Pathway Lending has received $2.2 million in loan and grant funds from the Goldman Sachs’ 10,000 Small Businesses initiative, the Nashville-based agency announced today.
The infusion of funds will be leveraged with additional public and private resources to increase available capital in Pathway Lending’s Tennessee Small Business Jobs Opportunity Fund.
The money will also be used to enhance Pathway Lending’s educational services technology platform by developing an online resource center that provides access to in-depth content for prospective and current business owners.
“Pathway Lending’s Tennessee Small Business Jobs Opportunity Fund aligns with the goals of 10,000 Small Businesses to help entrepreneurs grow their businesses and create jobs,” Alicia Glen, managing director at Goldman Sachs and head of the firm’s Urban Investment Group, said in a news release. “We’re pleased to contribute to Pathway Lending’s loan efforts as well as the expansion of their educational services technology platform to assist small businesses across Tennessee.”
Pathway Lending, a U.S. Treasury-certified Community Development Financial Institution, has loaned approximately $80 million to businesses in Tennessee and facilitated the creation of more than 1,500 new full-time jobs and retained 3,200 more through its various lending initiatives, according to the news release. The organization primarily serves low-to-moderate-income communities.
Goldman Sachs’ 10,000 Small Businesses is a $500 million initiative that aims to help 10,000 small businesses across the nation by providing access to capital, entrepreneurial education and technical assistance services.
The Tennessee District Office of the U.S. Small Business Administration is working to facilitate having a state-based business participate in the national agency’s recently announced Intermediary Lending Pilot Program (ILP).
Walter Perry, director of SBA’s Nashville-based state office, said last year’s national effort drew 20 lender participants. The ILP provides long-term loans of up to $200,000 to eligible nonprofit intermediary lenders to finance their lending to small businesses.
“We would certainly encourage those with nonprofit status to apply,” Perry said. “Small-dollar loans are certainly needed by small businesses for working capital.”
Perry said participation is “a decision of the nonprofit itself. But anything we can do to facilitate that working capital reaches the small businesses we will do. This program is another tool.”
On a general note, Perry said the Tennessee District, through the first six months (Oct. 1, 2011, to March 31, 2012) of the current fiscal year, helped facilitate 17 SBA-guaranteed working capital loans totaling $8.6 million.
“We have seen all spectrums of industries and dollar amounts,” he said of the participants and loan figures, respectively.
The SBA’s ILP effort comes on the heels of its recently announced Supplier Connection program.