Rotary Program: 3/24/04

Program Chairperson: Kitty White

Speakers: John Myers and Justin Maxim of Mountain Association For Community Economic Development.

John Myers is a business consultant from Harlan, Ky. who works with MACED, an economic development consulting firm based in Berea, Ky. From Whitley County on I - 75 all the way to Boyd County, John claims Eastern Kentucky as his home. He has worked in the past few years with MACED to help provide capital and business consultation to small businesses and individual entrepreneurs so that they can start new businesses or expand existing ones which will in turn provide jobs and economic growth in the communities in which they are located. This organization has created over 3,200 jobs in the past 30 years and now has a loan portfolio that approaches 7 Million dollars. Some familiar projects that MACED has been involved with include the “Forward in the Fifth” project started by Congressman Hal Rogers and the “Blanton Forest Project” in Harlan County. John says that he is interested in creating jobs that will stay with the community and to help develop locally owned and sustained wealth. To accomplish these ends, his organization provides a non-traditional lending resource for the farthest regions of Eastern Kentucky. He emphasizes that his role is to create relationships between banks, the Appalachian Development Alliance based in London, Ky., and other organizations that will help people who have not been able to secure capital through other means. Some of these may be higher risk situations but have business potential. John told of a few examples like a local businessman who was disabled, but wanted to start a feed distribution business. With a small loan to provide the start-up money and collaboration with suppliers, he was able to get the business going and now he employs several people in this growing venture. Another was a research contractor who had a contract with NASA, but eventually filed for bankruptcy because he was not able to run the business end of the work. With some capital and technical assistance from MACED, he is now successful and providing 5 extra jobs in his business. One local example is a young man who got a loan to start a diesel injector repair shop right here in Pikeville. His capital helped him get the tools and equipment he needed as well as building the shop for his business. One Eastern Kentucky group is now helping manage food service and fleet vehicles for school districts in 7 states including Jefferson County Schools and the New York City School System. They have grown from 24 employees to over 50 and will continue to grow as new clients are recruited each year. Justin Maxim, the President of MACED, spoke about the levels of assistance that they can provide small businesses. Loans up to $ 35,000 can be obtained for single employee businesses, while larger existing businesses can get between $35,000 and $300,000 to expand the business, hire more employees, buy new equipment, or to build larger facilities. He says he wants to provide economic opportunity programs which design technical assistance for worthwhile projects that go beyond acquiring capital. This technical assistance may range from providing financial accounting programs and training, cost controls, and programs that promote and advertise the business. Justin then opened the floor for questions from the audience. We thank John and Justin for the interesting program today. J. Morgan Chapman.