Business Resources and Incentives
Introductions
The role of the Burke Economic Development Council (BEDC) is tailored to meet the needs of prospective companies and to facilitate expansion/growth plans for existing businesses.
BEDC maintains and distributes information on land and buildings available for development, compiles demographic data, coordinates activities with governmental and non-governmental entities and keeps abreast of State and Federal economic development programs. BEDC also offers orientation tours to prospective companies to showcase the many natural resources and facilities that create the unique quality of life found in Burke County.
Early contact with BEDC will help determine if one of the following programs can strengthen a proposed expansion project. The BEDC will be able to answer questions directly or will coordinate meetings with the appropriate officials.
SBA
The Region E Development Corporation, a non-profit corporation, formed in 1982, administers the SBA-504 program. This direct loan program offers growing and healthy small businesses partial financing which can be combined with bank financing and small owner equity participation. The 504 program can fund fixed assets and other specified fees. Working capital, inventory and operating expenses are not eligible costs for the 504 program, however many companies also have successfully used the SBA-7A program for these purposes. The Region E. Development Corporation provides information and technical assistance.
Community Development Block Grant - Economic Development Program
The North Carolina Community Development Block Grant-Economic Development (CDBG-ED) Program is one of the most widely used programs throughout Burke County. Its primary purpose is to lend necessary financial support to a project where jobs for low and moderate income persons will be created or retained. The financial support may come in the form of a direct loan to a company at a workable interest rate and term or the program may pay for the cost of a public infrastructure improvement.
This program is available in all of Burke County except in the corporate limits of Morganton. Due to its size, Morganton is no longer eligible to participate but has an economic development fund which is very similar to the state operated program.
Industrial Revenue Bonds
Industrial Revenue Bonds [IRB] are a form of long-term, financing for fixed assets. The income on the debt obligation of an IRB is exempt from income taxes. The Burke County Industrial Facilities and Pollution Control Financing Authority issue bonds with approval of the State of North Carolina.
The Authority was created in 1976 and has a history of numerous successful projects. Since IRB’s cannot be used for debt refinancing, it is absolutely critical that an Inducement Agreement (also called a Memorandum of Agreement or Letter of Intent) be signed with the Burke Authority before any commitment of funds to the project is made. IRB’s can only be used for manufacturing projects.
The focus of the IRB program is the creation of jobs that will raise the average wage level and reduce unemployment. Therefore, a company must pay a higher wage than the average manufacturing wage in the County.
IRB’s can be used to purchase land, new or existing buildings and equipment, and to pay certain related fees and costs. Early contact with the BPED is critical because eligibility can be affected.
Roads
The State of North Carolina operates an Industrial Access Roads Program assisting with road construction to industrial locations. The key factor for such locations is the number of jobs created versus the cost of the road. The NC Department of Transportation has responded to industrial needs for many years and continues to operate this program focused on new and expanding business.
Industrial Training
North Carolina has a nationally acclaimed community college system offering free customized skills training to new and expanding industries. The program, the first of its kind, is widely recognized as a national model of cooperation among business, industry, education and government. Western Piedmont Community College has worked with numerous new and expanding industries in skills training. Since each training situation is unique, the program is flexible to meet the specific company needs.
Job Screening
The Morganton office of the North Carolina Employment Security Commission provides job placement services on a non-fee basis. Companies provide the ESC with a list of job openings and the requirements for each position. The agency then matches its applicants with openings and refers those qualified to the company. The ESC can arrange appointments for interviews, send resumes or assist with other methods of referral preferred by individual companies.
North Carolina is the only state in the nation to provide employers with a 100 day probationary period for new employees hired through the Employment Security Commission. This helps keep unemployment insurance costs low.
Tax Credits
The Article 3J Tax Credits offers a Jobs Creation Tax Credit, Business Property Tax Credit and a Real Property Tax Credit. These credits can be taken to offset up to 50% of the tax payer’s state income and/or franchise tax liability, and unused credit may be carried forward for up to five years. In January 2009, Burke County was designated as a Tier 1County.