Small businesses in the Appalachian counties of Ohio have a new tool to help them obtain affordable financing. Appalachian Growth Capital LLC (AGC), headquartered in Nelsonville, Ohio, announced that it has been certified as a Community Development Financial Institution (CDFI) by the US Treasury. AGC’s mission is to help build prosperity in Appalachian Ohio by assisting small businesses in obtaining the financing they need to grow at reasonable rates and terms.
“Appalachian Ohio is no longer the only part of the Appalachian Region unserved by a local CDFI,”stated Brad Blair, AGC’s Executive VP. “AGC’s certification caps of 8 years of planning and 2.5 years of intensive effort by AGC’s corporate parent, Appalachian Partnership Inc. to develop a CDFI for our region.”
CDFIs are lending institutions that focus on making affordable credit available for underserved, low-income communities. Each CDFI focuses on a “Target Market” defined by a combination of geography, poverty rate and type of loans offered. CDFIs attract investments from banks, foundations and others and relend the investments to address credit gaps for their Target Market. AGC’s Target Market focuses on small business lending in the 32 Appalachian counties of Ohio.
While working towards certification, AGC has worked intensively with more than 92 small businesses and secured commitments of more than $53 million in financing for 34 of them from banks and other lenders. Since November of 2018, AGC has also been lending from its own capital, and has assisted 6 businesses with $304,550 of its own funds. With CDFI certification, AGC will be able to attract millions more in capital from investors to lend to the region’s businesses.
Nicole Paulette, VP of Elevated Services in Carrolton, one of AGC’s loan customers, praised AGC’s work with their company. “[AGC] …is genuinely passionate about helping our business grow in our rural community. They analyzed our financials, recognized our strengths and ultimately were able to offer us reliable financial advice based on our specific goals. With the help of Mr. Blair and AGC …[we] increased our footprint by nearly 12,000 square feet and we are already experiencing the steady growth we were focused on achieving.”
For more information about AGC and its loan programs, please contact Brad Blair at bblair@apppart.orgor 740-391-3518.
