2021 Annual Report vF

Clint Gwin, President & CEO

Dear Pathway Lending Community, Since our inception, Pathway Lending has been committed to the idea of no missed opportunities. In 2021, our team and partners worked together to create new programs and bring new resources to ensure opportunities would not be missed. Through our shared efforts, we feel a sense of optimism. The pandemic amplified the needs for responsive products and services and through new community partnerships, financial products, and educational services, we returned excellent results to ensure entrepreneurs can generate positive outcomes for themselves, their employees, and their communities for years to come.

2021 ANNUAL REPORT

WHO WE SERVE: COMMERCIAL REAL ESTATE

PARTNERS & STAKEHOLDERS

FINANCIAL PERFORMANCE

HOW WE SERVE: INVESTING IN SUSTAINABILITY

WHO WE SERVE: RURAL REACH

WHO WE SERVE: SMALL BUSINESS

HOW WE WORK: COVID RESPONSE

HOW WE WORK: DEEPENING OUR IMPACT

HOW WE WORK: EXPANDING OUR REACH

2021 IMPACTS

BOARD OF DIRECTORS

WHO WE SERVE: STRENGTHENING COMMUNITIES

HOW WE SERVE: BUILDING CAPACITY

TABLE OF CONTENTS

2021 ANNUAL REPORT

PAYCHECK PROTECTION PROGRAM

$4MM

$22.8MM

SMALL BUSINESS

COMMERCIAL REAL ESTATE

$9.3MM

$3.1MM

ENERGY EFFICIENCY

$18.5MM

AFFORDABLE HOUSING

LOANS ORIGINATED

$57.7MM

86%

$ LOANS ORIGINATED IN CDFI TARGET MARKETS

301

BUSINESSES FUNDED

TOTAL EDUCATION HOURS

16,555

LOANS TO VETERAN BUSINESS OWNERS

16

LOANS TO MINORITY BUSINESS OWNERS

135

LOANS TO WOMEN BUSINESS OWNERS

104

LOANS TO LOW-INCOME BUSINESS OWNERS

124

2021 IMPACTS

CHATTANOOGA RESEARCH

8.2% OF HAMILTON COUNTY NONEMPLOYER FIRMS ARE BLACK-OWNED

Click here to read the full press release

As part of a larger goal to advance inclusive growth and strengthen Chattanooga’s ecosystem for small and minority-led businesses, the assessment identifies opportunities for existing businesses to scale, assesses capital and capacity needs, and uncovers gaps in the local and regional small business ecosystem.

With funding from JPMorgan Chase, Pathway Lending commissioned the Hamilton County Blacked-Owned Business Needs Assessment conducted by the Urban League of Greater Chattanooga.

In July of 2021, Pathway Lending and the Memphis Medical District Collaborative launched the Memphis Medical District Investment Fund, a $30 million capital fund dedicated to support development of residential and mixed-use projects in the Memphis Medical District. The Fund aims to bring catalytic capital to facilitate redevelopment and new developments advancing growth and long-term stability in the District. Partners of the Fund include First Horizon, Regions Bank, Truist, The Kresge Foundation and The Hyde Family Foundation. Early investments include The Greyhound Complex, a destination retail and entertainment space, and Orleans Station, an urban residential neighborhood.

Click here to read the full press release

MEMPHIS |

Click here to read the full press release

CHATTANOOGA |

In June of 2021, Pathway Lending launched a $7.5 Million loan fund in Chattanooga to improve access to capital for small and minority-led businesses. Pathway's expanded presence in the market aims to close the wealth gap and provide additional resources to small businesses who may not qualify for a traditional bank loan. Pinnacle Financial Partners, First Horizon Bank, and Regions Bank provided capital to establish the loan fund along with grant support from Benwood, Robert Finley Stone, Footprint and Lyndhurst Foundations, JPMorgan Chase Foundation and Pointer Management Co.

We meet our clients where they are.

SUSTAINABLE LENDING ACROSS TARGET MARKETS

EXPANDING OUR REACH

With funding from Pathway's Flex Fund, Philip Ashley Chocolates purchased an automatic tempering machine to speed production, upgraded its packaging, engaged a firm to help it expand internationally, and created 15 new jobs paying $15 per hour in a low-to-moderate income Memphis district.

