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:

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.

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.

“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.

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

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.

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