Local Impact Capital more effectively aligns private and in-kind funding to unlock public funds and restore resources to local communities.
Overview
The U.S. federal government has over 44 programs providing eligibility for matching funds, based on a set of measurable criteria and non-federal contributions, such as those provided by USDA NIFA (policy guide). However, without access to private (non-federal) sources of funding, projects and institutions lack the required matching contributions and initial runway to produce the outcomes to secure the federal funds. The same barriers exist to State matching funds. Local Impact Capital more effectively aligns private and in-kind funding to unlock public funds and restore resources to local communities.
Pilot
The first project of Local Impact Capital is a program to close gaps in food system infrastructure funding in the U.S. by supporting the work of small farms, food, and agricultural producers. We will achieve this by growing the non-federally funded capacity of public entities and local lending institutions to fund agricultural, community, economic, and educational development, while matching each project with available federal matching funds and loan guarantees.
How it works
Local Impact Capital, a project of Open Future Coalition and its partners, convenes U.S. and global experts in community development and finance to oversee this process, including the governance and refinement of term sheets, underwriting requirements, and impact validation and reporting. (The release of any funds will be governed by “The Process,” listed below.)
Local Impact Capital will partner with the Center for Regeneration (“The Center”) to access a national network of regional partners, including public land grant and state universities and community colleges, private schools and universities, Community Development Financial Institutions (CDFIs), and trade and worker networks, associations, and cooperatives. This partnership will augment and nurture project pipeline and provide direct access to matching funds and guarantees. In Appalachia alone, The Center has identified $300M of federal funds awaiting $100M of project funding to unlock them.
The Center and its partners will provide pre-development services to ensure project funds are released where they have the capacity to be stewarded and measured to their greatest potential.
Using the Open Impact platform, individuals, groups, and projects will connect with peers, access technical assistance, and record and validate their collective efforts to meet federal and state matching requirements.
The Process
Local Impact Capital (LIC) will manage an RFP process to identify and grow qualified local lending institutions and other financial partners to help carry out its project scope. LIC will not be participating in direct lending activities. LIC will coordinate and support those who do.
The process includes:
A Request For Proposals (RFP) from local lending institutions, using processes similar to the federal government to identify relevant projects and partners that meet LIC’s mission and matching funding and guarantee requirements.
LIC only funds projects where repayment is guaranteed through the pledging of state or federal matching funds or other grants, or by philanthropy, insurance, or property. LIC’s process management and measurement infrastructure will help ensure projects receive adequate technical assistance along the way, and that project outcomes are sufficiently reported to unlock public and other impact-based matching funds.
The Center for Regeneration provides pre-development services and technical assistance to ensure LIC's investments have the capacity to be stewarded and measured to their greatest potential.
All funded projects will use the Open Impact platform to provide ongoing process management, measurement, reporting, and ongoing learning to continue to nurture outcomes and ensure outcomes are adequately reported to release matching funds.
How to Participate
Investors &
Funds
Join our initial $100M funding pool, or work with us to catalyze existing fund by matching with projects eligible for public matching funds.
Philanthropic
Funders
Fund predevelopment through recoverable grants, or provide pledges as guarantors to enhance access to the pool for projects who may not otherwise be eligible.
Local Lending Institutions
Request to join our RFP process. We also seek early feedback on our structure and process from local lenders.
Institutional
Partners
Public institutions may request assistance accessing matching funds and guarantees. Private institutions may pledge in-kind services, facilities, equipment, or monetary contributions.