Statements
Mission
The mission of Pathway Lending is to provide lending solutions and educational services that support the development, growth, and preservation of underserved small businesses, affordable housing, and sustainable communities. We are financing businesses and strengthening communities. We're certified by the U.S. Department of the Treasury as a Community Development Institution (CDFI), so we're held to high standards of responsible lending in underserved and often low-income communities. Pathway Lending operates a revolving loan fund that makes affordable loans to small business owners and micro-entrepreneurs that might not otherwise qualify for a bank loan in Tennessee and Alabama. Pathway Lending serves businesses and entrepreneurs throughout Tennessee, Alabama, Kentucky, as well as the portions of Arkansas and Mississippi in the Greater Memphis MSA. Our work focuses on activities in underserved Target Markets that include businesses located in Qualified Investment Areas (as defined by low-income census tracts, poverty rates, and unemployment statistics) and African-American owned businesses. To reach more entrepreneurs, we opened the Pathway Women's Business Center, or "Pathway WBC" in 2014 and the Veterans Business Outreach Center, or the 'VBOC at Pathway Lending' in 2018. These programs allow our staff to support more established business owners and emerging entrepreneurs with classroom education, one-on-one mentoring, and counseling. Our education is approachable, affordable, and based on stage of business. We often partner with peer organizations to full curriculum gaps, ensure ongoing support for entrepreneurs beyond the launch phase, and to reach a wider audience.
Background
Founded in 1999, Pathway Lending is a national leader in economic development lending, Pathway Lending is a Community Development Financial Institution that increases access to capital for underserved businesses. Its mission is to provide lending solutions and educational services that supports the development, growth, and preservation of underserved small businesses, affordable housing, and sustainable communities. We are financing businesses and strengthening communities. Initially formed as Technology 2020 Finance Corporation, a subsidiary of Technology 2020 in Oak Ridge, we provided capital to local businesses creating technologies from the Oak Ridge National Laboratory. In 2001, Pathway Lending became certified by the U.S. Treasury Department as a Community Development Financial Institution (CDFI), and is now the region's largest non-depository CDFI. Our mission is providing underserved small businesses with educational services and lending solutions that result in job creation and economic development. Since our beginning, we have provided nearly 100,000 hours of business counseling and training to entrepreneurs in economically under-resourced markets, including women owned businesses. In 2014, we launched the Pathway Women's Business Center to expand upon our mission of serving socially and economically disadvantaged businesses by dedicating new resources to the development and growth of women entrepreneurs. In 2018, we launched the Veterans Business Outreach Center at Pathway Lending to help transitioning service members and veterans in Tennessee and Kentucky start or grow a business. It is through the Pathway WBC and the VBOC at Pathway Lending that Pathway Lending is able to offer affordable classes to entrepreneurs regardless of their capital needs. Pathway Lending's financial products support business acquisition or expansion, equipment and real estate purchases, general working capital needs, energy efficiency improvements, and the development/rehabilitation of low- and moderate-income multi-family housing. Our flexible loan products include features not offered by banks: up to 100% loan to value, extended repayment periods and low interest rates. As of December 31, 2022, we've made over 2,200 loans totaling more than $466.5 million to over 1,300 businesses in Tennessee and Alabama. Of its outstanding portfolio, 80% of these loans supported small, underserved and minority owned businesses in low income geographies.
Impact
In 2022 we worked harder than ever to align our work with the true needs of the community. Through new community partnerships, financial products, and educational services, we returned excellent results: $50.8MM in loan originations; $145.9MM in loans outstanding (82.2% CDFI Qualified); 202 loans closings, including 129 new Pathway borrowers, 81 minority-owned businesses, and 50 women-owned businesses; 17,518 hours of classroom training and 1-on-1 technical assistance; and educational services to 2,933 unique clients.
Pathway has worked to expand its target markets to bring additional resources beyond capital to aid more businesses in becoming capital ready. In the last three years, PL has served 7,089 businesses through education, technical assistance, and capital access. Of those 4,253 are Disadvantaged Micro Enterprises (DME). PL has a strong track record of supporting rural microentrepreneurs. Launched in 2007, the Tennessee Rural Opportunity Fund (TNROF) has provided over $52MM in loans, 54% were to LMI geographies, 22% to minority owned businesses and 35% to women owned businesses. In 2017 PL expanded the TNROF with a grant from the State of Tennessee to support lending to Disadvantaged Business Enterprises (DBE) and underserved and underrepresented populations in at risk and distressed counties. These efforts to be responsive to small businesses have resulted in Pathway consistently exceeding our goal of 60% of our lending in our target markets.
