Small business lending boosts rural Kentucky economies
In one rural Kentucky county, local financing has helped a grocery store make energy-efficiency upgrades and install solar panels, offsetting yearly utility bills by more than $68,000. Robin Gabbard, president of the Mountain Association, said a lack of investment in rural Appalachian communities has prevented many small-business owners from helping to change the tide in their communities. She explained rural small businesses lack access to the capital needed to diversify local economies. "When we put that into practice, entrepreneurs are seeking smaller loans. They often have fewer financing opportunities, and additionally, most banks will not finance new businesses that are startups," Gabbard pointed out. More than $95 million has been invested in rural Appalachian communities over the past 50 years by the Mountain Association, including support for 600 entrepreneurs. Gabbard noted local lending can often make a difference for residents on a daily basis, such as determining how far someone has to travel. She explained at one IGA grocery store in Letcher County, owner Gwen Christon used financing to upgrade the coolers and HVAC system to make her store more energy-efficient, and by saving money on energy costs, she has been able to hire more employees. "She's been able to
