The Pine Mountain Community Development Corporation recently granted its 100th loanThe Pine Mountain Community Development Corporation, formed in 1997, recently granted its 100th loan. The entity is a collaborative effort among Southeast Kentucky Community amp; Technical College and six area banks who provided start-up funds for the creation of small businesses in Harlan, Bell and Letcher counties. The hallmark 100th loan was made recently to Howard Law Firm, PLC of Pineville headed by Joshua Howard. The loan was provided by PMCDC and Kentucky Highlands Investment Corporation.
We are tremendously pleased to grant our 100th loan to be able to assist in the development of this business in Pineville, noted Paul Pratt, PMCDC president. Like many other entrepreneurs in this region, Mr. Howard represents the long-term viability of the economy of Eastern Kentucky. By investing in small businesses, PMCDC is able to create and sustain jobs, which is our ultimate goal and mission.
Pratt went on to explain how PMCDC is a multi-bank community development corporation serving in a collaborative effort with SKCTC and local banks which include BBamp;T, Commercial Bank, Community Trust Bank, Whitesburg, Community Trust Bank, Middlesboro, Home Federal Bank and PNC Bank. The board of directors includes a representative from each of the banks, from SKCTC and three community members from Bell, Harlan and Letcher counties. PMCDC is certified under the U. S. Treasury Departments Community Development Final Institution Program and has received grants from that fund. PMCDC is also a founding member of the Appalachian Development Alliance, which provides investments throughout the Kentucky Appalachian counties.
The corporation was forged when SKCTC was a participant in the Ford Foundations Rural Community College Initiative in the mid 1990s. At that time, the college conducted a survey of economic needs within the colleges service area. Respondents overwhelmingly stated there was little or no access to capital for small business and micro enterprise development, said Pratt. The college and the investor banks decided to form Pine Mountain Community Development Corporation as a way of providing the capital banks could not traditionally provide.
In order for a loan to be considered, a business plan is required and the borrower must demonstrate the ability to repay the loan, must have positive net worth and collateral and have made an initial investment in the business with the applicant having management qualifications. The applicant must also have some business experience in addition to being able to show the ability to meet the core lending criteria of PMCDC. The corporation works to provides loans for the development of new businesses and the expansion of existing businesses, said Pratt. Loan funds may be requested for business acquisitions, modernization of product development, purchase of land, equipment, materials, machinery or supplies and for the providing of start-up operating costs and capital.
For further information regarding PMCDC, contact Mr. Pratt by phoning 606-589-3056 orby E-mail at:Paul Pratt