Information for Bank Partners

Appalachian Growth Capital (AGC) is a Community Development Financial Institution (CDFI), a special type of lending institution designed to support small businesses.* AGC will work with banks and revolving loan funds as an additional or alternate funding source for small business projects in Ohio’s Appalachian-designated counties.

Certified by the U.S. Treasury, CDFIs help make credit available in underserved markets. They work with banks and other lenders by expanding credit access to businesses whose needs cannot be wholly financed through commercial lending.

*As required by U.S. Treasury Regulations, AGC will start as a loan fund and then apply for CDFI status.

Our Services
AGC will partner with banks, local loan funds and small business service providers to meet the credit needs of the region’s small to mid-sized businesses. Initially it will focus on loans that lower the down-payment needed for companies to purchase fixed assets like equipment or facilities. AGC will also make loans to creditworthy companies that cannot qualify for bank loans due to regulatory barriers. Over time, AGC plans to develop loan products to help small companies meet their working capital needs.

Funding for AGC
Recognizing the need in this underserved area, the Appalachian Regional Commission granted seed capital to help start the growth fund. Additional funds may include the CDFI fund at the U.S. Treasury or
other federal agencies whose grants provide capital to CDFIs. Some federal programs allow underutilized local loan funds that they capitalized to be transferred to CDFIs.

Commercial banks receive Community Reinvestment Act (CRA) credit from the U.S. Treasury for supporting CDFIs. Foundations and corporations also support CDFIs helping to improve the economies of struggling communities and regions.

AGC will operate in close collaboration with revolving loan funds at OMEGA and OVRDC, local development districts serving Appalachian Ohio.

Benefits from AGC
Supporting business growth creates jobs, strengthens communities and expands the region’s economy.

AGC Loans and Terms