Appalachian Community Capital is starting the Green Bank for Rural America to provide public and private capital that enables rural areas to gain the most benefit from the new energy economy. Rural communities in Appalachia and across the country have always been the heart of energy production in America, powering the growth of our nation. The Green Bank aims to build upon and revitalize this spirit, helping to diversify local economies to create new opportunities for a prosperous future.

The Green Bank will make investments – using a $500 million award from the U.S. Environmental Protection Agency – to connect rural communities to new sources of financing. The award will help attract even more private capital, for an estimated $1.6 billion into 2,000 diversified energy projects. This means 13,000 good jobs and a way to preserve the quality of life in rural communities, where local businesses and community leaders work together to help their communities thrive.

The Green Bank for Rural America will prioritize investments in 582 counties in Appalachia, energy communities, and rural communities of color and Native communities. Financing and technical assistance will be available in all eligible rural areas nationwide.

Communities which receive investment from EPA Greenhouse Gas Reduction Fund (GGRF) funding will meet the Low-Income and Disadvantaged Communities definitions as presented in the EPA GGRF program, which are identified by census tract in the Climate and Economic Justice Screening Tool (CEJST) prepared by the White House Council on Environmental Quality.

Coal Communities and Power Plant Closures (White House Interagency Working Group)

The funding will leverage private capital to finance $1.6 billion into 2,000 new energy projects. This will create 13,000 jobs in rural communities, diversify local economies into new technologies, and significantly reduce up to 850,000 tons of harmful pollution annually—to help rural communities thrive.

ACC and participating lenders have deep knowledge of community needs and financing opportunities, supporting thousands of transactions in Appalachia and rural communities, as well as exceptional expertise at structuring and managing development finance portfolios totaling billions of dollars.

• $1.6 billion total project financing (3:1 leverage from other sources)
• 2,000 businesses and projects financed
• 1,000 low-income communities engaged
• 50% of projects supporting BIPOC-owned companies and communities of Color and Native communities
• 4,800 units housing developed and rehabilitated (affordable and workforce)
• $50M in Development Services and Workforce Training (10% of EPA funds distributed)
• 4,000 employees trained
• 13,000 direct jobs created
• 460 MWh renewable energy generation installed
• 850,000 tons CO2 emissions avoided annually

The Steering Committee for this effort is composed of representatives from leading regional and national development finance organizations with a track record of high impact investments in low-wealth rural communities. This team has deep knowledge of community needs and financing opportunities, supporting thousands of transactions in the targeted rural communities, as well as exceptional expertise at structuring and managing development finance portfolios exceeding $5 billion.

The Bank’s leadership includes: 

Donna Gambrell, President and CEO, Appalachian Community Capital (ACC) – a regional Community Development Financial Institution (CDFI) intermediary with 37 Appalachian and 5 national members that manage over $2 billion in assets targeting Appalachia communities in 13 states and 423 counties and nationally.

Keith Bisson, President, Coastal Enterprises Inc. (CEI)  is one of the nation’s leading rural CDFIs, CEI and affiliates create good jobs and support environmentally sustainable development, deploying $1.5 billion in business loans, New Markets Tax Credit investments, Opportunity Zone Investment, and other financial products.

Dave Clark, Executive Director, Woodlands Development and Lending. Woodlands is a Community Development Corporation / CDFI serving three counties in the rural mountains of north central West Virginia. They manage programs related to community planning, housing construction, neighborhood and downtown revitalization, and small business lending and support. Woodlands also has a wealth of experience in nonprofit organizational development, strategic planning, land use planning, and water resource protection.

Brandon Dennison, Executive President, Coalfield Development Corp, The Green Bank’s lead workforce development partner. A nationally recognized leader in workforce development located in the heart of Appalachian coal country.  For over a decade Coalfield has worked with business, educational partners, and unions to train employees for quality job opportunities, including those in the new energy economy.  Coalfield participates in the President’s Interagency Working Group for Coal and Energy Communities.

