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The Goodyear Tire & Rubber Company has donated $100,000 to the Development Fund of the Western Reserve to support the Akron Community Revitalization Loan Fund, which will fund projects in Akron's distressed neighborhoods, beginning with Middlebury. The Akron fund has raised $2.9 million of $4.25 million needed.

(The Goodyear Tire & Rubber Company)

AKRON, Ohio - The Goodyear Tire & Rubber Co. has donated $100,000 to the Development Fund of the Western Reserve to support the Akron Community Revitalization Loan Fund and development projects in distressed neighborhoods, such as Middlebury.

Goodyear joins Huntington Bank, which donated $250,000 in April, and a growing number of organizations, including GAR Foundation, FirstEnergy, Akron Children's Hospital, the Medical Mutual Community Investment Fund of Akron Community Foundation, Home Savings Bank, Summit County and Akron Community Foundation.

"Akron has been the home of the Goodyear Tire & Rubber Company since our founding 118 years ago and we have a proud tradition and longstanding commitment serving our community," said Goodyear Chairman, President and CEO Rich Kramer in a news release. "We are pleased to join our many community partners to support investment to revitalize neighborhoods today and for future generations."

What is the Development Fund of the Western Reserve?

The Development Fund of the Western Reserve is a private nonprofit organization created by the Development Finance Authority of Summit County.

The fund enables investments in low-income communities throughout 18 Northeast Ohio counties through Federal New Markets Tax Credits overseen by the U.S. Treasury.

While most projects that get federal tax credits are in major cities like Cleveland and Cincinnati, the Western Reserve fund wanted credits for smaller projects in cities like Akron, Canton, Youngstown and Warren.

Since 2012, the fund has distributed $65 million in tax credits in Northeast Ohio for projects such as Akron's East End Hilton Garden Inn, the Ronald McDonald House of Akron and the Kent State University Hotel & Conference Center, said Development Finance Authority President Chris Burnham.

What is the Akron Community Revitalization Loan Fund?

The Western Reserve fund created the Akron Community Revitalization Loan Fund to launch smaller projects - costing roughly $500,000 to $1 million -- that will affect distressed areas of Akron, such as Middlebury, Burnham said.

Smaller projects could have a strong impact on Middlebury because the University of Akron, Summa Health and the Goodyear East End Development are active there, as well as East Akron Neighborhood Development Corp. and the Well, a community development corp., Burnham said.

Projects in other neighborhoods are also being considered. Representatives from each fund donor are invited to sit on an advisory committee to weigh in on the Akron projects.

How does the funding work?

The Akron revitalization loan fund started with $6.75 million in Federal New Markets Tax Credit allocations awarded to the Western Reserve fund. Before loans can start, though, the Western Reserve fund needs $4.5 million from the community.

"We are grateful to Goodyear for its leadership and commitment to the Akron Community Revitalization Fund," Burnham said. "We look forward to partnering with other funders to capitalize on this important opportunity."

Since the federal tax credits will expire soon, the Western Reserve fund might have to take out a loan to close the gap, Burnham said.

The Greater Akron Chamber of Commerce has committed to a $1 million loan from its Akron Development Fund, and an area bank has indicated it will loan the rest of the money.

Once the money is raised, entrepreneurs can borrow money for businesses or projects at below-market interest rates.

"But the more unencumbered money we get the better the [loan] terms will be," Burnham said.

The Western Reserve fund is working with Cleveland-based Village Capital Corp. to assist with underwriting the revitalization projects.

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