Kentucky Highlands Investment

What Kentucky Highlands Investment does

Kentucky Highlands Investment Corporation (KHIC) is a non-profit Community Development Financial Institution (CDFI) founded in 1968 and headquartered in London, Kentucky. It is the first organization in Kentucky to receive federal CDFI recognition (1994). KHIC provides debt and equity capital, training, and business development services to small businesses, farmers, entrepreneurs, FQHCs, non-profits, and affordable-housing developers across a 22-county footprint in Southeastern Kentucky, with the SOAR Farm Loan program extending activity into a broader 54-county ARC-designated area.

Its core product set spans seven lending products (Advanced Business Solutions Loans, Current Asset Leverage Financing, Equity Investments, Freight Fund, Micro Enterprise Loans, Small Business Loans, and SOAR Farm Loans), supplemented by a 9,600 sq-ft facility called The Center at Kentucky Highlands that offers co-working, office space, the region's only leasable wet and dry laboratories, a virtual office product, and a training room. KHIC operates on a community-led go-to-market: revenue is generated primarily through loan interest income on a revolving loan book (cumulative deployment of $701.6 million across 56 years, with 155 SBA/USDA loans totaling $21.5 million in 2024), subscription and fee income from The Center and training programs ($50/month mini-lease, $399 leadership series, $60-75 per-employee training workshops), and grants/federal program subsidies that recapitalize the lending pool.

KHIC serves three primary customer segments — small businesses and entrepreneurs (Primary), farmers and agricultural producers, and startups/growing businesses needing workspace and laboratory access — and embeds itself in its borrowers' lifecycles via The Center ecosystem (co-located SBDC, Invest 606, SOAR Innovation, Code You, KyAPEX), the Kentucky Highlands Community Network, and partnerships with USDA Rural Development, the Appalachian Regional Commission, SOAR, Fahe, and NACo's BRECC Coalition. Cumulative impact metrics include 1,109 small businesses financed and 29,303 jobs created or maintained.

Name

Kentucky Highlands Investment

Legal name

Kentucky Highlands Investment Corporation

Website

https://khic.org

Company type

Private

Founded year

1968

Operating status

Operating

Headcount range

11–50 employees

Short description

Kentucky Highlands Investment Corporation (KHIC) is a non-profit Community Development Financial Institution providing loans, equity investments, training, and co-working/laboratory space to small businesses, farmers, and entrepreneurs across a 22-county Southeastern Kentucky footprint, having deployed over $700 million since 1968.

Ownership category

akta.pro rank

Product category

Community Development Finance

NAICS

Savings Institutions and Other Depository Credit Intermediation (522180)

SIC

Functions Related To Depository Banking, Nec (6099)

akta.pro primary industry

Impact Investing & Social Finance (Funds, CDFIs, Microfinance) (BPAGALAA)

akta.pro secondary industry

Microloans & Working Capital Loans (FSAKAGAA)

Keywords

• Small business lending
• Community development finance
• Micro enterprise loans
• Rural economic development
• Equity investments

Headquarters

HQ city

London

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Others, Marketing or Sales, Infrastructure

Revenue model

1. Loan Interest Income: KHIC generates revenue primarily through interest on loans made to small businesses, farmers, and entrepreneurs across its 22-county service area. As a CDFI, they participate in federal, state, and private programs to obtain capital for relending.

Pricing tiers

Go-to-market motion1 record

Distribution channels4 records

Marketing channels6 records

Core offering

Kentucky Highlands Investment Corporation is a nonprofit Community Development Financial Institution (CDFI) that provides loans, equity investments, business training, and co-working space to small businesses, micro-enterprises, and farmers across a 22-county region of Southeastern Kentucky. It operates multiple loan funds and programs designed to fill financing gaps left by traditional banks in rural Appalachian communities.