CLIENT PROFILE

Click here to read more about Philip Ashley Chocolates

With $22 million deployed in 2021, initial investments generated $53 million in total private investment and 314 new jobs. Projects include:

• Lodge Manufacturing, a family-owned company in South PIttsburg, TN;
• Container Technologies, a Helenwood-based metal fabricator of standard and specialty waste containers for nuclear and commercial utilities; and
• Regional One Health, a Memphis-based 501(c)3 safety net health system that provides accessible, quality healthcare for individuals in the Mid-South.

With a $1 million grant from Wells Fargo, Pathway Lending expanded the Flex Fund statewide. A new source of "patient" growth capital, the Flex Fund offers an alternative to debt and equity and is designed to accelerate revenue and job growth among minority and woman-owned businesses in key markets, including Chattanooga, Knoxville, Nashville, and Memphis. Pathway Lending debuted Flex Fund in 2019 as a pilot project in Memphis with philanthropic support from Kresge and FedEx Foundations and in collaboration with Epicenter, The 800 Initiative and Christian Brothers University.

Pathway Lending was awarded $30 million in New Markets Tax Credits from the CDFI Fund in 2021. The sole Tennessee-based awardee and a first-time recipient, Pathway Lending is deploying its allocation to expand high-quality facilities and capacity in rural and urban Tennessee.

NEW MARKETS TAX CREDITS |

FLEX FUND |

DEEPENING OUR IMPACT

Pathway Lending launched new programs in 2021 to deepen our reach in the markets we serve.

HOURS OF TECHNICAL ASSISTANCE

350.5

$10,306

WITH SUPPORT FROM

With loan capital from PNC Bank, Pathway Lending funded 196 Paycheck Protection Program (PPP) loans in 2021 to support Tennessee small businesses with COVID-related losses. Pathway focused on self-employed, Schedule C, and sole proprietor small business borrowers who had largely missed out on earlier PPP rounds with first-time PPP loans up to $150,000.

$4.04MM

PAYCHECK PROTECTION PROGRAM

AVG. LOAN SIZE

LOANS ORIGINATED

COVID RESPONSE

196

CLIENTS

$ DISBURSED

# DISBURSED

$6.58MM

"How South Nashville's minority-owned small businesses survived the COVID-19 pandemic" The Tennessean

Ragab Rashwan, King Tut's

I have a lot of friends who have similar businesses, and I don't think they survived, so I feel lucky. I feel lucky and I am thankful for that money I got to keep my business in existence.

826

METRO CARES GRANTS

Pathway Lending distributed grants to small businesses, live music venues, arts nonprofits and farmers' market vendors in Davidson County in 2020 and into 2021. Pathway distributed 313 grants in 2021 on behalf of the Metro Government of Nashville and Davidson County.

Clint Gwin, President and CEO, Pathway Lending

We view this as an opportunity to encourage more Tennessee businesses that would benefit from this program to participate, especially businesses that missed out earlier. PNC is a long-time advocate for small businesses, and we are beyond grateful for its support of our work.

2021 SMALL BUSINESS LOANS BY #

322

CDFI PRIORITY MARKETS

Loans To Minority-Owned Businesses

Loans To Women-Owned Businesses

27%

At Pathway Lending, we support opportunities for small businesses through our lending activities and learning programs. We actively seek new ways to reach entrepreneurs, specifically those in our target markets including veteran, women, minority, rural, and low-income small business owners. In 2021, we launched the Chattanooga Small Business Opportunity Fund which allows us to deepen our reach within distressed communities and develop innovative strategies for long-term growth for minorty business owners.

SMALL BUSINESS IMPACTS: NO MISSED OPPORTUNITIES

LOANS TO MINORITY BUSINESS OWNERS

135

LOANS TO LOW INCOME BUSINESS OWNERS

124

2021 SMALL BUSINESS LOANS ORIGINATED BY $

MILLION

$22.8

Loans To Low-to-Moderate Income Geographies

39%

63%

Click here to read more about Nido

Having a cheerleader and someone in my corner has really impacted my success.

LOANS TO WOMEN BUSINESS OWNERS

104

NIDO

SEWPRETTY DESIGNS

Shena Allen | Owner, SewPretty Designs

Haley Dunkin acquired an indoor playground for babies and toddlers called the Rumpus Room in 2021 and renovated it with a loan from Pathway. After a successful year running the business, she officially rebranded to Nido - meaning 'nest' in Spanish and Italian - to capture and reflect the true heart of the business. Haley continues to work with Pathway’s Business Advisory Services and the Veterans Business Outreach Center to continue growing her business with plans to expand in the near term!

