Welcome to the Pathway Lending FAQs page! Get answers to our most frequently asked questions about loans, pre-application and application guidelines, and our overall lending process.
How do I get a loan from Pathway Lending?
Applying for a loan through Pathway Lending is easy and confidential. Start at our “Apply for a loan” page, where you can submit your information through our pre-application in just minutes.
We’ll connect you with a team member, and our pre-application does not affect your credit score. Our staff will then review your completed online pre-application. During this review, we may ask you to submit additional documentation, such as recent bank or financial statements or tax returns to support your pre-application.
A Pathway Lending staff member will work with you through the application process to make sure you are aware of where we are and what your next step is. If we approve your your pre-application, you’ll receive an official Loan Application via email from a staff member. During the formal application process we will pull a credit report, which will reflect an inquiry in your credit history.
If we then approve your official Loan Application, you will then receive a Term Sheet detailing the loan offer. Once your Term Sheet is signed and returned to Pathway Lending, our team will schedule a loan closing and work with you to deposit the loan proceeds in your verified bank account. Our team can also help loan clients navigate obstacles or business decisions – we’re your partner and we want to help you succeed.
How long does it take to get my loan from Pathway Lending?
Once a complete application and all supporting documents have been received the approval and funding process is typically around 7-15 days. The amount and complexity of your request can extend the review process and require you to submit additional documentation. Once we approve your loan and the loan is funded, loan proceeds will be transferred to your bank account electronically. Depending on your bank, this can take a few more days.
How much can I apply for through Pathway Lending?
Business loans through Pathway Lending range from $5,000 to $5,000,000. Of course, larger loans require additional supporting documentation during the review process.
Qualified borrowers may have multiple loans outstanding at the same time. To qualify for an additional loan, you’ll need to meet the current credit criteria and be in good standing with Pathway Lending. This means you may not be delinquent on your current outstanding loan. The maximum loan balance one borrower can have outstanding is $5,000,000.
The approval and funding process is typically around 7-15 days, but the amount and complexity of your request can extend the review process and require you to submit additional documentation. Once your loan is funded, loan proceeds will be transferred to your bank account electronically. Depending on your bank, this can take a few more days.
I DON'T HAVE A BUSINESS. CAN I STILL GET A LOAN FROM PATHWAY LENDING?
Pathway Lending is a nonprofit lender for small businesses. We do not offer any consumer loans, so if you do not have a business, you will not qualify for a loan from Pathway Lending. Visit our Loan Catalog page for a full list of our loan products.
WHO QUALIFIES FOR A LOAN THROUGH PATHWAY LENDING?
Pathway Lending only provides loans to businesses operating in the state of Tennessee or Alabama, as well as the greater Memphis Region, which includes portions of Arkansas and Mississippi. Commercial, industrial, and retail businesses may apply. Nonprofit businesses and governmental entities are only eligible for our suite of energy efficiency and renewable energy loans.
In evaluating pre-application and applications, we consider a number of factors, including information you provide, information provided about you by credit bureaus, your credit score, and other information that predicts the likelihood that you’ll make on-time payments until your loan is fully repaid. To qualify for the lowest rate, applicants must have excellent credit, including a high credit score, low percentage of total outstanding debt versus income, a long history of credit with significant successful credit lines, and other factors.
Pathway Lending welcomes and accepts applications from all businesses or prospective businesses. However, Pathway Lending is prohibited from lending to certain types of businesses based on criteria established by various federal and state funding sources. These prohibited types of businesses are detailed in the agreements and regulations established by the source of loan capital.
In addition, the following types of businesses are entirely prohibited:
- Businesses deriving more than 33% of gross annual revenue from legal gambling
- Business that primarily sell alcohol, tobacco products, and/or firearms
- Financial businesses – lenders, check cashing, and bail bonds, etc.
- Businesses primarily engaged in political or lobbying activities
- Businesses that present performances of a prurient sexual nature or derive more than de minimis gross revenues from the sale of products or services of a prurient sexual nature
HOW CAN MY PATHWAY LENDING LOAN PROCEEDS BE USED?
You can use Pathway Lending loan proceeds for commercial or industrial real estate, equipment purchase, business acquisition or expansion, working capital in Tennessee or Alabama or energy efficiency and/or renewable energy projects in the state of Tennessee. Pathway Lending also finances affordable multifamily housing developments in Tennessee. Our loan products are flexible and can be used in a number of ways that help your business grow. You can even finance fees or other costs associated with the loan. If you have questions about our loan products just ask a Pathway Lending staff member! There are restrictions. It is assumed that you will use the money for the purpose that was stated on your loan request.
Pathway Lending borrowers are prohibited from:
- Making any false, misleading, or deceptive statements or omissions of fact in a loan pre-application, application, or loan listing, including but not limited to the loan purpose
- Using any of the loan proceeds to fund any post-secondary educational expenses, including but not limited to tuition, fees, books, supplies, miscellaneous expenses, or room and board
- Using any of the loan proceeds for the purpose of purchasing or carrying any securities
- Utilizing any of the loan proceeds to fund any illegal activity
WHY DID PATHWAY LENDING DECLINE MY LOAN?
We use information provided by credit bureaus such as your credit score and outstanding debt, as well as information provided during the pre-application and application process, including financials and tax records, to identify potential borrowers.
At Pathway Lending, we follow guidelines set forth by our Board of Directors when considering each loan application. The following Self-Assessment will help you determine if you’re a good loan candidate.
Pathway Lending Self-Assessment:
- Does your management team have business experience?
- Is your business growing with market opportunities?
- Is there enough cash flow in your business to repay a loan?
- Do you or your business have any available collateral to pledge?
- Are you willing to personally guarantee a loan?
- Is your personal and business credit history reasonable?
If you answered yes to these questions, your business may qualify for a loan from Pathway Lending. If you have questions about your eligibility, contact our team at (615) 425-7171 Monday through Friday between 8:00 a.m. and 5:00 p.m. CT.
If you have been declined for a loan, we’ll provide the specific reasons for the loan declination in an adverse action notice. Please note that the pre-application process does not impact your credit score. During the formal application process, we do pull a credit report, which will reflect an inquiry in your credit history.
You are eligible to apply again for a loan via Pathway Lending thirty days after the date of the last application.
HOW DO I MAKE LOAN PAYMENTS WITH PATHWAY LENDING?
Pathway Lending accepts your business loan payments through an ACH (Automated Clearing House) transfer directly.
HOW DO I SCHEDULE A PAYOFF FOR MY PATHWAY LENDING LOAN?
If you’re ready to pay off your loan, congratulations! That’s a big achievement. To get started, please email firstname.lastname@example.org. Please include your loan number and date you want to schedule your payoff, or call (615) 425-7171 at least 2 business days before the due date of your next scheduled loan payment.
You can partially or fully prepay your loan at any time with absolutely no prepayment penalty or fee. Prepaying your loan will eliminate future interest payments. Call us, and we’ll work with you to complete the payoff process in a timely manner that meets your needs.
WHAT IF I’M LATE MAKING A PAYMENT?
We give all borrowers a 10-day grace period to make payments with no penalty. We’re here to work with you, but depending on how late your payment is, we’ll report this to credit bureaus and may work with collection agencies to recover the loan proceeds owed to investors.
If you’re having a problem making your payments, please contact us immediately at (615) 425-7171 or email@example.com.