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Tag: Southwest Virginia

NY foundation invests $10M in Appalachian Community Capital

Appalachian Community Capital, a Christiansburg-based community development financial institution that provides capital for small businesses across the Appalachian region, will receive an additional $10 million investment in the form of a low-interest loan from the Ford Foundation, the New York-based nonprofit announced Wednesday.

The Ford Foundation initially invested $3 million in ACC in 2015. ACC raises capital for 32 member CDFIs and other mission-based lenders that use the capital to fund small businesses and entrepreneurs in underserved Appalachian areas. Its members and their affiliates manage more than $1 billion in assets.

“Unequal access to financial resources that results in a lesser quality of life and little chance for economic advancement is a plague in our country whether it affects rural Appalachia or urban areas,” Roy Swan, Ford Foundation’s director of mission investments, said in a statement. “Appalachian Community Capital is upending this trajectory in rural America, and we’re proud to support ACC’s critical work to improve economic opportunity and advance a more equitable future for its residents.”

To date, ACC has deployed $26 million in leveraged debt and $5.5 million in grants to finance 110 small businesses that have helped create or retain more than 2,000 jobs, almost half of which are filled by low-income people. The Ford Foundation’s investment is expected to attract additional private sector capital and support the financing of 400 small businesses that would create 1,000 jobs.

ACC serves the Appalachian region as defined by the Appalachian Regional Commission — 423 counties across 13 states, from southern New York to northern Mississippi, including 25 counties in Southern and Southwest Virginia. The region’s median household income is 82% of the national average — $53,546, compared to $64,994, according to the ARC.

Founded in 1936 by Henry Ford’s son, Edsel Ford, the Ford Foundation provides grants in seven areas — civic engagement and government, creativity and free expression, disability inclusion, future of work(ers); gender, racial and ethnic justice; international cooperation and global governance; mission investments; and natural resources and climate change — to address inequality. The foundation has an endowment of $16 billion. Headquartered in New York, it also has 10 regional offices across Africa, Asia, Latin America and the Middle East.

Indoor salmon farm travels upstream

An indoor fish farm located in Southwest Virginia, an idea born nearly a decade ago, is slowly swimming its way closer to reality.

Work on water infrastructure improvements, including a new water line and sewage lift station, to support the Pure Salmon facility that will straddle Tazewell and Russell counties could begin as early as March 2023, according to Tazewell County Administrator Eric Young.

Pure Salmon, a global Atlantic salmon farming and processing business headquartered in Abu Dhabi, United Arab Emirates, and backed by Singapore-based private equity firm 8F Asset Management Pte. Ltd., plans to invest about $228 million in the aquaculture facility, which will sit on about 200 acres and employ around 200 people, according to a company website.

The Virginia Pure Salmon facility could use up to 400,000 gallons of water a day, according to Young. Without upgrades to the water system, he says, the county wouldn’t be able to meet those needs. 

The improvements are expected to cost about $10 million, Young says. In August, the U.S. Department of Commerce’s Economic Development Administration announced the county will receive a $4.3 million grant to help pay for the project. The federal Appalachian Regional Commission will add another $1 million to the kitty. “We’ve got a few more grant applications in that we’re expecting to go favorably,” Young says.

Any costs not covered by grants will be amortized in Pure Salmon’s future water and sewer bills.

Additionally, teams from Appalachian Power are planning upgrades to support Pure Salmon. The utility will build about two miles of electric lines as well as a new substation near the aquaculture facility. Construction is slated to begin in early 2023 and conclude by the end of 2024.

A consultant to the project says Pure Salmon isn’t providing construction updates. However, according to its website, site preparation began in the fall of 2021 with construction expected to be complete by the end of 2023. Pure Salmon did not respond to questions about whether it could start operations before Appalachian Power completes its work.

Once the facility is built, it will still take about 22 months for roe to become mature salmon, Young cautions.

“If you’re talking about when does the first fish come out in a nice cellophane wrapper … you’re probably looking at the end of 2025,” he says. 

United Way of SWVA promotes exec to VP of community impact

The United Way of Southwest Virginia named Mary Anne Holbrook, who has been with the nonprofit since 2016, to the newly created position of vice president of community impact, the nonprofit announced Monday.

Holbrook assumed the role on Nov. 1. She is providing strategic leadership for UWSWVA’s programs and community initiatives. She previously served as vice president of development and outreach, a role the regional nonprofit is now seeking to fill.

“Mary Anne has worked to develop new partnerships for the organization, secured sources of new grant funding and has provided leadership on various initiatives to help expand our work within the region,” UWSWVA President and CEO Travis Staton said in a statement. “I’m confident that with her leadership and new role within the organization, we will continue to grow and deepen the great work our program team has consistently delivered.”

