Pathway Lending will be hosting two events to promote its new Energy Efficiency Loan Program in Chattanooga next week.
Wednesday September 8th, 2010: Free Lunch & Learn Event. 11am-1pm at Sticky Fingers BBQ, 2031 Hamilton Place Blvd. RSVP: jen.mclachlan@pathwaylending.org or 615.425.7171
Friday September 10th, 2010: Free Breakfast Event with the Chattanooga Chamber of Commerce. 8am-10am. 811 Broad Street. RSVP: 423.756.2121
Energy Efficiency Loan Fund Workshop Offered To Chattanooga Businesses
posted September 2, 2010
Pathway Lending will host a workshop in Chattanooga to inform and educate local businesses about how to access a new $50 million Energy Efficiency Loan Program announced on Aug. 25 by Governor Phil Bredesen.
The workshop, with Clint Gwin, president of Pathway Lending speaking, will be on Wednesday, from 11 a.m.–1 p.m. at Sticky Fingers BBQ, 2031 Hamilton Place Blvd.
Utilizing a unique model, Pathway Lending’s Energy Efficiency Loan Program enables businesses to achieve significant, long-term energy savings while increasing their productivity and profitability. The program offers below-market rate loans with terms extending to ten years.
Loans can finance up to 100% of costs on projects including building retrofits, equipment replacements or upgrades, lighting and renewable generation projects. The loans may be repaid with the energy costs savings derived from each project.
Presenters will explain how organizations can apply for loans and answer any questions people local businesses might have. With first round applications due by Nov. 1, the program is available to any business seeking to reduce energy consumption in their Tennessee facilities through building retrofits and upgrades, equipment replacement purchases or other energy efficiency or renewable energy projects.
The state of Tennessee, Pinnacle National Bank, TVA, the US Department of Energy, the US Economic Development Administration and Pathway Lending joined together to create this unprecedented program.
Founded in 1999, Pathway Lending is a Community Development Financial Institution that provides loans to businesses lacking access to traditional financing options throughout Tennessee.
Friday, September 3, 2010
Thursday, September 2, 2010
Energy-efficiency loans will help businesses and state
In case you missed it...here's Clint's Op-Ed piece from the Tennessean.
Thanks to the leadership of Gov. Phil Bredesen and the state legislature, Tennessee businesses will now have access to energy-efficiency financing at an unprecedented level.
Through this leadership, the state is creating a unique public-private collaboration to develop a model for the rest of the nation to follow. This first-of-its-kind collaboration is leveraging state funds with capital from the Tennessee Valley Authority, Pinnacle National Bank and Pathway Lending to create a targeted loan program for financing energy-efficiency improvements. This program is receiving additional support from the U.S. Economic Development Administration and the U.S.
Department of Energy as a possible blueprint for other states.
Why is this important now? As many businesses understand, energy costs are rising and corporate budgets for capital projects are shrinking, and, as the Pew Foundation recently reported, lack of financing is the No. 1 barrier to implementing energy-efficiency projects.
This program will bring businesses in our state what is now unattainable — access to loan capital to finance energy-efficiency and renewable energy projects. The program will provide below-market-rate loans for improvements ranging from $20,000 to $1 million. Whether it's building retrofits, equipment upgrades or adding renewable energy generation, businesses can now take the next step in achieving the significant, long-term energy savings they've been demanding, all the while
becoming more competitive and reducing impacts on the environment.
Long-term savings are huge
The study "Energy Efficiency in the South," released in April, says that by reducing the growth of electricity consumption, Tennesseans could save $1.6 billion a year by 2020 and $3.1 billion a year by 2030. More importantly, energy-efficiency projects create and retain jobs in Tennessee. These economic impacts are felt locally where trained contractors, consultants and installers are needed for projects. Over the next 10 years, it is expected that this loan program will generate more than $100
million in loans and will create and retain more than 3,500 jobs while decreasing demand for electric power generation and reducing environmental impacts.
Tennessee has made significant strides to become a national leader in sustainability and green business over the past few years. Major corporations specializing in solar energy are moving to our state. Organizations like the Southeastern Energy Efficiency Alliance are educating businesses on the value of energy efficiency. Oak Ridge National Laboratory is using commercially available and lab-developed technology for energy-efficiency efforts such as the Net-Zero Energy Building and
Sustainable Campus Initiative, all of which have been recognized as potential national models.
When you add up the opportunities, energy efficiency is a smart decision for business and the state economy and an even better decision for the environment.
At Pathway Lending, we have been committed to bringing access to capital to Tennessee businesses since 1999, and this program is no different. We are
launching an online application process and look forward to working with businesses from sole proprietors to corporations and everyone in between in their efforts to become more energy efficient, environmentally friendly and globally competitive.
Thanks to the leadership of Gov. Phil Bredesen and the state legislature, Tennessee businesses will now have access to energy-efficiency financing at an unprecedented level.
Through this leadership, the state is creating a unique public-private collaboration to develop a model for the rest of the nation to follow. This first-of-its-kind collaboration is leveraging state funds with capital from the Tennessee Valley Authority, Pinnacle National Bank and Pathway Lending to create a targeted loan program for financing energy-efficiency improvements. This program is receiving additional support from the U.S. Economic Development Administration and the U.S.
Department of Energy as a possible blueprint for other states.
Why is this important now? As many businesses understand, energy costs are rising and corporate budgets for capital projects are shrinking, and, as the Pew Foundation recently reported, lack of financing is the No. 1 barrier to implementing energy-efficiency projects.
This program will bring businesses in our state what is now unattainable — access to loan capital to finance energy-efficiency and renewable energy projects. The program will provide below-market-rate loans for improvements ranging from $20,000 to $1 million. Whether it's building retrofits, equipment upgrades or adding renewable energy generation, businesses can now take the next step in achieving the significant, long-term energy savings they've been demanding, all the while
becoming more competitive and reducing impacts on the environment.
Long-term savings are huge
The study "Energy Efficiency in the South," released in April, says that by reducing the growth of electricity consumption, Tennesseans could save $1.6 billion a year by 2020 and $3.1 billion a year by 2030. More importantly, energy-efficiency projects create and retain jobs in Tennessee. These economic impacts are felt locally where trained contractors, consultants and installers are needed for projects. Over the next 10 years, it is expected that this loan program will generate more than $100
million in loans and will create and retain more than 3,500 jobs while decreasing demand for electric power generation and reducing environmental impacts.
Tennessee has made significant strides to become a national leader in sustainability and green business over the past few years. Major corporations specializing in solar energy are moving to our state. Organizations like the Southeastern Energy Efficiency Alliance are educating businesses on the value of energy efficiency. Oak Ridge National Laboratory is using commercially available and lab-developed technology for energy-efficiency efforts such as the Net-Zero Energy Building and
Sustainable Campus Initiative, all of which have been recognized as potential national models.
When you add up the opportunities, energy efficiency is a smart decision for business and the state economy and an even better decision for the environment.
At Pathway Lending, we have been committed to bringing access to capital to Tennessee businesses since 1999, and this program is no different. We are
launching an online application process and look forward to working with businesses from sole proprietors to corporations and everyone in between in their efforts to become more energy efficient, environmentally friendly and globally competitive.
Wednesday, August 25, 2010
The Pathway Lending Energy Efficiency Loan Program Has Arrived
.JPG)
Today was an historic day for Pathway Lending, at 10:00 this morning Governor Bredesen, Commissioner Matt Kisber, Ken Breeden (TVA), Hugh Queener and Clint Gwin, President of Pathway Lending, announced the $50 million program we have been working on for over two years.If you haven't heard, our low interest loans, initially offered at a fixed 5%, with terms up to 10 years can finance 100% of energy efficiency and renewable energy projects for businesses in Tennessee. We're excited to be part of the State of Tennessee's efforts to grow its green economy, create jobs, and make our existing businesses stronger in the global economy.
