The Rural Downtown Economic Development Grant, administered by the Rural Economic Development Division of North Carolina, aims to support downtown revitalization and economic development initiatives. The grant is authorized under N.C.G.S. 143B-472.127 and is awarded by the Rural Infrastructure Authority. It prioritizes projects in the 80 most distressed counties in the state and encourages participation from local government units collaborating with the NC Main Street & Rural Planning Center.

The primary purpose of this grant is to enhance economic prosperity by leveraging downtown districts as assets for local growth. The program supports publicly owned improvements, including infrastructure projects that retain businesses and attract customers, as well as publicly owned building enhancements that serve community-wide needs. Eligible projects must be located in downtown or central business districts within Tier 1 and Tier 2 counties or rural census tracts within Tier 3 counties. Rural census tracts are defined as areas with a population density of fewer than 500 people per square mile, based on the most recent federal census.

Funding for each project is determined based on its location, anticipated economic impact, and community-wide use, as assessed by the Rural Infrastructure Authority. The grant offers a maximum of $850,000 per recipient, with a limit of $12,500 per projected job created or retained. There is no minimum grant amount, though feasibility must be considered when applying. Administrative costs are capped at 5% of the awarded grant, and costs incurred before the award are not eligible for reimbursement. A 5% cash match is required, sourced from local resources rather than other state or federal grant funds.

The application process involves submitting a full proposal through the North Carolina Department of Commerce’s Rural Connect Portal by April 28, 2025. Applicants must define the project area, including maps and documentation of any historic or special designation properties. Additionally, they must provide a detailed project work plan, outline anticipated economic impacts such as job creation and infrastructure improvements, and demonstrate the project’s sustainability beyond the grant period. Required documents include a local resolution for the cash match, environmental review forms, cost estimates, and other supporting evidence.

The grant evaluation criteria prioritize projects in Tier 1 and Tier 2 counties, particularly those engaged with the NC Main Street & Rural Planning Center in strategic economic development planning, community resiliency programs, or outdoor recreation initiatives. Eligible activities include infrastructure improvements such as streetscapes and public spaces, renovations to publicly owned buildings for community use, and mixed-use developments in downtown areas. New construction projects are not eligible under this program.

Grant recipients must comply with various administrative and reporting requirements, including financial oversight, adherence to labor standards, and monitoring by the Rural Economic Development Division. Funds must be used according to state regulations, and local governments are responsible for managing project implementation. Procurement policies must meet state guidelines, ensuring competitive bidding and prioritization of small, minority-owned, and veteran-owned businesses. Projects must be completed within 36 months of the award, and records must be maintained for five years after the grant closes.