Scott Harrison, Staff Reporter
Pathway Lending, a not-for-profit small business lender, has received a $1.75 million grant from the U.S. Treasury.
The Nashville-based lender is the only organization in the state to receive funding through the Treasury’s Community Development Financial Institutions Fund, which awarded $195.4 million in grants throughout the country.
Clint Gwin, president of Pathway Lending, said the new capital will be used to expand working capital loans to small businesses, primarily to bridge the timing gap on a company’s receivables and payables. First launched in 2012, Gwin said there is increasing demand for small businesses seeking this type of financing (especially fast-growing ones needing more than $100,000). “We have several of our client companies using this product,” Gwin said. “We currently have $5 million in financing in that portfolio and we’re coming back with this funding to increase the size.”
Pathway specializes in lending to small and growing businesses that fall outside the purview of traditional banks.
“These are younger companies, but not necessarily startups, and they haven’t created quite as long a balance sheet track record,” Gwin said.
Gwin said Pathway will raise additional capital from banks in the state, hoping to raise around $9 million in total. Pathway works with more than 150 businesses throughout the state and has around $70 million in assets.