We invite Tennessee businesses to visit our website to learn more about this program. We will also be hosting a series of free lunch and learn events across the state of Tennessee during the month of September. If you're interested in implementing a project, or a part of the larger green sector in Tennessee, we encourage you to RSVP. Click here to view of Calendar of Events and RSVP!
The following photos are courtesy of the State of Tennessee:
Thursday, August 12, 2010
NFIB: Small Business Credit Needs Met...Perhaps.
I wanted to share the following article from the National Federation of Independent Businesses. Once again, the article has a primarily negative outlook for small businesses in the next six months. This is nothing new (see every other survey that we've referenced!).
But, one thing I did find interesting was the views toward capital accessibility at the bottom of this article. Unlike other surveys, where access to capital (or the lack thereof) is the primary concern for small business owners, this survey reveals the following:
Now, this may be similar to unemployment rates, which decrease as the unemployed develop 'job search fatigue' and just stop looking. Perhaps, the majority of small business owners know what their banks will say, and have just decided to make due with what they have.
I would like to think that this is due to alternative forms of capital making their way into the market, lenders starting to think more creatively, and small business owners operating in a more streamlined manner. Perhaps, this is wishful thinking.
However it is possible as organizations like Pathway Lending - as well as a number of other Community Development Financial Institutions - have been deploying record amounts of capital to small businesses.
The Opportunity Finance Network states in its Q1 2010 Report that: "the percentage of CDFIs reporting capital constraints fell sharply in the first quarter to 28% after hovering at or near 50% in each of the previous five quarters."
This is good news. As more CDFIs and alternative lenders do not have capital constraints, more small businesses that do not fit neatly into traditional lending portfolios will have greater access to loan capital.
Negative Outlook for Improved Business Conditions Forces Small Business Optimism Index Lower in July--------------------------------------------------------------------------------
Contact: Melissa Sharp 202-314-2068
WASHINGTON, August 10, 2010 – The National Federation of Independent Business Index of Small Business Optimism lost 0.9 points in July* and reached 88.1 following a sharp decline in June. The Index has been below 93 every month since January 2008 (31 months), and below 90 for 24 of those months, all readings typical of a weak or recession-mired economy. Ninety percent of the decline this month resulted from deterioration in the outlook for business conditions in the next six months.
“The recovery in optimism that we are currently experiencing is very weak compared to recoveries after the 1982 and 1975 recessions,” said Bill Dunkelberg, NFIB’s chief economist. “The small business sector is not on a sustained positive trajectory, and with this half of the private sector missing in action, the economy’s poor growth performance is not surprising.”
Employment
Average employment growth per firm turned negative in April of 2007 and remained negative for 11 of the 13 following quarterly (first month in each quarter) readings, ending with a negative 0.15 in July (seasonally adjusted). July actually is an improvement from recent months where average declines of workers per firm were negative 0.48 in May and negative 0.28 in June.
In July, 10 percent (seasonally adjusted) reported unfilled job openings, up one point from June but historically very weak. Over the next three months, 9 percent plan to increase employment (down one point), and 10 percent plan to reduce their workforce (up two points), yielding a seasonally adjusted net 2 percent of owners planning to create new jobs, up one point from June and positive for the third time in 22 months.
Capital Spending and Outlook
The frequency of reported capital outlays over the past six months fell one point to 45 percent of all firms, one point above the 35-year record low reached most recently in December 2009. The percent of owners planning to make capital expenditures over the next few months fell one point to 18 percent, two points above the 35-year record low. Five percent characterized the current period as a good time to expand facilities, down one point. But a net-negative 15 percent expect business conditions to improve over the next six months, down nine points from June and 23 points from May.
“Owners do not trust the economic policies in place or proposed, and they are distressed by global and national developments that make the future more uncertain,” said Dunkelberg.
Sales and Inventories
The net percent of all owners (seasonally adjusted) reporting higher nominal sales in the past three months lost one point, falling to a net-negative 16 percent, 18 points better than June 2009 but indicative of very weak customer activity. Unadjusted, 26 percent of all owners reported higher sales (last three months compared to prior three months, up three points) while 33 percent reported lower sales (down two points). Widespread price cutting continued to contribute to reports of lower nominal sales.
The net percent of owners expecting real sales gains improved one point over June, rising to a net-negative 4 percent of all owners (seasonally adjusted), still quite dismal. Not seasonally adjusted, 26 percent expect improvement over the next three months, 28 percent expect declines.
A net-negative 19 percent of all owners reported gains in inventories (more firms cut stocks than added to them, seasonally adjusted), two points better than June but a very weak number. July 2010 is the 28th negative double-digit month in a row for inventory gains, and the 38th negative month in a row. Unadjusted, 10 percent reported gains in inventory stocks (unchanged), but 25 percent reported inventory reductions (down two points). Plans to add to inventories (on purpose) declined one point to negative 4 percent of all firms (seasonally adjusted).
Inflation
The weak economy continued to put downward pressure on prices. Twelve percent of owners (down one point) reported raising average selling prices, and 24 percent reported average price reductions (down three points). Seasonally adjusted, the net percent of owners raising prices was a negative 12 percent, a two point increase in the net percent raising prices. July is the 20th consecutive month in which more owners reported cutting average selling prices that raising them.
“With no pricing power and real sales volumes weak, profits are not able to recover,” said Dunkelberg.
Earnings
Small business owners’ reports of positive profit trends worsened by one point in July, registering at a net-negative 33 percent (29 points worse than the best expansion reading reached in 2005).
“Profits are important for the support of capital spending and expansion, so this trend does not signal much growth for the small business sector in coming months,” said Dunkelberg. Not seasonally adjusted, 18 percent reported profits higher (up 2 points), but 45 percent reported profits falling (down 2 points).
Owners continued to hold the line on compensation, with 8 percent reporting reduced worker compensation, and 12 percent reporting gains. Seasonally adjusted, a net 3 percent reported raising worker compensation, only 5 points better than February’s record low reading of negative 2 percent.
Credit
Regular borrowing gained three points in July as 32 percent reported accessing capital markets at least once a quarter, but still near record lows. A net 13 percent reported loans harder to get than in their last attempt, unchanged from June. However, overall 91 percent of the owners reported all their credit needs met or they did not want to borrow, up one point. Only 4 percent reported financing as their top business problem.
*The July survey is based on 2,029 small business owner respondents of a random sample of NFIB’s member firms surveyed through July 31.
But, one thing I did find interesting was the views toward capital accessibility at the bottom of this article. Unlike other surveys, where access to capital (or the lack thereof) is the primary concern for small business owners, this survey reveals the following:
Overall 91 percent of the owners reported all their credit needs met or they did not want to borrow, up one point. Only 4 percent reported financing as their top business problem.
Now, this may be similar to unemployment rates, which decrease as the unemployed develop 'job search fatigue' and just stop looking. Perhaps, the majority of small business owners know what their banks will say, and have just decided to make due with what they have.
I would like to think that this is due to alternative forms of capital making their way into the market, lenders starting to think more creatively, and small business owners operating in a more streamlined manner. Perhaps, this is wishful thinking.
However it is possible as organizations like Pathway Lending - as well as a number of other Community Development Financial Institutions - have been deploying record amounts of capital to small businesses.
