News

$2.2 million in grants for rural business incubators will help entrepreneurial ventures flourish
The Rural Center and the N.C. Department of Commerce this week announced seven rural counties and communities will receive a total of $2.25 million to grow business incubators at sites that support business start-ups and increase the chances of their survival. Ashe County, Bladen County, the city of Kinston, Transylvania County, the town of Wadesboro, the city of Wilson and Yancey County were awarded grants through the state’s Community Development Block Grant Program. The Department of Commerce will administer the funding, with the center’s Institute for Rural Entrepreneurship providing training and technical services. Incubators offer rural entrepreneurs the practical help they need to get their businesses off the ground, including free or low-cost office space and equipment, technical assistance, and the financial, legal and marketing tools necessary for the business to survive in today’s economy. For more information about the grants, visit the N.C. Department of Commerce’s Division of Community Assistance at http://www.ncdca.com/cdbg

While N.C. House and Senate leaders work on budget compromise, hope remains for legislation on key rural issues
Work on individual bills has slowed down while state House and Senate conferees hammer out a compromise budget, though several key pieces of legislation affecting rural North Carolina are still alive and could pass this session. Both the House and Senate budget bills include $20 million to replenish the N.C. Economic Infrastructure Fund, a grants and investment program established by lawmakers in 2004 to create jobs and boost the rural economy. The House’s version of the bill is slightly different, but both would have the Rural Center continue to administer the program. The House budget includes a two-year, $500,000 appropriation for the e-NC Authority to create two new business and technology telecenters. The new technology hubs would join four existing and four planned telecenters in boosting technology-based economic development efforts in rural, distressed counties. The House budget plan also includes funding for two components of the center’s 10-step Dislocated Worker Action Agenda: $250,000 in funding for NC REAL Enterprises, which works to grow entrepreneurial businesses in the state through its education and training curriculum; and a $2 million reserve fund for the community college system, which would give colleges greater flexibility to add classes in order to meet emergency worker training needs.

High-tech materials training center is first step toward establishing industry cluster in northwest North Carolina
A high-tech materials training center in northwest North Carolina will be one of just a few such facilities in the U.S. when it opens this fall on the campus of Wilkes Community College in Wilkesboro. The training center is part of an economic development strategy to build an industry cluster in the region around the emerging advanced materials market, which is turning out new products for the construction, transportation and civil infrastructure industries by blending together high-tech materials to create a stronger composite product to replace wood, steel and aluminum. A partnership of local and regional organizations, the Northwest North Carolina Advanced Materials Cluster Initiative, believes the cluster is the region’s best hope for transitioning local economies from reliance on dying traditional industries to specialized high-tech firms. Wilkes Community College, which has received a $50,000 grant from the center’s N.C. Economic Infrastructure Fund, will further the work of the cluster through establishing an advanced materials training center and developing a two-year training and certification program at the college that will teach students how to work with advanced materials and the science behind developing the products. Initiative partners expect the industry cluster to eventually attract five to 10 new suppliers and two new equipment manufacturers to the region. To find out more, visit the initiative’s website.

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Reports and Research

North Carolina receives a ‘C’ grade on financial assets, net worth, according to CFED scorecard
Nearly one in five American households owes more than it owns, according to an economic scorecard of U.S. states released by CFED last month. According to the Washington, D.C.-based economic research organization, American families ‘face alarming discrepancies between men and women, minorities and whites.’ CFED’s Assets and Opportunities Scorecard measures the financial security of families in the U.S. by looking beyond income to consider the role ownership and assets play in protecting against financial setbacks. The scorecard ranks all 50 states and the District of Columbia on 31 measures in the areas of business development, financial security, homeownership, healthcare and education. CFED ranked Connecticut, Delaware, Iowa, Maine, Minnesota and Vermont as the top-performing states on its scorecard. Asset building in North Carolina is fairly equally distributed between genders and races, according to CFED, but the state as a whole needs better access to financial institutions. To find out more about North Carolina’s score, click here.

New “how-to” guide leads rural communities through launching community programs
The Pew Partnership for Civic Change has released a comprehensive ‘how-to’ guide on launching and sustaining successful community programs. The report takes a detailed look at how eight very different organizations across the nation overcame serious challenges in their communities through innovative new programs with an inclusive approach. Western North Carolina’s Handmade in America is featured in the section on rural leadership development, where it is lauded for its success in building organizational and leadership development into all aspects of the program. To read the full report, click here.

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Meetings and Events

First-ever financial literacy and asset building conference to be held in Chapel Hill Sept. 27-28
State Treasurer Richard Moore, in conjunction with the IDA and Asset Building Collaborative of North Carolina, N.C. Cooperative Extension and others, will host the first statewide Conference on Financial Literacy and Asset Building at the Friday Center in Chapel Hill on September 27 and 28. The conference will provide valuable information and training on financial education and asset building resources available throughout North Carolina, formally launch the North Carolina Saves Campaign and assess the state’s current public policy work on asset building and financial literacy. Moore and other conference hosts cite recent statistics that 70 percent of American households live paycheck to paycheck, without a savings account. Last year alone, more than 1.5 million Americans filed for bankruptcy. The registration fee is $55 and will include three meals. Visit the website for more information or to register online, or call (919) 508-5164. Pre-registration is recommended.