Holbrook holds a master’s degree in English with concentrations in Appalachian studies and business and technical writing from Radford University.

Based in Abingdon, the United Way of Southwest Virginia serves the counties of Bland, Buchanan, Carroll, Dickenson, Floyd, Giles, Grayson, Lee, Montgomery, Pulaski, Russell, Scott, Smyth, Tazewell, Washington, Wise and Wythe and the cities of Bristol, Galax, Norton and Radford. Its programs and initiatives focus on health, education and financial stability.

ABC license spikes biz in Norton

Participants in Southwest Virginia’s fourth High Knob Outdoor Fest rode mountain bikes, hiked nature trails and floated down the Clinch River, but many also sipped beer and wine in Norton’s new Designated Outdoor Refreshment Area (DORA).

The DORA designation from the Virginia Alcoholic Beverage Control Authority lets adult customers buy drinks from ABC-licensed establishments within a set zone and then walk around the area. Legalized in July 2021, DORA licenses differ from event permits in that cities can create permanent open-air locations where drinking is allowed. Danville and Roanoke, among other cities, have DORA licenses.

Norton unveiled its zone during the August High Knob fest, a celebration of the region’s outdoor recreational activities. A week later, Norton held the inaugural Flag Rock Hill Climb, the second event to offer the outdoor refreshment area option.

“The first two events went really well,” says City Manager Fred Ramey Jr. “There were no issues, and this is something we will use again in the future.”

Norton City Council voted to apply for the DORA permit in June. “This was something council wanted to do to help downtown businesses and restaurants, and bring more activities to downtown,” Ramey says. “We hope more people will come downtown for these events and go into businesses to eat and purchase beverages.”

Incorporating an outdoor refreshment area for special events is part of Norton’s downtown revitalization efforts. The city is using a community block grant from the Virginia Department of Housing and Community Development to fund aesthetic improvements, encourage business development and refurbish a former automobile dealership into the Norton Expo Center.

Lincoln Road Coffee Lounge, one of the three ABC-licensed vendors within the DORA zone, saw an increase in sales and brand awareness during the summer festivals, says co-owner Blake Salyer.

“We’re happy to be a stop where people can grab a drink and then go to the events,” he says. “Having the DORA pulls downtown businesses into events instead of adding an outside entity.”

Doughmakers Pizza also attributed a spike in sales to the license. “It definitely increased business,” manager Isaiah Gibson says. “Everything was kept under control, and everyone had a great time.”

Future events incorporating the license have not been announced, but Ramey believes the city will use the outdoor refreshment area frequently. “People have already asked for more events with DORA.”  

SWVA projects recommended for $10.6M in federal funds

Eight Southwest Virginia economic development projects totaling $10.6 million have been recommended for federal funding under Virginia’s Abandoned Mine Land Economic Revitalization grant program, Gov. Glenn Youngkin and U.S. Rep. Morgan Griffith announced Friday.

Referred to the federal Office of Surface Mining and Reclamation Enforcement for approval, the projects include $2.347 million to develop a 23.5 acre build-ready pad at the Chip Mill Industrial Site in Dickenson County; $2 million to leverage previously mined properties to support the Energy DELTA Lab in Wise County; and another $2 million to create campsites and connector trails at Devil’s Bathtub in Wise and Scott counties.

Under the Biden administration’s Bipartisan Infrastructure Law, Virginia already expects to receive $22.7 million in federal funds to reclaim abandoned mine lands during the next 15 years. The Abandoned Mine Land Economic Revitalization, or AMLER, grant program is separate from that in that it seeks to advance economic development opportunities from the development and repurposing of abandoned mine lands. Virginia was one of nine states and tribal programs picked by Congress to receive $10 million in fiscal 2020 under the program. Will Clear, deputy director of the state’s Department of Energy, told Virginia Business that the commonwealth is slated to receive $13 million in federal funds for fiscal 2023.

Other projects recommended for funding include:

  • $525,000 to expand manufacturing at medical supplier Bird Dog Distributors, in Dickenson County;
  • $750,000 to create a sporting complex on abandoned mine land in Dickenson County, including archery, rifle/pistol and shotgun shooting ranges;
  • $1.6 million to create a pad-ready housing development site in Wise County;
  • $500,000 for the expansion of Maine Five Distributors LLC’s sewing operations in Buchanan County; and
  • $925,000 for workforce center upgrades and program expansion of Mountain Empire Community College’s Center for Workforce and Innovation of Appalachia in Wise County.