The Opportunity Finance Network states in its Q1 2010 Report that: "the percentage of CDFIs reporting capital constraints fell sharply in the first quarter to 28% after hovering at or near 50% in each of the previous five quarters."
This is good news. As more CDFIs and alternative lenders do not have capital constraints, more small businesses that do not fit neatly into traditional lending portfolios will have greater access to loan capital.
Negative Outlook for Improved Business Conditions Forces Small Business Optimism Index Lower in July--------------------------------------------------------------------------------
Contact: Melissa Sharp 202-314-2068
WASHINGTON, August 10, 2010 – The National Federation of Independent Business Index of Small Business Optimism lost 0.9 points in July* and reached 88.1 following a sharp decline in June. The Index has been below 93 every month since January 2008 (31 months), and below 90 for 24 of those months, all readings typical of a weak or recession-mired economy. Ninety percent of the decline this month resulted from deterioration in the outlook for business conditions in the next six months.
“The recovery in optimism that we are currently experiencing is very weak compared to recoveries after the 1982 and 1975 recessions,” said Bill Dunkelberg, NFIB’s chief economist. “The small business sector is not on a sustained positive trajectory, and with this half of the private sector missing in action, the economy’s poor growth performance is not surprising.”
Employment
Average employment growth per firm turned negative in April of 2007 and remained negative for 11 of the 13 following quarterly (first month in each quarter) readings, ending with a negative 0.15 in July (seasonally adjusted). July actually is an improvement from recent months where average declines of workers per firm were negative 0.48 in May and negative 0.28 in June.
In July, 10 percent (seasonally adjusted) reported unfilled job openings, up one point from June but historically very weak. Over the next three months, 9 percent plan to increase employment (down one point), and 10 percent plan to reduce their workforce (up two points), yielding a seasonally adjusted net 2 percent of owners planning to create new jobs, up one point from June and positive for the third time in 22 months.
Capital Spending and Outlook
The frequency of reported capital outlays over the past six months fell one point to 45 percent of all firms, one point above the 35-year record low reached most recently in December 2009. The percent of owners planning to make capital expenditures over the next few months fell one point to 18 percent, two points above the 35-year record low. Five percent characterized the current period as a good time to expand facilities, down one point. But a net-negative 15 percent expect business conditions to improve over the next six months, down nine points from June and 23 points from May.
“Owners do not trust the economic policies in place or proposed, and they are distressed by global and national developments that make the future more uncertain,” said Dunkelberg.
Sales and Inventories
The net percent of all owners (seasonally adjusted) reporting higher nominal sales in the past three months lost one point, falling to a net-negative 16 percent, 18 points better than June 2009 but indicative of very weak customer activity. Unadjusted, 26 percent of all owners reported higher sales (last three months compared to prior three months, up three points) while 33 percent reported lower sales (down two points). Widespread price cutting continued to contribute to reports of lower nominal sales.
The net percent of owners expecting real sales gains improved one point over June, rising to a net-negative 4 percent of all owners (seasonally adjusted), still quite dismal. Not seasonally adjusted, 26 percent expect improvement over the next three months, 28 percent expect declines.
A net-negative 19 percent of all owners reported gains in inventories (more firms cut stocks than added to them, seasonally adjusted), two points better than June but a very weak number. July 2010 is the 28th negative double-digit month in a row for inventory gains, and the 38th negative month in a row. Unadjusted, 10 percent reported gains in inventory stocks (unchanged), but 25 percent reported inventory reductions (down two points). Plans to add to inventories (on purpose) declined one point to negative 4 percent of all firms (seasonally adjusted).
Inflation
The weak economy continued to put downward pressure on prices. Twelve percent of owners (down one point) reported raising average selling prices, and 24 percent reported average price reductions (down three points). Seasonally adjusted, the net percent of owners raising prices was a negative 12 percent, a two point increase in the net percent raising prices. July is the 20th consecutive month in which more owners reported cutting average selling prices that raising them.
“With no pricing power and real sales volumes weak, profits are not able to recover,” said Dunkelberg.
Earnings
Small business owners’ reports of positive profit trends worsened by one point in July, registering at a net-negative 33 percent (29 points worse than the best expansion reading reached in 2005).
“Profits are important for the support of capital spending and expansion, so this trend does not signal much growth for the small business sector in coming months,” said Dunkelberg. Not seasonally adjusted, 18 percent reported profits higher (up 2 points), but 45 percent reported profits falling (down 2 points).
Owners continued to hold the line on compensation, with 8 percent reporting reduced worker compensation, and 12 percent reporting gains. Seasonally adjusted, a net 3 percent reported raising worker compensation, only 5 points better than February’s record low reading of negative 2 percent.
Credit
Regular borrowing gained three points in July as 32 percent reported accessing capital markets at least once a quarter, but still near record lows. A net 13 percent reported loans harder to get than in their last attempt, unchanged from June. However, overall 91 percent of the owners reported all their credit needs met or they did not want to borrow, up one point. Only 4 percent reported financing as their top business problem.
*The July survey is based on 2,029 small business owner respondents of a random sample of NFIB’s member firms surveyed through July 31.
Tuesday, August 10, 2010
NSBA - Mid Year 2010 Report
Earlier this month the National Small Business Association released its 2010 Mid-Year Economic Report, which included survey results from more than 400 small business owners represeting every industry in every state of the nation.
The report provides some bright spots for the period between December 2009 and July 2010:
- An increase in the number of small businesses reporting an increase in revenues from 22% to 26%.
- An increase in the number of small businesses reporting an increase in profits from 19% to 24%.
- An increase in the number of businesses reporting existing growth from 7% to 9%.
However, the overall mood of the report reflects the mood of the economy: uncertain, worried, and focused on decreasing optimism, confidence, and business growth.
Small business owners overwhelmingly expect the economy to remain flat and generally uncertain. The upbeat nature of many entrepreneurs is beginning to wane. Confidence is slipping - down from 61% to 59% in the past six months. Although the majority of small business owners are confident about the future of their business, the fact that well over one-third (41%) have concerns about the on-going viability of their business is not good.
These issues are further reflected when discussing projected job growth, as economic uncertainty and growing concerns over viability do not lend themselves to expansion activities. Just six months ago 24% of small business owners projected increases in their number of employees. Today, only 22% are making such projections. Fortunately, there was also a decline in the number of small businesses projecting job cuts.
Given the historic role small business has played in job creation, any trend in net job cuts should be alarming. Furthermore, the decreases in job growth projections indicate a strong need to support small business growth and ensure impediments, such as the inability to finance growth, are removed. Creating an environment where small businesses can start, thrive, and grow will surely enable to U.S. to move more promptly toward lasting economic recovery.
More small businesses are turning to loans to support their daily business activities. As traditional banks have tightened their underwriting standards - to include increased collateral requirements, greater focus on cash flow, and higher personal credit thresholds, including credit scores - alternative sources of capital, like Community Development Financial Institutions, have found ways to become more flexible and meet the diverse range of financing needs in the small business lending community. For these "alternative" or "non-traditional" sources of capital job growth and economic expansion is often the mission.
For more information on Pathway Lending's financial products and services, visit our website www.PathwayLending.Org.
The report provides some bright spots for the period between December 2009 and July 2010:
- An increase in the number of small businesses reporting an increase in revenues from 22% to 26%.
- An increase in the number of small businesses reporting an increase in profits from 19% to 24%.
- An increase in the number of businesses reporting existing growth from 7% to 9%.
However, the overall mood of the report reflects the mood of the economy: uncertain, worried, and focused on decreasing optimism, confidence, and business growth.
