Commission and the N.C. Biotechnology Center’s southeastern office, the luncheon will give growers, value-added producers and others an opportunity to learn more about the development of value-added agricultural biotechnology ventures in southeastern North Carolina. Speakers will include U.S. Rep. Mike McIntyre; Norris Tolson, president and CEO of the N.C. Biotechnology Center; and Johnny Wynne, dean of the College of Agriculture and Life Sciences at N.C. State University. The event will be held at the Sampson County Agricultural Expo Center at 414 Warsaw Road. To register, call (910) 592-8921.

Nov. 27 seminar will teach small business owners how to use electronic media effectively
A free training session Nov. 27 will help small business owners learn to 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 each. A podcasting demonstration also will be included. The training, which will be held in Raleigh at the Rural Center, is intended for individuals and organizations that may lack a strong technical background. To register, visit the e-NC Authority website. For questions, call Angie Bailey at (919) 250-4314.

CED to host venture capital seminar Nov. 29 & Jan. 16
The Council for Entrepreneurial Development (CED) will host Venture Capital for Entrepreneurs, a two-part seminar focused on starting and growing a venture-backed company. The sessions will be held Nov. 29 and Jan. 16 at the N.C. Biotechnology Center in Research Triangle Park. The program will provide early stage entrepreneurs with information and resources to help attract funding and create value in their business. The first workshop will focus on creating a sustainable business and perfecting the business pitch. The second session will cover deal structures and raising capital. A panel of investors and experienced entrepreneurs will lead the interactive seminar. To find out more, or to register, click here.

Seminar for telecom providers to focus on 'fiber-to-home' networks, Dec. 5 in Charlotte
Strategies for meeting the growing consumer demand for ultra-high bandwidth is the focus of a Dec. 5 workshop for telecom providers. The daylong workshop in Charlotte will feature the latest trends in "fiber-to-the-home" networks and technology, an introduction to the fiber optic industry and an overview of new consumer and networking products. E-NC Authority Executive Director Jane Smith Patterson will take part in a panel discussion on government and regulation. Other speakers include Joseph Freddoso, president of MCNC. Registration is $50 and includes lunch. The workshop is being presented by the Fiber to the Home Council. To register online or to view the agenda, visit their website at www.ftthcouncil.org.

Advantage Innovation 2007 conference to be held in Asheville Dec. 6-7
AdvantageWest will hold its Advantage Innovation 2007: Environmental Related Enterprises conference Dec. 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 detail, contact AdvantageWest Executive Vice President Scott Hamilton at shamilton@awnc.org.

Reports and Research

Paper recommends steps to advance alternative sources of ethanol
Up to now, the United States has relied on the ability to convert corn to ethanol as a primary feedstock for biofuels. But grain-based ethanol is not expected to be able to meet the nation’s growing demand for alternative fuels. Cellulosic biomass — the structural part of a plant, such as stems and leaves — has the potential to help fill the gap. A new research paper by CAST, the Council for Agricultural Science and Technology, discusses the need for more research funding and policy development to help realize the potential of cellulosic biomass. The researchers said national and regional policies should give priority to boosting production of cellulosic crops, such as switchgrass. They also called for more work on harvesting techniques, storage and transportation issues. To download a free copy of the paper, click here.

Black spending power could reach $60 billion in N.C. by 2009, according to UNC study
A study just released by the Kenan Institute at UNC-Chapel Hill finds that African Americans contribute more than $44.7 billion to the North Carolina economy each year. The study follows a 2006 report on the economic impact of the state’s Hispanic population. The total economic impact of black spending in the state could reach $60 billion by 2009, according to the authors of “The Economic Impact of the African American Population on the State of North Carolina.” On average, the report says, North Carolina’s 1.8 million black residents contribute $22,272 to the state through spending and taxes. The state, in turn, provides about $2,498 in health care, corrections and education spending for each of those residents. Primary funding for the study was provided by the N.C. Institute for Minority Economic Development. Andrea Harris, the group’s president, said the study will encourage financial institutions and other businesses to capitalize on this growing sector of North Carolina’s market and economy. To read the full report, visit the Kenan-Flagler School of Business website at: http://www.kenan-flagler.unc.edu/ki/reports/2007_AfricanAmerican/.

At the Rural Center

Center to hold next Energizing Entrepreneurship training Dec. 5-7 in Nags Head
The Rural Center’s Institute for Rural Entrepreneurship will lead an intensive three-day training to help rural community leaders effectively use entrepreneurship as an economic development strategy. The training, “Energizing Entrepreneurship in Rural North Carolina,” will be held Dec. 5-7 in Nags Head. It marks the fifth such training to be offered by the center and its partners as part of a broad effort to build a more effective entrepreneurship development system in the state. The program helps build community teams who work together to learn about entrepreneurship and implement plans. The $275 registration fee includes meals and course materials. Room rates are $65 per night for participants. For questions or to register, contact Barry Ryan at the Rural Center, (919) 250-4314, barry@ncruralcenter.org.

Funding Sources

Fit Together launches third phase of its health-conscious grant program for communities
February 1 is the deadline to apply for a community-based health program that helps communities and counties improve the health and well-being of their citizens through fitness-oriented policies, promotions and community infrastructure. Now in its third phase, the Fit Together Program is a public-private partnership of the N.C. Health and Wellness Trust Fund and Blue Cross and Blue Shield of North Carolina. The program rewards municipalities and counties for supporting healthy eating, physical activity and tobacco-free living. A recent study finds that obesity costs North Carolina $24 billion annually. Eight communities will be awarded two-year grants of up to $30,000 a year. Competitive applications will demonstrate need, proven capacity and opportunity for positive change in addressing physical activity and/or healthy eating in North Carolina. A series of regional workshops will give community and local government leaders valuable information on the grant program and application process. Workshops will be held Dec. 10 in Asheville, Dec. 14 in Greensboro and Dec. 18 in Greenville. Meeting times for each workshop will be 9 a.m. to 12 noon. For more information or to download an application, visit: www.fitcommunitync.com.

From the N.C. Press

Asheville Citizen-Times: Rural hospitals to get help with renovations, upgrades
Rural hospitals will get a financial boost to secure low-cost loans for renovations and upgrades under a program announced by the N.C. Health and Wellness Trust Fund. The fund, which distributes money from tobacco settlements to promote health initiatives, and the Golden LEAF Foundation, which also funds grants with tobacco money, have committed to granting $1 million each to Rural HOPE, Hospital Project Enhancements. "In many areas of our state, hospitals represent the only access to critical care for miles," said Lt. Gov. Bev Perdue, chair of the fund, "yet too many of our rural hospitals are operating on such tight budgets they cannot gain financing for crucial modernization investments." Perdue also said hospitals help economic growth because businesses will not relocate to areas without health care. North Carolina's rural hospitals provide $1.65 billion in labor income and $4.3 billion in overall economic benefit to their local communities each year, Perdue said. The N.C. Hospital Association will administer the program. The program will be available to nonprofit hospitals that keep an average of fewer than 100 patients per day.

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