“These projects selected support our goals of immediate job creation and the development of new business-ready sites that will be the fuel that drives new business investment in these Southwest Virginia communities,” Youngkin said in a statement. “There is great innovation in these proposals that will make Virginia the best place to live, work and raise a family.”

Clear told Virginia Business Friday that he expects a response from the federal mine office on the funding in the first or second quarters of 2023.

Theater renovations draw downtown visitors

Before her August performance at Marion’s historic Lincoln Theatre, country singer Lorrie Morgan took an afternoon stroll downtown, stopping at shops and the local farmers market, according to Tracy Thompson, the theater’s director.

Drawing visitors — famous and otherwise — to downtown Marion was the goal back in 2004 when the community raised more than $1.8 million to renovate the Lincoln, which was initially built in 1929 as a movie theater.

Pennington Gap had a similar goal in mind in 2013 when it reopened its Lee Theatre, which dates to 1947 and, like the Lincoln, closed during the 1970s. Now, organizers hope to drive economic development in Wytheville with the soon-to-reopen Millwald Theatre.

Jeff Potts, who came on board as executive director of Millwald Theatre Inc. earlier this year, hopes to finish the venue’s $4.8 million renovation and expansion in time to stage its opening events around Thanksgiving or in early December. “Definitely sometime this year,” he says.

On a busy night, he expects the Millwald to draw 500 visitors downtown.

“They’re going to come early and stay late in downtown Wytheville,” Potts says. “And that, ultimately, is the point of why we’re doing this. It’s not just to save the building, and not just to create a cultural gathering spot. It’s to make money and to spread that throughout our community.”

That’s what’s happened with the Lee Theatre, according to Keith Harless, town manager of Pennington Gap, which has 1,922 residents. The venue hosts events about four times a month.

“When you have an average of 300 people that come to our little downtown, that’s a huge impact for a town of our size,” he says.

While the Lee Theatre screens movies, Marion’s Lincoln Theatre has, until now, stuck to live events. Thornton hopes that will soon change. In June, Gov. Glenn Youngkin recommended that the Lincoln Theatre receive a $69,025 grant from the Appalachian Regional Commission, a federal economic development agency, to purchase equipment to allow the theater to digitally project movies.

The Millwald will also screen films, but Thompson isn’t worried about competition. “The more venues, the more performance opportunities there are in the region, the better everyone is going to do,” she says. “Southwest Virginia, hopefully, will become a really strong arts destination.”

Accelerating the solar workforce

When local school systems decided to add solar arrays to their buildings, regional environmental nonprofit Appalachian Voices and other members of the Solar Workgroup of Southwest Virginia counted it as a victory in their six-year efforts to develop a renewable energy cluster in Virginia’s coalfield counties.

In January, Southwest Virginia Community College and Mountain Empire Community College launched the Solar Workforce Accelerator program to provide the workers to install those arrays. The effort was funded via a $225,000 grant from the Virginia Coalfield Economic Development Authority.

“Solar market development has been this chicken-and-egg problem in areas like Southwest Virginia,” says Autumn Long, project manager for the Appalachian Solar Finance Fund, Appalachian Voices’ program promoting solar projects.

“There’s an acknowledged need for workforce training and diversification and opportunities for the labor force,” she says, but employing a solar workforce requires “a sustained demand for solar development in the region.”

The accelerator program entails seven days of eight-hour trainings followed by an eight-week apprenticeship with Got Electric LLC, the company installing local schools’ solar panels. Students get $500 for completing the seven-day training. The apprenticeship pays $17 an hour, just above Lee County’s median household income.

Graduates are over halfway to solar array installer certifications, which they can complete later if they choose, and have nine credit hours toward associate energy technology degrees. They may also have jobs.

“They pretty much told us if we wanted a job, they could get something situated for us,” says Owen Swinney, one of 10 students in the first cohort. Swinney, who graduated from high school in June and finished the accelerator program in July, says he might accept the offer, if he can work around the energy technology courses he plans to take at Mountain Empire Community College this fall.

MECC plans another cohort next summer, says Matthew Rose, dean of industrial technology. Southwest Virginia Community College is developing its program. The two colleges plan to educate three cohorts each, with eight to 15 students per group, during the next three years.

The Solar Finance Fund plans to help maintain market demand by providing grants, much of it from the Appalachian Regional Commission, and technical assistance to local governments and nonprofits interested in solar power.

“This is a great opportunity, especially for the future of jobs in this area,” Swinney says. “I think solar’s going to be here for a while.”  

Chesterfield-based Paymerang expands to Wise County

Chesterfield County-based payment and invoice automation company Paymerang LLC will expand its operations to Southwest Virginia, creating 50 jobs in Wise, the company announced Thursday.

