HEAD Loan Fund

The HEAD Board of Directors continued its focus on mission lending during 2016 by providing financing to support private business in their job creating efforts and creating new bonds with area non-profits.

During 2016, HEAD Corporation made three loans totaling $107,500. While the need and demand for financing remains high, the volume of loans is limited by the total capital available in the HEAD Community Loan Fund. HEAD loan capital was almost fully deployed at the end of 2016 and we are currently pursuing additional lending resources. HEAD continued is policy of providing financing to locally-owned businesses and organizations.

HEAD Corporation participated with our partner Kentucky Highlands Investment Corporation (KHIC) to make a $50,000 loan to Highlands Diversified Services, a locally-owned manufacturer of electronic products. With HEAD assistance, Highlands Diversified was able to open a new plant in Jackson County which currently has 40 employees and plans to grow to 100. These jobs are vital to Jackson County which has a poverty rate of 34% and is the 8th poorest county in the country. HEAD also participated in the financing of an expanded medical complex in Clinton County with a $50,000 loan to KAP Land Holdings. The complex contains two doctor’s offices, an MRI practice, a durable medical goods provider, an eye care practice and a pharmacy. Clinton County is a medically-underserved area in which the community hospital just came out of bankruptcy in mid-2016 with new ownership. HEAD felt it was important to support the existing medical community so residents continue to have coverage available locally.

The final investment by HEAD Corporation during 2016 was a $7,500 loan to the Berea Urban Farm, a program of Sustainable Berea, Inc., a non-profit in Berea, Kentucky. The mission of Sustainable Berea is to promote projects and educational programs to create more resilient households, neighborhoods and communities. The HEAD loan, along with a $7,500 loan from the SOAR Small Loan Fund which uses tobacco settlement funds, was used to build an additional greenhouse for community use.

It was an excellent year for HEAD Corporation in terms of lending. Our lending is limited by available capital but we view that as a good thing because we are helping as many small businesses as possible. Thanks to the continued support of our many investors, HEAD was able to both support job growth in our service area and expand our relationship with our non-profit partners.