Pathway Flex Fund gets $1 million grant
Pathway Lending, which announced plans this summer to open an office again in Chattanooga, has secured a $1 million grant from Wells Fargo Bank to expand its Flex Fund to aid growing minority-and woman-owned businesses in key markets across Tennessee, including Chattanooga.
Pathway Lending said Friday it will work with existing and new clients to identify entrepreneurs who may qualify for funding ranging from $25,000 to $250,000 over the next two to five years.
Pathway Lending’s Flex Fund is an alternative to debt and equity. A portion of the amount is treated as debt the business must repay with interest, and the remainder as a share of revenue, equity, or deferred interest the business can wait to repay when the term ends. The approach frees capital from regular debt payments, so businesses can invest in growth right away by adding more employees, pursuing a new business opportunity or other growth initiatives.
“The capital needs of growth-minded small businesses can be as varied as the entrepreneurs themselves,” said Hank Helton, Pathway Lending EVP and chief stakeholder officer. “Too often, small businesses trade growth for debt repayment or ownership for equity capital, which can diminish a business’s ability to build wealth where it’s needed. That’s why we created the Flex Fund.”
Fleet owners back clean trucks rule
Officials from companies with fleets of trucks are urging governors across the country to embrace a rule meant to speed the adoption of zero-emission trucks and reduce a potent source of greenhouse gases spewed from the large commercial vehicles.
In a letter released Friday, representatives of companies including IKEA, Nestle, Siemens, Etsy, eBay, Ben & Jerry’s and Unilever joined with environmental activists and investors to call for the wide adoption of the Advanced Clean Trucks rule. Transportation is a leading cause of greenhouse gas emissions in the U.S., with trucks being one of the top culprits, activists said.
The rule requires manufacturers of medium- and heavy-duty vehicles to increase sales of zero-emission models over time in states where the policy is put in place. As production ramps up, the cost to manufacturers and buyers should come down, advocates said.
Supporters of the rule say companies increasingly are demanding clean trucks and vans to help meet climate and pollution goals and to save on the costs of fuel and maintenance. Approval of the rule by state governments could help give an added nudge to truck makers, backers said.
“The ACT rule will help bring down costs for zero-emission medium- and heavy-duty vehicles by requiring manufacturers to increase model availability to meet the needs of fleet operators and driving investment in clean transportation research and development,” the companies and advocacy groups said in the letter.
Mercedes, Stellantis join in battery venture
Luxury automaker Mercedes-Benz is teaming up with Stellantis and TotalEnergies in a European electric vehicle battery joint venture, Automotive Cells Co.
Each will hold a one-third stake in the venture, which will have an investment of more than $8.2 billion.
The partners in Automotive Cells plan to increase the company’s industrial capacity to at least 120 gigawatt-hours by 2030. The company was founded in August 2020 and is looking to develop and make battery cells and modules for electric vehicles with a focus on safety, performance, competitiveness and a low carbon footprint.
In July, Mercedes-Benz said it is stepping up its transition to electric cars, doubling the share of sales planned by 2025 and sketching out a market scenario in which new car sales would “in essence” be fully electric by the end of the decade. The company plans to invest 40 billion euros ($47 billion) in battery-driven vehicles between 2022 and 2080.
Stellantis was formed earlier this year by a merger involving Fiat and Chrysler.