After years of the Municipal Association of SC supporting local economic development initiatives through the Hometown Economic Development Grant program, commonly known as HEDG, a new and expanded grant program is taking its place — one updated to reflect the continuously evolving needs and ambitions of communities across the state. The Association is now introducing the IMPACT Fund, an acronym for “Innovative Municipal Projects for Advancing Change and Transformation.”
This newly structured program aims to empower municipalities with greater flexibility, increased funding opportunities and a renewed focus on innovation and problem-solving. The IMPACT Fund will now offer two distinct grant tracks tailored to different kinds of municipal needs.
Big Idea Grant
The Big Idea Grant will be the flagship offering of the new program. Awarding two grants of up to $100,000 each, this grant is designed for municipalities with bold, creative and forward-thinking ideas. Projects might include new public space designs, technology-driven service improvements or community-wide initiatives that tackle challenges in fresh ways. The grant will focus on innovation and the potential for broad, long-term impact.
Problem Solver Grant
On the other end of the spectrum will be the Problem Solver Grant, a direct successor to the HEDG model. These eight $25,000 grants are geared toward smaller, more routine — but equally important — municipal projects. This includes practical fixes for municipalities, such as repairs to city or town halls, upgrades to municipal playgrounds, or accessibility improvements in public buildings. The goal is to help communities, particularly smaller towns, address immediate challenges that can enhance daily life for residents.
Why the changes?
The shift from HEDG to the IMPACT Fund reflects feedback from municipal leaders and evolving statewide priorities. While the economic development focus of HEDG served many communities well, there was growing demand for a more flexible, inclusive grant model — one that supports both ambitious new ideas and the everyday maintenance that keeps towns running smoothly.
The IMPACT Fund is designed to respond to both of those needs. Whether a city or town is dreaming big or focused on fixing what’s broken, it can now pursue a grant that fits.
Applications
The application process for both the Big Idea and Problem Solver Grants will open just after the Municipal Association of SC 2025 Annual Meeting, specifically on Monday, July 21, at 10 a.m. The deadline will be Friday, September 26, at 5 p.m. For both grant applications, the city or town council must pass a resolution in support of the application.
The application and reporting processes will be even more streamlined than previous years. The goal is to help municipalities get things done without being bogged down by complicated paperwork or confusing guidelines.
For the Big Idea Grants, the evaluation criteria will focus on creativity, potential widespread impact, and strategic value. Projects featuring innovative ideas and new ways of thinking will be rewarded.
For the Problem Solver Grants, the evaluation criteria will focus on financial need, community impact and the applying municipality’s history of successfully completing grant projects.
The IMPACT Fund, powered by VC3, represents a broader commitment to supporting municipalities as they adapt, grow and improve. Whether city leaders are tackling a pressing infrastructure issue or envisioning a transformative community initiative, this program is designed to meet them where they are, and help them get where they want to go.
More information will be available once the application period opens on July 21.
Deadline for IMPACT grant applications: Friday, September 26, 5 p.m.