If your company is looking for support for infrastructure development, workforce training or financing, please let us help you explore these state, federal, and private financing sources. Our office is qualified and experienced to assist you in accessing state, federal and other funding sources to support new and expanding business opportunities. The following is a partial listing of financing and funding resources that we have used successfully to support new and expanding business location and expansion:
Industrial Revenue Bonds (IRB's)
Industrial Revenue Bonds (IRB) are tax exempt securities issued by the Halifax County Industrial Facilities & Pollution Control Financing Authority. IRB's are tax exempt because the income derived by the bondholder is not subject to federal income tax, therefore, the cost to the company for which the bonds are issued is less than the cost of conventional financing.
IRB's are used to help finance local manufacturing or industrial facilities. The state's principal interest in these bonds is to assist new and expanding companies while providing North Carolinians with good jobs at good wages. IRB proceeds can be used only by companies engaged in manufa,cturing for land, buildings and/or equipment. Bonds can also be issued to finance pollution control projects under different criteria.
Employment Requirements - A company receiving the bonds must agree to pay its employees the lesser of the average manufacturing wage in the county where the plant is located or the state's average manufacturing wage plus 10%. It must also agree to a formula-based number of new employees.
Financing Limits - Federal regulations limit the bond amount per project to $10 million, less any capital expenditures incurred during the period beginning three year before the date of issuance of the bonds and ending three years after the date of issuance of the bonds. Generally, a bond issue must be at least $2.5 million to be cost-effective, but could be smaller under certain circumstances. There is a nationwide maximum for any company of $40 million.
IRB Process - The Halifax County Industrial Facilities and Pollution Control Financing Authority (the "Bond Authority") was established by the Halifax County Board of Commissioners to process bond applications for new and expanding manufacturers in Halifax County.
To preserve eligibility for IRB financing under both State and Federal law, it is important that a company enter into an inducement agreement with the Bond Authority prior to making economic commitments or signing contracts or purchase orders for the proposed capital expenditures.
USDA Business & Industry Loan Guarantee (USDA B&I) Program
USDA Rural Development's Business and Industry (B&I) Guaranteed Loan Program guarantees loans made by eligible lenders to rural businesses. The B&I program's primary purpose is to improve the economic and environmental climate in rural areas by improving, developing, or financing business, industry, and employment. B&I guarantees are negotiated between the lender and the agency. The maximum percentage of guarantee is 80 percent for loans of $5 million or less, 70 percent for loans between $5 million and $10 million, and 60 percent for loans exceeding $10 million.
USDA Rural Economic Development Loan (REDLG) Program
Through rural electric cooperatives, the Rural Economic Development Loan Program provide zero-interest loans to promote sustainable rural economic development and job creation projects. Up to $750,000 in zero interest financing may be available per qualifying project. Loans may be deferred for up to two years with a total repayment term of up to 10 years.
US Small Business Administration (SBA) Loans
The US Small Business Administration offers diverse financing options for small businesses. Click here for an overview of North Carolina Small Business Resource programs to support small business start-up and expansion. To address the need to provide critical tools to support job creation by small businesses, the Small Business Jobs Act of 2010 was approved by Congress. Click here for information about the many tools and resources available to small businesses through the Small Business Jobs Act of 2010.
Community Development Block Grant (CDBG) for Economic Development
Up to $1,000,000 is available to local governments for creating and retaining jobs. Funding for projects is based on the number of jobs to be created. Sixty percent of the jobs created or retained in a project must be for persons qualifying as prior low and moderate income (LMI). CDBG funds are granted to local governments for various types of infrastructure improvements to assist for profit businesses create or retain jobs.
North Carolina Utility Account Fund
North Carolina’s Utility Account provides infrastructure grants to local governments in Tier 1 and Tier 2 counties. All applications are reviewed and approved by the Secretary of Commerce. Grant levels depend on funding availability and each project’s relative merits. Grants are awarded to local governments for infrastructure improvements that are publicly-owned and maintained. Applicants must demonstrate that the project is expected to lead to job creation in the near future. The grant amount depends on the number of new, full-time jobs created and cannot exceed $10,000 per job created or $500,000 per project.
Utility Account grants require a local match of at least one dollar for every three dollars awarded by the Utility Account. However, no local match is required in the state’s 25 most-distressed counties. Federal or state grant funds may not be used for the local match.
Economic Infrastructure Program
The Economic Infrastructure Program provides grants to local governments for public infrastructure projects that will lead to the creation of new, full-time jobs. Funding levels are based on the criteria below:
Economic Infrastructure funding is targeted to the construction of public infrastructure to support the location or expansion of eligible businesses.
CDBG Building Reuse
The CDBG Building Reuse program provides funds to renovate and upfit vacant (minimum 30 day) industrial and commercial buildings for economic development purposes. CDBG Building Reuse grants are available to local government applicants that work in conjunction with a company intending to operate in a vacant building. The company’s new or expanding operations must result in the creation of permanent, full-time jobs.
