Pathway Lending Receives $ 1 Million Grant From Wells Fargo To Accelerate Jobs And Income Growth For Tennessee Minority-Owned Small Businesses | State
NASHVILLE, Tennessee., September 24, 2021 / PRNewswire-PRWeb / – Pathway Lending today announced that it has been awarded a $ 1 million grant from the Wells Fargo Open for Business Fund to extend the Flex Fund – a new source of ‘patient’ growth capital – to minority-owned and women-owned businesses in key markets across Tennessee, including Chattanooga, Knoxville and Nashville. Pathway Lending will work with existing and new clients to identify and invite entrepreneurs to participate in Flex Fund over the coming year.
Tennessee small businesses that meet Flex Fund requirements may be eligible for funding ranging from $ 25,000 To $ 250,000 with terms of two to five years. Pathway Lending’s Flex Fund is an alternative to debt and equity. Part of the amount is treated as debt that the business must repay with interest, and the rest as part of income, equity, or deferred interest that the business can wait to repay at the end of the term. The approach frees capital from regular debt payments, so companies can immediately invest in growth by adding more employees, looking for a new business opportunity, or other growth initiatives.
well Fargo awarded the grant to Pathway Lending as part of its Open for Business Fund, in the amount of approximately $ 420 million small business revival effort aimed at helping entrepreneurs across the United States recover and rebuild after the pandemic.
“We know that small businesses are the heart of our communities,” said Paula Beck, senior vice president and senior community relations consultant for Wells Fargo. “We are working alongside Pathway Lending and other large organizations across the country, to support a more inclusive economic recovery, with a focus on racial and social equity so that small businesses can emerge from this pandemic more strong and more resilient. “
“The capital needs of growth-oriented small businesses can be as varied as the entrepreneurs themselves,” said Hank helton, PVE of Pathway Lending and Head of Stakeholders. “Too often, small businesses trade growth for debt repayment or ownership for equity, which can reduce a company’s ability to build wealth where it’s needed. That’s why we created the Flex Fund. “
Phillip Ashley Chocolates represents one of these companies in Memphis who turned to Pathway Lending for growth capital. Founded in 2012, the chocolatier quickly rose to prominence with some of the world’s best taste makers and made Oprah’s ‘Favorite Things List’ in november 2020.
With funding from Pathway’s Flex Fund, the company purchased an automatic hardening machine to speed up production, improved its packaging, hired a company to help it expand internationally, and created 15 new paying jobs. $ 15 per hour in low to moderate income Memphis district. The company has grown considerably and now plans to add staff and purchase its first building.
“We have been pushing the boundaries of conventional chocolate manufacturing since 2012, and the international follow-up we have gained has put us in the privileged position of having to grow fast enough to meet demand,” said Phillip ashley rix, owner and chef. “The partnership with Pathway Lending has given our business the fuel it needs to support our growth and reach a point where we are ready to purchase a permanent home for our business. “
To date, Pathway Lending has invested on average $ 70,000 in eight-party financing, owned by blacks Memphis small businesses in the region. In addition to funding, all Flex Fund winners receive consulting services from Pathway’s financial and marketing experts, as well as access to learning programs focused on resilience-related topics, such as planning based on scenarios that Pathway Lending has created and will continue to offer as part of the Wells Fargo grant. .
Created to accelerate income and employment growth among Memphis minority-owned businesses, Pathway Lending first established its Flex Fund in 2019 as a pilot project with philanthropic support from the Kresge and FedEx foundations and in collaboration with Epicenter, The 800 Initiative and Christian Brothers University. The Flex Fund has supported Memphis entrepreneurs of color in general, with a particular focus on black-owned businesses involved in Initiative 800 and businesses with paid employees or promising growth opportunities.
Small business owners interested in learning more about Pathway Flex Fund can contact Keith hickey To [email protected].
Since 2015, Wells Fargo has supplied Pathway Lending nearly $ 1.77 million in grants through the Wells Fargo Foundation and the Open for Business Fund.
About Pathway Lending
Founded in 1999 and based in Nashville, Pathway Lending is a community development finance institution (CDFI) certified by the US Department of the Treasury. It has become a major lending institution in the South East, propelling significant economic growth in communities across the region. In 2020, Pathway Lending completed more than $ 46.1 million in loans and provided 15,790 hours of technical assistance and education. Learn about our mission and the stories of the entrepreneurs and communities we serve on PathwayLending.org.
About Wells Fargo
well Fargo & Company (NYSE: WFC) is a leading financial services company with approximately $ 1.9 trillion in assets, proudly serves one in three U.S. households and over 10% of small businesses in the United States, and is the leading mid-market banking provider in the United States. We offer a diverse set of banking, investment and mortgage products and services, as well as consumer and commercial credit, through our four featured business segments: banking and consumer credit, commercial banking , corporate and investment banking, and wealth and investment management. well Fargo ranked No.37 in the Fortune 2021 ranking of America’s largest companies. In the communities we serve, the business is focusing its social impact on building a sustainable and inclusive future for all by supporting housing affordability, small business growth, financial health and a low-emission economy. carbon. Wells Fargo news, ideas and insights are also available at Wells Fargo Stories. Additional information can be found at http://www.wellsfargo.com | Twitter: @WellsFargo.
Meredith from Spain, Pathway Lending, +1 6154257171, [email protected]
Pathway SOURCE loan