Utility Account

The Utility Account, administered under North Carolina General Statute 143B-437.01, is a grant program offered by the North Carolina Department of Commerce through its Commerce Finance Center. This fund exists as part of the state's broader efforts to support job creation in economically distressed areas. Specifically, it serves the 80 lowest-ranked counties in the state, which are designated as Tier 1 and Tier 2 counties under the state’s economic development tier system. The primary intent of the program is to provide public infrastructure support that will directly facilitate new private-sector job creation. The fund is a key component of North Carolina’s Industrial Development Fund (IDF) and plays an instrumental role in helping economically disadvantaged communities enhance their appeal to potential employers. The Utility Account provides financial assistance for the construction or improvement of critical infrastructure needed to support industrial development. Eligible infrastructure improvements include water, sewer, gas, telecommunications, transportation infrastructure, and electrical utility lines. To qualify, these improvements must either be located directly on the industrial building site or be demonstrably connected to the industrial operations taking place there. Moreover, the site must be publicly owned, ensuring that the improvements are tied to public benefit and community access. The state prioritizes projects that are reasonably expected to result in job creation and considers both the number and quality of jobs proposed. Job creation is a core requirement of the Utility Account program. Applicants must demonstrate that their projects will result in the creation of new, full-time, private-sector jobs within 24 months of the grant award. Positions must be filled by individuals working at least 35 hours per week in permanent roles, and wages must be subject to standard tax withholdings. Projects are more competitive if they offer higher-than-average wages and provide at least 50% employer-paid health insurance benefits. The company benefiting from the infrastructure must commit to maintaining existing job levels in addition to the new hires and must permit access to employment records for verification. Non-compliance may result in repayment obligations. Local governments are the primary applicants and stewards of Utility Account grants. They are responsible for project oversight, compliance, reporting, and ensuring that job creation requirements are met. This includes analyzing the financial capacity of participating businesses and establishing legally binding agreements to ensure repayment if job creation commitments are not met. The local government remains financially liable for repaying the grant in case of company default, regardless of whether funds are successfully recovered from the business. This ensures accountability and alignment with the program’s goals of sustainable economic development. The program requires a local cash match equivalent to 25% of the grant amount for counties that are not in the 25 most distressed (Tier 1) counties. In-kind contributions are not accepted. The application process is two-tiered: applicants must first submit a pre-application approximately 35 days before the next scheduled Rural Infrastructure Authority (RIA) meeting. If the pre-application is approved, the applicant may then be invited to submit a full application. Upcoming RIA meeting dates include April 17, 2025; June 19, 2025; and others on a bimonthly basis. For further information or to begin the pre-application process, applicants are advised to contact Heather C. Sains, Grant Manager at the Commerce Finance Center, via phone at 919-814-4642 or email at [email protected]. Additional program guidance and submission materials can be found in the published Utility Account Program Guidelines. Funding decisions are made during RIA meetings, and projects are expected to be implemented promptly following award announcements. The Utility Account program represents an ongoing opportunity for North Carolina's distressed communities to build essential infrastructure and stimulate private-sector employment.