Appalachian Regional Commission

The Appalachian Regional Commission (ARC) is a unique federal-state partnership dedicated to the economic development of the Appalachian region. Established in 1965, its mission is to innovate, partner, and invest in strategies that build community capacity and strengthen economic growth in Appalachia. Unlike a traditional venture capital firm, ARC does not provide equity investments in private companies. Instead, it functions as a grant-making agency, providing funding and technical assistance to state and local government agencies, local development districts, and non-profit organizations for projects that align with its strategic goals.

ARC's funding supports a diverse range of initiatives crucial for regional development, including infrastructure improvements (such as broadband expansion and water/sewer systems), workforce development and education programs, healthcare access, and natural resource management. The Commission operates across 423 counties in 13 states, focusing particularly on areas experiencing economic distress. Its approach often involves co-funding projects, leveraging federal, state, local, and private sector investments to maximize impact and foster sustainable growth within the region.

Typical grant sizes from ARC vary significantly depending on the scope and nature of the project. For instance, in fiscal year 2023, the ARC announced $38.9 million in grants for 40 projects, demonstrating an average grant size of nearly $972,500. Individual project awards can range from hundreds of thousands to several million dollars for large-scale infrastructure or multi-county initiatives. These grants are designed to create jobs, improve skills, enhance quality of life, and attract further investment into Appalachian communities, rather than generating a financial return for the Commission itself.