LOANS TO VETERAN BUSINESS OWNERS

16

From baby shower gifts to a booming business, owner Shena Allen has grown SewPretty Designs from a hobby into an in-demand custom embroiderer. SewPretty Designs received a microloan to fund new equipment, which gave her access to individual coaching through Pathway’s Business Advisory Services. Now with pop-up shops, a new website, and more inventory on the horizon, SewPretty Designs is bursting at the seams with new opportunities.

Click here to read more about SewPretty Designs

RURAL BUSINESSES SUPPORTED IN 2021

33

RURAL IMPACTS

The average loan size was $198,000

35% supported woman-owned businesses and 16% supported minority-owned businesses

RURAL LOANS SINCE 2007

RURAL LOANS IN 2021

$53MM

OUR RURAL REACH

Pathway Lending created the Tennessee Rural Opportunity Fund in 2007 in partnership with the State of Tennessee and Tennessee Bankers Association member banks to provide loans to small rural businesses unable to access traditional capital due to lack of collateral, poor credit scores, inconsistent earnings, or being identified as a startup business. Extending our resources to rural, and often distressed, communities plays a critical role in sustaining their economic vitality. In 2021, Pathway continued to prioritize and expand its rural market activities, making $6.5 million in loans to 33 rural businesses. We also introduced new programs, including New Markets Tax Credits and a new cohort, How To Buy A Business. Building the capacity of aspiring entrepreneurs is just as critical as connecting them with access to capital. Through the new cohort, they gain the skills to acquire, fund and operate an existing business in an industry where they have experience.

$6.5MM

Click here to read more about Container Technologies

Click here to read more about Kiefer Manufacturing

AVERAGE PAY

$16.67

JOBS CREATED

71

David Greene | Owner, Kiefer Manufacturing

When Pathway stepped in, it couldn’t have been better timing.

Container Technologies creates standard and specialty waste containers for nuclear and commercial use. With $5 Million in New Markets Tax Credits from Pathway CDE, the Helenwood-based company plans to expand capacity and construct a new 30,000-square-foot facility. Scott County's first NMTC-financed project, the expansion will increase revenue, attract more customers, create new jobs and lift employee pay.

CONTAINER TECHNOLOGIES

The Greenes of Kiefer Manufacturing came to Pathway Lending in 2017 for working capital. What they didn’t know at the time is they also needed help understanding the economics of running a manufacturing company. In 2018, the business needed additional support to stabilize. After turning to Pathway business advisors for hands-on business coaching and guidance on estimating, purchasing, and inventory, Kiefer Manufacturing learned what changes it needed to implement. With another loan from Pathway, Kiefer Manufacturing stabilized the business and started growing. In 2020, the business generated its first positive net income since 2016 and continues to grow successfully today.

KIEFER MANUFACTURING

rental properties financed

35

loans originated

$56.7MM

EST. 2010

EST. 2014

loans originated

$64.2MM

ENERY EFFICIENCY

IN LOANS IN 2021

MULTIFAMILY AFFORDABLE HOUSING

$16MM

IN LOANS IN 2021

KWH GENERATED & CONSERVED IN 2021

1,930,184

MULTIFAMILY

HISTORIC LOAN FUND IMPACTS

MULTIFAMILY AFFORDABLE HOUSING |

Pathway Lending supported 19 businesses in 2021 through energy efficiency loans. These projects generated big impacts, and saved $202,537 in total energy cost savings.

ENERGY EFFICIENCY

Pathway Lending is dedicated to supporting the development of safe, quality, and affordable multifamily housing across Tennessee. In Tennessee, 26.4% of households are considered cost-burdened, spending more than 30% of their incomes on housing. In 2021, we supported the creation or preservation of 209 affordable housing units in Tennessee through our loan program.

ENERGY EFFICIENCY |

INVESTING IN SUSTAINABILITY

$3.1MM

Established in July 2021, the Memphis Medical District Investment Fund is a $30 million capital fund created to spur inclusive real estate development and to finance transformative residential and mixed-use real estate projects in the Memphis Medical District. The fund's investments in 2021 completed the mix of capital sources needed for projects valuing $96,325,000 cumulatively.

