USDA Rural Development has approved Champion Community Investments for a $1 million loan fund through USDA’s Intermediary Relending Program (IRP). These funds increase the amount of small business lending capability of Champion Community Investments (CCI) to over $5 million, including $4 million in CCI’s primary service area of Jefferson, Jackson, Williamson, Perry, and Franklin Counties.
“Community Economic Development is a cornerstone of our work to strengthen rural communities,” said Colleen Callahan, IL Director for USDA Rural Development. “An IRP is designed to capitalize local revolving loan funds so that they, in turn, can finance business and community development. We appreciate being able to partner with Champion Community Investments to advance this region.”
Since 2006, Champion Community Investments has closed over 80 loans primarily to southern Illinois small businesses. The 501c3 non-profit corporation has been in existence since 2002 to provide economic and community development support to local communities and has become an increasingly important source of lending capital in the communities served
CCI started its lending program in 2006 with a $94,000 grant from Rural Development with which to create a revolving loan program. With the success of that effort, CCI obtained its first $300,000 loan from USDA. This most recent loan is the fourth IRP loan from USDA to CCI, and the third $1 million loan. According to CCI and USDA regulations, loans made from CCI have a ceiling of $150,000 per loan and can only be 75% of a total project. CCI charges 5% simple interest with closing costs of 1% or actual costs, whichever is higher. All CCI loans must be fully collateralized.
Rex Duncan is president of the board of directors of Champion Community Investments. He attributes the success of CCI’s lending programs to a solid working relationship with USDA and area banks. “We truly value our relationships with USDA Rural Development staff both locally and statewide,” Duncan said. “We’re so grateful to them for creating an environment in which we can be successful in getting these funds out on the streets and in the hands of good borrowers.”
CCI also works with area banks. The organization has made several loans in which it was able to fill in financial gaps between the business need and the bank’s comfort level. Duncan said CCI has closed several successful loans that were partnerships among commercial banks, municipal loan funds, owner equity, and CCI funds. “We like partnering with the banks in the region,” he said. “They have always treated us as colleagues and we have a great deal of trust in their underwriting.”
The Champion Community also manages two Rural Microentrepreneur Assistance Program (RMAP) loan funds of $500,000 each. Regarded as a national leader in this program, CCI was one of the first RMAP lenders in the country that fully exhausted its original allotment. A second round of funding has enabled CCI to continue the RMAP program in its primary five counties plus Randolph, Hamilton, White, Gallatin, Saline, Pope, and Hardin Counties.
Additionally, CCI is a designated Community Development Financial Institution (CDFI) by the United States Department of the Treasury and was awarded a $600,000 Small and Emerging CDFI Assistance (SECA) grant. Those grant funds are being used for added lending resources as well as leverage with which to create more lending programs in the region.
CCI is a 501c3 non-profit corporation registered in the State of Illinois. Its board of directors include Duncan, Allan Patton, Cary Minnis, Jeff Ashauer, Jonathon Hallberg, Brenda Malone, Dennis White, Jeff Doherty, Gary Williams, Don Gass, and George Stavroulakis. Jeff Ashauer also serves as CCI’s loan funds manager.
For more information about Champion Community Investments, visit the organization’s web site at ccinvestments.org or contact Duncan at rduncan@siu.edu or (618) 713-6320. For specific information about CCI loans, contact Ashauer at jashauer@msn.com or (618) 357-2940.
This award is part of the Obama Administration’s efforts to target federal assistance to coal communities and workers impacted by changes in the coal economy, where job losses in recent years have continued a decades-long trend. This effort complements the POWER+ Plan proposed in the President’s FY 2016 budget that seeks to invest in new coal technologies, address the legacy costs of coal mining, and help workers and communities reliant on coal mining, power plant, and other coal economy jobs to adapt to the changing energy landscape.