Product overview

Kentucky Highlands Investment Corporation (KHIC) operates as a Community Development Financial Institution (CDFI) offering a comprehensive portfolio of financial products and business support services. The core offerings include: lending solutions (Advanced Business Solutions Loans, Current Asset Leverage Financing, Small Business Loans, Micro Enterprise Loans, Freight Fund, and SOAR Farm Loans), equity investments, and The Center at Kentucky Highlands co-working facility with office spaces, laboratories, and meeting rooms. The organization complements its financial products with training programs and hosts the Small Business Development Center (SBDC) to provide holistic business development support. Together, these products form an integrated ecosystem designed to support entrepreneurs and small businesses throughout their growth lifecycle in Southeastern Kentucky.

Differentiator

Problem solved

Functional benefit

Brands

• SOAR Small Loan Production Fund: Agricultural loan program established in 2016 providing loans up to $10,000 at 1% fixed interest rate to farmers across 54 Appalachian Regional Commission designated counties.
• Kentucky Highlands Solar Energy Revolving Loan Fund
• The Center at Kentucky Highlands

Products and services

• Small Business Loans

Quantifiable outcome

• $701.6 million invested in the region since founding in 1968
• +3 more outcomes

Named customers8 records

Segments3 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

20 partnerships are on record, tiered core and minor.

• SOAR (Shaping Our Appalachian Region)coreStrategic or Co-development Partner · 1 January 2016SOAR Small Loan Production Fund established in 2016 with $950,000 from Kentucky Agricultural Development Fund. KHIC manages the program which has approved 415+ loans for $3.8+ million. SOAR Summit held annually in Corbin.
• USDA Rural DevelopmentcoreStrategic or Co-development PartnerUSDA Rural Development works with KHIC on various rural development initiatives. Travis Burton, USDA Rural Development State Director for Kentucky, visited KHIC partners to learn about the region's thriving businesses. KHIC participates in USDA programs including REAP grants.
• Appalachian Regional Commission (ARC)coreStrategic or Co-development PartnerKHIC manages an ARC POWER grant that covers 50% of continuing education tuition for Grace Health employees. ARC funds support economic development initiatives across Appalachian Kentucky.
• Other Kentucky CDFIs (Fahe, Mountain Association, SKED, Community Ventures)coreStrategic or Co-development PartnerKHIC works with other Kentucky CDFIs engaged in community development including Fahe, Mountain Association, SKED, and Community Ventures to provide financial services, business development support, and job creation in underserved areas.
• Rural Partners Network / Kentucky Highlands Community NetworkcoreStrategic or Co-development PartnerKHIC transitioned Promise Zone partnerships into Kentucky Highlands Community Network under Rural Partners Network, a USDA-led all-of-government program helping rural communities access government resources. Two full-time employees work in the network.
• Midwest Energy Enterprise, LLCminorStrategic or Co-development PartnerEnergy consulting firm based in Frankfort that works with KHIC to assist businesses in preparing REAP applications and implementing energy-efficiency and renewable technology projects.
• HOMES, Inc.minorStrategic or Co-development PartnerAffordable housing provider in Letcher County with expertise in installing solar energy systems. Partnered with KHIC on Solar Energy Revolving Loan Fund projects.
• Human/Economic Appalachian Development Corporation (HEAD)minorStrategic or Co-development PartnerProvides financing to small start-ups and expanding businesses in central Appalachia. Partnered with KHIC on Solar Energy Revolving Loan Fund.
• Kentucky Small Business AdministrationcoreStrategic or Co-development PartnerPartnership with Kentucky SBA providing collaboration and services to support job creators in the region. KHIC made 155 SBA/USDA loans totaling $21.4 million last year.
• FahecoreStrategic or Co-development PartnerPrepared and managed New Markets Tax Credit financing for Grace Health Medical Campus renovation. Works with KHIC on community development projects.
• Small Business Development Center (SBDC)coreStrategic or Co-development PartnerSouth Central SBDC located office in The Center at Kentucky Highlands to provide consulting and training services for entrepreneurs and existing businesses in the region.
• Invest 606minorStrategic or Co-development PartnerOne of the region's free business development resources housed at The Center.
• SOAR InnovationminorStrategic or Co-development PartnerFree business development resource located at The Center.
• Code YouminorStrategic or Co-development PartnerFree business development resource at The Center offering coding training through Innovation Lounge sessions.
• KyAPEXminorStrategic or Co-development PartnerFree business development resource at The Center.
• National Association of Counties (NACo) BRECC CoalitioncoreStrategic or Co-development PartnerKHIC's Sandi Curd is a member of NACo's Building Resilient Economic Coal Communities Commitment Coalition, working with leaders from six states on economic diversification strategies.
• Kentucky Alpaca Association (KAA)minorStrategic or Co-development PartnerKHIC provided $7,500 loan alongside HEAD Corporation's $15,000 loan to help KAA establish its first fiber pool project, turning alpaca fiber into socks.
• Somerset KyleadsminorChannel Partner/ Reseller/ DistributorKHIC partners with Somerset Kyleads for registration of leadership and soft skills training workshops including Servant Leadership, Ten Soft Skills, and Accountability in the Workplace.
• Highlands Housing CorporationminorStrategic or Co-development PartnerKHIC provided $455,000 loan as working capital to Highlands Housing for constructing affordable homes. Partners include USDA Rural Development, Kentucky Housing Corporation, Federal Home Loan Bank.
• University of Louisville Kentucky Manufacturing Extension PartnershipminorStrategic or Co-development PartnerPartnership for FrontLine Leadership Excellence series and Problem Solving Power workshops taught at The Center.

