Ohio’s newest CDFI * makes loans to help start and grow small businesses in Appalachian Ohio.

Appalachian Growth Capital (AGC) is a new loan fund that partners with local and regional banks to increase the loan amounts to qualified small businesses.

AGC is connecting with funding organizations in Ohio’s Appalachian-designated counties to more fully support the small businesses that drive economic growth.  As partners with AGC, commercial banks receive Community Reinvestment Act (CRA) credit.

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

AGC can fill the gap between bank loans and what small businesses need for start-up or expansion.

Loans of $25,000 to $100,000 are available and terms are flexible which may lower loan payments and improve cash flow.  Funds can help small businesses that have a hard time qualifying for conventional lending.

Funding growth can be a challenge for small businesses but AGC knows that supporting small business success creates jobs and strengthens communities by growing the local economy.

CDFIs are 28 percent more likely to approve loans to small companies than small banks and 71 percent more likely than large banks.

Meeting a Need for Access to Credit

While some CDFIs claim to serve the region, they have no regional sales presence and make virtually no loans in Appalachian Ohio.  Ohio is the only state with Appalachian counties that does not have an active Appalachian-focused CDFI.

Numerous studies show that access to credit is one of the top issues that prevent small business startups and impede small company growth.

According to a 2016 Federal Reserve study:

The good news is CDFIs are 28 percent more likely to approve loans to small companies than small banks and 71 percent more likely than large banks.