The Joint Committee on Economic Development and Tourism met this afternoon to hear a presentation from the Appalachian Regional Commission (ARC).
The ARC is a competitive federal grant program. The grant can be applied for by non-profit organizations, governments, and colleges/universities. For-profit businesses cannot apply for it. ARC will not fund fairs, festivals, murals, sporting/athletic centers, ski lifts, or skate parks. They will fund museums if there is evidence that the museums will lead to economic development.
To receive funding, the applicant must provide proof of concept through a feasibility study, comprehensive plan, or business plan. Applicant must show how the project will be sustained after ARC funding ends.
ARC will fund trail planning and design, regional marketing, installation of trailheads, signage, and parking areas connected to trails, trail enhancement, and construction of new trails. The grant will also fund non-profits operating on revolving loan funds, streetscape improvements, and business development programs in downtown areas.
While ARC offers four different program areas, POWER and RISE are the two that relate to tourism with an economic development focus. POWER is an economic and community development grant for communities affected by the downturn in the coal industry. It has been around for about 9 years. It awards up to $2 million. ARISE provides funds for large-scale multi-state economic development projects. It awards up to $10 million. Both programs require matching funds.
Marching funds can come from local, state, or federal sources. ARC prefers to be the last funder. ARC has a designation for matching rates required based on counties economic strength. In the designation of distressed counties, the matching rate is 20 percent of the project cost. For at-risk counties, the matching rate is 30 percent. For transitional, the rate is 50 percent. For competition, the rate is 70 percent. In federal FY25, West Virginia has 15 distressed counties, 13 at-risk counties, 26 transitional counties, and one competitive county – Jefferson. ARC gives preference to distressed counties.
There are federal requirements for applying for an ARC grant. Applicants must be registered and stay registered in SAM.gov throughout the project life. A professional preliminary engineering report is required for construction projects. Matching funds must be secured. The project must have completed an environmental impact review, determine if Davis Bacon Wage requirements and standards must be met, and meet the requirements of Build America Buy America.
