Invest Appalachia’s team in Western NC has been affected by the storm. We are actively involved in recovery and rebuilding efforts. Your donations will directly support impacted communities. Donate here.
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Yes, Invest Appalachia, Inc. is an independent 501(c)3 non-profit with an independent board of directors, which also serves as Manager of the Invest Appalachia Fund, an affiliated LLC.
Invest Appalachia began as a conversation within the Appalachia Funders Network and emerged from a 6-year process that included dozens of regional organizations and stakeholders.
IA builds on what already works, plugs gaps in the current investment system, brings new flexible capital into the region, and offers a partnership-oriented approach in line with the scale of the region’s investment needs.
IA’s goal is to support economic diversifi cation and market growth that is locally-rooted, inclusive, and sustainable, while increasing the region’s overall capacity and ability to capture investment and drive economic opportunity.
In process and design, IA is participatory, democratic, and transparent, with a focus on equity, economic self-suffi ciency, and local wealth-building.
We are designed to support projects that are grounded in and accountable to local people, leadership, and values. Our goal is to build local wealth and enhance local ownership to strengthen the long-term health of the community.
IA is governed by a board of directors that represents the region’s diverse geographies, demographics, and perspectives. IA is guided by a Community Advisory Council representing grassroots stakeholders and produces transparent annual impact reports. IA’s staff are all based in the region and part of the Appalachian communities we work to serve.
Impact investing refers to investments made with the intention of generating both a financial return and a positive impact on communities. That positive impact can be social (i.e., affordable housing or expanded access to healthcare) or environmental (i.e., reducing energy costs or supporting regenerative farming). Impact Investing is a term that was coined by a group of investors and development leaders convened by the Rockefeller Foundation around 2007, although many faith-based investors, foundations, and community development organizations have been doing values-aligned investing for decades before the term ever existed. Today, impact investing is a global $1+ trillion market and is growing rapidly.
In the case of Invest Appalachia, impact investing means using flexible, mission-driven capital to back projects that improve life in Central Appalachia.
We raise investment and grant capital primarily from national sources (outside of Appalachia), thereby avoiding competition for scarce resources within the region and advocating for the region in front of national audiences. See a list of the IA Fund’s investors here. Regional and place-based foundations that are interested in expanding their impact investment strategy can also choose to invest through or with IA. So far, over 90% of IA’s capital is from sources outside the region.
The Invest Appalachia Fund’s investment decisions, portfolio, and finances are overseen by an Investment Committee of mission-aligned stakeholders and supported by the Investment Manager. An internal eligibility process and review is followed by a committee review. Ultimately, the committee decides. The Catalytic Capital Fund investment decisions are informed by priorities defined and guided by the Community Advisory Council. The Board retains ultimate oversight authority of the Community Advisory Council, Investment Manager, and IA staff.
In short, yes, IA defines investment as “repayable.” IA does not make traditional grants for program, operating, or project funding. Investments made from the Invest Appalachia fund are designed for repayment, but are flexible and customized with terms that match the project and partner needs. Investments made from the Catalytic Capital fund may take the form of risk-tolerant grant-like investments or repayable forms that help to leverage additional investment, depending on project needs and structure.
Is it just another phrase for grants? No, Catalytic Capital is not the same as typical grant funding. Catalytic Capital is high-impact, risk-tolerant repayable funding that helps make other investments possible. These grant-funded investments prepare a project or deal for financing or make repayable investment possible (repayable grants for unsecured bridge loans, loan loss reserves, interest rate buy-downs, collateral supports, or conditional repayment).
Unfortunately, no. All projects seeking funding from IA undergo the same process and are initially evaluated for investment readiness and repayment potential. Through the process, IA staff identify the right combination of investment for the project, including the suitability of Catalytic Capital to support the investment readiness of a project.
A project is a generic term we use to describe the purpose, use, and amount of capital. It can be a real estate project, such as the purchase of property or construction. Expansion of a product or service offered by a business or enterprise for working capital and equipment would also be considered a “project.” Projects can take place within any legal structure - a business, non-profit, public entity, cooperative, or collaboration.
All projects seeking funding from IA undergo the same process and are initially evaluated for investment readiness.
IA invests in Appalachian-designated counties in Ohio, Kentucky, West Virginia, Virginia, Tennessee, and North Carolina, with special emphasis on regions that are coal-impacted, economically distressed, or historically underinvested.
No. Projects must be located or headquartered in eligible Appalachian counties.
IA funds a broad range of entities—private businesses, nonprofits, community facilities, financial intermediaries, public infrastructure projects, and employee-owned enterprises—that align with IA’s mission and can repay investment.
IA accepts a variety of entities, including co-ops, community land trusts, public-private partnerships, and nonprofits—as long as there's a path to repayment.
No. Applicants must have a legally registered entity in good standing.
Yes. IA evaluates ownership and governance to ensure accountability, transparency, and long-term community benefit.
Applications are accepted on a rolling basis. Submit your project inquiry at: https://www.investappalachia.org/submit-project
The Invest Appalachia Fund is designed to fund projects or businesses with larger capital needs (typically above $100,000). Our largest loan to date is $2MOur investments range from $100,000 to $2,500,000 (with exceptions), have terms of 1 – 6 years, and vary in interest rate and repayment structure. Investments may support fixed assets, equipment, real estate, facilities, construction, working capital, project finance, relending, and more. Most Invest Appalachia Fund loans are co-investments with other lenders.
