Based on a recommendation of the Commission on Jobs and Economic Growth, the Rural Center is founded as a private, nonprofit corporation with support from the Mary Reynolds Babcock Foundation, Z. Smith Reynolds Foundation and R.J. Reynolds Tobacco Company.
The center's first major study, the North Carolina Rural Capital Markets Analysis, identifies gaps in business finance. It leads to the creation of the North Carolina Enterprise Corporation, a private, for-profit investment company designed to provide equity financing for rural businesses.