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Economic Catalyst Cycle

Golden LEAF will consider applications to assist eligible state, regional and local economic development entities with grants to support permissible activities that lead to job creation in tobacco-dependent or economically distressed areas. Applicants are strongly encouraged to contact Golden LEAF staff to discuss the potential projects and conditions that may be applicable prior to submitting an application.

• Eligible applicants are governmental entities and 501 (c)(3) non-profit organizations.


• Project requests in this category must be for job creation. The projects must be AT RISK without Golden LEAF participation. Projects are determined to be "At Risk" based on a number of factors including: evidence of urgency for assistance necessary to facilitate job creation, demonstrable need, the county's ability to pay, competitive sites in other states being considered, and others. The most competitive applicants will provide information showing that without Golden LEAF participation a funding gap exists that would significantly impair the applicant's ability to attract jobs tied to the project.


• Grants are available for projects that include the creation of full-time equivalent positions (FTE) in NC. Full-time equivalent is defined as employment that provides 1,600 hours or more per year of work. In addition, companies must provide at least 50% of the cost of employee-only health insurance.


• Project support will be determined by considering a number of factors including: the county's tier designation status as published by the NC Department of Commerce, the number of jobs created, and the quality of jobs. The Golden LEAF Board of Directors may consider other factors, including:
  
  
  • Economic impact of project, including costs and benefits to the state.
  
  
  • Strategic importance of the project to the state, region, or locality.
  
  
  • Quality of industry and project.
  
  
  • Environmental impact of project.
  
  
  • Identified needs that are directly related to job creation from the project.
  
  
  • Competition for the project with a location outside North Carolina.
  
  
  • Support will also help avoid imminent job losses.
  
  


• Economically distressed or tobacco-dependent communities that are located in high wealth counties may make the case for support due to project activity being located in a blighted area or because of negative trends in employment, average earned income, poverty, or similar factors. In these cases, Golden LEAF will expect the County to provide significant project support. Golden LEAF funds will not be available to satisfy shortfalls resulting from County policies limiting County support for a project.


• Proposals for Economic Catalyst Grants must be coordinated with the N.C. Department of Commerce and the appropriate regional economic development partnership.


• Applicants must identify specific charitable, educational, or scientific uses for Golden LEAF funds, as defined by Section 501 (c)(3) of the Internal Revenue Code, that are directly related to the project. Golden LEAF may require the applicant to demonstrate that the business is committed to create the promised jobs and/or obligated to repay a pro rata amount of the grant if there are job creation shortfalls. Examples of eligible projects include:
  
  
  • Assistance with the delivery of training programs offered by eligible entities, such as a community college, and made available to the public, for the development of transferable skills required by industries or companies that will increase the number of jobs available to the public. In projects such as these, prior to release of funds, Golden LEAF will typically require evidence of an inducement agreement demonstrating that the company is obligated to meet the job creation projections and wage standards, and providing appropriate consequences should the company fail to satisfy its obligations. In addition, Golden LEAF may release some or all of the funds awarded on a pro rata basis as training is provided.
  
  
  • Assistance to a governmental unit to help fund pre-development costs associated with public infrastructure improvements, such as water and sewer, which would result in job creation. In projects such as these, prior to release of funds, Golden LEAF will typically require evidence of an inducement agreement demonstrating that the company is obligated to meet the job creation projections and wage standards, and providing appropriate consequences should the company fail to satisfy its obligations.
  
  
  • Renovation or improvement of an industrial facility owned by an eligible entity, which will be sold or leased at fair market value to a business locating or remaining in a high-priority area of North Carolina, or for purchase of equipment or other assets owned by eligible entities and leased or sold to for-profit entities at fair market value. Priority will be given only when evidence shows that practical lease or financing options are not available from traditional sources of capital. In projects such as these, Golden LEAF will typically require the grantee to enter a clawback agreement with the business requiring the business to repay a pro rata amount of the grant award if the company fails to create the projected jobs. Where the project involves the sale or lease of equipment to a company, Golden LEAF may require that the sale or lease agreement restrict the company from moving the equipment out of North Carolina.
  
  


• Applications must be postmarked or placed with a commercial delivery service by the application deadline. If delivered by another means, the application must be received in the Golden LEAF offices by the deadline. Faxed or e-mailed applications are not accepted. Applicants may request out of cycle consideration for urgent projects.

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