The Western North Carolina Small Business Initiative (WNCSBI) has distributed two rounds of funding, awarding grants of up to $50,000 (up to $25,000 for businesses with revenues of $1 million or less) to assist small businesses across Western North Carolina that have sustained physical or economic damage from Hurricane Helene. These funds, available to businesses in 30 eligible counties and the Qualla Boundary, were designed to help with recovery costs, staff retention, and operation restoration. 

“The priority is to ensure impacted small businesses have cash to help pay for recovery costs and retain key staff so they can reopen their doors as quickly as possible,” said Donna Gambrell, president and CEO of Appalachian Community Capital (ACC). “In the long-term, we aim to connect them with regional providers of financial and non-financial resources to ensure that they not only survive Hurricane Helene, but that they thrive in a more resilient fashion going forward.” 

Appalachian Community Capital (ACC) is a nonprofit organization that is instrumental in managing and overseeing the grants. A key partner has been ACC member Community Reinvestment Fund USA, which has provided program management throughout the grant application process. In addition, in partnership with local Community Development Financial Institutions (CDFIs), ACC has helped facilitate the distribution of these funds to businesses in need. “Rebounding from a natural disaster doesn't happen overnight,” said Gambrell. “Relief, recovery and rebuilding take time.” 

These efforts also take money. As of February 25, after the closure of the second application round, the WNCSBI had received 7,367 applications, with $27,575,000 in grants either disbursed or in the final stages of approval. "The responses from small business owners in Western North Carolina seeking assistance have been tremendous,” said Gambrell. “While we have seen grant applications from a variety of enterprises, our focus has been on those most negatively impacted by the storm.” 

Jane Lawson, owner of Laughing Waters Retreat Center in the Hickory Nut George in Gerton,  received a $25,000 grant to help her business recover from the hurricane. The storm caused landslides that prevented entrance to the lodge and the property had dozens of downed trees, including some in dangerous positions that needed to be cleared. “The creek was filled with debris from upstream, including the materials making up the deck that washed away from our cottage above the lodge,” said Lawson.

Laughing Waters also lost two bridges that not only impacted the connectivity of the property but also eliminated public access to the popular Wildcat Rock Trail, part of the greater Hickory Nut Gorge State Trail. “The trail entrance runs through our orchard on conservation easement land,” said Lawson. “The easement agreement is with Conserving Carolina, who maintain the entire trail. Our restoration efforts on the creek and in the orchard will positively impact not only Laughing Waters but also the ability for hikers to access this public trail that connects with miles and miles of additional trails throughout the gorge.”

Supporting small businesses and facilitating their rehabilitation has ripple effects: Laughing Waters has provided space for the communities of the Upper Hickory Nut Gorge, namely Gerton and Bat Cave, for events and meetings while they rebuild their destroyed community center. “The grant is benefitting the entire upper Hickory Nut Gorge community and beyond,” said Lawson.

WNCSBI funding allowed Trackside Studios, a creative space for more than 60 artists located in Asheville’s River Arts District, to recover quickly from extensive flooding and reopen at the beginning of December in time for holiday shopping season. “This grant made reopening possible,” said Trackside Studios co-owner Julie Ann Bell. “It allowed 60 artists to return to their creative home.”

Again, the ripple effect was felt beyond the business that received funding. “In spaces where a prior artist was not returning, we committed to filling spaces with River Arts District artists who had been displaced from other studio buildings,” said Bell. “We further opened our classroom walls as temporary spaces for an additional 10 artists who had been displaced. They each have approximately 30 square feet of space, rent free, until at least this spring when there is hopefully more information about what other buildings may be rebuilt or re-opened.”

Gambrell outlined several features that made the initiative work, including a rapid philanthropic response from Dogwood Health Trust, which contributed $30 million to WNCSBI. WNCSBI has also received additional funding of $20 million from the State of North Carolina as well as $5 million from the Duke Endowment. Gambrell said the initiative was supported by “a network of  high-performing ACC member CDFIs located in and/or serving Western North Carolina, such as Mountain BizWorks, Carolina Small Business Development Fund and their Western Women’s Business Center, Carolina Community Impact, Partner Community Capital, and numerous other public- and private-sector partners that have provided outreach services, knowledge and expertise, and other support.”  

WNCSBI is not just about immediate financial aid, but also about building a more resilient and thriving business community in the region for the long term. Grant recipients Sarah and Keith Calloway own the gourmet shop and deli Vaste Rivière Provisions and the fly fishing outfitter Bugs and Brews, both located in Hot Springs. They said that grant support is especially crucial to recovery in small, tourism-reliant communities like theirs. “The support through a grant versus a loan is incredibly important as an entrepreneur of a small business in a small town,” Sarah said. “We are in a town of about 500 and tourism is very seasonal, so it is quite challenging to have a contingency fund large enough for a 100% disaster. Similarly, taking on more debt does not set us up to continue being part of the community either. Having the opportunity to receive this grant has given us and our families hope for rebuilding.”