Southeastern Kentucky CDFI Helps Community Members Take Control of Their Finances 

Roland Kamara, Membership Associate at Opportunity Finance Network

June 5, 2025 – 

OFN member Redbud Financial Alternatives ensures money circulates in the local economy, helping families thrive and giving Appalachian Kentucky a fighting chance to grow stronger.

Read time: 5 minutes

This month, we’re spotlighting Redbud Financial Alternatives, a nonprofit CDFI serving Southeastern Kentucky. We caught up with Managing Director James Caudill to hear how Redbud turns financial barriers into bold opportunities for the people and places they serve.

Redbud delivers fair, affordable financial products and personalized counseling to help people gain control of their money, break free from predatory debt cycles, and build stronger futures. Their work supports goals like homeownership, stable employment, and growing savings—all vital to creating lasting change in Appalachian communities. 

James has led Redbud for more than three years. In this highlight, he shares what drives him, how Redbud got its start, and what impact looks like on the ground.  

What is one unique aspect about Redbud and the community you serve?

We’re the only consumer loan fund focused solely on Southeastern Kentucky. We’re proud to call Hazard, Kentucky, home—the Queen City of the Mountains and home to the legendary Mother Goose House, a local bed and breakfast and monument. 

What’s your “why” for working in the community development space, and how did you end up at Redbud? 

I wanted to make a difference right here at home. 

After working for a large, multi-state intermediary CDFI, I saw an opportunity to come back to Eastern Kentucky and lead an organization focused on my own community. Redbud gave me the chance to bring that vision to life. 

How would you describe Redbud to someone new to community development? 

We’re a mission-driven nonprofit CDFI that helps people escape the debt traps set by predatory lenders. We offer affordable loans and one-on-one counseling so folks can take control of their finances and move forward with confidence. 

Can you share an example of Redbud’s impact? 

We’ve saved our community $0.34 for every $1.00 we’ve loaned—that’s more than $1.46 million kept in local pockets instead of going to predatory lenders. 

That money stays here, circulating through our local economy, helping families thrive, and giving Appalachian Kentucky a fighting chance to grow stronger. 

In the past few years, what project or partnership do you feel had the biggest impact on the community you serve?

We’ve reconnected with our roots by partnering with Housing Development Alliance, Inc., our parent organization and a local leader in affordable housing. Together, we help people get ready for homeownership by reducing debt and improving credit. 

After the catastrophic floods of July 2022, support from Mountain Association allowed us to reach even more flood-impacted families. That investment helped us step up when our community needed it most. 

What’s a major challenge facing CDFIs right now? How can we meet it?

We’re deeply concerned about the proposed elimination of $291 million in discretionary CDFI Fund awards. 

Now more than ever, we need a united front. We need to tell our stories, show our impact, and fight for the communities that rely on CDFIs. The more we raise our voices, the stronger we are. 

Visit OFN’s Policy Action Center to advocate for CDFIs!

In one word or phrase, how would you describe your relationship with OFN?  

Growth partner. 

OFN’s training, conferences, and investment support have helped Redbud grow stronger and more effective. We’re proud to be part of this network.

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Want to learn more about Redbud Financial Alternatives?  

Follow them on LinkedIn and visit their website to stay connected. 

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Tags: CDFI Fund, CDFI Leadership, Community Development, Jobs, Member Highlight, OFN Membership, Small Business