Under the authority of Title I of the U.S. Housing and Community Development Act of 1974 (as amended), the CDBG Building Reuse Program in North Carolina is designed to benefit low- and moderate-income persons through job creation. Funding eligibility is contingent upon the creation of permanent, full-time jobs meeting the following qualifying condition: at least 60% must be made available to persons whose household income over the previous 12 months was less than 80% of the median income for the area. For purposes of the CDBG Building Reuse Program, income eligibility is determined from data published annually for the Section 8 housing program of the U.S. Department of Housing and Urban Development (HUD).
A CDBG Building Reuse award is limited to $750,000 per local government. The grant amount cannot exceed $20,000 per job for priority projects (primarily manufacturing) and $12,000 per job for all other projects. The local government must provide at least one dollar for every dollar provided by CDBG Building Reuse. Matching funds may come from the building owner or from the project company.
CDBG Building Reuse and the Rural Division, Building Reuse Program may be combined to support a maximum of 50% of renovation costs. Each program must be able to identify separate jobs to be created. When the Rural Division, Building Reuse Program and CDBG Building Reuse funds are used in the same project, CDBG Building Reuse maximum funding for the latter is $10,000 per job for priority projects and $6,000 for other projects.
Eligible expenses incurred after a grant has been awarded include: materials and labor to install HVAC, electrical, plumbing, fire alarm/suppression system, roofing, flooring, carpentry, drywall, paint and other renovation or upfitting costs.
NC Department of Transportation, Rail Access Program
The North Carolina Department of Transportation’s (NCDOT) Rail Industrial Access Program uses state funds to help construct or refurbish railroad spur tracks required by a new or expanding company. Program funding is intended to modernize railroad tracks to ensure effective and efficient freight deliveries.
Project funding is contingent upon approval of a company’s application prior to a decision to locate or expand in North Carolina. Approval depends on a variety of factors, including the number of potential new jobs that will be created, the amount of capital investment, rail use and local economic conditions.
Grant recipients may receive a maximum of 50% of total project costs, subject to a $200,000 limit per project. Program funding is an incentive to encourage companies to locate or expand in North Carolina versus another state. Projects considering in-state locations only or those not anticipated to yield a significant economic impact do not qualify for funding.
Eligible project costs include: Engineering and design; Site preparation, including grading and drainage; Track construction; Switches; and grade crossings and signals.
The NCDOT’s Rail Division evaluates each application and makes recommendations for funding to the N.C. Board of Transportation. The Board determines the amount of funds that will be awarded.
NCRR Invests Program
The North Carolina Railroad Company’s NCRR Invests program provides assistance to companies that take advantage of the state’s freight rail opportunities and create jobs by locating or expanding their company in North Carolina. The goal of any NCRR investment is to drive job creation and economic growth that would not necessarily take place otherwise. North Carolina Railroad Company will evaluate requests for investments in the engineering, design, construction or related costs associated with the rail infrastructure needs of a potential new company location or expansion. Eligible rail-related needs include, but are not limited to: Lead, Siding, and Other Tracks; Engineering/Design; Rail Roadbed Construction; Rights-of-Way Identification; Rail Loading Facilities; Railroad Signals; Site Grading & Drainage (for track prep)
Investment decisions will be made on specific factors. NCRR will evaluate all rail infrastructure needs for projects, regardless of location or rail operator.
Joint Economic Development Program
The North Carolina Department of Transportation (NCDOT) works closely with the North Carolina Department of Commerce to provide transportation improvements and infrastructure that will expedite industrial/commercial growth and provide new jobs or retain existing ones. Projects must be approved by both the Secretary of Transportation and the Secretary of Commerce.
Funds may be awarded up to $2,500 per new job, with a $400,000 limit per project. To be eligible for funding, the project must have meet specific criteria, which can be provided by the Halifax County Economic Development Commission. Funds may be used for Highway projects, aviation projects at publicly owned airports, and rail or marine public access projects.
NC Department Commerce Building Reuse Grant Program
The Building Reuse Program is administered by the Rural Division of the NC Department of Commerce and provides grants to local governments to support the renovation of vacant buildings and the renovation or expansion of a building occupied by an existing North Carolina company wishing to expand in its current location.
For vacant buildings, up to $12,500 per full-time job is available up to a maximum of $500,000. The amount per job is determined by the location of the project, the type of company, company wage levels, and the level of contribution by the company to employee health insurance.
For existing buildings, up to $10,000 per full-time job is available for a maximum of $500,000. The amount per job is determined by the tier location of the project, the type of company, company wage levels, and the level of contribution by the company to employee health insurance.
Eligible expenses incurred after a grant has been awarded include: materials and labor to install HVAC, electrical, plumbing, fire alarm/suppression system, roofing, flooring, carpentry, drywall, pant and other renovation or upfitting costs.
For additional information regarding these programs, contact:
Cathy A. Scott, Executive Director
Halifax County Economic Development Commission