Small business owners overwhelmingly expect the economy to remain flat and generally uncertain. The upbeat nature of many entrepreneurs is beginning to wane. Confidence is slipping - down from 61% to 59% in the past six months. Although the majority of small business owners are confident about the future of their business, the fact that well over one-third (41%) have concerns about the on-going viability of their business is not good.
These issues are further reflected when discussing projected job growth, as economic uncertainty and growing concerns over viability do not lend themselves to expansion activities. Just six months ago 24% of small business owners projected increases in their number of employees. Today, only 22% are making such projections. Fortunately, there was also a decline in the number of small businesses projecting job cuts.
Given the historic role small business has played in job creation, any trend in net job cuts should be alarming. Furthermore, the decreases in job growth projections indicate a strong need to support small business growth and ensure impediments, such as the inability to finance growth, are removed. Creating an environment where small businesses can start, thrive, and grow will surely enable to U.S. to move more promptly toward lasting economic recovery.
More small businesses are turning to loans to support their daily business activities. As traditional banks have tightened their underwriting standards - to include increased collateral requirements, greater focus on cash flow, and higher personal credit thresholds, including credit scores - alternative sources of capital, like Community Development Financial Institutions, have found ways to become more flexible and meet the diverse range of financing needs in the small business lending community. For these "alternative" or "non-traditional" sources of capital job growth and economic expansion is often the mission.
For more information on Pathway Lending's financial products and services, visit our website www.PathwayLending.Org.
Tuesday, August 3, 2010
Minding the Gaps: Pathway Lending and the Small Business Credit Crisis
Over the past few months the Federal Reserve System’s Community Affairs office hosted more than 40 meeting as part of an initiative titled ‘Addressing the Financing Needs of Small Businesses’. The goal of this series was to gather information and perspectives to help the Federal Reserve address the immediate and intermediate credit needs of small businesses.
On July 12, 2010 Ben Bernanke, the current Chairman of the Federal Reserve Bank, spoke at a capstone event to summarize the findings of this series of meetings. Below, is a summary of the identified credit gaps and how Pathway Lending can provide solutions for your business.
Identified Credit Gaps
Lines of Credit and Working Capital:
• Small businesses reported that existing lines of credit had been reduced, hampering their ability to offset lower cash flows that stem from slower sales or slower customer payments. As a result, small businesses reported that they had to scramble to meet intermediate financing needs and change their business models to adapt to less credit availability.
• Banks reported reassessing outstanding lines of credit in order to reduce their exposure to losses and minimize their capital needs. Banks also noted that small businesses had changed how they used their lines in the economic downturn, using them for major purchases and salaries rather than as short-term revolving credit. Some banks noted that, in such situations, they have converted lines of credit into term loans, which have higher finance costs.
• Pathway Lending provides expansion capital for the purchase of equipment, permanent working capital, inventory or lines of credit. Pathway Lending will finance up to 80% loan to value for equipment. Our other forms of working capital can range from one to five years and loan amounts are from $35,000 to $500,000.
Refinancing Credit:
• Small businesses expressed concern about their ability to refinance loans, particularly those related to commercial real estate. In some cases, business owners faced an immediate need for cash to repay the balance of their maturing balloon loans, even where the firm had an ability to repay the loan, because of reduced collateral values or tightened underwriting standards.
• Pathway Lending is a certified lender under the U.S. Small Business Association’s 504 Loan Program, which does allow for refinancing under certain circumstances.
Small-Dollar Loans:
• Several small business participants cited the need for small dollar loans, particularly in amounts under $200,000. Microlenders in some markets help address the need for loans under $35,000.
• Larger bank participants acknowledged that they reduced or curtailed small dollar loans altogether because of the expense in time and resources required to make these loans.
• Pathway Lending has originated more than 450 loans totaling more than $40 million to Tennessee small businesses since 1999. Loan amounts begin at $35,000, with an average loan size of about $125,000.
Commercial Real Estate:
• Banks reported that they suffered significant losses in their commercial real estate portfolios. One bank stated that 50% to 60% vacancy rates were not uncommon in his area. Many banks reported that they have tightened underwriting standards in this segment, including requirements for higher borrower equity, stronger debt coverage ratios, lower vacancy rates, as well as stronger personal guarantees.
• Small businesses confirmed these tighter loan standards and noted that, for existing loans, they were required to pledge additional cash or other assets to make up gaps created by commercial real estate that appraised at lower market values.
• Pathway Lending offers loans for building and land purchases for the acquisition of commercial real estate, construction or renovations of owner-occupied real estate. Pathway Lending can lend up to 90 percent of the property’s appraised value. We often partner with the U.S. Small Business Administration and USDA Rural Development so that our clients can take advantage of loan guarantee programs and flexible terms. Loan amounts begin at $35,000.
Patient Capital:
• Both banks and small businesses cited the need for sources of patient capital to assist small businesses in financing equipment and other large purchases. For capital-intensive businesses, such as manufacturing, a larger loan for equipment or materials needs a longer repayment period to provide sufficient time for sales to pick up and generate cash flow for repayment of the loan.
• Pathway Lending offers longer terms for its loans, up to 7 years or the useful life thereof for equipment purchases. As a Community Development Financial Institution, Pathway Lending also has the ability to negotiate with its customers and provide more flexible terms for repayment.
Loans to Distressed Industries:
• Banks reported that they are reducing their exposure to certain industries with high loss rates.
• Small Businesses affected by the reduction in credit within these industries expressed their frustration over their inability to secure loans regardless of the quality of their financial condition.
• Pathway Lending’s mission is to increase access to capital for businesses in distressed, or low- and moderate-income, communities. Pathway Lending makes loans when traditional banks will not. Visit our website for details.
Start-Up Capital:
• Small businesses and bankers agreed that start-up businesses have always had difficulty obtaining financing, and that now it is almost impossible to secure bank credit. At several meetings, participants noted an increased demand for this type of financing, particularly given the number of unemployed workers who are now looking to start businesses.
• Pathway Lending does not provide start-up capital. We typically require applicants to have industry-related experience in order to qualify for a loan. While Pathway Lending may not provide your business with the start-up capital it requires, there are many small lenders who will. Please visit Strategies for Small Businesses at http://strategiesforsmallbusiness.com/. Based out of California, this company provides loans, including start-up capital, to companies across the country.
If your business is growing, and in need of capital, we encourage you to visit our website for more details. There, you will learn more about our products, see if your company fits our lending profile, and have the opportunity to contact us directly.
Apply for a Pathway Lending Small Business Loan Now!
On July 12, 2010 Ben Bernanke, the current Chairman of the Federal Reserve Bank, spoke at a capstone event to summarize the findings of this series of meetings. Below, is a summary of the identified credit gaps and how Pathway Lending can provide solutions for your business.
Identified Credit Gaps
Lines of Credit and Working Capital:
• Small businesses reported that existing lines of credit had been reduced, hampering their ability to offset lower cash flows that stem from slower sales or slower customer payments. As a result, small businesses reported that they had to scramble to meet intermediate financing needs and change their business models to adapt to less credit availability.
• Banks reported reassessing outstanding lines of credit in order to reduce their exposure to losses and minimize their capital needs. Banks also noted that small businesses had changed how they used their lines in the economic downturn, using them for major purchases and salaries rather than as short-term revolving credit. Some banks noted that, in such situations, they have converted lines of credit into term loans, which have higher finance costs.
• Pathway Lending provides expansion capital for the purchase of equipment, permanent working capital, inventory or lines of credit. Pathway Lending will finance up to 80% loan to value for equipment. Our other forms of working capital can range from one to five years and loan amounts are from $35,000 to $500,000.
