North Carolina Economic Infrastructure Fund
The loss of manufacturing jobs has proved to be a double, even triple whammy for many communities. In locales where one or two plants employed a significant portion of the labor force, layoffs and plant closings reverberate throughout the economy. Workers lose jobs, other businesses see their trade dwindle, and local governments struggle with a shrinking tax base.
In July 2004, the N.C. General Assembly established the North Carolina Economic Infrastructure Fund, a $20 million initiative to stimulate business growth and job creation in rural and low-wealth communities. The legislation grew out of deepening concerns about plant closings and layoffs that were creating hardships for workers statewide and depriving many communities of their primary economic base. Lawmakers directed the N.C. Rural Economic Development Center to administer the fund, including grant programs to help communities finance water and sewer improvements, renovate vacant buildings for use by new businesses, and invest in other projects, all with the potential to create jobs. The initiative also provides funds to support the e-NC Authority in expanding Internet access throughout North Carolina.
In its pilot year, the fund far exceeded expectations -- creating more than 4,500 jobs, triple the stated goal. Based on this success, the legislature renewed the fund’s appropriation of $20 million annually for two more years.
The fund has made a significant impact on communities all around the state. Between September 2004, when the first grants were announced, and May 2006, the fund’s programs:
- Awarded $29 million in 167 separate grants.
- Created or expanded 482 businesses.
- Created or saved 16,133 jobs.
- Leveraged more than $188 million in other investments.
Programs of the Economic Infrastructure Fund
Water and Sewer Grants
The legislature has designated approximately $15 million of the fund’s annual appropriation to water and sewer improvements leading to job generation. This initiative helps economically distressed communities generate new jobs through water and wastewater improvement projects.
Building Reuse and Renovation
The Small Town Building Reuse and Restoration Program assists local governments in renovating vacant buildings for reuse by new or expanding businesses. Priority is given to towns with fewer than 5,000 people.
Research and Demonstration Grants
The fund also enables grants for research and development projects with the potential to stimulate job growth. These may include large-scale economic development projects, shared-use agricultural facilities demonstrations and projects that show potential for diversification and sustainability. Most significantly, the R&D grants support the N.C. Small Towns Economic Prosperity Demonstration. N.C. STEP is assisting 20 communities (32 small towns altogether) in devising and carrying out plans for comprehensive economic revitalization.
Business and Technology Telecenters
In the fund’s initial year, $1 million was directed to the e-NC Authority to expand the system of telecenters providing business and technology assistance to rural communities. The allocation enabled telecenters to be opened in Rutherford and Rockingham counties.
Reporting to the Legislature
The Rural Center has submitted reports to the General Assembly on the first two full years of the Economic Infrastructure Fund. These reports include summaries of the grant awards.
