What is the Appalachian Regional Commission?
The Appalachian Regional Commission (ARC) is a partnership between the federal government and the governors of 13 states (Alabama, Georgia, Kentucky, Maryland, Mississippi, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia). Federal law (the Appalachian Regional Development Act) established the commission to supplement state and local government efforts enhancing the economic development potential of the Appalachian region. The law designates 420 counties 
(click here to view a map of the 29 ARC Counties in NC) eligible for assistance, and the Congress annually appropriates funds ($73 million in 2009) to help carry out development strategies adopted for each state and for the 13-state region. Unlike other federal grant programs, the states and the federal government jointly share in making all funding and policy decisions. The 13 state governments also support half the costs for administering the program in Washington and provide the staff to manage the program within each state.
How Much Money Is Available?
In 2009, there is $2.8 million available for North Carolina projects and $300,000 is the maximum grant size. A portion ($250,000) of the states funds are restricted for use in ARC regional initiatives in telecommunications or asset-based economic development. ARC grant dollars must be matched at least dollar for dollar, except in Davie, Forsyth, Henderson and Polk counties (where required match is higher).
How Are Projects Selected and Approved?
Projects are selected by the state and are submitted against the state’s allotment of the funds appropriated for the Appalachian Commission. Once selected, the project sponsor is invited to submit an application. The state program manager conducts the review at the state level, then the small (50-person) commission staff reviews the material to ensure it meets legal and policy requirements, and the grant is approved. To view the 2009 Request for Proposals click here.
What Types of Activities Are Eligible?
The Appalachian program was established to supplement assistance from other federal grant programs (to help defray costs the region could not finance) and to test concepts especially suited for this portion of the nation. North Carolina usually spends about half its allotted funds aiding water and sewer improvements which will create or retain jobs (supplementing other federal grant programs) and the other half assisting demonstration projects. Grants are not available for individuals or individual businesses.
For additional sources of funding and information on water and sewer infrastructure, see the University of North Carolina at Chapel Hill's Environmental Finance Center's NC Clean Water Funders brochure.
Where to Find Help?
The state’s ARC program manager as well as six multicounty development districts located in the Appalachian counties provide technical assistance in determining proposal eligibility and in preparing both preapplications and applications. Contact information follows.