In 2025, the North Carolina Department of Commerce, in collaboration with its Rural Economic Development Division and the state’s Rural Infrastructure Authority, allocated $136.3 million in grants to rural communities across North Carolina. These grants are intended to revitalize housing, enhance industrial infrastructure, upfit older buildings to attract businesses, and advance downtown district projects. Governor Josh Stein emphasized the importance of such investments, citing the grants as a contributing factor to the state’s successful year in job recruitment and economic development. The Rural Economic Development Division, led by Commerce Secretary Lee Lilley and Assistant Secretary Reginald Speight, supports communities in the state’s Tier 1 and Tier 2 counties, as well as rural census tracts in Tier 3 counties. According to Lilley, the department offers a variety of grant opportunities to aid local leaders in preparing their communities for economic development success.
The Appalachian Regional Commission (ARC)
The ARC, a partnership among 13 states and the federal government, focuses on building community capacity in 31 western North Carolina counties. In 2025, the ARC awarded 37 grants totaling $33.5 million, aiming to support Appalachian businesses, workforce development, infrastructure, regional culture, tourism, and community leadership.
The Southeast Crescent Regional Commission (SCRC)
The SCRC, which collaborates with the federal government and seven states, works to strengthen 69 North Carolina counties. In 2025, the SCRC provided 10 grants worth over $4 million, targeting infrastructure, health services, entrepreneurship, business development, housing expansion, and environmental conservation.
Community Development Block Grant (CDBG) Program
The CDBG Program awards grants to local governments to support low- to moderate-income residents. In 2025, the program allocated $14.4 million for infrastructure, $222,375 for economic development, and $40.5 million for housing under the CDBG-NR initiative, funded by the U.S. Department of Housing and Urban Development (HUD).
Industrial Development Fund – Utility Account
This fund provides infrastructure grants to Tier 1 and Tier 2 counties, focusing on economically distressed areas. In 2025, nearly 60% of the $8.5 million awarded supported water, sewer, access, natural gas, and rail projects, with a significant portion directed to Tier 1 counties.
North Carolina Main Street and Rural Planning Center
The Center provides economic consulting and technical expertise while managing the state’s Main Street program for downtown districts. In 2025, strategic plans for 29 rural communities were developed, and the Center awarded $8,680,612 in downtown development grants.
Rural Engagement & Investment Program (RE&I)
The RE&I program offers grants and assistance for economic development initiatives, including Rural Reuse grants aimed at refurbishing buildings. In 2025, the program granted $8.38 million, creating 1,475 jobs, with 62% of projects related to manufacturing.
Small Business Infrastructure Grant Program (SmBIZ)
The SmBIZ program supports western North Carolina’s recovery from Hurricane Helene by rebuilding small business infrastructure. In its inaugural year, 2025, the program awarded $18.1 million from an available $55 million pool.
North Carolina Outdoor Economy Office
This office focuses on expanding the state’s outdoor recreation economy, serving as a hub for business and governmental leaders involved in this sector.
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