Relocated from California to the small town of Washington, North Carolina, Pacific Seacraft was saved from bankruptcy by a father and son from NC. Stephen Brodie bought the 30-year-old company at an auction in California for only $75,000, hauled the boat molds across the country, and set out to revamp the company along the Pamlico River.
To help boost the new industry in the area, the North Carolina Rural Ventures Fund chipped in a loan to help fund the start up. The funds from Rural Ventures Fund helped the Stephen and his father Reid physically move the company across the country, and finish some of the company's stock of boat molds. Pacific Seacraft yachts sell for anywhere between 250- to 750-thousand dollars.
Along with the company assets, the Brodies were able to entice a hand-picked group of long time, knowledgeable employees to relocate to North Carolina, including the overall production manager, mold shop manager, plumbing, mechanical, and electrical managers, touch-up and detail supervisor, several master carpenters and skilled trades-people. These people represent hundreds of years of experience building Pacific Seacraft boats and ensure that the quality of the company and the products it makes is preserved.
A huge reason why the Brodies were able to bring the new industry to the area was due to an investment of $350,000 by the N.C. Rural Ecnomonc Development Center's Rural Ventures Fund, which helped pay for building and startup costs.
The fund was created in 2007 with $6.8 million in available capital, including investments by the N.C. General Assembly, Golden LEAF and the Rural Center. Over the past 2 years, the state has invested more than 2 million dollars in local businesses including:
Pacific Seacraft: $350,000
Roanoke Manufacturing: $350,000
Moulding Solutions: $350,000
VX Aerospace: $350,000
Brisco Apparel: $350,000
Carolina Wood Pellets: $350,000
The Sewing Source: $350,000
The Pound Cake Company: $100,000
The Rural Center created the fund as part of a larger effort to boost entrepreneurship in North Carolina. The Rural Center and its partners, including the University of North Carolina System, provide companies with targeted technical assistance to manage their long-term growth. For a business to be eligible to receive funding, it must demonstrate growth potential and prove that the owner would not be able to receive financing from traditional sources. Companies that receive investments are typically classified as higher risk and in need of capital in the range of $50,000 to $350,000. The fund also only invests in existing businesses, not start-ups.
The N.C. Rural Economic Development Center is a private, nonprofit organization whose mission is to develop sound economic strategies that improve the quality of life in rural North Carolina, with a special focus on individuals with low to moderate incomes and communities with limited resources. The center operates a multifaceted program that includes conducting research into rural issues; testing promising rural development strategies; advocating for policy and program innovations; and building the productive capacity of rural leaders, entrepreneurs and community organizations.
Watch the NC Now Feature
An interview with Stephen Brodie