MESSAGE FROM LEADERSHIP
2021 was a year of impact for Rural LISC. Not only did we exceed fundraising goals, but we also strengthened programming allowing us to amplify our work as a community investor and economic responder.
In 2021, Rural LISC invested more than $27 million in direct grants and low-cost loans to non-profits and small businesses in rural communities. Our total leveraged, investment exceeded $700 million, representing sizeable, collaborative effort by both CDC partners and Rural LISC affiliates to support a variety of rural community development needs.
Throughout 2021, Rural LISC expanded programming, partnerships and investment in our 5 key pillars – creative capital; workforce development and small business; broadband and infrastructure; housing, and disaster solutions. This operational approach helped to better solution for both short-term immediate needs and longer-term, systemic challenges.
Over the last year, Rural LISC accelerated workforce development and broadband programming to better respond to the ongoing need for addressing gaps and disparities in quality jobs, digital skilling and broadband connectivity. Additionally, our Financial Opportunity Centers (FOCs) continued to address ongoing wealth disparities by providing technical training and resources geared to strengthening financial literacy, individual savings and homeownership counseling. Through generous support from funders, Rural LISC was also able to expand our Business Development Organization (BDO) network and our Rural Works programming to better connect small businesses and individuals with access to capital, technical assistance (TA) and in demand jobs with regional employers – further strengthening economic opportunity in rural communities.
All of this investment has allowed Rural LISC to support thousands of rural businesses and hundreds of non-profits addressing myriad community challenges through direct grant and loan support and indirect technical and programmatic assistance. The impact needle continues to be moved in rural communities because of the support and generosity of our major funders and partners – to all - a heart-felt thank you!
Sincerely, Caitlin Cain Rural LISC Director & LISC Vice President
There is much more work to do in 2022 and we look forward to seeing all of our partners, funders, advocates and rural champions at the upcoming Rural Seminar series – Rural Talks on the Hill. Until then, please stay safe and be well.”
Who is Rural LISC?
In 1995, the Local Initiatives Support Corporation (LISC), a community development support organization working in metropolitan areas across the country, launched Rural LISC, a national program created to expand LISC's reach beyond urban areas to include rural communities. Today, Rural LISC partners with more than 150 rural community-based organizations, including five financial intermediaries, helping them identify challenges and opportunities and delivering the most appropriate support to meet local needs. Together, we are working to transform communities in more than 2,400 counties across 49 states and Puerto Rico.
Recognizing that rural community needs are multi-faceted, Rural LISC provides a wide range of services, including training, technical assistance, resources, information, direct program support and financial support, to help rural stakeholders solve for unique local challenges. We focus on comprehensive community development strategies to support our partners in expanding investment in housing and real estate; family income and wealth; economic development; access to quality education; and, stimulating workforce and placemaking opportunities.
Rural LISC operationalizes investments through a 5 pillar approach focused on providing financial and technical support in the following areas: creative capital, broadband and infrastructure, workforce development and small business, housing, and disaster solutions.
Rural LISC operationalizes investments through a 5 pillar approach focused on providing financial and technical support in the following areas: broadband and infrastructure, creative capital, disaster solutions, housing, and workforce development and small business support.
OUR PILLARS
With residents and partners, Rural LISC supports resilient and inclusive rural communities as great places to live, work, and innovate. Rural LISC strives to identify priorities and opportunities - and deliver the most appropriate support to meet local needs through integrated strategies and programs focused on five pillars of rural community development: Broadband & Infrastructure, Creative Capital, Disaster Solutions, Housing, and Workforce Development & Small Business.
Creative Capital
BY THE NUMBERS
Rural LISC’s 2021 private philanthropy goal was $2,150,000. In total, Rural LISC raised $3,081,759, which is 143% above goal, and supported the LISC National fund development team to secure $745,000, which is 213% above their $350,000 2021 goal.
total public funds raised
secured in private philanthropy
Through Creative Capital, Rural LISC provides grants and loans needed to support housing, community facilities, small businesses, and community development projects. Rural LISC provides a variety of lending products including low interest loans, credit enhancement, pre-development funding, recoverable grants and direct grant assistance to non-profits and small businesses. Rural LISC also works directly with affiliates (NEF, NMSC and Immito) to leverage low income housing tax credits, new market tax credits and SBA lending for rural partners.
