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The investment will contribute to economic development, entrepreneurship, and higher quality jobs in the Appalachian Region
NEW YORK, December 7, 2022 /PRNewswire/ — The Ford Foundation today announced an additional $10 million investment in Appalachian Community Capital (ACC), a central bank for community development lenders that increases the availability of capital to small businesses to stimulate job creation and economic growth in the 13-state Appalachian region.
Following an initial investment in 2015, the Ford Foundation is increasing its support to further develop the economy of local communities in the rural Midwest and South, including coal-dependent areas. In these underinvested regions, the capital needed to fuel a growing economy and higher quality jobs is often difficult to access, contributing to limited economic mobility. According to the Appalachian Regional Commission (ARC), a major ACC funder, the region’s median household income is 82% of the national average.
“Unequal access to financial resources resulting in a lower quality of life and little opportunity for economic development is a scourge in our country whether it affects rural Appalachia or urban areas,” said Roy SwanDirector of Mission Investments, Ford Foundation. “Appalachian Community Capital is advancing this trajectory in rural America, and we are proud to support ACC’s critical work to improve economic opportunity and advance a more equitable future for its residents.”
ACC is now deployed $26 million in leveraged debt and $5.5 million in grants, funding 110 small businesses that have helped create or maintain more than 2,000 jobs, nearly half filled by low-income individuals. The Ford Foundation’s additional ACC infusion is expected to attract additional capital from the private sector and support the financing of 400 small businesses and 1,000 new jobs.
“ARC has been a strong supporter of Appalachian Community Capital’s (ACC) deep work to help the region’s businesses and entrepreneurs create jobs, preserve local wealth, and improve the quality of life in the Region, said ARC Federal Co-Chair Gayle Manchin. “ARC is pleased that the Ford Foundation has chosen to recognize ACC’s powerful work, and we look forward to seeing how this additional investment will lift up more residents and businesses in our communities impacted by coal.”
“The loan from Kentucky Highlands and Appalachian Community Capital was essential for us to update a quarter of our fleet with new energy-efficient diesel tractors two years ago. The new trucks saved us hundreds of thousands in operating costs, which are essential in a high-cost, competitive industry,” said Brian WhitakerOwner and CEO of CoreTrans, LLC.
The Ford Foundation’s investment in ACC is a continuation of the foundation’s work to enhance opportunities available to economically disadvantaged groups through strategic giving, broader coalition building, and the foundation’s own financial investment through of unique program-related investment (PRI) and mission-related. investment funds (MRI).
To learn more about the Ford Foundation’s Mission Investments, please visit: https://www.fordfoundation.org/work/challenging-inequality/mission-investments/
About the Ford Foundation
The Ford Foundation is an independent organization working to address inequality and build a future based on justice. For more than 85 years, it has supported visionaries on the frontlines of social change around the world, guided by its mission to strengthen democratic values, reduce poverty and injustice, promote international cooperation, and promote human success Now, with an endowment of $16 billionthe foundation is headquartered in New York and 10 regional offices in total Africa, Asia, Latin America and the Middle East.
About Appalachian Community Capital (ACC)
ACC is a CDFI lending intermediary created to raise capital for its 32-member CDFIs and other mission-based lenders. Members in turn use ACC capital to fund small businesses and entrepreneurs in underserved areas of Appalachia. Members–many of whom have been in operation for more than 20 years–and their affiliates manage the $1 billion on assets that support economic development in Appalachia.
Source Ford Foundation
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