The move follows a previous expansion of its Chesterfield County headquarters. In Wise, employees will work in software development, cloud engineering and payment operations.

Paymerang is the second company to join Project Fuse, an economic development initiative developed by the Lonesome Pine Regional Industrial Facilities Authority and InvestSWVA that launched in February. The initiative aims to make Southwest Virginia the location of choice for remote employment and includes Norton and Dickenson, Lee, Scott and Wise counties

The space Paymerang is taking is an expansion of Big Stone Gap’s downtown coworking space in the basement of the former Mutual Pharmacy building. Paymerang has been in discussions about the expansion for 14 months.

Paymerang CEO Nasser Chanda said he got to know Wise because his daughters went to the University of Virginia at Wise for a year. No incentives were provided for the project, and Chanda said the company wanted to invest in the area.

“We need access to great talent,” he said. “We saw that here and said, ‘Let’s put a portion of what we’re creating here.'”

He also sees potential business opportunities in the region, where the town government of Big Stone Gap is already a client.

“We are fully committed to an expansion strategy that includes a distributed workforce, because it enables us to sustain our on-site operations in Chesterfield County while benefiting from an expanded team location to bolster business continuity. Southwest Virginia is the perfect location for us to test and refine this strategy, and we are thrilled to be part of the region’s economic story,” Chanda said in a statement.

The 50 jobs being created will fit into three categories, Chanda said: operations, software development and cloud engineering. He expects to be competitive in all three.

Aldrich Capital Partners invested in Paymerang in 2018 and it has grown from 27 to 200 employees since then.

“Four years ago, we invested $26 million in Paymerang, our largest investment in a Virginia company at that time, and last year, we invested another $10 million,” Mirza Baig, managing partner of Aldrich Capital Partners, said in a statement. “We are most pleased that both Paymerang and eHealth Technologies, also a member of our portfolio, are finding success in business expansion to the Southwest Virginia region. As the entrepreneur behind the entrepreneurs, Aldrich Capital Partners is delighted to help grow companies like Paymerang, to the benefit of all stakeholders, including our friends and neighbors in Virginia’s Southwest.”

Will Payne, who leads InvestSWVA, said Paymerang’s expansion signifies traction in establishing the region as a haven for companies expanding their workforces in rural locations. Paymerang “validates the model and will inspire other companies to root here, too,” he wrote in an email.

Paymerang is using a distributed workforce model in its expanded space to draw talent not just in Wise but from all over the region, and plans for the coworking space to be a hub for that.

The Virginia Tobacco Region Revitalization Commission previously awarded the town of Big Stone Gap a $250,263 grant in 2019 to develop the town’s coworking space in what was the Mutual Pharmacy Building.

“Paymerang joins a constellation of companies that sees the strengths of building a presence in rural America,” State Sen. Todd Pillion, co-chair of InvestSWVA, said in a statement. “It is important to note that as a technology firm, Paymerang is on the cutting edge of helping its clients perform better and more securely, freeing employees to focus on relationships, not just tasks. This is the story of Virginia’s Southwest, too: pioneering new solutions to business challenges while supporting quality of life.”

Southwest Va. builds outdoor rec centers

Southwest Virginia has two new centers welcoming outdoor adventurists and another on the way.

With a grand opening set for August, the $1.5 million Back of the Dragon Welcome Center opened in Tazewell in May 2020. In Coeburn, Spearhead Trails opened a 22,000-square-foot activity center in its renovated Coeburn headquarters last year. And the $2.67 million Three Rivers Destination-Discovery Center should open in St. Paul in 2025.

Outdoor adventures are part of the region’s transition from a coal-based economy — and “outdoor adventure” is an expansive term.

“Our biggest draw is motor sports,” explains David Woodard, the Heart of Appalachia Tourism Authority’s executive director.

More than a decade ago, retired veteran Larry Davidson enjoyed riding his motorcycle through the 438 curves and 3,500 feet of elevation change on the 32-mile stretch of Virginia Route 16 between Marion and Tazewell. Davidson dubbed it the Back of the Dragon and persuaded  local tourism folks to promote it. According to the Virginia Tourism Corp., tourism brought more than $36 million to Tazewell County in 2019.

Appalachian Back Roads, a collection of 14 routes for riding and driving enthusiasts, grew from that concept. “We jumped on their coattails,” Woodard says.

“It’s not unusual to roll into Big Stone Gap or Tazewell or St. Paul or Pennington Gap and find a car club of Porsches or Maseratis or — I mean, just pick one, even Beetle bugs,” Woodard says.

