In a recent episode of Carolina Newsmakers, Don Curtis sat down with Patrick Woody, the president of the North Carolina Rural Economic Development Center (NC Rural Center), to discuss the ongoing efforts and challenges of developing rural areas in North Carolina. Woody provided valuable insights into the current state of rural counties, the impact of federal and state funding, and the Center’s strategic initiatives aimed at fostering growth and sustainability in these regions.
The Role of the NC Rural Center
The NC Rural Center, established 37 years ago, plays a crucial role in supporting North Carolina’s rural communities. The organization was created following the recommendations of a statewide jobs commission, which emphasized the need for an entity focused solely on rural economic development. As a private nonprofit, the Center is governed by a diverse board of directors, representing various sectors and regions across the state. The Center’s mission is to ensure that North Carolina’s rural areas have the resources and support necessary to thrive in an increasingly competitive economic landscape.
Woody outlined the Center’s four primary areas of focus: leadership development, engagement, advocacy, and small business capital access. These programs are designed to empower rural leaders, connect communities, and provide the necessary resources for sustainable growth.
Positive Developments and Federal Funding
Woody expressed optimism about the current state of rural development in North Carolina, largely due to the influx of federal and state funds in response to the COVID-19 pandemic. This funding has allowed the state to address long-overdue infrastructure projects, including transportation, water and sewer systems, and broadband expansion. These investments are crucial for the long-term success of rural communities, which have historically lagged behind urban areas in terms of economic growth and development.
Woody highlighted the significance of broadband expansion, noting that $3.5 billion has been allocated to ensure that every household and business in North Carolina has access to high-speed internet. This investment is particularly important for rural areas, where the lack of broadband has been a significant barrier to economic development. The NC Rural Center is closely monitoring the deployment of these funds to ensure they reach the communities that need them most.
Defining Rural, Suburban, and Urban Counties
One of the key topics discussed was the definition of rural, suburban, and urban counties in North Carolina. The NC Rural Center uses a population density-based definition, categorizing counties with fewer than 250 people per square mile as rural. According to this definition, 78 of North Carolina’s 100 counties are rural. The state also has six core urban counties with population densities greater than 750 people per square mile, and 16 counties classified as either regional city or suburban.
This classification is important for understanding the unique challenges and opportunities facing different parts of the state. Rural counties often struggle with population loss, aging infrastructure, and limited access to healthcare and education. In contrast, urban and suburban counties tend to have more robust economies and better access to resources.
Challenges and Opportunities in Rural Healthcare
Healthcare disparity is a significant concern for North Carolina’s rural communities. Woody pointed out that rural areas have lost nine hospitals over the past few decades, further exacerbating the challenges of providing adequate healthcare. The recent expansion of Medicaid in North Carolina has brought much-needed relief, providing healthcare coverage to over 500,000 working North Carolinians who were previously uninsured. This expansion is expected to have a disproportionately positive impact on rural communities, where the majority of uninsured individuals reside.
However, the healthcare challenges in rural areas extend beyond insurance coverage. There is a severe shortage of healthcare providers, particularly in primary care and specialized services. Some rural counties no longer have facilities where women can deliver babies, forcing residents to travel long distances for essential healthcare services. The NC Rural Center is working to address these workforce shortages by promoting healthcare careers to young people and existing workers in rural areas.
Supporting Small Businesses and Economic Development
Small businesses are the backbone of North Carolina’s rural economies, and the NC Rural Center has made it a priority to support these enterprises. Woody explained that job creation in rural areas typically comes from three sources: business recruitment, retention of existing businesses, and entrepreneurship. While recruitment can have a significant impact, especially with large-scale investments like those seen in Chatham, Randolph, and Lee counties, the majority of jobs in rural areas are likely to come from existing businesses and new startups.
To support small businesses, the NC Rural Center operates several capital access programs, including loan participation and capital access initiatives, aimed at reducing the risk for lenders and increasing the availability of loans for small businesses. These programs have been highly successful, with North Carolina ranking third in the nation for capital deployment under the State Small Business Credit Initiative, a federal program managed by the U.S. Treasury.
In addition to providing capital, the Center focuses on offering coaching and mentorship to small business owners, helping them navigate the challenges of running a business in a rural environment. The goal is to ensure that rural entrepreneurs have the resources and support they need to succeed.
Looking Ahead
As the NC Rural Center approaches its 40th anniversary, Woody and his team are focused on ensuring that the organization continues to meet the evolving needs of North Carolina’s rural communities. The Center is engaging in strategic planning to determine how it can deepen its impact and expand its reach in the coming years. By empowering rural leaders, advocating for effective policies, and providing critical resources to small businesses, the NC Rural Center aims to create a brighter future for North Carolina’s rural areas.
Woody’s conversation with Curtis underscores the importance of continued investment in rural communities and the need for collaborative efforts to address the unique challenges these areas face. With the right support, North Carolina’s rural counties can not only survive but thrive in the years to come.