Rural LISC works to ensure that grant and lending products are flexible, nimble and creative to better address racial health, wealth and opportunity gaps.
In 2021, Rural LISC and affiliates invested over $220MM in direct financing to partner organizations, representing over 80 projects in rural communities. Together, Rural LISC partners and affiliates leveraged an additional $485MM, bringing the total development impact in 2021 to $705.6MM.
2021 Total Development Impact for Rural Communities
Total Amount of Grant Funding to Small Businesses
$6.3M
Total Amount of Grant Funding Deployed to Non-Profits
Total Amount of all Loans and Lines of Credit Closed
Total Amount of Public and Private Dollars Raised
Impact Stories
Small Business Loans
Local music stores saw a surge during the pandemic. Mantova Two Street Music in Eureka, California was no exception. Rural LISC provided a $100,000 loan to this 46-year-old business, which was used to consolidate debt and provide capital for the business to expand its inventory for the busy holiday shopping season.
Kiva Micro Finance Lending
Rural LISC partners with small business organizations to bring microfinance capital to small businesses using the KIVA platform. In 2021, Rural LISC facilitated 95 microloans to entrepreneurs totaling $689,000.
Causa Local, a Puerto Rico micro financer, works to strengthen capital access across Puerto Rico, through a Rural LISC KIVA partnership. A KIVA loan helped expand the virtual music school on the island.
“Musarte is a music school focused on the Suzuki method. We officially began operations in August 2021, completely online. We hope to share with the children and adults of the southern area of Puerto Rico the passion and love for music that characterizes us.” – Maria Musarte
“Musarte is a music school focused on the Suzuki method. We officially began operations in August 2021, completely online. We hope to share with the children and adults of the southern area of Puerto Rico the passion and love for music that characterizes us.” – Maria Musarte
Recoverable Grants
Rural LISC invests in change agents that work to eliminate systemic barriers to opportunity. With support from Wells Fargo, Rural LISC provided a $50,000 recoverable grant to the Potlikker Capital. Potlikker Capital is a Black-led investing fund that deploys ‘reparative capital’ to BIPOC (Black, Indigenous and people of color) farmers who operate at the intersection of racial and climate justice.
Potlikker utilized the recoverable grant to invest in DeLaTerre Permaculture Farm, a 14-acre homestead in Eros, LA. “Building the soil with natural, regenerative practices, no chemical fertilizers, herbicides or pesticides are necessary to grow food that is wholesome, nutritious and just plain tastes good”. They both seek to grow healthy food for north Louisiana and sell directly to consumers through community supported agriculture.
Housing
The global health pandemic continued through 2021, highlighting the importance of quality affordable housing. Our homes became our offices, classrooms, and gyms as well as places of respite and safety. Unfortunately, for far too many, the cost of housing has become increasingly unaffordable. Even in rural communities, where housing costs are generally lower, more than one-third of renter households are cost-burdened (i.e., pay more than 30% of income for rent); nearly one-fifth are severely cost-burdened (i.e., pay more than 50% of income for rent). While many rural communities enjoy high rates of homeownership, the homes tend to be older than in urban communities, which may require additional levels of investment for accessibility, energy efficiency, and livability.
Housing markets, needs, and conditions are highly localized. Instead of a “one size fits all” response and solution, Rural LISC works to ensure our partners have the financial, knowledge, and technical resources needed to create affordable housing opportunities and foster communities that incorporate a sense of pride, place, and livability.
Affordable Housing
Rural LISC invested $4.3 million in Resident Ownership Capital, LLC, a nonprofit social venture offering affordable resident ownership of manufactured home communities in rural areas. In a Resident-Owned Community (ROC), homeowners form a nonprofit cooperative, and the cooperative owns the land and manages the community's business. Every community member has an opportunity to have a say in how the ROC operates, and significant decisions are made by democratic vote.
