House Bill 283 would rename the existing One North Carolina Small Business Account as the Small Business Research and Technology Account and create a new Small Business Investment Grant Account within the One North Carolina Fund. The bill keeps the One North Carolina Fund as a special revenue fund in the Department of Commerce and expands the fund’s authorized uses to include competitive grants for eligible small businesses that are establishing a new facility or expanding an existing one in North Carolina.
Under the new Small Business Investment Grant Program, the Department of Commerce would administer grants and prioritize projects expected to produce the greatest net economic benefit for the state and region. Eligible businesses would generally have 250 or fewer employees or less than $5 million in annual gross revenue, must invest between $10 million and $30 million in private funds, may hire no more than 250 new employees, and must pay wages averaging at least 110% of the county average. The bill caps grants at $500,000 per year, $2.5 million total per recipient, and no more than five years of distributions. It also preserves the existing SBIR/STTR incentive and matching-funds programs under the renamed research and technology account.
The bill would amend state law in Chapter 143B to add a new account and new grant authority, while also revising references to the existing small business account throughout the statutes. It would allow up to $3 million from the One North Carolina Fund for the research and technology account and up to $10 million for the new investment grant account, with annual Governor’s Letter commitments capped at $17 million overall. The bill also retains a $3 million reservation for certain development tier three local government agreements, and it requires annual reporting by the Department of Commerce on use of the research and technology account funds.
The general sentiment reflected by the bill’s structure is pro-business and pro-economic development, with an emphasis on attracting private investment, facility expansion, and higher-wage job creation. No committee transcript or vote record is provided, so there is no direct evidence of support or opposition in discussion. Based on the text alone, the bill appears designed to strengthen state incentives for small business growth while targeting public dollars toward projects with measurable economic returns.
Potential points of contention are likely to center on the size and targeting of the grants, the use of state funds for private business expansion, and whether the eligibility thresholds are too restrictive or too generous. Critics could question the requirement for substantial private investment and the relatively high wage threshold, while supporters may argue these conditions ensure the program funds only high-impact projects. The bill also may raise questions about how the Department of Commerce will evaluate "net economic benefit" and administer competitive awards fairly across regions.
HB283 would amend North Carolina’s economic development statutes in Chapter 143B by renaming the existing One North Carolina Small Business Account to the Small Business Research and Technology Account and creating a new Small Business Investment Grant Account within the One North Carolina Fund. It would authorize the Department of Commerce to award competitive grants to qualifying small businesses for new or expanded facilities, while preserving the SBIR/STTR incentive and matching-funds programs. The bill also changes funding allocations, caps annual commitments, and requires continued reporting on the use of the research and technology funds, thereby expanding the state’s small-business incentive framework and directing additional public resources toward business recruitment and expansion.
No committee transcripts or recorded votes are available, so there is no documented debate or formal indication of support or opposition. The bill’s text suggests a generally favorable, pro-growth sentiment focused on economic development, small business expansion, and job creation. Because it creates a new grant program and increases the state’s role in financing business investment, it would likely attract support from economic development advocates and business interests, while also inviting scrutiny from those concerned about public subsidies and program design.
The main likely points of contention are the scope and cost of the new grant program, the eligibility standards, and the state’s role in subsidizing private investment. Supporters would likely emphasize the program’s focus on high-wage jobs, substantial private capital investment, and regional economic benefit, while critics may argue that the thresholds favor a narrow set of businesses and could concentrate benefits in larger small businesses rather than the smallest firms. Another possible concern is administrative discretion: the Department of Commerce would have broad authority to rank projects by expected economic benefit, which could raise questions about transparency, fairness, and geographic distribution of awards.