Patrice Frey, Senior Advisor and Past President, Main Street America (MSA) works in over 1,500 communities to transform neighborhoods and revitalize local economies. Their affiliate the National Trust Community Investment Corporation (NTCIC) has invested over $2 billion in development transactions using New Markets Tax Credits, Historic Tax Credits, and Energy Tax Credits, supporting over $8 billion in project activity.

LaTorrie Geer, CEO, CommunityWorks Carolina. CommunityWorks creates a brighter future for financially underserved people and places in South Carolina by providing equitable financial products and services to build wealth. Originally formed in 2008 as the Greenville Housing Fund – a local housing trust fund created by the United Way of Greenville County, Greenville County Redevelopment Authority, and The City of Greenville – CommunityWorks has grown into a diverse CDFI, helping to build brighter futures for underserved families and communities all across South Carolina.

Dan Marsh, President and CEO, Grow America (formerly National Development Council) – provides technical know-how and capital to support community and economic investment, having participated in financing over $6 billion in community facilities, housing, small business lending, and related transactions in more than 500 communities.

Brenda McDaniel, CFO, Kentucky Highlands Investment Corp (KHIC). KHIC provides and retains employment opportunities in Southeastern Kentucky through community development, investment, training, and the provision of management assistance.  KHIC coordinates, implements, and promotes community economic and social development efforts within a twenty-two-county footprint in East Kentucky, and has invested over $700 million resulting in the creation and retention of more than 29,000 jobs.

Stephanie Tyree, Executive Director, WV Community Development Hub – The Green Bank’s lead community engagement partner, works alongside communities to support inclusive economic development. The Hub’s model is embedded in the National Association of Counties program for Building Resilient Economies in Coal Communities, and the Hub participates in the President’s Interagency Working Group for Coal and Energy Communities.

The Green Bank will disburse Capitalization Funding and Technical Assistance Awards to over 75 participating CDFIs and other public and non-profit loan funds, bringing new investment to target communities, creating quality jobs and businesses that support sustainable growth.  Capitalization Funding will be provided to participating US Treasury CDFIs, Economic Development Administration (EDA) Revolving Loan Funds (RLFs), US Department of Agriculture (USDA) Intermediary Relending Program (IRP), and other public and non-profit loan and investment funds.  Some capitalization funding disbursements will be to larger financing partners and are anticipated to be up to $50 million, while most capitalization funding will be provided in disbursements of $10 million or less.  A total of $400 million in capitalization funding to ~75 financing partners serving rural communities are anticipated to be originated through the Green Bank for Rural America.

Technical Assistance Hubs will be created for the provision of specialized services to projects and participating communities, helping to increase the demand for – and accelerate the impact of – Green Bank financings.  These Hubs will provide specialized services for priority transaction types, as well as needed workforce development programs to meet the demand for new energy economy jobs in local communities, and community engagement activities to ensure financed projects address local priorities.

Capital Structure and Operating Budget:

• $500 million EPA GGRF award
  • $400 million Capitalization Funding to lending partners
  • $50 million Technical Assistance grants to lending partners
  • $11 million Technical Assistance services
  • $39 million operating support
• $200 million in anticipated investment from other sources including equity, debt and grants from financial institutions, businesses, individuals, and philanthropy. ACC has already received 8 Letters of Support from bank and foundation investors expressing their interest in the Green Bank for Rural America.

The Green Bank for Rural America will work closely with community engagement and workforce development partners to ensure financed projects address community priorities, and that new job opportunities are prioritized for local residents. Community engagement partners will include local community-based organizations, regional development organizations, local government leaders and others to ensure financed projects support a community’s vision and build on community strategies. Workforce development partners will include community and technical colleges, workforce boards, unions, and industry training and certification partners, ensuring that rural residents have an on-ramp to high quality employment opportunities in the new energy economy.