$40M Federal Funding Announced for Western NC Commercial Revitalization

North Carolina Unveils $40 Million Initiative for Western Region’s Commercial Revival

In a bold step toward economic recovery, North Carolina’s Department of Commerce’s Division of Community Revitalization (DCR) has launched a Notice of Funding Opportunity (NOFO), allocating $40 million in federal funds to rejuvenate commercial areas in the western part of the state afflicted by Hurricane Helene.

The Renew NC Commercial District Revitalization (CDR) Program is inviting local governments and nonprofits to apply for this financial aid. This initiative is the third disaster recovery effort by the DCR, funded through a Community Development Block Grant Disaster Recovery (CDBG-DR) from the U.S. Department of Housing and Urban Development (HUD).

Governor Josh Stein emphasized the program’s impact, 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 will focus on HUD and State-designated Most Impacted and Distressed (MID) regions, covering counties such as Alexander, Buncombe, Haywood, and many others. Interested parties can learn more about the application process by visiting the commercerecovery.nc.gov website.

Awards will range from $500,000 to $10 million per project, with eligible activities including:

Acquiring, demolishing, preparing, or rehabilitating commercial structures by local governments or nonprofit organizations.

Providing assistance for small business enhancements and physical improvements.

Improving facades of private or public structures within commercial zones.

Lee Lilley, Secretary of the North Carolina Department of Commerce, stated, “Small businesses and downtowns are the heart of western NC communities. Renew NC’s CDR program will help restore these vital areas and ensure they are better prepared to weather future storms.”

All projects must align with Hurricane Helene recovery goals and adhere to HUD requirements. Applications open on April 6, 2026, at noon and close on August 4, 2026, at 5 PM. Detailed NOFO information, eligibility criteria, and application materials can be accessed on the official website.

Applicants are encouraged to complete an online prescreening to evaluate project readiness. Deputy Secretary for Community Revitalization Stephanie McGarrah commented, “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.”

Prescreening tools are available on the Renew NC Grant Portal. Further guidance and video tutorials, including a step-by-step walk-through of the prescreening process, can be found online.

This initial funding round represents $40 million of the $111 million CDBG-DR allocation for the CDR program, with more funding to be announced in future rounds. For additional details on the Renew NC Commercial District Revitalization Program, visit commercerecovery.nc.gov or reach out via email at dcr.grants@commerce.nc.gov.