News

Congress extends unemployment benefits, 28,000 rural North Carolinians affected
Some 28,000 out-of-work rural North Carolinians will see no disruption in their unemployment benefits this week, due to quick action by congressional lawmakers who made the issue their top priority. An estimated 52,000 unemployed North Carolinians nearly lost their benefits when a temporary measure to extend federal assistance expired on Dec. 28. The Rural Center, along with the state Employment Security Commission, contacted North Carolina’s Congressional delegation on Dec. 20 to call attention to the plight of rural workers who had exhausted the usual 26 weeks of state-funded unemployment compensation benefits. Click here to read Rural Center President Billy Ray Hall and Board Chairman Kelly King's letter to the delegation. President Bush signed the new measure into law Jan. 9, making jobless workers eligible for an additional 13 weeks of federal unemployment assistance. For more information on the measure signed by the president, click here http://seattlepi.nwsource.com/national/apwashington_story.asp?category=1151&slug=Unemployment%20Benefits.

Easley's "One North Carolina" plan to focus on education, job creation
Gov. Easley said he chose the center's Rural Partners Forum as a platform to talk about what he called the "big picture" of his economic agenda to move the state into a brighter future, one more insulated from economic downturns like the current recession. "We are not trying to tax our way out of this recession," Easley told forum attendees. "We are not trying to cut our way out of this recession; you have to grow your way out of a national recession this big." Easley's 40-minute speech touched on several points of his plan, particularly on the need to keep education funding intact. The state needs to let go of low-wage jobs, the governor said, because we can't compete with cheap labor in places like Mexico and China. Instead, the state should remain committed to lowering class size and improving the quality of the educational system to prepare children for the higher-skill jobs increasingly in demand by corporations today. To read the full text of the governor's keynote speech, click here http://www.ncruralcenter.org/forum/index.asp.

Recharged Capital Access Program will pump $100 million into rural economy to fuel small business growth
The Rural Center and state banks announced on Oct. 30 a plan to recapitalize the center's Capital Access Program to provide $100 million in new small business loans throughout North Carolina. The program uses a special reserve fund that enables banks to make loans with a strong potential for success, but with a slightly higher level of risk than their guidelines generally allow. The $4 million loan loss reserve fund can be accessed by participating banks to cover any losses resulting from the loans. The fund is being capitalized by a $3.4 million grant from the Golden LEAF Foundation; a $400,000 grant from the Appalachian Regional Commission; and $200,000 from the Rural Center. There are currently 19 banks participating in the program, but the reserve fund is open to new bank membership and will be made available in all 100 counties of the state. During the initial phase of program from 1994 through June 2002, participating banks made $33.5 million in small business loans to more than 670 businesses. To learn more about the program, contact Cindy Boykin at the Rural Center at (919) 250-4314 or visit the website at www.ncruralcenter.org/news/pr.asp?ReleaseID=65.

Governor signs $14.3 billion budget, includes $10 million a year to attract new business
The N.C. General Assembly adjourned its 2002 session Oct. 4 shortly after approving a $14.3 billion budget that included a multi-million dollar business incentives measure that will provide $10 million in cash grants annually to companies that move to North Carolina. The grants are linked to the income taxes paid by their employees and would be limited to 15 companies who would receive 75 percent of their employees' income taxes for up to 12 years. Lawmakers also appropriated $28 million for Gov. Easley's preschool education initiative "More at Four" and $26 million to fund his plan to hire more teachers to reduce class size in the first grade. The budget also cut 1,835 jobs - some vacant, others currently filled - from state government. To read the adopted version of the budget bill, go to the legislature's website at www.ncga.state.nc.us.

New economic development entity to work on behalf of eastern North Carolina
After months of planning and development, a new economic development organization for eastern North Carolina is anxious to get down to the business of advocating for the region's 41 counties. Headquartered in Greenville, the Foundation of Renewal for Eastern North Carolina (For ENC) recently announced its formation and founding board of directors, along with plans for an Eastern North Carolina Economic Summit. The summit will be called "One East," and will be held sometime during the first quarter of 2003 to mark the official launch of the group and to begin bringing together civic, business, county and state government leaders to address the worsening economic situation in the East. Long beset by the highest rates of poverty in the state, eastern counties were dealt a serious blow by the flooding that followed Hurricane Floyd in 1999. The organization is led by executive vice-president J. Phillip Horne, a former vice-chancellor at East Carolina University, and a 12-member board of directors that includes notable Eastern business and civic leaders. For more information on FoR ENC, visit their website at www.forenc.com/.