$5.3M
in grants and loans
$450.6M
in total development
housing units produced and/or preserved
Additional Housing Highlights
- 53 Housing Projects
- 627 Owner-Occupied Units Developed
- 1,930 Rental Units
- 673 New Construction Units
- 784 Rehabilitated Units
- $123.5 Million in National Equity Funds to 17 projects
- 35 Healthy Housing Grants totaling $524,801
- 18 Creative Placemaking Grants totaling $202,950
- 82 Capacity Building Grants totaling $1.5M
- 82 Capacity Building Grants totaling $1.5 Million
- 1,930 Rental Units
- 784 Rehabilitated Units
- 35 Healthy Housing Grants totaling $524,801
Workforce + Small Business
Connecting creative workforce solutions to training that prepares people to take full advantage of new financial opportunities and secure quality jobs; engaging Entrepreneurial Ecosystem Builders to equip small businesses with the support to thrive. We move the impact needle through 3 key programs; Rural Works, Financial Opportunity Centers (FOCs) and Business Development Organizations (BDOs).
Rural Works ensures stronger connections between training providers and industry, by focusing on pathways that lead to industry-recognized credentials and livable wage employment for rural workers. Rural Works helps seed innovation of rural markets to better solution for a 21st-century economy.
Financial Opportunity Centers build bridges for individuals and families to overcome the unique challenges in rural communities across America. Through accessible workforce development opportunities, FOCs also deliver education around public benefits and financial stability programs that position individuals to become homeowners and provide families with a pathway to financial freedom.
Business Development Organizations build the capacity of the rural entrepreneurial ecosystem by providing businesses with direct technical assistance, coaching, emergency preparedness, research & evaluation, connectivity, committed advocacy, and capital access through LISC’s lending products.
Financial Opportunity Centers build bridges for individuals and families to overcome the unique challenges in rural communities across America. From accessible workforce development opportunities to education around public benefits and financial stability programs that position individuals to become homeowners, rural FOCs are providing families the financial freedom they dream of achieving.
Small Business Grants: Impact
- 755 Direct to Small Business Grants
- $11,757,500 Direct Grants
- 78.8% BIPOC owned
- 62.7% Women-owned
- 48.7% Minority Women-Owned
- Grant Partners: Lipton, Lowes, MetLife, Uber, Verizon
Small Business/BDO Network
- 14,102 Unique Businesses Served
- 831 Training & Workshops Delivered
- $8.4 M Grant Investments
- $23.7 M Loan Investments Leveraged
Education & Training: Impact
- 37 Rural Post-Secondary Partnerships
- 1,941 Entering Vocational Training or Career Education
- 1,193 Completed Vocational Training or Career Education
- 14,102 Unique Businesses Served
- 4,786 of Unique Businesses Engaged
- 4,587 Woman-owned Businesses Served
- 11,181 small businesses received grants; $8.4 million in grants
Employment: Impact
- 2,606 Total Job Placements
- 1,626 Full-Time Job Placements
- 284 Part Time Job Placements
- 696 Apprenticeship & Work Learn Programs
Industry Engagement Created
- 204 Employers Engaged
- 7 Rural Industry Sectors
- $11.7 M Workforce Funding Collaborative Leverage
Wealth Building Achieved
- $9,728 Average increase in net worth
- $5,678 Average Savings for Integrated Service Clients
Impact Stories
Wealth Creation
Integrating services like financial coaching and access to social service benefits with employment coaching, strengthens wealth creation opportunities. In 2021, 59% of clients who received an integrated service approach achieved key outcomes on job placement/retention; an increase in net income, net worth, and/or credit score. Of those with an updated budget on file with our Financial Opportunity Centers, 60% increased their net income, with an average increase of $1,754. Approximately 68% saw their net worth rise with an average increase of $9,728.
Creating Racial Equity
Growing small businesses are essential to creating community wealth in rural regions. It is especially important in closing the wealth gaps that persist for rural Black, Indigenous and people of color (BIPOC) populations and women. As part of our efforts through LISC's Project 10 X, Rural LISC's BDO network served 5,948 BIPOC-owned businesses in 2021 and 4,587 women-owned firms. Through dedicated staff and over 51 entrepreneurial support organizations, Rural LISC is solutioning generational poverty and structural inequality.
