Ivette RiosNew small businesses that haven't been able to lock in loans might now be able to.
Tennessee Small Business Development Centers and Pathway Lending have partnered to offer loans of up to $100,000 at an interest rate of 7.75 percent to small businesses that are at least 24 months old.
Ready.Fund.Grow!, as the program is called, will be a boon to emerging companies that can't get bank loans, aren't keen on creating crowdfunding campaigns or don't want the big bucks of investors.
"Maybe their credit score is not that great. Maybe they're not as financially strong as most financial institutions want them to be," said Ivette Rios, small business specialist with the Tennessee Small Business Development Center in Chattanooga.
Pathway Lending has committed to finance qualified small business applicants. To qualify, businesses must be able to demonstrate they can take on debt. TSBDC will develop loan packages that will be sent directly to Pathway Lending for accelerated underwriting.
Those businesses "will be strongly positioned to qualify for a loan," according to an announcement for the program. Criteria for approval have been jointly established by the two organizations.
Pathway Lending regularly hears about how hard it is for small businesses to get the money to grow, according to the organization's president Clint Gwin. Pathway Lending is a U.S. Treasury-certified community development financial institution that provides lending help and educational services to underserved businesses.
Most small businesses that Ready.Fund.Grow! can help would probably need $30,000 to $50,000, Rios said. "Just for day-to-day activity there is always that need for capital. It seems like there's this gap where you don't need the half million, but you do need that push."
Among highlighted uses for the loan money: equipment financing, real estate purchases, working capital needs and inventory and purchase-order financing.
Contact staff writer Mitra Malek at mmalek@timesfreepress.com or 423-757-6406.