N.C. Economic Development Board finalizes strategic plan
The N.C. Economic Development Board, a panel of influential state and business leaders charged with crafting economic development policy for the state, met Oct. 30 to finalize a strategic economic development plan that includes a long-range vision for North Carolina's economy. The plan hinges on Gov. Easley's agenda for boosting education spending, investing in high-tech business growth and curbing spending in other areas of state government. The board supported a state House bill sought by Easley that made changes to the William S. Lee Act to step up tax credits in order to attract new businesses that otherwise would not move their operation to North Carolina. The bill was known as House Bill 1734, the N.C. Economic Recovery and Competitiveness Act. The bill also creates a permanent funding source for One North Carolina Fund, a tax incentive program supported by Gov. Easley, and renews a high-tech investment tax credit that expired in January. To read the board's final strategic plan, go to www.nccommerce.com/econbrd/plans/.

Reports and Research

Report shows Southern states are banding together to draw tourists
According to a report from GlobalFax, Southern states are joining together to attract more international tourists by holding an annual hospitality industry trade show in Atlanta called "Southern Marketplace." GlobalFax quoted Bill Howard, marketing director for the Atlanta Convention and Visitors Bureau, as saying, "International tour operators have been packaging 'the Southern experience' for their customers, so it makes sense for the region to have its own trade show to showcase the Southern product." At the first annual show last month, some 200 tour operators from Europe, Latin America and Japan met with 200 representatives of hotels, attractions, restaurants, stores and transportation firms from Alabama, Arkansas, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Virginia and West Virginia. For more information, contact Mr. Howard at (404) 521-6634 or visit the following website: www.rhythmsofthesouth.com/themarketplace.

Small businesses find success with e-commerce, increased Internet presence
Small businesses are finding more and more success through the use of Internet technology, according to a report on small business e-commerce trends by the Office of Advocacy of the U.S. Small Business Administration (SBA). The report documents current trends in small business e-commerce and presents new statistics by the Gallup Poll News Service. Thomas M. Sullivan, Chief Counsel for Advocacy, SBA, said the report clearly shows how pervasive e-commerce has become, and how important it is to the future of small business. The report finds: 65 percent of small, niche firms make a profit or cover the costs of their websites; less than 10 percent of small businesses' online commerce is business-to-business; the smallest firms with fewer than 10 employees benefit the most from being online. For the complete report, visit the U.S. Small Business Administration website atwww.sba.gov/news/.

Report details technology issues in rural economic development
A report by the National Center for Small Communities and the Economic Development Administration identifies effective technology-led economic development strategies for distressed, rural communities. Titled "Technology and Grit at the Grassroots," the report offers guidance on how to put computers, the Internet, and advanced telecommunications to good use. The report presents information from 14 distressed rural communities, supplemented by recent articles and reports. The guidebook is organized around five technology-led economic development strategies: acquiring advanced telecommunications services; promoting public access to computers and the Internet; engaging youth, utilizing schools; increasing local business productivity, enhancing local labor skills; and assisting local entrepreneurs. To read the full report go to www.natat.org/ncsc/.

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Funding Sources

Ford Foundation calls for nominees for community leadership award
The Ford Foundation, in partnership with the Advocacy Institute and the Robert F. Wagner Graduate School of Public Service at New York University, has put out a call for nominations for its "Leadership for a Changing World" awards. Awardees receive $130,000 over a two-year period to support their programs and explore new learning opportunities. They also participate in networking opportunities with other leaders and contribute to research and public discourse on community leadership and social change. The partners are particularly interested in leaders who may be largely unrecognized outside their field or community but who, if recognized, would inspire many others. For more information, or to access a nomination form, see www.leadershipforchange.org.

Non-profit employees motivated by mission, not money, study finds
People who work for non-profit organizations are driven by mission, not money, according to a survey conducted by the Brookings Institute. Just 16 percent of respondents who work at non-profits said they came to work to get a paycheck. This compares with 31 percent of federal workers and 47 percent of people in for-profit organizations. Burnout, however, is a serious problem with 73 percent of non-profit worker respondents indicating they felt that they always have too much work to do. To read more about these findings, visit the Chronicle of Philanthropy at www.philanthropy.com.