Nurturing Resilience on Louisiana’s Gulf Coast
In the wake of the pandemic and a series of devastating hurricanes, Rural LISC responded with relief grants to entrepreneurs and support for business development organizations, helping buoy a critical rural sector: Louisiana Gulf fisheries. Read on to learn about the people, groups and places touched by LISC's $3.2 million investment in nurturing resiliency for the heritage industry.
Kroger & Build It Together
Clarksdale, MS #InvestInRural Virtual Partner Tour
Lipton Ice Tea Heartland Hope Rural Relief Small Business Grant Program
Broadband + Infrastructure
Innovating how rural communities integrate digital supports, broadband and other infrastructure needs into the community to increase equity and access.
In 2021, Rural LISC built a precedent-setting national model to help residents from under-resourced communities benefit from engaging in the digital realm –for work, school, business development and expanded economic opportunity. In 2021 a network of 112 Digital Navigators served 34 sites in 20 states across the Appalachian region, the Deep South, the upper Midwest, and the Navajo Nation. These regions were able to leverage Rural LISC's extensive and trusted partner network of frontline community service organizations to help community members gain technology skills to participate more fully in the workforce, economy, and society.
The Digital Navigator program reinforces Rural LISC’s emerging role in supporting access to the tools of the modern digital economy. By scaling a national broadband predevelopment program that supports communities with stakeholder capacity building to plan for future broadband infrastructure deployments, we frame infrastructure’s central role in delivering rural economic opportunity. In 2021, we supported rural communities in Alabama, Mississippi, North Carolina, Virginia and West Virginia with resources and technical assistance to strategically plan for broadband-related opportunities.
clients served
digital navigators trained
partner sites
states served
devices purchased and deployed
first-time computer learners served
counties served in 2021
Disaster Solutions
Training communities on preparing for and pivoting (natural, man-made, or economic).
In 2021, Rural LISC dedicated time to listening to our partners, community leaders, and existing disaster organizations across the country. We collected data, reviewed research, and spoke to thought partners in various disciplines to begin to form evidence-backed, need-based disaster solutions.
Rural Needs (The Why)
- On average, 25%-40% of small businesses close after a disaster
- Loans to small businesses are usually inaccessible and, when obtained, actually compromise recovery outcomes
- Migration from rural to urban post-disaster is driven primarily by loss of housing, jobs, and social networks
- Community-based coalitions offer the most inclusive forum for preparedness and recovery, but often lack the resources, infrastructure, and technical knowledge needed to carry out the work effectively
- Families with the highest risk to disasters also often have the least amount of resources to mitigate damages to their property
- Increasing construction costs, insurance, and skilled-labor shortages exacerbate barriers to building resilient, affordable housing.
- There is considerable siloing between the community development sector and emergency management, leading to duplication, disjointed recovery, or competing efforts
Our Focus (The Goals):
- Decrease the number of small businesses that close from disasters
- We must address the barriers to mitigating the impact of hazards on affordable housing
- Support locally-led, community-based disaster-related coalitions
Solutions (The How):
- A comprehensive business continuity and innovation program that provides:
- Grants to help Business Development Organizations expand capacity to support small businesses preparedness and recovery
- Grant funds for small businesses to cover preparedness and recovery costs
- Training and ongoing technical guidance to BDOs to equip them to provide free preparedness and recovery consulting to small businesses
- Rural Recovers Together: A capacity-building program that provides funds, training, and technical guidance to community-based preparedness and recovery coordination bodies
- Funds and technical guidance to ensure comprehensive support for the incorporation of resilient construction methods into affordable housing
- An awareness campaign to bring greater understanding and attention to rural disasters for recovery efforts
- Assist in the rehabilitation and reconstruction of a community
- Advocate for small business recovery, provide technical assistance to recovery planning and long-term community-based economic development plans
OUR FUNDERS
Thank You to Our Donors, Funders and Rural LISC Champions
