Charlotte-based AvidXchange has missed a job creation target that was part of a 2018 state economic development grant. The N.C. Economic Investment Committee voted this week not to authorize an annual grant as part of the Job Development Investment Grant with AvidXchange. The potential maximum grant was $1.3 million.
The agreement called for AvidXchange to create a minimum of 775 jobs. AvidXchange created only 169 jobs, less than 22% of the minimum required. The company did hit 100% of its goal in the retention of 939 jobs.
Also, the fintech provider of accounts payable and payment automation solutions for midsize companies more than doubled the required average annual wage for the jobs. The grant required the new workers to earn an average wage of at least $61,712. The actual average wage AvidXchange is paying the new workers is $153,197, or 248.25% better than the minimum amount.
The company is working toward becoming compliant with the grant, stated a letter from AvidXchange general counsel and Senior Vice President Ryan Stahl.
“While the effects of COVID-19 have waned, our business is continuing to navigate a challenging and competitive workforce environment, while maintaining a steadfast focus on innovation and customer service offerings,” states Stahl’s letter dated Feb. 22. “We are optimistic that our business will continue growing in 2024 and beyond.”
AvidXchange was founded in 2000 after launching in a Charlotte coffee shop with five employees and has been recognized as one of the fastest-growing companies in the county. Company officials did not return messages seeking additional comment.
AvidXchange is 100% compliant with a 2014 JDIG agreement valued at more than $7.5 million. The Economic Investment Committee authorized the payment of $702,000 to the company on Tuesday as part of that agreement. The agreement also saw the state make a $234,000 annual grant to a state utility fund that helps rural communities with economic growth.
In 2014, AvidXchange agreed to invest at least $19.3 million and create 543 jobs paying an average minimum wage of $55,486 a year by 2023. AvidXchange has invested $29.2 million, created 690 jobs and retained 418 others. AvidXchange is paying an average wage of $137,143 for the new jobs.