Refinancing Credit:
• Small businesses expressed concern about their ability to refinance loans, particularly those related to commercial real estate. In some cases, business owners faced an immediate need for cash to repay the balance of their maturing balloon loans, even where the firm had an ability to repay the loan, because of reduced collateral values or tightened underwriting standards.
• Pathway Lending is a certified lender under the U.S. Small Business Association’s 504 Loan Program, which does allow for refinancing under certain circumstances.
Small-Dollar Loans:
• Several small business participants cited the need for small dollar loans, particularly in amounts under $200,000. Microlenders in some markets help address the need for loans under $35,000.
• Larger bank participants acknowledged that they reduced or curtailed small dollar loans altogether because of the expense in time and resources required to make these loans.
• Pathway Lending has originated more than 450 loans totaling more than $40 million to Tennessee small businesses since 1999. Loan amounts begin at $35,000, with an average loan size of about $125,000.
Commercial Real Estate:
• Banks reported that they suffered significant losses in their commercial real estate portfolios. One bank stated that 50% to 60% vacancy rates were not uncommon in his area. Many banks reported that they have tightened underwriting standards in this segment, including requirements for higher borrower equity, stronger debt coverage ratios, lower vacancy rates, as well as stronger personal guarantees.
• Small businesses confirmed these tighter loan standards and noted that, for existing loans, they were required to pledge additional cash or other assets to make up gaps created by commercial real estate that appraised at lower market values.
• Pathway Lending offers loans for building and land purchases for the acquisition of commercial real estate, construction or renovations of owner-occupied real estate. Pathway Lending can lend up to 90 percent of the property’s appraised value. We often partner with the U.S. Small Business Administration and USDA Rural Development so that our clients can take advantage of loan guarantee programs and flexible terms. Loan amounts begin at $35,000.
Patient Capital:
• Both banks and small businesses cited the need for sources of patient capital to assist small businesses in financing equipment and other large purchases. For capital-intensive businesses, such as manufacturing, a larger loan for equipment or materials needs a longer repayment period to provide sufficient time for sales to pick up and generate cash flow for repayment of the loan.
• Pathway Lending offers longer terms for its loans, up to 7 years or the useful life thereof for equipment purchases. As a Community Development Financial Institution, Pathway Lending also has the ability to negotiate with its customers and provide more flexible terms for repayment.
Loans to Distressed Industries:
• Banks reported that they are reducing their exposure to certain industries with high loss rates.
• Small Businesses affected by the reduction in credit within these industries expressed their frustration over their inability to secure loans regardless of the quality of their financial condition.
• Pathway Lending’s mission is to increase access to capital for businesses in distressed, or low- and moderate-income, communities. Pathway Lending makes loans when traditional banks will not. Visit our website for details.
Start-Up Capital:
• Small businesses and bankers agreed that start-up businesses have always had difficulty obtaining financing, and that now it is almost impossible to secure bank credit. At several meetings, participants noted an increased demand for this type of financing, particularly given the number of unemployed workers who are now looking to start businesses.
• Pathway Lending does not provide start-up capital. We typically require applicants to have industry-related experience in order to qualify for a loan. While Pathway Lending may not provide your business with the start-up capital it requires, there are many small lenders who will. Please visit Strategies for Small Businesses at http://strategiesforsmallbusiness.com/. Based out of California, this company provides loans, including start-up capital, to companies across the country.
If your business is growing, and in need of capital, we encourage you to visit our website for more details. There, you will learn more about our products, see if your company fits our lending profile, and have the opportunity to contact us directly.
Apply for a Pathway Lending Small Business Loan Now!
Monday, July 26, 2010
Something Old, Something New: Small Business Lending in 2010
While there is no need to restate the obvious, I will take a moment to do just that. Small Businesses have not been able to get the financing they need to grow, and in some cases support, their businesses over the past 24 months. The National Small Business Association (NSBA) states that this has impacted the job-creation drivers of the U.S. economy and impedes our recovery from recession. According to the 2010 NSBA Mid-Year Economic Report, 80 percent of small businesses have been impacted by the credit crunch and the number of businesses unable to garner adequate financing rose to 41 percent in the last six months.
Now, onto something you may not know: Pathway Lending, a certified non-profit Community Development Financial Institution, makes it our mission to increase access to capital to Tennessee businesses. Our target clients are those businesses that are unable to get a loan from a traditional bank despite having a growth opportunity at hand.
After working with hundreds of clients over the past decade and lending more than $42 million, Pathway Lending has developed three Small Business loan products that help move businesses to the next level:
• Building and Land Purchases for the acquisition of commercial real estate, construction or renovations of owner-occupied real estate. Pathway Lending can lend up to 90 percent of the property’s appraised value. We often partner with the U.S. Small Business Administration and USDA Rural Development so that our clients can take advantage of loan guarantee programs and flexible terms. Loan amounts begin at $35,000.
• Expansion Capital for the purchase of equipment, permanent working capital, inventory or lines of credit. Pathway Lending will finance up to 80% loan to value for equipment. Our other forms of working capital can range from one to five years and loan amounts are from $35,000 to $500,000.
• Purchase Order Finance to help companies fill orders from government or commercial contracts. Pathway Lending gives companies a way to purchase raw materials and pay for up-front production costs. We can set up one-year lines of credit and make advances on up to 80 percent of the cost of goods. Loan amounts are based on the purchase order or account receivable balance.
If you’re a Tennessee business owner in search of financing for your business, check out our website to get started. (Learn more about our Lending Criteria and Steps to Getting a Loan)
If you’re not in Tennessee, here are some other options for financing your small business:
Government-backed loans
The Small Business Administration guarantees as much as 90% of some loans. Now, preferred SBA lenders such as Bank of America (BAC) and KeyBank (KEY) may be more willing to extend you an SBA-backed loan, says Brian Hamilton, CEO of Sageworks, a Raleigh, N.C., financial research firm, and a former SBA consultant. Since President Obama signed the American Recovery and Reinvestment Act (ARRA) into law in February 2009, the weekly loan dollar volume has risen more than 40% in the 7(a) and 504 programs, compared to the weekly average before passage, according to John J. Miller, a SBA spokesman.
Passage of the ARRA, also permitted the SBA to temporarily waive a fee that it charges to banks, which is passed on to borrowers, says Martha Seidenwand, KeyBank’s SBA program and operations manager in Cleveland. (Special SBA programs including the American Recovery Capital (ARC) program and the floor plan financing program, might also prove helpful. For our story on ARC Loans, click here.)
Community banks and credit unions
Having dodged the brunt of the mortgage bullet, community banks and credit unions may be in a better position to lend to small businesses, Hamilton says. A number of community banks are issuing additional loans to small businesses as the outlook for the lending environment improves. In addition, credit unions may soon take on more small-business loans as larger lenders tighten their terms.
Peer-to-Peer networks
You may heard about peer-to-peer networks like Kiva, but similar organizations also exist to help U.S. businesses. The San Francisco-based peer-to-peer lending network Prosper is in the business of brokering loans. At Prosper, borrowers list how much they need and details about their business, while strangers can make loans with as little as $25. Virgin Money specializes in structuring business loans between friends, family members and associates. Lending Club will connect only credit-worthy borrowers with lenders. (Note that there are some pitfalls to going this route. Click here for our story.)
Microlenders
In need of a small cash infusion – typically under $35,000? Enter: New York-based microlenders Accion USA and Count Me In. Because these organizations rely on donations from charitable organizations and individuals, they’re more willing to lend to entrepreneurs just starting up or to those with checkered credit histories. Although microloans generally carry higher interest rates than bank loans, Accion recently lowered its rates from between 11% and 18% to between 8% and 15%. The SBA also provides microloans and offers rates between 8% and 13%.
