Three Roots Capital Upgrades Internal Infrastructure, Partners with Two Local Small Businesses

Small business graphic about downhome loan manager, Nerds2go, and omega digital

Much like Three Roots Capital (3Roots) invests in projects and companies throughout East Tennessee and greater Appalachia, 3Roots also invests in its own internal systems, tools, and processes.

“We are preparing for growth, planning for the long haul and being intentional in our pursuit of excellence because the communities we serve deserve it,” said Kim Krebs, Loan and Investment Administrator. “Our clients deserve to work with a community development financial institution (CDFI) that’s sophisticated but also still shakes hands and looks people in the eye. We want to help these businesses succeed.”

Prior to 2023, 3Roots explored and utilized several tools for portfolio administration and management. Beginning in earnest in January 2023, 3Roots began working closely with DownHome Solutions to fully implement DownHome Loan Manager (DLM), a cloud-based loan management software used extensively in the CDFI industry. DLM enables 3Roots to manage its entire portfolio in one place, consolidating databases and integrating with the accounting system, thereby increasing efficiency and positioning 3Roots for future growth.

“This move is extremely forward-thinking for a CDFI of our size,” said Kim. “We’ve been around since 2016. But as we discuss these updates with our bank partners and borrowers, we’re instilling confidence that we plan to be here for the long haul.”

The initial implementation process spanned from February until October 2023. It required fully capturing and cataloging the important business data and then organizing and harmonizing the data into the framework of the new software. This allowed the creation of a single, robust database that houses critical information for the staff at 3Roots to have at their fingertips to improve accuracy, productivity, and efficiency.

“Launching DLM was a huge undertaking,” said Kim. “However, I don’t think I could have learned this business as intricately as I have learned it without going through it. That process was priceless—baptism by fire.”

Kim spearheads implementation of additional operational solutions to set 3Roots up for long-term success, including partnering with Omega Digital Solutions.

In late 2023, 3Roots began working with Marcus Blair, founder of Omega Digital Solutions and graduate of 100Knoxville, to build an advanced reporting tool and business management dashboard. This new feature will allow the team to have daily updated information at their fingertips, enabling them to make better decisions with a growing portfolio. The tool should launch later this summer. “Marcus is wonderful to work with,” said Kim.

“DownHome Solutions and Omega Digital will never replace our hands-on approach, but the tools they provide will allow us to become more streamlined,” said Kim. “Instead of paperwork demanding so much of our resources, we can spend more time creating solutions, being hands-on and face to face with our clients.”

In early 2023, 3Roots President and CEO Grady Vanderhoofven introduced the company to Don Dally and his Farragut-based IT services company, NerdsToGo Computer Service. Grady had been friends with Don and acquainted with Don’s business for years. Grady asked Dennis Corley – because of his background in IT services – to help assess NerdsToGo as a potential local complement or supplement to 3Roots’ Nashville-based IT service provider. After an assessment period, 3Roots began working with NerdsToGo Computer Service to improve the company’s IT infrastructure to support new digital tools and a growing number of team members.

“They’ve been fabulous,” said Kim. “Instead of calling a helpline to be put in a queue for them to call you in several days, NerdsToGo will help us immediately and have even come to our office personally to offer support. That’s invaluable.”

“Three Roots Capital is an ideal client for NerdsToGo as we expand our presence in the small business enterprise sector. Our expertise and capabilities align well with their needs, allowing us to add significant value to their operations,” said Don. “Serving Three Roots Capital is particularly fulfilling, as we can support their mission to make a positive impact in our local community and the broader region.”

Looking ahead, 3Roots is in the discovery phase for a new software platform to support the deal intake process with potential new clients, and they are exploring options to increase tracking and reporting efficiency for grant administration and impact tracking.

“Contracting with NerdsToGo and Omega Digital allows 3Roots to directly support our local small business community as a customer,” said Grady Vanderhoofven, President and CEO. “This scenario is a win-win for us. We make loans and investments in our community, we provide coaching and mentoring, we help companies and projects establish beneficial connections, and when we can, we support our local small business community as a customer. 3Roots is a strong proponent of the concept of buying local when possible.”

“3Roots has dramatically increased our capacity to pursue and deploy high-impact capital for organizations and projects,” said Grady. “We have many financing tools in our financial toolbox, but there are other ways we can support local businesses, and we strive to do so. Our ability to positively impact our local and regional economy increases as we scale our back-office operations. I’m thankful for Kim’s drive and vision for 3Roots. She has allowed us to increase our efficiency and productivity, which empowers us to magnify our impact.”

Three Roots Capital (3Roots) welcomed Kim Krebs as its Loan and Investment Administrator in January 2023. Kim’s extensive experience in sales, HR, portfolio analysis, cost reconciliation, contracts management, and software implementation made her the perfect fit to join the 3Roots team in the new position.

“3Roots is growing and we needed to bring on someone with Kim’s expertise to drive the automation and streamlining of our portfolio administration infrastructure to prepare for future growth,” said Grady Vanderhoofven, President and Chief Executive Officer. “Kim came on and got right to work. She accomplished more in her first 90-180 days than we had accomplished in the previous four years in terms of implementing a new software platform. Kim’s passion, tenacity, and attention to detail have been a wonderful addition to our team.”

Kim grew up on a working farm in rural southern Ohio, where she was primarily raised by her grandparents. As a child, she worked with her grandfather in the tobacco fields, which instilled an early appreciation of hard work.

“I adored spending time in the fields,” said Kim. “I love a challenge, accomplishing something new and blazing a new trail.”

At 17, she left home to attend Ohio State University for two years before leaving school to work full-time. For a few years, she worked for a successful Ohio entrepreneur who worked with Dollar General outside of Goodlettsville, Tennessee, on a new product called voicemail. Later, she worked in the healthcare industry and wore many HR-oriented hats.

When her three children were little, she stepped back from her career to stay at home with them for 12 years. She finds this time of her life an essential part of her story because she wants to empower others to take breaks—or not—in their careers.

“I will never regret it, not for a minute. I think it’s important because it is a part of my resume and certainly a part of who I am today. I consider it a huge blessing to have been able to do that.”

In 2011, she returned to the workforce at The Pilot Company, where she worked for 11 years. She concluded her time as the Manager of Commercial Contracts, where her team oversaw the company’s fuel cost with their vendors, watching the bottom line.

“It’s been a long road to get where I am today, but I’ve worked with amazing people and had great mentors who have helped me along the way,” said Kim. “I love to think I’m just one of the millions who have torn the paper ceiling and did what they knew they could do by seizing opportunities and doing good ethical work.”

Kim and Dennis Corley, Director of Small Business Lending and Investing at 3Roots, attended the same church and have known each other for 15 years. When Dennis casually mentioned something about 3Roots’ need to implement a new software system, she said her “spidey senses” started tingling at the thought of a new challenge.

“I’d gone through two huge software implementations at The Pilot Company. They were a huge undertaking and were quite a challenge, but we also had a huge sense of satisfaction in the end,” said Kim. “But you can get to a point at a company where you feel you have done what you needed to accomplish. And as an Appalachian girl, I do like a new challenge.”

At 3Roots, Kim is responsible for loan and investment administration and tracking, including implementing and maintaining DownHome Loan Manager. This software platform provides comprehensive loan and fund management from inquiry through repayment.

“Grady is taking the steps to grow this company. And I respect that. I like working with Grady very much because there’s a like-mindedness,” said Kim. “One of the best compliments he ever paid me is when he said, ‘Kim, you’re not afraid to jump in the deep end and figure things out.’ Working with Grady is easy because I think we are cut from similar fabrics.”

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