The Comprehensive Economic Development Strategy (CEDS) is a vital planning document that outlines a region's economic goals, priorities, and strategies for achieving sustainable economic growth. Developed through a collaborative process involving key stakeholders, including industry leaders, government agencies, nonprofits, and educational institutions, the CEDS provides a roadmap for regional economic development. It identifies strengths, weaknesses, opportunities, and threats (SWOT) within the region and sets forth actionable initiatives to enhance economic resilience, innovation, and inclusivity.

Integrating the CEDS into our Regional Revolving Loan Fund (RLF) grant proposal underscores our commitment to these strategic goals, ensuring that the RLF aligns with regional priorities, fosters equitable access to capital, and supports long-term economic stability and growth across Butte, Glenn, Lassen, Modoc, Plumas, Shasta, Sierra, Siskiyou, Tehama, and Trinity Counties.

1. Project Description and Key Objectives: Our region's access to traditional financial services and credit is severely limited or nonexistent, creating lending deserts. These deserts exacerbate economic inequality in disinvested communities by limiting access to capital, thereby stifling local business growth and personal financial stability. Regional revolving loan funds (RLFs) can mitigate these impacts by providing equitable accessible capital to underserved areas, fostering economic resilience, and supporting sustainable community development. The beauty of RLFs is that we can design them to promote goals we want to achieve through the California Jobs First Initiative. SCED and 3CORE are leading regional economic development organizations with over 38 years of experience managing Revolving Loan Funds (RLFs). RLFs are self-sustaining and self-perpetuating, providing access to capital to those who cannot obtain traditional financing. We are proposing the creation of an RLF covering all counties in the region, supporting Catalyst Fund projects, nonprofit partners, and small businesses.

CEDS Integration:

• CEDS 3CORE (2022-2027): The CEDS for 3CORE highlights the importance of regional collaboration for collective impact and emphasizes the need for strategic economic actions to support underserved areas​​. The proposed RLF aligns with the CEDS's foundational initiatives focused on business development and economic stability through equitable access to financial resources.

• SCED CEDS Annual Update (2023): The update for Modoc, Shasta, Siskiyou, and Trinity Counties emphasizes economic resilience, especially in the wake of natural disasters and economic disruptions​​. The RLF's objective to provide quick-response loans aligns with the CEDS's goal to enhance community resilience and economic stability.

2. Planned Beneficiaries and Geographic Benefit: The RLF covers a vast area characterized by rural and semi-rural communities with unique economic challenges. The RLF is a tool to ensure widespread and inclusive benefits, including access to capital, economic growth, job creation, support for small businesses, nonprofit capacity building, and community development. Project beneficiaries include Catalyst Fund project awardees, nonprofits, and small businesses facing barriers to traditional financing.

CEDS Integration:

• CEDS 3CORE (2022-2027): The CEDS identifies key industry sectors and economic conditions, emphasizing the need for inclusive economic development across Butte, Glenn, and Tehama Counties​​. The RLF’s focus on providing capital to nonprofits and small businesses aligns with the CEDS’s strategic direction to support these key sectors.

• SCED CEDS Annual Update (2023): The update discusses the economic challenges faced by rural communities in the region, highlighting the need for accessible financing solutions to foster economic growth and resilience​​. The RLF directly addresses these needs by targeting underserved areas.

3. Regional Economic Impact: Phase I of the project will support Catalyst Fund project awardees to “jump-start” their regional supporting projects. This phase focuses on enhancing existing projects that are already committed to providing significant regional economic impact. Phase II will concentrate on the growth and expansion of nonprofits and small businesses. The RLF financial support will be crucial in preventing job losses and ensuring economic stability during downturns and economic and social shocks through our quick response loans.

CEDS Integration:

• CEDS 3CORE (2022-2027): The CEDS emphasizes the need for economic recovery and the creation of resilient economic conditions in the region​​. The RLF’s role in providing financial support to sustain and expand local businesses aligns with the CEDS’s goal to replace lost jobs and enhance regional economic stability.

• SCED CEDS Annual Update (2023): The update highlights the importance of economic diversification and resilience in response to recent disasters and economic disruptions​​. The RLF’s quick-response loans and support for diverse sectors contribute to these objectives.

4. Community and Economic Resilience: Our region has been ravaged by wildfires, floods, winter storms, and drought, which have caused significant economic stress. Coupled with economic shocks stemming from recessions, high inflation, banks pulling out of the region, and the lingering impact of COVID-19, our rural region needs all the assistance an RLF can provide.

CEDS Integration:

• CEDS 3CORE (2022-2027): The CEDS outlines the region’s vulnerabilities to natural disasters and economic disruptions, emphasizing the need for resilient economic strategies​​. The RLF’s focus on providing quick-response financing aligns with these resilience goals.

• SCED CEDS Annual Update (2023): The update discusses the economic impact of recent natural disasters and the need for financial tools to support recovery​​. The RLF’s role in providing immediate financial relief aligns with the update’s emphasis on economic resilience.

5. Advancing Sustainable and Renewable Industries: The RLF will prioritize loans for projects that integrate climate adaptation and resilience strategies, such as renewable energy, energy efficiency, and sustainable agriculture. By supporting nonprofits and businesses that focus on environmentally friendly practices, the RLF will contribute to reducing carbon footprints and promoting resource efficiency.

CEDS Integration:

• CEDS 3CORE (2022-2027): The CEDS highlights the importance of sustainable economic practices and the need for innovation in sectors like agriculture and renewable energy​​. The RLF’s focus on supporting sustainable projects aligns with these strategic goals.

• SCED CEDS Annual Update (2023): The update emphasizes the need for climate resilience and sustainable economic development​​. The RLF’s support for renewable energy and sustainable agriculture projects directly addresses these priorities.

6. Organizational Capacity and Strategy: SCED and 3CORE have a combined 82 years of experience managing RLFs. Executive Directors Ryan Richardson and Patty Hess have 19 and 27 years of direct lending experience. Both organizations are Economic Development Districts whose RLFs fit into the regional Comprehensive Economic Development Strategy (CEDS). The CEDS are developed through input from the community and local jurisdictions.

CEDS Integration:

• CEDS 3CORE (2022-2027): The CEDS highlights the importance of regional leadership and collaborative strategies for economic development​​. The extensive experience of SCED and 3CORE in managing RLFs aligns with the CEDS’s emphasis on strong organizational capacity and strategic leadership.

• SCED CEDS Annual Update (2023): The update emphasizes the importance of community input and regional collaboration in developing economic strategies​​. The RLF’s alignment with the CEDS and the organizational capacity of SCED and 3CORE support these collaborative goals.

This integration ensures that the proposed RLF project is aligned with the strategic goals and objectives outlined in both the 3CORE CEDS and the annual update for Modoc, Shasta, Siskiyou, and Trinity Counties.