Asset-based lenders
Don’t let the near-collapse of CIT, one of the nation’s largest factoring firms, fool you. There are troves of other asset-based lenders willing either to purchase your accounts receivables for 80% to 90% on the dollar or to lend against them. LSQ Funding, an Orlando, Fla., factoring firm, for example, works exclusively with small to midsized businesses across the U.S., and New York’s FGI Finance purchases international receivables. For those who like competition, the New Orleans-based Receivables Exchange allows credit-worthy businesses to auction off their receivables to the highest bidder.
Now, onto something you may not know: Pathway Lending, a certified non-profit Community Development Financial Institution, makes it our mission to increase access to capital to Tennessee businesses. Our target clients are those businesses that are unable to get a loan from a traditional bank despite having a growth opportunity at hand.
After working with hundreds of clients over the past decade and lending more than $42 million, Pathway Lending has developed three Small Business loan products that help move businesses to the next level:
• Building and Land Purchases for the acquisition of commercial real estate, construction or renovations of owner-occupied real estate. Pathway Lending can lend up to 90 percent of the property’s appraised value. We often partner with the U.S. Small Business Administration and USDA Rural Development so that our clients can take advantage of loan guarantee programs and flexible terms. Loan amounts begin at $35,000.
• Expansion Capital for the purchase of equipment, permanent working capital, inventory or lines of credit. Pathway Lending will finance up to 80% loan to value for equipment. Our other forms of working capital can range from one to five years and loan amounts are from $35,000 to $500,000.
• Purchase Order Finance to help companies fill orders from government or commercial contracts. Pathway Lending gives companies a way to purchase raw materials and pay for up-front production costs. We can set up one-year lines of credit and make advances on up to 80 percent of the cost of goods. Loan amounts are based on the purchase order or account receivable balance.
If you’re a Tennessee business owner in search of financing for your business, check out our website to get started. (Learn more about our Lending Criteria and Steps to Getting a Loan)
If you’re not in Tennessee, here are some other options for financing your small business:
Government-backed loans
The Small Business Administration guarantees as much as 90% of some loans. Now, preferred SBA lenders such as Bank of America (BAC) and KeyBank (KEY) may be more willing to extend you an SBA-backed loan, says Brian Hamilton, CEO of Sageworks, a Raleigh, N.C., financial research firm, and a former SBA consultant. Since President Obama signed the American Recovery and Reinvestment Act (ARRA) into law in February 2009, the weekly loan dollar volume has risen more than 40% in the 7(a) and 504 programs, compared to the weekly average before passage, according to John J. Miller, a SBA spokesman.
Passage of the ARRA, also permitted the SBA to temporarily waive a fee that it charges to banks, which is passed on to borrowers, says Martha Seidenwand, KeyBank’s SBA program and operations manager in Cleveland. (Special SBA programs including the American Recovery Capital (ARC) program and the floor plan financing program, might also prove helpful. For our story on ARC Loans, click here.)
Community banks and credit unions
Having dodged the brunt of the mortgage bullet, community banks and credit unions may be in a better position to lend to small businesses, Hamilton says. A number of community banks are issuing additional loans to small businesses as the outlook for the lending environment improves. In addition, credit unions may soon take on more small-business loans as larger lenders tighten their terms.
Peer-to-Peer networks
You may heard about peer-to-peer networks like Kiva, but similar organizations also exist to help U.S. businesses. The San Francisco-based peer-to-peer lending network Prosper is in the business of brokering loans. At Prosper, borrowers list how much they need and details about their business, while strangers can make loans with as little as $25. Virgin Money specializes in structuring business loans between friends, family members and associates. Lending Club will connect only credit-worthy borrowers with lenders. (Note that there are some pitfalls to going this route. Click here for our story.)
Microlenders
In need of a small cash infusion – typically under $35,000? Enter: New York-based microlenders Accion USA and Count Me In. Because these organizations rely on donations from charitable organizations and individuals, they’re more willing to lend to entrepreneurs just starting up or to those with checkered credit histories. Although microloans generally carry higher interest rates than bank loans, Accion recently lowered its rates from between 11% and 18% to between 8% and 15%. The SBA also provides microloans and offers rates between 8% and 13%.
Asset-based lenders
Don’t let the near-collapse of CIT, one of the nation’s largest factoring firms, fool you. There are troves of other asset-based lenders willing either to purchase your accounts receivables for 80% to 90% on the dollar or to lend against them. LSQ Funding, an Orlando, Fla., factoring firm, for example, works exclusively with small to midsized businesses across the U.S., and New York’s FGI Finance purchases international receivables. For those who like competition, the New Orleans-based Receivables Exchange allows credit-worthy businesses to auction off their receivables to the highest bidder.
Monday, July 12, 2010
Recovering From the Recession
In recent months Tennessee’s economy has shown signs of improvement, slight as they may be. Jobs have been added to the economy across a number of sectors and the unemployment rate is decreasing. While we’re not back at pre-Recession levels, perhaps this signals that the economy has turned a corner.
A few months ago, Tennessee unemployment data was bleak as all 95 counties reported increases in the unemployment rate, increases in initial unemployment claims, and the instances of mass layoffs were increasing across the state. Now, the news is different. The Tennessee Department of Labor & Workforce Development reported that total non-farm employment increased by 24,300 jobs in May 2010 and that unemployment rates decreased in 86 counties. After working through the past 24 months I’ll take good news wherever I can get it.
Enough rambling, on to the point. It’s safe to say that entrepreneurs and small business owners who have survived the past 24 months have been doing something right. It’s also safe to say that as the economy improves there will be increased opportunities for businesses. Potential competitors may have gone out of business, potential customers may be looking for a better deal, or a number of other variables could produce new opportunities. Regardless, it’s important to be prepared to capitalize on opportunities as they arise.
Entrepreneur Magazine, as well as a number of other sources, has recently published articles on preparing for growth and success in your business. A couple of salient points:
On Financing: The faster you grow, the more cash you're likely to need. Growth financing is every bit as hard--if not harder--to obtain than startup funding. Develop and maintain strong relationships with your funding sources and be sure to have primary and backup sources available.
On Employees: The right people doing the right jobs is absolutely critical to sustain growth. Create an environment where people are willing to work through the growing pains. In addition, take care of your suppliers, professional advisors and anyone else who can have an effect on your operation.
On Customers: Know what they need, but more important, know what they want and do everything you can to give that to them. Most important, communicate. Never let your customers wonder what's going on.
On Core Business: Stick to the business your company knows best. Be sure any diversification or product line expansion you do makes sense. If it has nothing to do with your core business don't get into it just because it seems like a good opportunity.
The bottom line is this, be just as prepared to handle success as you are to handle failure. Beyond having the foresight to understand your market, plan and continually update your business plans, and maintain strong relationships with a number of people who can guide you down the path to success.
At Pathway Lending, we’re a little different than most traditional banks. Our core business is helping your business take advantage of market opportunities and grow – bottom line. If you’re a business owner in the state of Tennessee with an opportunity but no capital to make it happen, please visit us online and check out our Loans Page. Our staff of lenders can help you plan for and achieve growth.
Tuesday, July 6, 2010
Pathway Lending In The News
Knoxville News Sentinel business writer, Roger Harris (follow his Rant$ and Rave$ blog here) gave Pathway Lending a shout-out in his July 4th article, Small businesses need more support .
