Rural Downtown Economic Development Grants

The Rural Downtown Economic Development Grants program is administered by the North Carolina Department of Commerce through its Rural Economic Development Division, under the authority of the Rural Infrastructure Authority. The program is designed to support economic revitalization in rural downtown districts across North Carolina, particularly in the state’s most economically distressed counties. It emphasizes strengthening downtown areas as central drivers of economic growth, community vitality, and long-term prosperity by investing in public assets and infrastructure. The primary purpose of the program is to fund projects that enhance downtown districts by improving publicly owned infrastructure, supporting public-use facilities, and encouraging mixed-use development that benefits the broader community. The program prioritizes projects that retain existing businesses, attract new customers, and stimulate economic activity within designated downtown or central business districts. Preference is given to projects located in Tier 1 and Tier 2 counties, as well as rural census tracts within Tier 3 counties, particularly those engaged with state-supported economic development initiatives such as the Main Street or Rural Planning programs. Funding may be used for a range of eligible activities that focus on publicly owned assets. These include infrastructure improvements such as streetscapes, alleys, parks, and waterfront developments that serve community-wide purposes. The program also supports renovations or additions to publicly owned buildings used for civic or community functions, such as community centers, libraries, and theaters. Additionally, mixed-use development projects on publicly owned properties are eligible if they incorporate multiple uses such as retail, residential, or institutional space. However, new construction projects and certain ineligible costs, including pre-award expenses, are excluded from funding. Applicants must be units of local government within North Carolina, specifically municipal or county governments located in eligible geographic areas. All projects must be situated within a defined downtown or central business district and must demonstrate clear public benefit and economic impact. The program requires applicants to provide detailed project descriptions, including scope, location, and anticipated outcomes such as job creation or retention. Projects must also meet compliance requirements including environmental review under state law, adherence to procurement standards, and financial accountability measures. The application process requires submission through the Rural Connect Portal and includes a comprehensive set of documentation. Applicants must provide detailed narratives describing the project area, scope of work, timeline, project team qualifications, and expected economic outcomes. Required attachments include maps, cost estimates, environmental review documentation, and a budget identifying matching funds. Projects must demonstrate measurable economic impact, particularly through job creation or retention, and must comply with limitations such as a cap on funding per job created. The program requires a minimum cash match of five percent of the grant amount, which must be sourced from local funds and cannot include other state or federal grants. In-kind contributions are not permitted. Grant awards are contingent upon completion of required reviews and approvals, including environmental compliance. Once awarded, projects must be completed within a 36-month period, and recipients are subject to ongoing monitoring, reporting, and recordkeeping requirements for several years after project completion. Applications for the current funding cycle must be submitted by April 23, 2026. Awards are determined based on project feasibility, location, economic impact, and alignment with program priorities, and final funding decisions are made at the discretion of the Rural Infrastructure Authority. Successful applicants will receive notification and enter into a formal grant agreement outlining the terms and conditions of funding and project execution.

Emphasize measurable job creation or retention outcomes; ensure all required attachments and environmental review documents are complete; align project with downtown economic impact priorities