Commitment to Action

Appalachian Community Capital

Commitment by

Deutsche Bank AG, Pathway Lending, Kentucky Highlands Investment Corporation, Virginia Community Capital, Appalachian Regional Commission

In 2013, the Appalachian Regional Commission, along with local CDFIs and philanthropic and bank investors, committed to establish a new financial intermediary, Appalachia Community Capital, and help capitalize it with $42 million. Over the next 24 months, this new financial intermediary will leverage $233 million of private bank capital and help create 2,200 jobs throughout the Appalachian region. Appalachian Community Capital will significantly increase business lending in Appalachia by pooling the capital needs of its members, attracting investors at a larger scale, and providing a simplified vehicle for impact investors; dramatically reducing underwriting and servicing costs associated with investing in individual CDFIs. Additionally, the new institution will facilitate sharing of best practices between new and emerging Appalachian loan funds and bring new and needed financial products to the region. Ultimately, this capital will support growing loan demand in a variety of sectors including agriculture, energy, health care, and manufacturing.

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Overview
Summary

Commitment

Appalachian Community Capital

Launched

2013

Est. Duration

4 years

Estimated Total Value

$42,450,000

Region

Northern America

Countries

United States

Commitment by

Deutsche Bank AG, Pathway Lending, Kentucky Highlands Investment Corporation, Virginia Community Capital, Appalachian Regional Commission

Partner(s) of the Commitment Maker(s)

Mountain BizWorks, Appalachian Development Corp, Three Rivers Planning and Development District, Bank of America Corporation, The Progress Fund, Commonwealth of Virginia, Access to Capital for Entrepreneurs, Natural Capital Investment Fund, Mary Reynolds Babcock Foundation, Inc., Alternatives Federal Credit Union, Mountain Association for Community Economic Development, Blue Moon Fund