Catalytic Capital investments can vary in amount, ranging from pre-development amounts under $10,000 all the way up to six-figure credit enhancements or loan guarantees.
IA prioritizes sectors with strong community and economic returns, including:
If the project or business is advancing community development goals, it is probably eligible!
Yes. Projects involving more than one sector are eligible as long as they align with our impact goals.
Both. Invest Appalachia is designed to:
To get started in our application process, please fill out this project introduction form.
If you are still building your capital stack, you may still feel free to submit a project intake form and start a conversation with us. However, we usually cannot be the only lender on any single project, and our ability to provide technical support is limited. You can access a list of state-specific business development resources here that might be helpful to you.
A clear breakdown of total costs, what’s already committed, and what you’re requesting from IA.
Signed grant agreements, approved loans, or public allocations. Verbal or pending applications do not count as committed.
That’s okay. Provide best estimates of what works for your project (e.g., repayment timeline, interest rate) so IA can assess fit and advise.
Submit financial projections and explain your assumptions. Focus on your plan to generate revenue. As a general guideline, we are not designed to fund startups. Projects should typically have some operational history, revenue generation, or demonstrated readiness to scale. However, early-stage projects with strong community impact and clear paths to revenue may be considered on a case-by-case basis.
They're not required but are strongly encouraged. These materials improve the review process and attract potential co-investors. For more on project readiness, please see the Project Readiness Checklist.
Timelines vary, and depend on the project type. We aim to provide some kind of response to your project submission within three weeks, at which time we will typically let you know if the project seems like a fit for our funding or not, and what next steps might be involved. Generally, you can expect it to take 2-3 months for a solidly investment-ready project to go from complete project submission to approval and funding. If a project is in an earlier stage, or needs more predevelopment support, that timeline is likely to be extended.
For more on the process, please see our Journey Trail Map.
We are designed to provide funding that allows more time for repayment, often with longer terms or delayed repayment schedules, so that projects can stabilize before they pay us back. We call this “patient” funding.
“Flexible” capital means that we can customize loan structures (such as adjusted rates or credit enhancements) to meet the specific needs and realities of community-based or under-resourced projects. This approach supports projects partners who might not qualify for traditional financing.
IA is more flexible than traditional lenders, and we can attempt to de-risk and prepare early-stage projects that have impact and repayment potential. That said, we are not designed to fund startups.
Once your project submission is complete, we get approval to conduct in-depth analysis and model financial scenarios for repayment. Then, we structure the investment terms, capital products, and repayment schedule to fit your situation. After investment closing, we understand things change and we work together to make the appropriate adjustments, including flexible repayment terms.
IA is designed to support projects with community impact but that may have challenges accessing traditional capital, for reasons including limited collateral, limited personal wealth of assets, low credit, lack of guarantor, unconventional legal structures, co-operative or collective ownership, non-profit for municipal borrowers, or long repayment periods.
No. IA evaluates projects and partners holistically and may still consider investments where traditional lenders might not. Flexible terms and catalytic capital can help address credit challenges.
For lending from the Invest Appalachia Fund, we do request a credit report for any individuals who will serve as guarantors on the loan.
Just like other lenders, we have policies and are attentive to industry standards for troubled loans. Those policies and terms differ between IA’s Catalytic Capital and Invest Appalachia Fund loans. A defining feature of our model is to recycle funds and offer opportunities to other investment-worthy projects in Central Appalachia; therefore, the failure of a project limits our ability to do so. We understand that things change, and we work together to make the appropriate adjustments, including flexible repayment terms.
While we do not report to credit bureaus and we will not directly affect your credit score, borrowing from Invest Appalachia may still impact your financial situation and should be considered carefully.
Capital Stewardship
We manage funds for others, most recently including The Rural News Fund. RNF is part of the Press Forward Initiative.
The Community Investment Framers Training
The Community Investment Framers Training is a 12-week training and certification program to help individual community builders transform an investment-worthy idea for their community into an investment-ready project. This program has been licensed out to other entities, such as The Federal Reserve Bank of Richmond’s Rural Investment Collaborative.
Appalachian Downtown Development Initiative (ADDI)
ADDI is a joint venture between a number of Appalachian organizations. It is designed as a coordinated, ecosystem-based approach to support community-centered downtown revitalization and long-term economic growth in Appalachia. Most recently, ADDI produced an implementation plan.
The Appalachian Solar Finance Fund
The Appalachian Solar Finance Fund is a collaborative focused on increasing clean energy development in Appalachia. The SFF is housed at Appalachian Voices, and Invest Appalachia serves as a co-founder and management team member. The SFF and Invest Appalachia coordinate on regional clean energy projects, with the SFF providing predevelopment support, TA, and grant funding. Invest Appalachia is the financing partner for the SFF, providing flexible repayable capital to support clean energy projects that benefit local Appalachian communities.
Invest Appalachia’s staff and operations have been directly impacted by Hurricane Helene’s devastation. Thanks for your understanding with any delays in normal communications.
We are headquartered in Western NC, and involved in local recovery efforts as well as investment strategies to rebuild for long-term resilience and equity. Any financial contributions to Invest Appalachia will go directly to recovery and rebuilding efforts in impacted communities.
