A new program becomes available this week to help laid-off rural workers start their own small business.

The program is offered as part of a U.S. Department of Labor demonstration called Project GATE, or Growing America Through Entrepreneurship. GATE targets dislocated workers from rural counties for a variety of assistance directly related to starting and running a business.

“This program has the potential to do far more than provide a source of income for individuals who’ve lost jobs,” said Billy Ray Hall, president of the N.C. Rural Economic Development Center. “It can help us build homegrown economies in struggling communities all across the state.”

Unemployment in North Carolina’s 85 rural counties hit 12.3 percent in February. Seventeen rural counties had jobless rates of 15 percent or higher.

Rural unemployment can be attributed in large part to continuing layoffs and closings by textile, furniture and other traditional manufacturers. With other jobs scarce, self-employment may help keep rural workers in their communities. That potential is reflected in the growing numbers of dislocated workers expressing interest in creating their own job or small business, Hall said.

Project GATE will operate as a scholarship program, with up to 750 scholarships likely to be awarded in North Carolina. Selected individuals will be eligible for individual assessment of entrepreneurial skills, business and entrepreneurship courses, and focused, one-on-one business counseling.

Participants also will be introduced to a statewide network of business resource professionals. Those who complete workable business plans will be eligible to apply for microenterprise loans. The program, however, will not award grants to individuals or businesses. 

In North Carolina, Project GATE is being offered as a cooperative venture of the N.C. Department of Commerce, the N.C. Community College System – Small Business Center Network, the Employment Security Commission of North Carolina, North Carolina REAL Enterprises, local JobLink Career Centers and the Rural Center.

Locally, the Small Business Centers of eight community colleges, which serve 13 rural counties, are partnering with their local JobLink Career Centers to provide GATE services. Dislocated workers in other rural counties may participate through a “virtual site” that includes counseling by telephone and online training programs combined with training and business counseling at local community colleges.

Interested individuals should visit their local JobLink Career Center, which will help determine eligibility. Applications will be available at the JobLink office and online atwww.ncprojectgate.org. Additional information may be obtained online or by phone toll-free at 1-877-9NC-GATE.