(The Center Square) – Up to $2.4 million in taxpayer-funded grants for a banking technology company expanding to Charlotte has been approved by a panel within the North Carolina Department of Commerce.
SoFi Technologies, a California-based financial tech firm, will invest $3 million in Charlotte by the end of 2026, according to the state. The company employs about 3,800 people in the U.S., Hong Kong, Latin America and Switzerland.
The company, seeking a greater market share, is expanding its presence on the U.S. East Coast, the state said. The North Carolina Economic Investment Authority board approved the incentives Tuesday with expectation of 225 jobs to be created.
The jobs in North Carolina will have an average wage of $108,000 annually, according to the state. The current average private-sector job in Mecklenburg County is $86,830.
Economists question the effectiveness of financial incentives to businesses to expand or come to a new state. Context is encouraged when wages are introduced because a few corporate leaders at a site can skew the average higher while the median wage would not have the same ratio.
The SoFi jobs will have a payroll impact of $24 million per year, according to the state.
“North Carolina attracts the world’s top financial services companies with a deep pool of skilled workers that can meet the unique needs of companies like SoFi Technologies,” first-term Democratic Gov. Josh Stein said in a statement. “Charlotte is the No. 2 banking center in the nation, and I’m pleased to see more growth in one of North Carolina’s flagship industries.”
Florida and Texas were also competing for the project but the company chose North Carolina because of economic incentives, available work force and geography, state leaders said.
“The region’s energy, talent and quality of life make it a natural fit, and we’re excited to expand our footprint here,” Eric Schuppenhauer, interim president of SoFi Bank, said in a statement. “As we expand, we remain focused on growing alongside the community and investing in great people, while delivering on our mission to help more people get their money right and reach financial independence.”
Payments by the state to the company require a “performance verification” that the company has met its job creation and investment targets, the state said.
“Charlotte’s place as America’s second largest financial hub is strengthened today thanks to SoFi’s decision to expand in the Queen City,” Commerce Secretary Lee Lilley said in a statement. “From CNBC naming us the top state for business to the recognition we continue to earn from leading companies, North Carolina’s momentum continues to build.”
