Capital and Credit Needs in the Appalachian Region

The purpose of this study was to help ARC and other economic development policymakers in the Appalachian Region better understand how conditions in the Appalachian economy and the functioning of the Region’s capital markets affect the availability of capital and credit for the Region’s businesses; and to identify ways ARC can more effectively address unmet business credit and capital needs in the Region. The study includes an analysis of county economic and banking market data; a survey of businesses in the Region, interviews with development finance professionals, an inventory of state, regional, and local development finance programs, an assessment of recent financing activity by ARC revolving loan funds (RLFs), case studies of business financing needs and gaps in areas served by ARC RLFs, and a literature review of business finance conditions and trends affecting small businesses and businesses in rural areas.