Capital Opportunities for Small Businesses - sbtdc
Capital Opportunities for Small Businesses - sbtdc
Capital Opportunities for Small Businesses - sbtdc
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C A P I T A L O P P O R T U N I T I E S F O R SMA L L B U S I N E S S E S<br />
CHAPTER 5: STATE GOVERNMENT SOURCES<br />
NC Department of Commerce<br />
Commerce Finance Center<br />
Community Development Block Grant (CDBG) Program<br />
Federal funds are made available annually through the US Department of Housing and Urban<br />
Development (HUD) to the state of North Carolina <strong>for</strong> the <strong>Small</strong> Cities Community Development Block<br />
Grant (CDBG) program. This indirect source of funds to small businesses is administered by the North<br />
Carolina Department of Commerce and is available in 98 counties. Twenty-three entitlement<br />
communities, however, receive CDBG program funds directly from HUD rather than through the North<br />
Carolina Department of Commerce. These CDBG funds can only be accessed by a local government<br />
applicant—in conjunction with a specific business— <strong>for</strong> projects expected to create new jobs.<br />
Proposed projects must include specific CDBG eligible activities that result in the creation or retention<br />
of permanent, full-time jobs, at least 60% of which will directly benefit persons determined to have<br />
earned 80% or less of the area’s median income during the most recent 12-month period.<br />
Recent legislation (July 2013) reduced the CDBG funding categories in NC from five to two. The<br />
eliminated categories were Low Income Housing, <strong>Small</strong> Business and Entrepreneurship, and General<br />
Community Revitalization (“NC Catalyst”). The remaining categories are Economic Development and<br />
Infrastructure. The NC Department of Commerce continues to administer the Economic Development<br />
funds. All CDBG funds designated <strong>for</strong> Infrastructure (defined as “limited to critical public water and<br />
wastewater projects”) have been transferred to the NC Department of Environment and Natural<br />
Resources (DENR).<br />
NC Department of Commerce, Community Assistance<br />
4318 Mail Service Center<br />
Raleigh, NC 27699-4318<br />
919.733.5297<br />
Overview: www.nccommerce.com/cd/investment-assistance<br />
Economic Development: www.nccommerce.com/communitydevelopment/investment-assistance/grantcategories/economic-development<br />
Industrial Development Fund (IDF)<br />
The Basic Industrial Development Fund (IDF) assists town, city or county governments with incentive<br />
industrial financing <strong>for</strong> those industries eligible through Article 3J in the 80 most distressed counties.<br />
As an incentive <strong>for</strong> job creation by new or expanding industry, local units of government offer<br />
assistance <strong>for</strong> improved infrastructure. The fund may not be used <strong>for</strong> acquiring land or buildings or <strong>for</strong><br />
constructing new buildings. For a grant, the amount funded depends on the number of new, full-time<br />
jobs created and cannot exceed $10,000 per job created or $500,000 per project, as determined by<br />
legislature.<br />
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