Needs
As a nonprofit, Pathway Lending employed creative business principles by making its lending programs self- sustaining. With the introduction of the Pathway Women's Business Center, traditional nonprofit funding is needed to support the costs of providing in-depth business counseling, classroom training, and peer-to-peer learning to help entrepreneurs start, expand and successfully manage their businesses. Pathway Lending, Pathway WBC, and the VBOC at Pathway Lending seeks sponsors and contributions for programmatic support help us deliver educational services to underserved individuals resulting in personal financial stability, using entrepreneurship as the primary vehicle. We also seek experienced entrepreneurs and professionals to serve as mentors, instructors and workshop facilitators. Contact Leslie Hayes by emailing Leslie@PathwayWBC.org for additional information. Pathway Lending is always seeking new investors for several revolving loan funds that serve various demographic and geographic markets. Investments typically qualify for CRA credit, and often qualify for tax credits in the state of Tennessee. Email Hank Helton at hank.helton@pathwaylending.org for more information.
CEO Statement
TO OUR PARTNERS & THE PATHWAY LENDING COMMUNITY,
In 2022, Pathway Lending continued its mission, by bringing capital resources and capacity building to historically underserved communities across Tennessee. At Pathway, we continued to reach deeply into underserved communities with financing while also introducing new and innovative products and programs statewide to better serve the needs of our clients.
In Nashville, we launched the Nashville Small Business Recovery Fund to refuel Davidson County through grants and low-interest loans; in Memphis, we originated over $22 million in high-impact loans in Shelby County; introduced the Propel loan across the state to offer financing up to $50,000 in as few as 48 hours; and welcomed 64 participants in our Emerging Developers Cohort. Additionally, we deployed $30 million of New Markets Tax Credits into high impact projects, creating accessible jobs with living wages and additional healthcare capacity in low- and very-low-income communities.
As a Community Development Financial Institution, we are guided by our responsibility to bring capital resources to communities and be a trusted advisor and resource provider to entrepreneurs, affordable housing developers, and businesses. Through our support, we ensure they have strong foundations, access to capital, and the capacity they need to build resilient and sustainable communities. I am very proud of our team and their commitment to do the hard work it takes to ensure responsible resources and capital are available to create thriving and sustainable communities.
Regards,
Clint Gwin,
President & CEO
Board Chair Statement
Board Statement As the Board of Directors, we've witnessed firsthand how Pathway Lending, Pathway WBC, and the VBOC at Pathway Lending work in tandem to deliver new, relevant, and innovative business solutions year after year. Pathway Lending's 20 years of success and growth comes from an undying commitment to the rally cry of "no missed opportunity." With funding and education under one roof, Pathway Lending is uniquely positioned to coach entrepreneurs from idea to launch to growth and beyond. The Pathway Lending team gets to know each client personally to help them field the opportunities at hand. They are successful because they recognize the importance of proactively building strong relationships with organizations and communities. Through strategic partnerships and meaningful client relationships, Pathway Lending identifies gaps in the market and provides much needed financial and educational resources. Pathway Lending frequently work with other nonprofits, business organizations, and local, state, and federal government agencies to address issues and capitalize on the opportunities facing the business community. Since 1999, Pathway Lending has tirelessly coordinated many community partnerships to increase delivery of financial and educational services, support comprehensive economic development strategies, and maximize community outcomes. Every day their work expands opportunities for Tennessee and Alabama businesses. And every year, they reach new levels of success and growing client impacts. I am proud to be a part of Pathway Lending and look forward to many great years ahead. Pathway Lending, Board of Directors
Service Categories |
|
| Primary Category: | Community Improvement, Capacity Building - Small Business Development |
| Secondary Category: | Employment - Management & Technical Assistance |
| Tertiary Category: | Education - Educational Services |
Areas Served
Pathway Lending serves all 40 counties served by the CFMT. Pathway Lending provides small business loans statewide in TN and AL. The Pathway Women's Business Center's Target Market is the 16 County region anchored by the Nashville MSA. The Veterans Business Outreach Center's service territory includes Kentucky and Tennessee, including programs provided at Ft Campbell, Ft Knox, McGhee Tyson Air National Guard Base and Naval Support Activity Mid-South at Millington.
| TN |
| TN - Davidson |
| TN - Cheatham |
| TN - Davidson |
| TN - Dickson |
| TN - Hickman |
| TN - Macon |
| TN - Maury |
| TN - Montgomery |
| TN - Robertson |
| TN - Rutherford |
| TN - Smith |
| TN - Stewart |
| TN - Sumner |
| TN - Trousdale |
| TN - Williamson |
| TN - Wilson |
| TN - Cannon |
| TN |
