Invest Appalachia (IA) is deploying an additional $1,082,121 from its Catalytic Capital Fund to leverage equitable investment in Appalachian communities. These 2023 investments build on the $900,000 already deployed in 2022. The 15 supported projects advance stakeholder-defined priorities of community wealth-building, diverse business ownership, healthy communities, minority homeownership, clean energy, greenhouse gas reductions, climate resilience, workforce development, and quality jobs in their respective communities.
Invest Appalachia (IA) is deploying an additional $1,082,121 from its Catalytic Capital Fund to leverage equitable investment in Appalachian communities. These 2023 investments build on the $900,000 already deployed in 2022. The 15 supported projects advance stakeholder-defined priorities of community wealth-building, diverse business ownership, healthy communities, minority homeownership, clean energy, greenhouse gas reductions, climate resilience, workforce development, and quality jobs in their respective communities.
Invest Appalachia (IA) has allocated another round of flexible Catalytic Capital awards to catalyze community-centered investment into projects across Central Appalachia! Fifteen projects received a total of $1,082,121 in new funding from the organization’s Catalytic Capital Fund so far in 2023. These awards, along with the organization’s 2022 deployments, bring IA’s total Catalytic Capital deployment to nearly $2 million invested in 24 different projects in our first year of full operations.
IA’s mission is to advance healthy, resilient, and equitable communities throughout Central Appalachia where every community has the investment they need to thrive. Through the Catalytic Capital Fund, IA offers flexible investment-like grant capital that plugs common gaps between grantmaking, federal funding, and community lending. Catalytic Capital investments reduce risk for promising high-impact projects, build an inclusive and equitable pipeline of investment-worthy deals, and unlock repayable investment from other repayable financing sources including the Invest Appalachia Fund and community lending partners. The vast majority of Catalytic Capital is repayable, with 70% currently estimated to be repaid and available to recycle into additional projects.
IA’s Catalytic Capital awards are approved by the IA Board of Directors and guided by a Community Advisory Council (CAC) of grassroots stakeholders, which establishes the intersectional outcomes and sector-specific priorities for Catalytic Capital deployment. This second round of Catalytic Capital investments prioritizes downtown redevelopment, recovery and workforce development initiatives, community agriculture, small business development, clean energy development, neighborhood revitalization and housing improvements, and more. A majority of projects are located in coal-impacted, rural, economically disadvantaged, or other underserved communities.
“Across Appalachia, there are countless projects and businesses that are investment-worthy, but aren\’t considered ‘bankable’ because of their geography or ownership or the community they serve. Catalytic Capital is flexible, risk-absorbing capital that helps overcome financial roadblocks to investment-readiness and secure repayable investment from the IA Fund, community lending partners, and other sources,” says Andrew Crosson, CEO of Invest Appalachia.
These 15 projects fit within IA’s priority sectors of Clean Energy, Creative Placemaking, Community Health, and Food & Agriculture. The projects target a variety of impact priorities, including community wealth-building, diverse business ownership, healthy communities, minority homeownership, greenhouse gas reductions, climate resilience, workforce development, and quality jobs in their respective communities. Learn more about each project below.
2023 Catalytic Capital Investments
Our Catalytic Capital Pool uses a mix of investment products that offer flexible, patient capital to offset risk for innovative community projects. Fifteen projects are receiving catalytic capital so far in 2023.
Appalachian Social Enterprise Summit - Athens, OH
Grant will provide flexible Catalytic Capital for TA and/or working capital in the form of a recoverable grant to the top two winners of the Appalachian Social Enterprise Summit’s Pitch Competition; supporting IA’s project pipeline development while providing tailored support to move the competition’s winners towards investment readiness.
Coalfield Development Corporation - Huntington, WV
Recoverable grant for the Black Diamond sustainability hub project, structured as an unsecured loan at 0% interest to be part of the total project financing that includes a bank loan and an IA Fund loan, to bring the cost of the project’s debt service down to a level that is financially viable for the building’s revenue model. The project is part of the EDA Build Back Better Challenge Grant to the ACT Now Coalition, and this financing is part of the required non-federal match. The Black Diamond building will house multiple mission-aligned enterprises, including Solar Holler’s offices and logistical headquarters and the ReUse Corridor’s warehouse space.
Conductor Solar - Athens, Ohio
Recoverable grant to provide working capital to support Conductor Solar as it balances long and unpredictable sales cycles of commercial solar project development and financing. This working capital will help a regionally based business to scale at a key moment in the industry.
Grahamtown Housing Initiative - Rutherford County, NC
Recoverable grant to support a resident-led neighborhood revitalization effort in a historically African-American community. The award will provide working capital for the healthy homes revitalization project. Using a model similar to a land bank, the funds will allow Friends of Grahamtown to acquire vacant or dilapidated properties at a discount to renovate and resale the individual homes to community members. It will also provide capital to low-income homeowners to make critical repairs/upgrades to their properties.
