Plans for $6 million in investments will attract new sources of capital to enable customized funding solutions for small businesses, supporting good jobs and wealth-building opportunities for American families
CHATTANOOGA, Tenn., Sept. 4, 2024 /PRNewswire/ — Today, the Ford Foundation joined the REDF Impact Investing Fund (RIIF), the country’s only CDFI intermediary dedicated to employment social enterprise, to announce plans to provide $6 million in new funding to locally-owned businesses in support of the Appalachian Regional Commission’s investment priorities to drive economic growth, create new jobs, and catalyze further investment in the region.
Investments will prioritize small businesses, which employ nearly half of Appalachia’s workforce, with the goal of building wealth that stays in the local economy. Businesses in emerging industries will also be a key focus, as Appalachia leads the nation in potential economic growth from solar and wind investment, while industries such as textile manufacturing are benefitting from large-scale revitalization projects.
Unlike standard community and economic development investment vehicles, this investment initiative will provide multiple options for customized financing solutions that best meet small business needs, including affordable loans, preferred equity, and revenue-based finance. This investment initiative aims to attract other private sector investors such as banks, insurance companies, corporations, and family offices to invest for impact, seeking financial returns and positive social outcomes for communities.
These investments will be managed by RIIF Capital LLC, a wholly-owned subsidiary of the REDF Impact Investing Fund, in partnership with local stakeholders.
“Appalachia is the home to some of the most resilient communities in our country’s history, and we hope that these new investments will put the wind at their backs as they build toward a stronger, more prosperous future for the millions of families that call the heartland of America home,” said Ford Foundation director of Mission Investments Roy Swan. “We hope that this initiative serves as a model for how public, private, and philanthropic partners can work together to strengthen the social and economic fabric of America and drive more capital toward this often-overlooked region that’s poised for tremendous growth. The Ford Foundation is proud to partner with groups like the REDF Impact Investing Fund to invest more capital where it needs to go, directly to the people that drive America’s economy.”
“REDF Impact Investing Fund is eager to partner with and learn from tenacious and resourceful business leaders across Appalachia,” said Carrie McKellogg, CEO of RIIF. “We believe they hold the key to finding sustainable economic solutions and are excited to see how additional flexible financing solutions can support their growth.”
This builds upon more than $14 million in grants and investments made over the past decade by the Ford Foundation to build broader pathways toward economic opportunity in Appalachia, including a recent $10 million investment to help spur job creation and economic growth in the region, and $2 million in grant funding to Heartland Forward for its work to expand small businesses and economic opportunity in the region, specifically in Alabama and Arkansas.
Brandon Dennison, Executive President and Founder of Coalfield Development and Vice President of Economic & Workforce Development at Marshall University shared, “This initiative is a great opportunity for Appalachia. It aligns well with ongoing efforts to improve the quality of life for our people. For example, Coalfield Development has been incubating social enterprises to diversify the Appalachian economy since 2010. A social enterprise is a business model which combines the compassion of a charity with the efficiency of a business. These are the types of creative solutions this initiative will support. REDF is a world-class leader and innovator in the field of social enterprise, and Coalfield has looked to REDF as a support for many years. This opportunity will take the partnership to the next level.”
“We know that young firms are the foundation of the heartland economy and are often under-resourced and underfunded. Seeing the dedication of our partners to funding opportunities in Appalachia focused on growing the workforce and unlocking new growth for existing companies is inspirational,” said Katie Milligan, Director of Workforce and Entrepreneurship, Heartland Forward.
To learn more about Ford Foundation’s Mission Investments initiative, please visit the Ford Foundation website.
ABOUT THE FORD FOUNDATION
The Ford Foundation is an independent, nonprofit grant-making organization with assets currently valued at $16 billion. For more than 85 years it has worked with courageous people on the frontlines of social change worldwide, guided by its mission to strengthen democratic values, reduce poverty and injustice, promote international cooperation, and advance human achievement. With headquarters in New York, the foundation has offices in Latin America, Africa, the Middle East, and Asia.
ABOUT REDF IMPACT INVESTING FUND
The REDF Impact Investing Fund (RIIF) provides financing and capacity building assistance to businesses with a mission to offer jobs, training, and support to people breaking through barriers to employment. RIIF, a certified nonprofit Community Development Financial Institution (CDFI), helps catalyze growth in companies to create more jobs for overlooked talent nationwide. RIIF is a 501(c)(3) tax-exempt nonprofit corporation that was incorporated by REDF in 2019. For more information about RIIF, visit redf.org/impact-investing.
SOURCE Ford Foundation
