If your company is looking for financing or funding for infrastructure development, workforce training or other strategic initiatives, please let us help you explore 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. Following is a listing of financing and funding resources that we have used successfully to support new and expanding business location and expansion:
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.
Through rural electric cooperatives, the Rural Economic Development Loan Program (REDLG) provides zero-interest loans to promote sustainable rural economic development and job creation projects. Up to $1,000,000 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.
The US Small Business Administration offers diverse financing options for small businesses to support small business start-up and expansion. Click here for information about the many programs and loan resources available to small businesses through the North Carolina District Office.
Up to $1,000,00 0 is available to local governments for creating and retaining jobs. Funding for public infrastructure 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’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 $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.
The Economic Infrastructure Program provides grants to local governments for public infrastructure projects that will lead to the creation of new, full-time jobs. Matching funding of up to $500,000 is available to support upgrades or repair to public water or wastewater treatment plants; upgrade, extension or repair of public water or sewer lines; extension of publicly-owned natural gas lines; installation or extension of public broadband infrastructure; construction of publicly-owned access roads not funded or owned by the NC Department of Transportation; and construction of public rail spur improvements. Priority for funding is given to counties with the 80 highest tier rankings.
The North Carolina Department of Commerce, Rural Division, offers two programs to building renovations to support new or expanding business investment and job creation.
State 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. Up to $500,000 in matching funds is available, with the amount per job 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.
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.
CDBG Building Reuse Grant Program
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.
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.
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.
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 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 are based on specific factors. NCRR will evaluate all rail infrastructure needs for projects, regardless of location or rail operator.
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.
Industrial Revenue Bonds (IRB) are tax exempt securities issued by the Halifax County that provides manufacturing facilities, 501(c)(3) organizations and solid waste disposal facilities access to capital markets to finance their economic development related projects.
The majority of projects for Industrial Revenue Bonds are manufacturers to establish or expand manufacturing facilities. Industrial Revenue Bonds can be used primarily for acquisition of land, construction of a building and acquisition of equipment. The portion of the project financed with tax-exempt bonds is restricted to the core manufacturing component and certain ancillary facilities. These bonds are most efficient for companies with construction projects in excess of $2 million. The upper limit of a bond issue for a manufacturing enterprise is under $10 million. For additional information regarding the process to access Industrial Revenue Bonds in Halifax County, please contact our office at 252-519-2630.
For additional information regarding these programs, contact:
Cathy A. Scott, Executive Director
Halifax County Economic Development Commission
252-519-2630 or e-mail us.
© Halifax County Economic Development Commission. All Rights Reserved