North Carolina’s nonprofit sector to come together for annual conference Oct. 5-7 in Charlotte
The N.C. Center for Nonprofits will hold its annual conference Oct. 5-7 in Charlotte. This year’s conference, “Radical Notions for Common Ground,” will feature working sessions on fundraising, strategic planning, board development and tips for growing a nonprofit in a difficult environment. Experienced consultants will be on hand Thursday, Oct. 6, from 3:45 to 5:45 p.m. on a first-come, first-served basis to work with individual participants on issues that are affecting their daily work. Dr. Paul Light, a senior fellow at the Brookings Institution in Washington, D.C., will give his keynote address on how to build more robust nonprofits in these turbulent times. To register for the event online, click here. For directions to the Westin Hotel, 601 South College Street, click here.

5th annual New Partners for Smart Growth conference to be held January 26-28 in Denver
The 2006 New Partners for Smart Growth conference will feature the latest research, implementation tools and strategies, successful case studies, and interactive learning experiences related to smart growth issues. The conference will be a worthwhile event for urban, metro and growing rural communities that are struggling to find the best way to manage and plan for their future growth. Community professionals who might find it beneficial include local elected officials, nonprofit leaders, key local government staff, economic and community development officials, transportation and safety officials, and public health and law enforcement professionals. The fee to register is $245 for nonprofits and local governments. Visit the website to register online. For hotel rates and reservations at the Adams Mark Hotel in downtown Denver, call 800-444-2326.

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At the Rural Center

Oppie N. Jordan appointed to new term as chair of the e-NC Authority
Gov. Mike Easley has reappointed Oppie N. Jordan to a new two-year term as chair of the e-NC Authority, the organization created by the N.C. General Assembly to carry out Internet planning and expand technology-based economic development across the state. Jane Smith Patterson, executive director of the e-NC Authority, said the organization is fortunate to have Jordan as its chairperson for another term. Under Jordan's leadership, the e-NC Authority has accomplished a number of its goals, including the creation of 500 new small business jobs through its three original Business & Technology Telecenters – also known as technology hubs – in Alleghany, Cherokee and Martin counties. Additionally, four new telecenters are in the works in Anson/Union, Northampton/Halifax, Rockingham and Rutherford counties. Each telecenter is located in an economically distressed rural area and works to help local entrepreneurs and small businesses create and grow their ventures.

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Funding Sources

Grants of $5,000 to $20,000 available to promote tourism, protect natural, cultural and historic resources
Tourism Cares for Tomorrow is a nonprofit organization that promotes the responsible use of the world's natural, cultural and historic treasures and supports education and research to encourage travel and tourism worldwide. The organization awards grants twice each year to nonprofit organizations to protect, restore, and conserve sites of exceptional natural, cultural, or historic significance; to increase the traveling public’s awareness of and involvement in conservation efforts; and to promote conservation education within local host communities and to the traveling public. The next grant application deadline is September 1. To find out more, visit the website at http://www.tourismcaresfortomorrow.org/

Bank of America accepting applications for grants and internship program to promote vibrant community neighborhoods
The 2005 Bank of America Neighborhood Excellence Initiative is now accepting applications for a unique grants and internship program that recognizes and rewards thriving neighborhoods, community heroes and outstanding youth leaders. Grants of $200,000 will be awarded to support the operational expenses of qualified organizations. The initiative, designed to recognize and reward individuals and groups who are making a difference in their communities, is divided into three categories: Neighborhood Builders provides $200,000 in grant funding and leadership training over two years to two neighborhood non-profit organizations working to promote vibrant neighborhoods. Local Heroes recognizes and honors five community heroes per year, and recipients will be able to direct a $5,000 contribution to an eligible non-profit of their choice; Student Leaders recognizes five high school students who are recommended as exemplary young people with an interest in improving their neighborhoods, with each student participating in an eight-week paid internship with a community-based organization. To learn more about the program and for details on the application process, visit their website.

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From the N.C. Press

Raleigh News & Observer: Letter to the Editor by Golden LEAF Foundation Chair Billy Clarke
Flawed news reports of last week’s June 2 meeting of the Golden LEAF Foundation’s Board of Directors gave the impression that the Golden LEAF Foundation is considering changing its standing policy of making grants only to qualified nonprofits and governmental entities and in the future making grants directly to for-profit companies as economic incentives. That impression is incorrect. The board is not contemplating direct grants to for-profit companies. However, increasingly, the board is receiving requests from qualified nonprofits and governmental entities asking for funds which might be used to create incentives for companies to remain in their area, increase their presence in their area, or relocate to their area. Ultimately, they are talking about jobs. Some of these requests are for very large sums. Some of them raise “private inurement” and “public purpose,” issues which concern the foundation from an IRS standpoint and the foundation’s own tax status. To date, the foundation has been dealing with these matters on a case-by-case basis. In an effort to develop criteria for dealing with these requests while preserving our tax status and complying with the law, the board initiated discussion of a possible policy. If the board were to adopt a policy, it would seek an advisory opinion from the Internal Revenue Service. Again, there has been no interest expressed by the Board of Directors of the Golden LEAF Foundation in changing its policy of making grants only to qualified nonprofits and governmental entities. Our concern is to determine how the foundation can continue serving tobacco-dependent and economically-affected communities throughout North Carolina in a dynamic and ever-changing climate.