The article begins with:
...and goes on to say:
At Pathway Lending we're proud of what we do and are passionate about helping small businesses succeed and grow. We appreciate Roger's kind words and hope to have more success stories for him in the near future.
If you are a small business owner with an opportunity to grow but without a bank to help you along the way, please visit our website at www.pathwaylending.org
The article begins with:
In honor of the Fourth of July holiday, let's consider what it takes for small business - the real backbone of the national economy - to be truly independent.
Independence comes with access to capital. Small-business owners need capital to expand, to create jobs, to create new businesses.
...and goes on to say:
A few weeks ago, I wrote about Pathway Lending (formerly known as Southeast Community Capital Corp.), a Nashville-based nonprofit lender that administers various loan funds aimed at small business.
More entrepreneurs and small-business owners called in response to that column than almost anything I've written in the last few years.
Their stories were similar. They needed capital to grow their companies but had been turned away by traditional lenders.
Passage of the Small Business Lending Fund Act could help ease the credit crunch. But no matter how the vote turns out, community bankers need to step up and help small businesses bring good ideas to life.
At Pathway Lending we're proud of what we do and are passionate about helping small businesses succeed and grow. We appreciate Roger's kind words and hope to have more success stories for him in the near future.
If you are a small business owner with an opportunity to grow but without a bank to help you along the way, please visit our website at www.pathwaylending.org
Thursday, July 1, 2010
Necessity and Invention: Saving Your Business Money During the Great Recession
Save money, stay in business…that seems to be the mantra of so many small business oriented websites these days. Everyone has a plan, be it with 10 or 101 ways, to save your business money. There are a lot of useful ideas out there that don’t involve spending a lot of money to save, or even make money in your business. I’ve included a few of the posts below, from the Wall Street Journal, Entrepreneur Magazine, and the Times-Herald Record.
101 Ways to Save Money in Your Business
6 Ways For Small Business Owners to Save Money
10 Ways to Save Money
At Pathway Lending we’re not immune to the Great Recession. So we’ve undertaken a few money saving ideas that allow us to better focus on the needs of our clients and continue to deliver high levels of service. We’ve reduced what we consume and increased the impact of what we continue to use. Here’s a quick list of what we’ve done:
- Talked to our power distributor: TVA and its network of local power distributors offer free energy audits for your commercial facilities. The process provides your business with a comprehensive list of opportunities to reduce energy consumption and save money. Check out their website for a list of other commercial energy services: http://www.tva.gov/commercial/
- Reduced Paper: As a small business we used to do things the hard way, pushing lots of paper internally and sending everything in the mail to clients, investors, and colleagues. Recently, we’ve moved to low-cost, on-line systems for client management and marketing services. Low-cost systems like Salesforce.com and myEmma.com have had big impacts – they allow us to be more flexible, move quicker, and get information to the right people at the right time. Plus, it cuts out a lot of the printing, paper, and postage costs we used to have.
- Opened ourselves to suggestions: Opening the feedback loop, whether with potential customers, current clients, or investors is important to the success of any business. We’ve started using surveymonkey.com as a low-cost way of providing our audiences with an easy way to tell us if our products are hitting the mark.
- Network, network, network: Whether it’s the local Chamber, trade groups, or gatherings of like-minded individuals, we’ve taken advantage of many free opportunities to network and get the word out about our business. Happy hour events, speaker series, or other forums are a good way to give yourself a bit of free advertising and build a network of partners and advocates.
If necessity is the mother of invention, there is no better time than the present to start thinking creatively and streamline your business practices. There is plenty of information out there, it's up to you to make it happen.
101 Ways to Save Money in Your Business
6 Ways For Small Business Owners to Save Money
10 Ways to Save Money
At Pathway Lending we’re not immune to the Great Recession. So we’ve undertaken a few money saving ideas that allow us to better focus on the needs of our clients and continue to deliver high levels of service. We’ve reduced what we consume and increased the impact of what we continue to use. Here’s a quick list of what we’ve done:
- Talked to our power distributor: TVA and its network of local power distributors offer free energy audits for your commercial facilities. The process provides your business with a comprehensive list of opportunities to reduce energy consumption and save money. Check out their website for a list of other commercial energy services: http://www.tva.gov/commercial/
- Reduced Paper: As a small business we used to do things the hard way, pushing lots of paper internally and sending everything in the mail to clients, investors, and colleagues. Recently, we’ve moved to low-cost, on-line systems for client management and marketing services. Low-cost systems like Salesforce.com and myEmma.com have had big impacts – they allow us to be more flexible, move quicker, and get information to the right people at the right time. Plus, it cuts out a lot of the printing, paper, and postage costs we used to have.
- Opened ourselves to suggestions: Opening the feedback loop, whether with potential customers, current clients, or investors is important to the success of any business. We’ve started using surveymonkey.com as a low-cost way of providing our audiences with an easy way to tell us if our products are hitting the mark.
- Network, network, network: Whether it’s the local Chamber, trade groups, or gatherings of like-minded individuals, we’ve taken advantage of many free opportunities to network and get the word out about our business. Happy hour events, speaker series, or other forums are a good way to give yourself a bit of free advertising and build a network of partners and advocates.
If necessity is the mother of invention, there is no better time than the present to start thinking creatively and streamline your business practices. There is plenty of information out there, it's up to you to make it happen.
Tuesday, June 29, 2010
After the Storms - SBA Lending Increases in TN Disaster Counties
Tennessee businesses have received significant financial support from the SBA and FEMA since the record floods that hit Tennessee on May 1, 2010:
Businesses and private non-profit organizations of any size may borrow up to $2 million to repair or replace disaster damaged or destroyed real estate, machinery and equipment, inventory, and other business assets. The SBA may increase a loan up to 20 percent of the total amount of disaster damage to real estate and/or leasehold improvements, as verified by SBA, to make improvements that lessen the risk of property damage by future disasters of the same kind.
For small businesses, and most private non-profit organizations of all sizes, the SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic Injury Disaster Loan assistance is available if the business suffered no physical property damage.
Interest rates are as low as 2.750 percent for homeowners and renters, 3 percent for non-profit organizations and 4 percent for businesses with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.
Contact the SBA’s Customer Service Center at 800-659-2955 (or 800-877-8339 for people with speech or hearing disabilities) Monday through Friday from 8 a.m. to 6 p.m. EDT (Closed Monday, July 5 in recognition of Independence Day) or by sending an e-mail to disastercustomerservice@sba.gov. Business loan applications may be downloaded from www.sba.gov. Applications may be returned to one of the Centers located throughout the disaster area or mailed to: U. S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, Texas 76155.
Your business may qualify if it's located in one of the following FEMA designated disaster counties.
As always, if your business has other financing needs, please contact us at 1-888-533-PATH(7284) or visit us online at www.pathwaylending.org.
More than $100 million in U.S. Small Business Administration Disaster Assistance Loans have been approved for disaster survivors in Tennessee. “Currently, 2,136 disaster loans have been approved in the amount of $101,987,800,” said Frank Skaggs, director of SBA Field Operations Center East in Atlanta. “We hope the extension of the deadline will encourage more Tennesseans to apply for assistance before August 5.”
Businesses and private non-profit organizations of any size may borrow up to $2 million to repair or replace disaster damaged or destroyed real estate, machinery and equipment, inventory, and other business assets. The SBA may increase a loan up to 20 percent of the total amount of disaster damage to real estate and/or leasehold improvements, as verified by SBA, to make improvements that lessen the risk of property damage by future disasters of the same kind.
