Industrial Development Fund - Utility Account

The Industrial Development Fund Utility Account is a state-funded grant program administered by the North Carolina Department of Commerce under statutory authority to support economic development in distressed regions of the state. The program is specifically designed to assist units of local government located in the 80 most economically distressed counties by providing funding for public infrastructure projects that directly enable private sector job creation. By targeting these communities, the program aims to reduce economic disparities and stimulate long-term industrial growth through strategic infrastructure investment. The primary purpose of the Utility Account is to fund infrastructure improvements that are necessary to attract new industrial businesses or support the expansion of existing ones. Eligible uses of funds include the construction or enhancement of publicly owned infrastructure such as water systems, sewer systems, gas lines, telecommunications infrastructure, transportation infrastructure, and electrical utility lines. To qualify, the infrastructure must either be located on the industrial site or be directly related to the operations of the specific industrial activity. Additionally, the project site must be publicly owned, and there must be a reasonable expectation that the investment will result in measurable job creation outcomes. The program includes detailed job creation requirements that serve as a central component of funding eligibility and compliance. Applicants must demonstrate that the proposed infrastructure improvements will lead to the creation of new full-time private sector jobs within 24 months of the grant award. These positions must meet specific criteria, including a minimum of 35 hours per week and classification as permanent employees subject to wage withholding. Part-time positions, contract roles, and full-time equivalents are not considered eligible. Companies benefiting from the infrastructure must also maintain their baseline employment levels in North Carolina while achieving the new job commitments and must provide access to employment records for verification purposes. Eligibility for the Utility Account is limited to units of local government, defined as municipal or county governments within North Carolina that are located in designated distressed counties. These local governments are responsible for managing all aspects of the project, including application submission, contracting, oversight, reporting, and compliance with program requirements. They must also assess the financial and organizational capacity of participating companies to ensure that job creation commitments can be met. In cases where job targets are not achieved, the local government is responsible for repaying a proportional share of the grant funds, regardless of whether repayment is recovered from the benefiting company. The application process follows a structured two-step model that includes a required pre-application and a competitive full application phase. Pre-applications must be submitted approximately 30 days prior to the scheduled Rural Infrastructure Authority meeting at which the project will be considered. Following submission, applicants participate in a mandatory due diligence process. Only those pre-applications that are approved are invited to submit a full application for funding consideration. The Rural Infrastructure Authority meets on a recurring schedule, generally every other month, and application timelines are aligned with these meeting dates. The program includes a matching requirement for certain applicants. Projects located outside the 25 most distressed counties must provide a cash match equal to at least 25 percent of the grant amount, while in-kind contributions are not permitted. In addition, the program includes repayment provisions requiring local governments to repay funds if job creation goals are not met. These provisions ensure accountability and alignment between public investment and measurable economic outcomes. For additional information, applicants may contact the Grant Manager at the North Carolina Department of Commerce via email or phone to request pre-application materials or guidance. The program operates on a recurring basis aligned with the Rural Infrastructure Authority meeting schedule, providing ongoing opportunities for eligible local governments to apply. The Utility Account represents a targeted economic development tool that leverages infrastructure investment to drive private sector job creation and long-term growth in North Carolina’s most economically distressed communities.

Prioritize projects with strong job creation projections higher wages and employer-paid health benefits; ensure infrastructure is directly tied to industrial activity and publicly owned