Kinston Free Press: Global TransPark lands major new tenant
Global TransPark (GTP) officials were all smiles on June 30 as they announced that a major logistics and supply chain management company is setting up operations at the GTP. New Breed, Inc., headquartered in Greensboro, has signed a lease for the 120,000-square-foot subdivided warehouse known as GTP One. This is the largest transaction of its type in the park’s history, Eugene A. Conti Jr., vice chairman of the GTP Authority, said. New Breed provides storage and distriution services for clients such as Verizon Wireless, The Boeing Company, Panasonic, Siemens Medical Solutions, the U.S. Postal Service and the U.S. Marine Corps. The company operates 30 distribution centers nationwide, employs 2,500, and distributes $12 billion annually in products worldwide. Joe Hauck, New Breed's director of business development, said from Greensboro that the GTP is a perfect location for New Breed's Eastern North Carolina warehouse. Although he would not release the name at this time, Hauck said that a single client will be serviced from the facility. "We chose the GTP because our client wanted to be in this area. It is somewhat central to their client base," Hauck said. "The building is just perfect, and the nearby aircraft landing strip is a big plus." The GTP Foundation, a private enterprise that works with the state to promote and develop the park, is offering New Breed a $300,000 incentive for the first year for rent abatement.

Raleigh News & Observer: Nonprofit to nurture startups
David P. Rizzo wants to provide the nourishment to turn fledgling ideas into growing companies. And he has a plan to do it. His Durham nonprofit, the N.C. Innovative Development for Economic Advancement, will invest part of an existing $25 million pool of money in early-stage companies to boost entrepreneurs in the state. It is a sum that the firm aims to increase to as much as $40 million as initial investments pay off, Rizzo said at conference in Pinehurst for startup companies and potential investors. For entrepreneurs seeking smaller amounts, Rizzo plans to start a grant program that will dole out increments of about $10,000 to $40,000. The goal is to remedy a problem that has plagued the state and the Triangle region. Leaders worry about a decline in seed capital, money necessary for scientists and tinkerers with new ideas to test their theories and form new businesses.

Wilson Daily Times: Park proposed for Contentnea
Imagine a national park that runs 100 miles along a pristine, tree-lined creek, with overnight campsites, bicycle trails, and access to Native American historic sites. How far would an interested person travel to visit it, canoe down it, explore its swamps, skate or bike along its paths, and ride horseback or hike along its nature trails? What if it started at Buckhorn Reservoir and ran right through Wilson along Contentnea Creek all the way to Grifton? "We're talking about using this hidden asset to our advantage," environmentalist Paul Skillicorn said in presenting the project to Wilson City Council Thursday. "Eastern North Carolina lacks recreational facilities, and formal facilities for nature recreation." The council took the first steps toward making it a reality when it agreed to be the host organization for grant funding to start the process of creating a linear park along the Contentnea from Buckhorn to Grifton. The council’s vote supports Skillicorn and Tim Treshohdavy of East Carolina University in applying to the Clean Water Management Trust Fund for half of the approximately $55,000 needed for the first phase of the project. They will raise the rest of the money from private sources, such as the N.C. Rural Center, Z. Smith Reynolds Foundation and the Golden Leaf Foundation.

Charlotte Business Journal: Hunt: Shift state’s recruitment focus
Former N.C. Governor Jim Hunt is calling for dramatic changes in the state’s approach to economic development. In a speech at the N.C. Technology Association’s TopTech 2005 conference, he listed several improvements he considers necessary to make the state globally competitive. Hunt, now a partner at the Womble Carlyle Sandridge and Rice law firm, said the state should no longer focus its attention on major, large employers. Perhaps his most aggressive suggestion was to split the N.C. Department of Commerce in half, with 50 percent of the department’s existing staff directed to work solely with entrepreneurs and small companies.

Daily Herald (Roanoke Rapids): Manufacturing projects on the move in the Valley
Approximately 1,000 manufacturing jobs will open up in Halifax County in the next three to four years, said Ronald Baker, executive director of the Halifax Development Commission. “That’s about $25 million payroll for the area representing five corporations,” Baker told the Daily Herald. This figure includes three new companies coming to the Valley. PCB Piezotronics, a sensor manufacturing company, is in the process of training 30 or more people at Halifax Community College and six or seven are continuing their training in New York. “They will employ 90 this year and 50 jobs per year for the next nine years,” Baker said of the corporation. Other towns in the county will also become home to new companies in the months ahead.

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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
Kelly Tucker Griffin, UPDATE production manager
Elaine Matthews, vice president for communications and development
4021 Carya Drive, Raleigh, NC 27610
(919) 250-4314 Fax: (919) 250-4325
http://www.ncruralcenter.org/