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Article Archives: Tennessee
New Tennessee Revolving Loan Fund for Economic Development
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.
Tennessee/Kentucky Housing Fund Achieves More Than $43 Million in Financing in 13 Years
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.
Supporting Affordable Housing through Tax Credit Syndication
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.
Promoting Business Expansion and Job Creation at Southeast Community Capital
For information or to contact SCC about possible investment opportunities e-mail firstname.lastname@example.org or go to www.sccapital.org.
Loans Aid Struggling Businesses
For more information, contact Southeast Community Capital, a nonprofit technical assistance provider administering the fund, at (901) 526-9300.