|HUD No. 15-030
March 30, 2015
HUD AWARDS $550,000 TO BOOST ECONOMIC DEVELOPMENT IN THE APPALACHIAN REGION
Low-income residents in distressed Appalachia of Kentucky and Maryland will have access to jobs
WASHINGTON - U.S. Department of Housing and Urban Development (HUD) Secretary Julián Castro announced that HUD is awarding $550,000 to stimulate local economies, produce more affordable housing and boost job growth in the chronically underserved and undercapitalized Appalachian region. The funding is provided through HUD's Appalachian Economic Development (AEDI) (https://www.hudexchange.info/aedi/).
HUD is awarding $200,000 to the Kentucky Department for Local Government and $350,000 to the Maryland Department of Housing and Community Development (DHCD) to help these organizations provide small business loans in distressed Appalachia.(See project summaries below).
"When the Appalachian region succeeds, our entire nation succeeds," said Secretary Castro. "This funding, coupled with private investment, will spark economic development, create jobs, increase access to affordable housing and strengthen communities. HUD looks forward to working with local leaders in continued partnership to build a more prosperous tomorrow."
The Appalachia Economic Development Initiative (AEDI) is a collaborative effort among three federal agencies - HUD, the Department of the Treasury; and the Department of Agriculture. The goal of this initiative is to increase access to capital for business lending and economic development in the chronically underserved and undercapitalized Appalachia Region. Specifically, it will provide investment and technical assistance to state community and/or economic development agencies that apply on behalf of rural community development financial institutions that focus on business lending in the Appalachia Region.
HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.
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Appalachia Economic Development Initiative Grantees
The Kentucky Department for Local Government is awarded $200,000. The Department will penetrate more deeply into the Eastern Region of Kentucky Highlands Investment Corporation's service areas with its business development services and capital pools. This project continues the successful partnership with the Kentucky Highlands Corporation and the Commonwealth's Community Development Financial Institution. The project activities include: making loans to businesses owned by or servicing low-income residents in distressed Appalachia; securing additional capital resources for lending; and establishing assistance to small business owners along with lending or investing activities. The Department proposes to create 35 jobs, provide technical assistance to 90 micro-businesses and 435 existing businesses, and provide 86 loans. Proposed leverage for this project is $200,000.
The Maryland Department of Housing and Community Development (DHCD) is awarded $350,000 to support the expansion of lending and technical assistance services in Appalachian Maryland. The AEDI will forge a partnership between Tri-County Council for Western Maryland (TCCWMD) and the Natural Capital Investment Fund (NCIF) to enhance work with small businesses and agricultural enterprises in underserved communities. Outcomes include: increasing public and private investments in Appalachian Maryland's small business community so community lenders are adequately capitalized; more skilled entrepreneurs; providing for deeper market penetration by existing lenders; and increased quality of employment and tax revenue from more numerous and more profitable small businesses. TCCWMD will deploy $1 million in capital to at least two businesses within the target market and create or retain 73 jobs. Proposed leverage for this project is $2 million.