For small businesses, and most private non-profit organizations of all sizes, the SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic Injury Disaster Loan assistance is available if the business suffered no physical property damage.
Interest rates are as low as 2.750 percent for homeowners and renters, 3 percent for non-profit organizations and 4 percent for businesses with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.
Contact the SBA’s Customer Service Center at 800-659-2955 (or 800-877-8339 for people with speech or hearing disabilities) Monday through Friday from 8 a.m. to 6 p.m. EDT (Closed Monday, July 5 in recognition of Independence Day) or by sending an e-mail to disastercustomerservice@sba.gov. Business loan applications may be downloaded from www.sba.gov. Applications may be returned to one of the Centers located throughout the disaster area or mailed to: U. S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, Texas 76155.
Your business may qualify if it's located in one of the following FEMA designated disaster counties.
As always, if your business has other financing needs, please contact us at 1-888-533-PATH(7284) or visit us online at www.pathwaylending.org.
Wednesday, June 23, 2010
Unfreezing the Small Business Credit Market
If you’ve Googled ‘Small Business Loans’ or ‘Financing Your Small Business’ lately, you’ve likely noticed a number of similar articles.
The reality of today’s lending market is that small business loans are generally more difficult to acquire. Banks have changed the way they approach loan underwriting and have tightened their credit standards to avoid a repeat of the 2008 financial crisis - a perfectly understandable goal.
Yet, the need for capital among small business owners has not changed. What has changed is their creditworthiness, particularly their credit scores. Late or missed loan payments, decreased personal income, bankruptcy filings, liens, and any number of other factors have impacted the credit scores of many small business owners since 2008.
So now we have a situation where borrowers need loan capital to support or expand their business but are unable to meet the increased standards set by most traditional lenders. This ‘frozen’ credit market puts small businesses at further risk of failure.
Bridging this gap by providing affordable and accessible loan capital is critical to small businesses and central to the mission of Pathway Lending. As a certified Community Development Financial Institution, Pathway Lending’s mission is to provide loans to businesses lacking access to traditional financing, including Tennessee businesses in low- and moderate-income communities and those with female and minority owners.
In order to fulfill this mission, Pathway Lending takes a different approach to underwriting and looks at a wider range of criteria during the loan approval process. While we look at your credit score, it will not make or break your application. Pathway Lending also considers the character and capacity of the business’ management team, their collateral and ability to take on new debt, and the characteristics of the overall industry.
Our goal is to help small businesses overcome obstacles, take advantage of opportunities to grow, and create jobs in economically underserved communities across Tennessee. Visit our website www.pathwaylending.org or contact us at info@pathwaylending.org to learn more about our lending process.
“Small firms still struggling to acquire affordable loans”
“Big changes in the business loan approval process”
“Why small business lending remains dry 3 years after credit crisis began”
The reality of today’s lending market is that small business loans are generally more difficult to acquire. Banks have changed the way they approach loan underwriting and have tightened their credit standards to avoid a repeat of the 2008 financial crisis - a perfectly understandable goal.
Yet, the need for capital among small business owners has not changed. What has changed is their creditworthiness, particularly their credit scores. Late or missed loan payments, decreased personal income, bankruptcy filings, liens, and any number of other factors have impacted the credit scores of many small business owners since 2008.
So now we have a situation where borrowers need loan capital to support or expand their business but are unable to meet the increased standards set by most traditional lenders. This ‘frozen’ credit market puts small businesses at further risk of failure.
Bridging this gap by providing affordable and accessible loan capital is critical to small businesses and central to the mission of Pathway Lending. As a certified Community Development Financial Institution, Pathway Lending’s mission is to provide loans to businesses lacking access to traditional financing, including Tennessee businesses in low- and moderate-income communities and those with female and minority owners.
In order to fulfill this mission, Pathway Lending takes a different approach to underwriting and looks at a wider range of criteria during the loan approval process. While we look at your credit score, it will not make or break your application. Pathway Lending also considers the character and capacity of the business’ management team, their collateral and ability to take on new debt, and the characteristics of the overall industry.
Our goal is to help small businesses overcome obstacles, take advantage of opportunities to grow, and create jobs in economically underserved communities across Tennessee. Visit our website www.pathwaylending.org or contact us at info@pathwaylending.org to learn more about our lending process.
Tuesday, June 15, 2010
Growing Your Business With Pathway Lending
In today's market, taking on new debt to grow your business can prove challenging regardless of the reason behind it - expansion to new locations, buying or leasing new equipment, or increasing inventory to take on new orders.
But, when the opportunity presents itself, it is important for business owners and entrereneurs to understand the financial options available to them, the risks inherent with each, and the basic loan terms, payment options and interest rates they can expect to receive.
Yesterday, the Wall Street Journal covered this topic and published an interesting story on the various financing options available to small businesses, including Business Lines of Credit, Microloans, SBA Loans, and Bank Loans. The article provides a high-level overview of these financial products.
For Tennessee businesses, there are more options available to you through Pathway Lending. As an certified economic development lender, Pathway Lending provides financial products across several of these categories, often with added flexiblity to you, the borrower. Our organization has the ability to think creatively and add value when assessing loan requests. Our staff consults with small business owners, reviews their financial positions and the opportunities that lay ahead of them, and determines abilitiy to take on new debt.
Pathway Lending's loan products include options for building or land purchases, financing purchase orders, and expansion capital. See the attached doucment for more information regarding our small business loans. Or visit our website www.pathwaylending.org
Friday, June 11, 2010
Pathway Lending - On Newsstands Now
No corporate name change would be complete without a little bit of publicity. Check out the June edition of the Tennessee Bankers Magazine for our latest ad!
Like the ad says, our name may have changed but our committment to financing businesses and strengthening communities has not. The strength of our financial products and services is one of our highest priorities and remains the cornerstone of our commitment to you. At Pathway Lending, we are dedicated to meeting your needs and helping your business grow.
Visit us online at www.pathwaylending.org for more information on how we can help your business succeed.
Wednesday, June 9, 2010
What's In A Name?
Everyone is familiar with the old adage, "What's in a name?" And rightly so, as names are powerful. They convey meaning and say a lot about who you are, what you do, or the impact you strive to make every day. This is doubly important in the business world a company's name projects important messages to customers, staff, and partners, making it critical to success.
That said, it is with great excitement that we announce our new name: Southeast Community Capital is now PATHWAY LENDING!
We often found our old name did not provide a clear picture of our mission and services. We believe our new name, Pathway Lending, better represents our dedication to helping businesses that do not qualify for traditional financing move forward along the pathway to success.
At Pathway Lending, we remain committed to financing businesses and strengthening communities throughout Tennessee. Our continued goal is to be the preferred economic development lender in Tennessee. One who understands the needs of small business owners and entrepreneurs and provides them with the right products and services to help achieve their goals.
To learn more about Pathway Lending, visit us online at PathwayLending.Org, follow us on Twitter @Pathway_Lending, or connect with us on LinkedIn
That said, it is with great excitement that we announce our new name: Southeast Community Capital is now PATHWAY LENDING!
We often found our old name did not provide a clear picture of our mission and services. We believe our new name, Pathway Lending, better represents our dedication to helping businesses that do not qualify for traditional financing move forward along the pathway to success.
At Pathway Lending, we remain committed to financing businesses and strengthening communities throughout Tennessee. Our continued goal is to be the preferred economic development lender in Tennessee. One who understands the needs of small business owners and entrepreneurs and provides them with the right products and services to help achieve their goals.
To learn more about Pathway Lending, visit us online at PathwayLending.Org, follow us on Twitter @Pathway_Lending, or connect with us on LinkedIn
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