September 28, 2016 – Pathway Lending has been awarded a $750,000 grant from the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund). This award, made through the fiscal year (FY) 2016 rounds of the Community Development Financial Institutions Program, will allow Pathway Lending to increase its delivery of advisory services to businesses across Tennessee.
Pathway Lending is among 196 Community Development Financial Institutions (CDFIs) nationwide, and just two in Tennessee, to be awarded $185.7 million in grants and loans.
This grant supports the systematic and strategic growth of Pathway Lending’s education mission by strengthening and expanding operational infrastructure and increasing its ability to provide business advisory services, particularly pre-loan and early stage companies who need intensive support through expanded classroom training and counseling.
“Our education model has shown strong outcomes in terms of increased access to capital,” said Hank Helton, SVP of Pathway Lending. “When clients receive focused education on cash flow management, cost accounting, pro-forma development and other financial topics, they are more apt to achieve ‘bankability’ and generate stronger impacts in their communities.”
Since its creation in 1994, the CDFI Fund has awarded more than $2.2 billion to CDFIs, community development organizations, and financial institutions through the CDFI Program, the NACA Program, the Bank Enterprise Award Program, the Capital Magnet Fund, and the Financial Education and Counseling Pilot Program. In addition, the CDFI Fund has allocated $43.5 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, and $852 million has been guaranteed in bonds through the CDFI Bond Guarantee Program.
This $2 billion milestone underscores the transformative impact CDFIs are having in low-income, distressed, and underserved communities and areas of persistent poverty. In businesses financed, real estate developed, affordable housing constructed and improved access to the financial system, CDFIs are empowering change and revitalization in their communities.
Since 2010, Pathway Lending has phased in educational strategies to increase its ability to serve both pre-loan and active clients. Pathway Lending has provided over 32,000 hours of technical assistance since 1999. In 2015, it provided 4,611 hours of 1-on-1 coaching and advisory services, supported 22 new business starts, and increased capital access by $1,650,000 through its expanded pre-loan technical assistance.
For more information on our Business Advisory Services or for more information about Pathway Lending or Pathway Women’s Business Center, please contact Loren Dabbs.