MEMPHIS MEDICAL DISTRICT INVESTMENT FUND

Advancing communities and businesses through transformative development.

COMMERCIAL REAL ESTATE

$ ORIGINATIONS IN 2021

$5.25MM

Click here to read more about Orleans Station

ORLEANS STATION

The Orleans Station project will transform a 10-acre site from a mix of obsolete institutional buildings and parking lots into a fully realized, urban, residential neighborhood. It includes 12 three-story apartment buildings, street-level retail along Madison and streetscape improvements that will create a walkable, bikeable, livable community.

Click here to read more about the Greyhound Complex

GREYHOUND COMPLEX

The Greyhound Complex redevelopment calls for converting a larger building into 45 loft-style apartments plus new multifamily construction for an additional 25 units. A second building will transform into a destination retail and entertainment space with a mix of retail, restaurants, and event and office space.

$9.3MM

COMMERCIAL REAL ESTATE LOANS ORIGINATED IN 2021

202,360 SQ.FT.

REAL ESTATE DEVELOPED OR REHABILITATED IN 2021

5.8MM

LOANS TO EDUCATION CLIENTS

79%

CDFI-QUALIFIED EDUCATION CLIENTS

EDUCATION CLIENTS

Click here to read more about Crescent Socks

Click here to read more about Bradley's

STRATEGIC SUPPORT

Crescent Sock Company has continued to work with Pathway for additional capital and coaching to promote growth, streamline processes, and create forecasts throughout its five-year relationship with Pathway.

TRUSTED PARTNER

After a nearly 10-year relationship with Pathway through funding and coaching, the Knoxville chocolate shop Bradley's has seen better than a two-fold increase in sales and an increase in profitability.

Pathway's Business Advisory Services support our clients hands-on. Pathway client Nido works with our team on cash flow forecasting and projections to monitor growth and expansion possibilities.

BUILDING CAPACITY

ACCESSIBLE COACHING

2,325

TOTAL EDUCATION HOURS

16,555

Our team of advisors offers decades of expertise in finance, strategic planning, management, sales and marketing. Through one-on-one coaching, we support each client's growth, profitability, and impact in the community. At Pathway, we’ve long placed equal emphasis on helping entrepreneurs access capital and build capacity. Whether it’s self-paced online learning, hands-on classroom training, or one-on-one coaching, how our clients connect to our programs matters. That’s why we’ve invested in systems and people who can meet the diverse needs of our clients wherever they are. The growth of our Business Advisory Services team and Veterans Business Outreach Center means we can assist more clients in building financial literacy and becoming capital ready. We're deepening our reach in the communities we serve and providing education so that more small businesses can succeed, create jobs and support sustainable communities.

WOMAN-OWNED EDUCATION CLIENTS

49%

MINORITY-OWNED EDUCATION CLIENTS

45%

VETERAN-OWNED EDUCATION CLIENTS

36%

EDUCATION IMPACTS 2021

BUILDING CAPACITY

What makes Pathway Lending more than a lender? We offer support every step of the way in your entrepreneurial journey.

Return

Before the loan from Pathway Lending, Shena was hesitant to market her business and services for fear she wouldn’t be able to turn around orders in a timely manner. Now with pop-up shops, a new website, and more inventory on the horizon, SewPretty Designs is bursting at the seams with new opportunities.

Though Shena invested all her early profits into the business, growth quickly overtook her capacity, and she needed more funding to keep up. After receiving no response from the banks she contacted, she found Pathway Lending through an online search. SewPretty Designs received a microloan to fund new equipment along with access to Pathway’s Business Advisory Services.

After receiving personalized and monogrammed gifts at her daughter's baby shower in 2017, Shena started making similar gifts for friends and neighbors. Her side-hustle took off, and she officially started full-time in 2018 and applied for her business license in 2020.

Shena Allen | Owner, SewPretty Designs

Having a cheerleader and someone in my corner has really impacted my success.

SEWPRETTY DESIGNS | CHATTANOOGA, TENNESSEE

From baby shower gifts to a booming business, owner Shena Allen has grown SewPretty Designs from a hobby into an in-demand custom embroidery business.