Scale indicators10 records

Recent moves7 records

Expansion highlights6 records

Direct peers

• Fahe: Fahe is a Berea, Kentucky-based CDFI network serving Appalachian communities with housing and small business capital. Highly comparable as a regional CDFI peer operating in overlapping Southeast Kentucky/Appalachian geography with similar mission-driven lending and federal program participation.
• Community Ventures Corporation: Community Ventures is a Central Kentucky CDFI delivering small business loans and entrepreneurship support. Direct peer operating in the same Kentucky CDFI ecosystem with shared federal programs and similar SMB/farming customer segments.
• Mountain Association: Mountain Association is an Eastern Kentucky community development financial institution offering loans, technical assistance, and energy-efficiency programs. Direct CDFI peer with overlapping service territory in Appalachian Kentucky and comparable focus on rural business and clean energy financing.
• Southeast Kentucky Economic Development (SKED) Corporation: SKED is a regional economic development corporation serving Southeast Kentucky with small-business financing and entrepreneurship programs. Direct CDFI-adjacent peer cited alongside KHIC within Kentucky's community development coalition.
• People Incorporated of Southwest Virginia: People Incorporated is a Southwest Virginia community action and small-business lender serving distressed Appalachian communities. Direct regional peer operating an adjacent ARC-designated footprint with comparable small-business lending and workforce development programs.

Emerging players

• Invest Appalachia: Invest Appalachia is a place-based impact fund targeting Central Appalachia with debt and equity capital for community development. Emerging player with partial overlap in geographic focus, customer base (rural SMBs and nonprofits), and clean energy / housing verticals.

Others

• Opportunity Finance Network (OFN): Opportunity Finance Network is the national CDFI industry trade association providing capital, policy advocacy, and training to member CDFIs including KHIC. Adjacent industry-body peer that anchors KHIC's grant and policy ecosystem rather than competing for borrowers.
• Rural LISC: Rural LISC is the rural arm of Local Initiatives Support Corporation providing capital and capacity-building to rural CDFIs and community developers. Compares as an adjacent funder/advisor rather than a direct competitor, with overlapping rural focus and award-giving relationship.
• Appalachian Community Capital (ACC): Appalachian Community Capital is a regional CDFI coalition connecting Appalachian CDFIs with investors and federal programs. KHIC's CFO sits on ACC's Green Bank steering committee; an ecosystem enabler rather than a competitor.
• GrowAmerica: GrowAmerica (formerly America's CDFI/CDFI Coalition) is the national advocacy alliance and certification body for U.S. CDFIs. Industry-infrastructure peer providing the EDFP certification several KHIC staff are pursuing and federal policy coordination.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/kyhighlands
• Facebookfacebook.com/rockettheme
• LinkedInlinkedin.com/company/kentucky-highlands-investment-corporation

Revenue estimate

Valuation estimate

Number of profiles

Profiles6 records

Funding overview

Funding rounds1 record

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Kentucky Highlands Investment