The original Back of the Dragon welcome center was a doublewide trailer. Now it’s a 5,000-square-foot building featuring self-serve ice cream, self-serve beer and a coffee shop.

Spearhead Trails has more than 600 miles of off-road vehicle trails, equestrian, biking and hiking trails, nine river access points and a shooting and archery range. The center features a climbing wall and axe-throwing lanes. They’re working on adding cornhole, basketball and archery. The Virginia Beach-based Institute for Service Research estimates the headquarters alone will add $637,000 to the local economy annually.

The money is significant for the localities, but to Woodard, the new tourism industry’s biggest impact is that it allows families who have lived in the area for generations to stay.

“That means a whole lot when somebody’s kids don’t have to leave to find work,” he says. “If they can start a business and they can make a decent, good living out of it, that’s a big deal.”   

On a mission

Virginia Business’ 2022 Virginia CFO of the Year award winners represent large and small businesses and large and small nonprofits. 

Small nonprofit | David Argabright, CFO
Feeding Southwest Virginia, Salem

David Argabright’s background in construction came in handy when Feeding Southwest Virginia opened its Community Solutions Center in a high-crime, poverty-stricken area of Roanoke.

“I actually was over there for six months in a hard hat overseeing the building of that,” says Argabright, chief financial officer of Feeding Southwest Virginia. Before joining the Salem-based regional food bank, Argabright oversaw development projects for family business Argabright Contractors Inc. for 35 years. For him, the hard hat was nothing new. 

For Feeding Southwest Virginia, however, his presence on the job site meant the nonprofit could save some money and ensure compliance with funding requirements of municipal partners on the project. The center opened in May 2018 as a community gathering space and a culinary training center that helps feed at-risk children in Roanoke. Partners in the project included the Northwest Roanoke community, the city of Roanoke, Food Lion and the Roanoke Police Department.  

It’s not surprising that Argabright jumped in to oversee construction, as he’s known for “doing whatever it takes,” says Pamela Irvine, president and CEO of Feeding Southwest Virginia. 

“His passion for the work that we do … drives him to go beyond the call of duty and expectations in his role as a CFO,” Irvine says. The food bank serves 26 counties and nine cities.

Argabright’s dedication became even more critical during the pandemic, she says. 

“He stepped out of his role as a CFO to work with the [chief operating officer] to secure every type of government funding we could apply for,” Irvine says. “He tried continually to get access to resources we wouldn’t get otherwise.” 

During that time, Argabright became a bit of an expert on federal Paycheck Protection Program loans and “also shared that knowledge with other organizations around the state,” Irvine says. Instead of outsourcing the PPP application work, which would have cost significantly more, Argabright spent countless hours preparing it himself. Feeding Southwest Virginia ended up securing a PPP loan and forgiveness grant totaling $498,000.

Sometimes, he even takes on responsibilities that don’t have anything to do with the organization’s financial security. For instance, there was a time when a flood made it nearly impossible to travel in a nearby county. “He actually drove a truck to deliver supplies,” Irvine says.

Argabright’s financial skills have helped the organization gain grants and earn the trust of partners and donors, she says. “We generate revenue from multiple sources.” Revenue has quadrupled over the past two years, in part because of his oversight and the trust people put in him.

“That’s critical for a nonprofit,” Irvine says.

Before joining the food bank, Argabright had been involved in mission work. He coordinated more than 100 mission trips across five continents. He also founded an organization called Compassion 575, which raises funds to aid poor children in South Asia through sponsored bike rides in the United States. He jokes, “I had to switch my mission field from South Asia to Southwest Virginia.” 

Particularly in 2020 and 2021, as food needs escalated in Southwest Virginia, “we had to stretch to meet those needs,” Argabright says. “It’s been challenging.’’ 

Feeding Southwest Virginia runs food distribution centers in Salem and Abingdon and serves as the hub for more than 380 partner feeding programs. An affiliate member of Feeding America, the organization distributes food and grocery items worth about $31 million annually.

“All of our employees have worked so hard, especially in these last three years during the pandemic,” Argabright says. “We’ve moved a lot of food.”

Switching from real estate development in a family business to overseeing the finances of a food bank was a “significant change for me,” says Argabright. He holds a master’s degree in accounting from Liberty University, but it has been decades since he’s worked as a certified public accountant for KPMG. “I’m very thankful to be here. It’s been a great seven years.”

Read about Virginia Business’ 2022 Virginia CFO of the Year award winners: 

Large business | Sal Mancuso, executive vice president and CFO

Small business | Cynthia Macturk, CFO

Large nonprofit | Hossein Sadid, CFO and deputy director for finance and administration