Appalachian Regional Commission funds are awarded to projects that address the four goals identified by ARC in its strategic plan and that can demonstrate measurable results. ARC focuses its resources on distressed counties and distressed areas within the 13-state Appalachian Region. Because individual states may limit ARC funding to specific areas, state ARC program managers should be consulted for information on their state's ARC funding priorities.

More information on ARC match requirements

Grant Administration
ARC grants are administered either by ARC or by a federal agency selected by the grantee. The Commission administers most grants where the funds are for technical assistance, program operating costs, or equipment purchase, with no construction costs involved. ARC enters into a grant agreement with the applicant that generally extends for a twelve-month period.

No projects involving significant construction, except housing projects, may be administered directly by ARC. A federal agency receives the ARC grant and makes payments to the grantee in conformance with the federal agency's program requirements.In many cases, the federal agency also provides matching grants or loans for the ARC project.

The federal agencies ARC works with most often are the U.S. Department of Agriculture Rural Development, the U.S. Department of Commerce Economic Development Administration, the U.S. Department of Education, and the U.S. Department of Housing and Urban Development, through its Community Development Block Grant Program. In parts of central and southern Appalachia, the Tennessee Valley Authority also serves as a basic agency.

Eligible Activities
Education and Training
ARC funds projects that develop, support, or expand education and training programs. Eligible activities include teacher and administrator training; material, equipment, and computer purchases; building renovations; and start-up operational costs for new programs.

ARC-supported education projects range from early childhood and K-12 programs to post-secondary education programs that are oriented towards a specific degree or certificate. Students in these programs become ready for kindergarten, obtain their high school diplomas or GEDs, enroll in post-secondary education, or enter the workforce.

Training programs funded by ARC assist workers in upgrading job skills or learning new skills in order to retain current jobs in the face of increasing global competition, become eligible for better-paying positions, or obtain new jobs.

Housing. ARC supports projects that stimulate the construction or rehabilitation of housing for low- and moderate-income residents. ARC housing grants fund plannng, technical services, and other preliminary expenses of developing housing projects, as well as demolition and necessary site improvements, including excavation, land fills, land clearing and grading; and infrastructure improvements, such as water and sewer system construction.

Telecommunications. ARC funds a number of telecommunications activities, including strategic community planning, equipment acquisition, and hardware and software for network building. ARC funds can be used for strategic telecommunications planning activities, telecommunication service inventory and assessment activities, agregation of demand projects, community awareness information technology (IT) outreach training programs, sector-specific training programs in IT/e-commerce for small and medium-sized businesses, activities related to assisting in the development of IT business development, the acquisition of telecommunications equipment and related software, general operational and administrative expenses associated with project implementation, the installation of telecommunication infrastructure necessary to implement projects or support the development of IT incubators or "Smart Parks," and limited telephone line charge expenses associated with the implementation of projects.

Leadership Development and Civic Capacity
Eligible activities include the development and implementation of community-based strategic plans; training for citizen leaders (both adult and youth leaders), local officials, and management staff from nonprofit community organizations; organizational support for community organizations, and other activities that help build a community's capacity to mobilize resources, gain leadership experience, and strengthen community institutions and partnerships.

Business Development and Entrepreneurship
ARC makes a wide range of grants to public and private nonprofit organizations to help firms create and retain jobs in the Region. Examples of grants include

• industrial site development;
• business incubators;
• special technical assistance and training; and
• expansion of domestic and foreign markets.

ARC also capitalizes loan funds that improve access to capital for Appalachian businesses and can support other activities that foster entrepreneurship. Business development grants typically include participation of other federal agencies. In distressed areas, ARC assistance may provide up to 80 percent of the total cost of a project.