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27th
May
2025
Kinsman, OH

Rural CDFI Uses Innovative Financing to Scale Local Manufacturing Business

May 27, 2025

Client: 23rd Century CNC LLC

Client Location: Kinsman, OH

CDFI: Valley Economic Development Partners, Inc.

CDFI Service Area: Ohio and Western Pennsylvania

CDFI Services Provided: 

Small business financing

Financial and Social Impact

  • A rural manufacturing business received CDFI financing to purchase more equipment and hire additional staff to meet the demand of new contracts.

23rd Century CNC, LLC, is a full-service machine manufacturing shop, founded in 2019 in Kinsman, Ohio. When the owner, John Bancroft, sought to expand his business to meet growing client demand, he knew he needed to purchase new machines and hire additional employees. He applied to a local bank but was denied since he did not have sufficient historical financials as a newer business to meet their requirements — a challenge faced by many entrepreneurs seeking capital.

The bank referred John to Valley Economic Development Partners, a CDFI based in Youngstown, Ohio. They utilized one of their CDFI revolving loan funds to assist John with the purchase. By only requiring 10% cash down, John had enough extra capital to hire additional employees to run the new CNC machine. 

“Financing from Valley Partners made it possible for us to take the tooling and die-making business to the next level by being able to acquire more contracts and not be limited to what our current machines could handle,” said a representative from 23rd Century CNC.  

Financing was critical for John’s business to grow. The business had reached its capacity yet was still receiving new contracts and new clients. Valley Partners made it achievable for John to purchase the new equipment and provide additional jobs within his community.  

CDFIs Spur Local Economic Development, Through Small Businesses and Beyond  

Financing is a hurdle that many small business owners face when trying to expand their operations. CDFIs help to make small business growth and scale possible.  

In 2024 alone, Valley Partners assisted with injecting nearly $42 million into their local area through small businesses projects. They disbursed more than 200 financial products totaling $15 million, with 71% of businesses located in CDFI-designated underbanked areas.  

With federal and philanthropic funding, Valley Partner’s Business Resource Center (BRC), which provides free technical assistance to entrepreneurs, assisted in the development of more than 100 business plans, totaling more than 730 counseling hours. This hands-on support enabled BRC clients to obtain more than $4 million in capital infusion for their small business ventures.  

A combination of public and private funding from the U.S. Treasury’s CDFI Fund, the Raymond John Wean Foundation, the Youngstown Foundation, and both the Mahoning and Trumbull County Commissioners (through the Valley Vision initiative), was utilized to strengthen BRC’s business accounting and legal assistance grant program. In 2024, this program graduated 71 entrepreneurs.  

CDFIs, like Valley Partners, are experienced and responsible stewards in leveraging public and private funding to create maximum impact and reach in their local communities. Continued support for federal programs is critical to advancing local development and supporting small businesses like 23rd Century CNC.  

CDFIs Uplift Small Business Owners and Local Economies

Small businesses are the backbone of our nation’s economy. Securing financing, however, can present challenges and roadblocks to many entrepreneurs. Without the experience, cash flow, credit, or equity required by many traditional banks and other financial institutions, many small business owners cannot access capital they need to grow. This issue often leaves small business owners at the mercy of predatory lenders and high-cost financing.

CDFIs fill the gap to provide safe, responsible options for borrowers that traditional banks do not reach. In addition, they also offer technical assistance and professional development tools tailored to the unique needs of their small business clients to help them grow and succeed.

Through 2023, OFN members have originated more than $124 billion in financing, which has supported 1 million businesses and microenterprises and helped to create or retain 3.4 million jobs in communities across America that many of us call home.

To learn more about how OFN and our network of CDFIs prioritize small businesses, visit our small business page.

To read other stories about thriving small businesses funded by CDFIs, visit our impact stories page.


Are you an OFN member CDFI with a great borrower story to share?

Your client success stories illustrate what it means to deliver opportunity for all. They help OFN demonstrate how CDFIs work to help create good family-wage jobs, decent affordable homes, healthy foods, greener neighborhoods, and so much more. 

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Tags: Jobs, Manufacturing, Rural, Small Business

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