Howell’s Mill Summer Camp - Ona, WV
Short-term repayable grant to a non-profit summer camp to serve as a zero-interest unsecured bridge loan to facilitate the installation of solar arrays on the property, pending reimbursement of the federal solar Investment Tax Credit (ITC). A partnership with the Appalachian Solar Finance Fund.
Huntington City Mission - Huntington, WV
Short-term repayable grant to one of West Virginia’s largest homeless shelters to serve as a zero-interest unsecured bridge loan to facilitate the installation of rooftop solar arrays, pending reimbursement of the federal solar Investment Tax Credit (ITC) for rooftop installations. A partnership with the Appalachian Solar Finance Fund.
Just for Kids Advocacy Center - Berkeley, WV
Short-term repayable grant to a community service non-profit to serve as a zero-interest unsecured bridge loan to facilitate the installation of rooftop solar, pending reimbursement of the federal solar Investment Tax Credit (ITC). This was the first use of catalytic capital for a solar ITC bridge loan. The project contributes to the solar energy transition for local community service nonprofit that will serve as a notable public example of successful solar energy development and its cost savings benefits in the local community. A partnership with Appalachian Solar Finance Fund.
Kitsbow Apparel - Old Fort, NC
Recoverable grant to provide revenue-based investment to finance growth of employee-owned outdoor gear manufacturer, which matched the revenue-share note of a crowd-funding campaign. This project supported 60+ living wage jobs. Unfortunately, Kitsbow was not able to raise the full amount of investment required to continue operations and was forced to shut down operations in Spring of 2023. This business was critical to the broader economic revitalization efforts in a high-poverty town and county, and local partners are involved in supporting the transition of both employees and expertise to new partnerships.
New Leaf Justice Enterprises/SAOP Recovery Villages - Athens County, OH
Recoverable grant to provide New Leaf with bridge financing to continue the development of its three Recovery Villages in SE Ohio. The villages will provide wrap-around infrastructure for individuals and families in addiction and trauma recovery. New Leaf Recovery Villages in Southeast Ohio provide families/individuals impacted by trauma and substance misuse with all the no-cost employment, housing, and support services required to heal and chart a path to long-term financial wellness. Each village has the staffing/facilities, all within walking distance, to provide up to 2 years of housing, workforce development/supported employment, childcare, counseling, and case management services – all at no cost.
New Roots Community Farm - Fayetteville, WV
Recoverable grant to support New Roots Community Farm, an innovative agricultural community land trust and social enterprise, to purchase three pieces of equipment to outfit their rural grocer operations. This grant has increased access to fresh, nutrient dense, and culturally appropriate seasonal foods for customers in the New River Gorge area of WV. Specifically, NRCF provides services for low-income and food insecure residents through SNAP, SNAP Stretch, and FMNP coupon redemption. This expansion of NRCF’s services will also support the growth of their own operations as a community-owned agricultural resource center who’s committed to providing living wage jobs within their cooperative model.
Shagbark Seed & Mill - Athens, Ohio
Technical assistance grant to social enterprise food staple food processor Shagbark Seed & Mill. The TA grant leverages match for a larger TA package supporting business-development and feasibility planning for Shagbark to secure investment to expand its operations to become a larger regional aggregation and processing facility for organic foods. The TA provider will conduct a five-phase plan to prepare Shagbark for growth.
Snowville Creamery - Meigs County, Ohio
Technical assistance grant supporting Snowville Creamery, a woman-owned farm enterprise, to contract specialized technical assistance providers to review and upgrade internal systems and develop a business expansion plan (including capital needs and marketing) for a new high-protein milk drink product line. This TA award contributes to the broader expansion of the business’s operational capacity, product development, and distribution footprint, generating increased revenue for all dairy farm partners who supply to the business and uplifting the regional food processing sector.
Western Women’s Business Center - Asheville, NC
Technical assistance award to support pipeline development of women and minority-owned enterprises in Western NC, including through WWBC events and programming, and translation of key informational materials into Spanish to increase language access. This project/partnership provides expanded capacity to do more intentional engagement and pipeline development with women and minority entrepreneurs throughout the region.
Woodlands Development & Lending - Elkins, WV
Recoverable grant to non-profit developer Woodlands to leverage investment from partners in order to finish construction on the Tygart Hotel in downtown Elkins, WV. This project is the current centerpiece in a broader revitalization effort in downtown Elkins. Since initiating the project, Woodlands has provided TA support for the redevelopment of five other downtown properties, securing $9M in investment for a new event center two blocks from the hotel. The project has also allowed Woodlands, the city, and county development authority to initiate a Tax Increment Financing (TIF) application, which is projected to create revenue to fund the development of new trails, a riverwalk park, and other public spaces.
Martin IGA - Martin, KY
Loan guarantee to secure financing for a new locally owned grocery store in a historic food desert, equipped with rooftop solar and high efficiency refrigeration systems.
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