Akron, Ohio (June 2017) – The Development Fund of the Western Reserve (DFWR) announced today that members of the Akron Development Fund increased its loan commitment from $1,000,000 to $1,500,000 to support an additional investment within the DFWR’s Akron Community Revitalization Fund. The Akron Development Fund I, LTD., is a for-profit limited liability providing long term, below market rate financing for local economic development projects within the Greater Akron Region.
The Akron Community Revitalization Loan Fund will help enable business development projects in distressed census tracts and urban areas within the City of Akron. DFWR, which is affiliated with the Development Finance Authority of Summit County (“DFA”), has contracted with Cleveland-based Village Capital Corporation to take advantage of its development finance expertise to assist with underwriting promising urban revitalization projects. An advisory committee, comprised of Akron-area funders, will authorize projects for funding.
Marc Merklin, who serves as the legal counsel to the Akron Development Fund, commended DFWR for establishing its new loan fund which is specifically targeted at Akron’s most distressed neighborhoods. “This is an opportune time for this type of investment in our community.”
Rick Rebadow, Greater Akron Chamber Executive Vice President, said the Greater Akron Chamber, which markets the fund to potential investment projects, is very pleased to be in a role to support DFWR’s Akron Community Revitalization Fund. “Leveraging these resources creates collaborative synergies for promoting wealth and opportunity in areas of Akron that are especially in need of this type of activity”.
DFWR is dedicating $6.75 million in Federal New Markets Tax Credit allocation to capitalize the Fund. After the tax credits are purchased by an investor, $2.25 million in new cash equity will be available in the Fund. To leverage that equity, DFWR must raise a total of $4.5 million from the community. DFWR has now raised $3.59 million, which includes the additional funding commitment from Akron Development Fund.