$40M Federal Funding Announced for Western NC Commercial Revitalization

North Carolina Unveils $40 Million Initiative to Revitalize Western Regions Affected by Hurricane Helene

The North Carolina Department of Commerce has launched a significant funding initiative aimed at revitalizing commercial districts in western North Carolina, which were heavily impacted by Hurricane Helene. This initiative seeks to inject new life into these areas, offering economic support to local businesses and communities.

The Department’s Division of Community Revitalization (DCR) announced a Notice of Funding Opportunity (NOFO), releasing $40 million in federal funds under the Renew NC Commercial District Revitalization (CDR) Program. The program is funded through the Community Development Block Grant Disaster Recovery (CDBG-DR) awarded by the U.S. Department of Housing and Urban Development (HUD).

The CDR Program is designed to aid local governments and nonprofit organizations in rebuilding and enhancing affected commercial districts. Governor Josh Stein emphasized the importance of this initiative, stating, “The Commercial District Revitalization program is a critical investment in western North Carolina’s economic recovery. By supporting business districts, we’re supporting local businesses, stabilizing jobs, and strengthening communities in western North Carolina.”

This program targets HUD and state-designated Most Impacted and Distressed (MID) areas, including counties such as Buncombe, Haywood, and Mecklenburg (ZIP code 28214 only), among others. For a detailed list, interested parties can visit the program’s website.

Applications will be assessed based on several criteria, including the applicant’s capacity, community needs, the soundness of development approaches, and projected outcomes. Each project will be scored competitively, with funding amounts ranging from $500,000 to $10 million.

Eligible activities under the program include various forms of property development and improvements, such as:

Acquisition, demolition, site preparation, or rehabilitation of commercial buildings by local governments or nonprofits;

Rehabilitation and physical improvements for small businesses;

Facade enhancements in commercial areas.

The application process opens on April 6, 2026, at noon ET and will close on August 4, 2026, at 5 PM ET. Interested applicants are encouraged to engage in a pre-application screening to evaluate project readiness, which can be done through the Renew NC Grant Portal.

Deputy Secretary for Community Revitalization Stephanie McGarrah noted, “Prescreening gives communities and nonprofits an opportunity to strengthen their projects before submitting a full application. It helps applicants determine whether proposed CDBG-DR projects align with federal requirements, meet a national objective, and demonstrate financial feasibility.”

The current funding round represents a portion of a larger $111 million allocation for the CDR program, with more opportunities expected in future rounds.

For further details about the CDR Program or to access additional resources, visit commercerecovery.nc.gov or contact the program via email at dcr.grants@commerce.nc.gov.