WASHINGTON — On Monday, the Appalachian Regional Commission announced a $3.75 million grant to Appalachian Community Capital for the ARC-ACC Emergency Business Response Assistance Program to strengthen and stabilize the Region’s Community. Development Financial Institutions and other mission-driven development finance lenders serving small businesses impacted by COVID-19 related losses.
Through this partnership, the ARC-ACC Emergency Business Response Assistance Program will help designated community-based lenders cover operational costs and offset some of the income they are losing by suspending or reducing payments from their borrowers during the COVID-19 crisis. Lenders will be able to use the funds for operational support and for direct technical assistance to Appalachian small business and non-profit borrowers.
ARC anticipates 400 businesses will be served; $15 million in leveraged private investment will be attracted; and 200 jobs will be retained across the 13-state Appalachian Region. ACC will administer the program, supervise progress, and monitor implementation.
To participate, CDFIs or other mission-driven development finance lenders serving the Appalachian Region must either be a member of Appalachian Community Capital or previously funded by the Appalachian Regional Commission. ACC expects to deploy the initial funding later this month.
This investment is part of ARC’s effort to repurpose existing resources to rapidly respond to the impacts of COVID-19 on Appalachian communities and businesses.
As of Monday, there were 39,870 confirmed COVID-19 cases in 405 Appalachian counties. The Appalachian Regional Commission is working closely with many regional and national partners assisting Appalachian communities as they address the economic impacts of the current crisis. More information and resources are available at arc.gov/coronavirus.