Downward trend in charitable giving
Between 1997 and 2000, charitable giving rose every year by an average of 11.4 percent. In 2001, however, giving grew just 5.15 percent. The Foundation Center projects that giving will be flat in 2002 and may decline in 2003. In fact, endowments of nine of country's top 10 foundations fell by a combined $8.3 billion in the first six months of 2002. Charitable foundations suspect the downturn is directly related to national economic woes.

Meetings and Events

e-business workshops
The Rural Internet Access Authority, in partnership with community colleges and local business service and business education organizations, is sponsoring a series of e-business workshops across the state to help small businesses evaluate the potential of using the Internet to improve profits. The workshops will provide information on ways to use the Internet for increasing customer base, saving money and cutting costs, keeping up with changes in the business environment, and taking advantage of free or low cost business services. The workshops are already under way, with the next event to be held Nov. 14 at Craven Community College in New Bern. For a complete list of upcoming workshops, visit the authority's e-NC website at www.e-nc.org/business.shtml.

Series of citizen assemblies to address critical issues facing the state
The N.C. Progress Board is sponsoring a series of citizen assemblies around the state in the coming months to give North Carolinians an opportunity to address the critical issues facing the state. The next meeting will be held for the Raleigh-Durham-Chapel Hill area on Friday, November 22 from 8:30 a.m. to 2:30 p.m. at the Friday Center for Continuing Education in Chapel Hill. A $12 registration fee will include breakfast and lunch. The registration deadline is Nov. 18. To register visit the "What's New?" section of the Progress Board website at www.theprogressboard.org.. and fax the completed form to 919-513-3790, or call 919-513-3900. Payment will be accepted at the door for those who pre-register by phone or fax. The N.C. Progress Board is an independent state body charged with defining a long-term vision for North Carolina.

Rural diversity on the agenda at USDA Conference Nov. 21-22
The U.S. Department of Agriculture's Economic Research Service will present research findings on diversity in rural populations at the agency's annual Washington, D.C. conference Nov. 21-22. The findings will highlight recent trends in rural diversity, particularly with regard to growth in the Hispanic community, self-employment trends, and data on rural communities persistent poverty. The conference is free, but pre-registration is required. View the agenda and download a registration form at www.ers.usda.gov/Briefing/Rurality/Conference/ruraldiversityagenda.htm.

N.C. Economic Developers Association seminars to be held Dec. 3 & 5
The N.C. Economic Developers Association, the professional association for economic developers across the state, will hold two development seminars in early December to help professionals in the field understand the dynamics of manufacturing and share insights on how to save North Carolina businesses and jobs. The seminars will take place Dec. 3 from 10 a.m. to 2 p.m. at Catawba Valley Community College in Hickory and Dec. 5 from 10 a.m. to 2 p.m. at the Willis Auditorium at East Carolina University, Greenville. For further details, visit the association's website at www.nceda.org.

N.C. National Association of Development Organizations to hold annual conference April 2003
The National Association of Development Organizations (NADO), a research, training and support network for regional development groups serving small cities and rural areas, will hold its annual training and policy conference April 12-15, 2003, at the Marriott Metro Center, 775, 12th Street NW Washington, D.C. Room rates are $190 for single occupancy; $195 for double. Early registration is recommended. Contact Vicky L. Glass, director of meetings, at vglass@redo.org.

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At the Rural Center

Center rolls out Rural Data Bank custom data search tool
The center's electronic Rural Data Bank is now equipped with a custom data search tool that offers the most comprehensive and up-to-date information available on North Carolina's 85 rural counties. The data bank includes the latest geographic options and statistical indicators for information on rural people and communities in a quick, easy-to-use search engine. The data bank also includes complete, searchable information on the state's 15 urban counties, as well as the state of North Carolina. To try it out, visit the data bank on the center's website at www.ncruralcenter.org/databank/index.html.

U.S. Commerce Department awards e-NC $700,000 in technology grants
The Rural Internet Access Authority's e-NC initiative has been awarded $700,000 by the U.S. Department of Commerce's Technology Opportunities Program for its Local e-Government Utilization Program (LEG-UP). The program is a targeted, multi-phase effort to improve technology infrastructure and training and boost usage by local governments in 55 communities in North Carolina. The communities will be determined through a competitive process. The grant award stipulated that e-NC provide matching funds. For further details visit the e-NC website at www.e-nc.org.

