WATERLOO — Derrick Holmes grew up listening to KBBG-FM. 
“That was all a part of what made us. To hear predominately African-American music, to wake up in the morning, getting dressed for school and be jamming to Parliament, it was quite amazing,” Holmes said. Now, decades later, Derrick Holmes and his cousin, Corey Holmes, are fighting to keep the nonprofit radio station on the air. The cousins have visions of bringing KBBG to its full potential, reinvigorating it as a platform for local voices and local stories, and establishing the station as a learning space for future broadcasters. Derrick Holmes said he wants to see KBBG evolve and include a broadcast TV station. But first the station has to survive bankruptcy, the roots of which started under earlier leadership before the Holmes cousins became involved.

KBBG started broadcasting in a Cottage Street home in 1978 and was prosperous in the years that followed, building a modern facility on Newell Street in 1996.

During recent years, revenues began to dwindle. Paid staff was dissolved in 2019, which cut off Corporation for Public Broadcasting funds. The station took out a mortgage from Dupaco Community Credit Union to stay afloat, which went into default, and then a loan from Regions Bank. Shortly after the loans, Corey Holmes’ parents who had been leading KBBG, died in 2019 and 2022. He quit his job as an Atlanta, Georgia, police officer and returned to Iowa in 2023 to lead Mount Moriah Missionary Baptist, his father’s church. He was also left with carrying KBBG. “He came back to a situation while he was under incredible duress – he was still mourning – and pulled this thing together,” Derrick Holmes said. Derrick Holmes, who now lives in Colorado and runs a watch company, said his cousin came to him for help with the Dupaco debt – which had gone through foreclosure in 2022. “I said, ‘Of course, I’m going to help you,’” Derrick Holmes said. “We resuscitated the loan. ... It wasn’t a business decision I would have made. But it was an emotional decision that had to be done.” Holmes began making $685 monthly payments using his own money.

The station, which had been off the air, resumed broadcasting in December 2024 with Derrick Holmes’ financial backing, Corey Holmes handling operations, and Lloyd Forney, also known as Lloyd X, keeping content on the airwaves. “From there, we were off and rolling,” Holmes said.

Meanwhile, the cousins were apparently unaware of the unpaid Regions loan. And Regions officials were unable to find anyone from KBBG to serve official notice when the bank went to court to collect. The Regions loan’s default judgment hit as the cousins were pitching a partnership plan to a local university, Derrick Holmes said. He said university officials were taken aback. In response, Dupaco officials authored a letter KBBG could show potential investors, indicating Derrick Holmes brought the Dupaco loan current and that the credit union was aware of the Regions judgment. A second blow came when Red Hills Holdings acquired the Dupaco debt and opted to sell the Newell Street property. Holmes said Red Hills also acquired the Regions debt. “We’re blown away,” Derrick Holmes said. “That put is in an incredible quagmire.” Legal wrangling to stave off sheriff’s sales followed, culminating in a Chapter 11 bankruptcy filing this month to give the cousins a reprieve while they carry out a reorganization plan.

Derrick Holmes said KBBG will survive.

“If things like this were easy, everybody would be doing it,” Derrick Holmes said. He said his vision for the radio station’s future includes adding a television station with local programming and a news broadcast and developing a production facility that can be used for independent film making. “I want to be able to have it where people come to Waterloo and they can make an independent film for one third the cost that it would cost them in Los Angeles, New York, Atlanta, Chicago, and stimulate the economy,” Derrick Holmes said. He said the facility would be a boon for young Waterloo residents who could obtain employment in the film industry. The cousins have set up fundraisers to generate funds for the station. Residents can donate at any participating Community Bank And Trust location, Holmes said.

They can also donate remotely through Cash App at $kbbgdonate1, PayPal at kbbgdonate1@gmail.com and Venmo at @kbbgdonate1.