SOMERSET, KY – Southeast Kentucky Economic Development Corporation (SKED) has been awarded $120,000 in grant funds from Appalachian Community Capital (ACC).
Executive Director Brett Traver says the funding will help the nonprofit organization continue to assist current and future loan clients during the COVID-19 recession.
“SKED is grateful for the partnership with the Appalachian Regional Commission and ACC,” he said. “These funds will help our organization, while we work to assist small business owners throughout the region with loans and business consulting. We have been and will continue to be for our clients.”
SKED is one of 31 Community Development Financial Institutions (CDFIs) to receive grants totaling $3.56 million from ACC, under an Emergency Business Response Assistance Program to strengthen and stabilize 31 Regional CDFIs and other mission-driven community development finance lenders, such as Revolving Loan Funds (RLFs), serving small businesses impacted by COVID-19 related losses.
ACC is a CDFI lending intermediary created to raise capital for its 22 member CDFIs.
“At a time when Appalachia – like the rest of the country – is addressing the challenges of both a health and economic crisis, I’m grateful to ARC for its continued leadership in supporting small businesses and community development finance lenders,” said Donna Gambrell, ACC President and CEO. “The grants are a significant boost in helping these lenders stabilize their operations and assist their small business clients during the COVID-19 emergency, and once the Region emerges from this crisis.”
With support from the ARC, the program will help designated community-based lenders cover operational costs and offset some of the income they are losing by suspending, or reducing, payments from their borrowers during the COVID-19 crisis. Eligible funding uses will consist of operational support and direct technical assistance to Appalachian small business and nonprofit borrowers.
“CDFIs and similar institutions serve a critical role in the Appalachian Region, especially during the current situation when quick access to operating capital can mean jobs and businesses are saved,” said ARC Federal Co-Chairman Tim Thomas. “ARC is proud to work with ACC to fund these grants, and will continue to work to ensure job-creators in Appalachia can access the short-term capital they need.”
“The Appalachian Regional Commission is committed to helping businesses and financial institutions throughout the region during this economic crisis. By strengthening our Community Development Financial Institutions, we’re ensuring they can continue to support our small businesses with access to capital, which is incredibly important during this difficult time,” said Mike DeWine, Ohio Governor and ARC States’ Co-Chair.
It is anticipated that recipients will serve 400 businesses and organizations and improve at least 200 companies; $15 million in leveraged private investment will be attracted, and 200 jobs will be retained across the Appalachian Region. ACC, in collaboration with Rural Support Partners, will administer the program, supervise progress, and monitor implementation.
For more information on ACC and other CDFIs receiving grants as part of this funding, visit www.appalachiancommunitycapitalcdfi.org/news-events/
To learn more about how SKED helps small business owners overcome obstacles and growing pains, visit: www.skedcorp.com.