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Article Archives: Tennessee

New Tennessee Revolving Loan Fund for Economic Development
Pathway Lending and the state of Tennessee recently announced the creation of the $25 million Tennessee Small Business Jobs Opportunity Fund to provide access to capital for small businesses in all 95 Tennessee counties.

This revolving loan fund is intended to enhance current economic development efforts by maximizing statewide job creation and business expansion. The fund provides below-market rate loans with flexible financing options. The fund is designed to enhance the existing financial services available to small businesses in the state.

The Tennessee General Assembly appropriated $10 million to create the Small Business Jobs Opportunity Fund in the 2010–2011 fiscal year budget. Pathway Lending, formerly known as Southeast Community Capital, administers the fund and is raising an additional $10 million to $15 million in capital from financial institutions.

The Tennessee Bankers Association has assigned “Endorsed Product” status to Pathway Lending for its member banks as a Community Development Financial Institution providing Community Reinvestment Act qualified investments. Specifically, financial institutions that invest in the Tennessee Small Business Jobs Opportunity Fund receive a 10 percent annual franchise and excise tax credit for 10 years from the state of Tennessee, based on the investment amount. The program is designed so participating banks can receive 100 percent of their invested capital back through the tax credit.

For more information, e-mail Clint Gwin or Hank Helton or call (615) 425-7171.
[Community Developments Investments, July 2011]

Tennessee/Kentucky Housing Fund Achieves More Than $43 Million in Financing in 13 Years
The Housing Fund, Inc. (THF), a 501(c)(3) nonprofit, was established in 1996 to finance affordable housing and neighborhood revitalization projects throughout middle Tennessee and Allen, Edmonson, and Warren counties in Kentucky. Since 1996, THF has helped more than 2,300 first-time homebuyers and provided more than $43 million in financing to help individuals and organizations purchase, rehabilitate, or construct homes for low- and moderate-income families.

THF has several lending programs designed to meet the affordable housing needs of low- and moderate-income persons. In addition, THF offers second mortgage loans and a free, one-on-one counseling session. THF also has a predevelopment loan program for nonprofit organizations and a development loan program for nonprofit and for-profit developers. THF provides technical assistance services to nonprofit organizations, housing authorities, and community organizations.

THF is certified by the U.S. Department of the Treasury as a community development financial institution and is supported by public and private resources. Financial institutions that want to support THF's efforts can provide equity equivalents (EQ2) and program-related investments. For more information, contact The Housing Fund at (615) 780-7000.
[Community Developments Investments , Spring 2010]

Supporting Affordable Housing through Tax Credit Syndication
Community Affordable Housing Equity Corp (CAHEC) is a 501(c)(3) nonprofit low-income housing tax credit syndicator serving Alabama, the District of Columbia, Florida, Georgia, Kentucky, Maryland, North Carolina, South Carolina, Tennessee, Virginia, and West Virginia. CAHEC works to create and maintain affordable rental and ownership housing in the areas it serves. Since its creation in 1992, CAHEC has developed more than 7,300 units of affordable housing. CAHEC also provides a number of supportive programs designed to assist the residents of the developments it has helped to finance.

As a tax credit syndicator, CAHEC structures equity funds using investors' capital. CAHEC's most recent fund is the South Carolina Preservation Fund II LP (SCPF II). SCPF II is a $32 million equity fund designed to preserve and renovate a portfolio of older, multifamily housing properties in South Carolina. The targeted portfolio includes 41 properties with a total of 1,548 units. Although all investments in SCPF II were fully subscribed in 2008, banks can invest in other CAHEC equity funds as they are developed. To learn more, visit their Web site or e-mail Dana Boole or call (919) 788-1803.
[Community Developments Investments , Spring 2009]

Promoting Business Expansion and Job Creation at Southeast Community Capital
Southeast Community Capital provides the growth capital businesses across Tennessee and the Southeast need for expansion and job creation. SCC was created in December 1999 as a statewide effort to increase access to capital for Tennessee's disadvantaged small businesses. SCC received its CDFI certification in May of 2001. With headquarters in Oak Ridge, SCC has added offices in Chattanooga, Memphis, and Nashville, TN. In each city, SCC has created a public-private partnership between the city and financial institutions. In each location, SCC manages a business opportunity fund, as well as its regional revolving loan fund that services all of Tennessee, northern Alabama, and northern Georgia. SCC's strategy is to grow each of its funds to more than $5 million so that each fund will be self-sustaining and can meet local demand. Each fund focuses on disadvantaged areas and individuals for business growth and job creation in the local market. SCC is in the process of creating two funds, a regional loan fund for East Tennessee as part of the Nine Counties One Vision initiative and a city fund for Baton Rouge, LA.

For information or to contact SCC about possible investment opportunities e-mail gwin@sccapital.org or go to www.sccapital.org.
[Published in News from the Districts, Community Developments Investments , Summer 2004]

Loans Aid Struggling Businesses
A new loan pool in Memphis will help small and minority-owned businesses that ordinarily couldn't get a business loan from a bank. The Memphis Business Opportunity Fund is a partnership of three local banks, city government, and a nonprofit community development agency. Union Planters Corp., First Tennessee Bank, and National Bank of Commerce have each committed $5 million to the fund, which is also receiving support from the Federal Home Loan Bank. Loans are expected to range from $35,000 up to about $500,000, with a goal of loaning $50 million over the next 10 years.

For more information, contact Southeast Community Capital, a nonprofit technical assistance provider administering the fund, at (901) 526-9300.
[Published in News from the Districts, Community Developments , Spring 2003]