Burley Tobacco Marketing Center opens Nov. 18
The Agricultural Advancement Consortium and burley tobacco growers in western North Carolina are preparing for the second season of the Burley Marketing Center. The Asheville-based center was developed and administered through the Rural Center with $2 million in funding from the Phase I Tobacco Trust Fund, and serves as a viable alternative to burley growers who otherwise would have to auction their crop in other states or contract directly with tobacco companies. By eliminating buyer and seller marketing fees normally charged at auctions, the center was able to increase burley growers' income by more than $700,000 in its first season. About 60 percent of the burley tobacco grown in North Carolina last year was marketed through the center, which will reopen for business Nov. 18.

Rural Economic Development Institute gears up for class of 2003.
The center's Rural Economic Development Institute will accept applications for its 2003 leadership program Jan. 2 through Feb. 7, 2003. The institute is a valuable resource for helping rural leaders grow their leadership skills in order to meet the economic development challenges in their communities. There are 30 available slots for the next institute, which consists of nine days of classes over a three-month period. Tuition is $495, with a limited number of scholarships available. The meeting dates for the 2003 institute are March 12-14, April 9-11 and April 30-May 2. An application will be available online later this year on the center's website. For more details visit the center's website at www.ncruralcenter.org/leadership/institute.htm or call Tracy Stone at (919) 250-4314, or email to tstone@ncruralcenter.org.

From the N.C. Press

Asheboro Courier Tribune: New industry may come to Seagrove, a small piedmont town that last year lost its largest employer, Lucks Beans.
"Seagrove is one step closer to confirming a new occupant for the former ConAgra/Luck's Food plant. City officials held a public hearing Tuesday to hear more details about Yankee Commodity Foods, Inc.'s interest in the site. The hearing was also set for local citizens to give input about Seagrove's participation in a Community Development Block Grant for the project. Yankee Commodity Foods is a Virginia-based food distributor. This project, when initiated, will mark the company's first manufacturing facility."

Winston-Salem Journal: Federal grant to aid northwestern North Carolina counties in their economic development efforts.
"A federal grant will help several counties in Northwest North Carolina plan for economic growth. 'What we're trying to do is marry assets together,' said David Bradley, the president of the Greater Mount Airy Chamber of Commerce. Seven counties - Ashe, Alleghany, Surry, Stokes, Rockingham, Forsyth and Yadkin - received a $320,000 grant from the federal Economic Development Administration, with an $80,000 grant from the N.C. Community Development Block Grant program. The money will go to a committee made up of the counties' business and government representatives that will hire an economic development consultant to study the region."

Wallace Enterprise: Del Laboratories, a pharmaceutical and cosmetics company based in New York, will open a manufacturing plant in Burgaw by the end of 2003, creating 485 jobs in Pender County
"Easley stated the move was a collaboration of state and regional efforts. Del Laboratories will receive financial incentives from the governor's 'One North Carolina Fund,' a cash source dispensed by the governor to lure high-wage jobs to rural counties. Well-known brand names manufactured, marketed, and distributed by Del Labs include Sally Hansen's Hard as Nails, Corn Silk, Naturistics and LaCross. Its products are sold in more than 30 countries."

Standard Laconic (Snow Hill): Eastern North Carolina's Kenaf crop shows potential for success (Kenaf is a fibrous stalk-like plant used in the production of engineered lumber products.)
"What started out as a few seeds in the ground has grown into a $5 million investment in eastern North Carolina's Greene County. The crop is called Kenaf and is on the verge of replacing fiberglass. The crop is used in automobile door padding and as animal bedding. After receiving a $300,000 grant from the N.C. Rural Center, the N.C. Kenaf Farmers Foundation was formed to conduct research on the crop and, processing and to find markets for the crop. An initial 25-acre planting of Kenaf was deemed a success in 2000...leading to an additional 1,000 acres planted in 2001. A recent $250,000 grant from the Golden LEAF Foundation has kept the foundation and research going."

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Copyright by N.C. Rural Economic Development Center, Inc. 2002. 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
4021 Carya Drive, Raleigh, NC 27610
(919) 250-4314 Fax: (919) 250-4325
www.ncruralcenter.org