SMALL BUSINESS SPOTLIGHT

Return

Haley continues to work with Pathway’s Business Advisory Services and the Veterans Business Outreach Center to continue growing her business. With the help of revenue projections and cash flow forecasts she's learning to create, she's pursuing her near-term goal to expand into a larger location where she can serve more families with the support from Pathway.

Haley partnered with Pathway Lending to receive a microloan which funded renovations including new floor mats, toys, and a private party room, enhancing her customers' experiences.

As the sole employee, Haley values learning and friendship and makes extra efforts to form meaningful connections with everyone who walks through the door.

After a successful year running the business, she officially rebranded to Nido - meaning 'nest' in Spanish and Italian - to capture and reflect the true heart of the business. Nido offers a variety of monthly packages to fit a range of budgets and needs. Mothers and families visit the space to give their babies and toddlers hands-on learning experiences in an interactive space while forming community.

Haley Dunkin | Owner, Nido

Pathway Lending’s business advisors are beyond amazing and accessible. They’ve helped me create a business forecast for the next year and connect me with so many other resources too. Pathway is like Disneyland for adults.

NIDO | MOUNT JULIET, TENNESSEE

Shortly after Haley Dunkin moved to Middle Tennessee with her family, she realized her new community needed a space for children and mothers, so she set about to create one. In 2021, she acquired the Rumpus Room, an indoor playground for babies and toddlers.

SMALL BUSINESS SPOTLIGHT

Return

To date, the project has created 12 construction and predevelopment jobs, retained 39 permanent jobs, and created 20 more jobs, all with benefits and an average hourly wage of $16.67.

Container Technologies partnered with Pathway Lending CDE for the tax credits and with Pathway Lending for a line of credit to cover any extra expenses the expansion may generate.

With plans to expand capacity and build a new 30,000-square-foot-facility, the company received $5 million in New Markets Tax Credits. As Scott County's first NMTC-financed project, the expansion will increase revenue, attract more customers, create new jobs, and lift employee pay.

WITH BENEFITS

20

PERMANENT

39

JOBS CREATED

16.67

AVERAGE PAY

CONSTRUCTION + PREDEVELOPMENT

12

CONTAINER TECHNOLOGIES | HELENWOOD, TENNESSEE

Established in 1999, Container Technologies Industries is a Helenwood-based company serving the Nuclear and Commercial Utilities Industries as a metal fabricator of standard and specialty nuclear waste containers.

SMALL BUSINESS SPOTLIGHT

Return

These strategic moves increased the business's sales and income substantially. With 25 years in business, Bradley's Gift & Home continues to evolve and grow.

Faced with the costs of growing into a new space that was nearly double in size, Brad and Joy turned to Pathway Lending for help. In their nearly 10-year relationship with Pathway, the Bradleys have also counted on Pathway for working capital and funding to acquire another chocolate business as well as the factory building in downtown Knoxville.

Upon opening, Brad was the sole owner of his chocolate store, “Bradley’s”, a time when he was struggling to reach profitability and gain exposure. But a fated move from his original store to a new location in Knoxville brought him to Joy. After the couple married, they combined stores to open what is now a sweet staple of Knoxville, Bradley's Gift & Home.

Joy Hamlett | Owner, Bradley's Gift & Home

Pathway gave us that chance that we needed to make it work and to prove that our business was worth something.

BRADLEY'S GIFT & HOME | KNOXVILLE, TENNESSEE

Before Knoxville business owners Joy and Bradley Hamlett began their journey in the retail confectionary industry, Brad was pursuing a promising legal career, and Joy worked as a merchandiser for a local gift shop. When Brad opened up his first chocolate store right next door, he didn’t think that the future of his business and the love of his life would be so near.

SMALL BUSINESS SPOTLIGHT

Return

Philip Ashley Chocolates continues breaking the boundaries of chocolate-making, and through its growth, to offer a chocolate experience across the globe for anyone who wishes to indulge.

With funding from Pathway's Flex Fund, Philip Ashley Chocolates purchased an automatic tempering machine to speed production, upgraded its packaging, engaged a firm to help it expand internationally, and created 15 new jobs paying $15 per hour in a low-to-moderate income Memphis district. The business now plans to add more staff and purchase its first building.

He quickly achieved national recognition with some of the world's top tastemakers. Forbes naming him the “Real Life Willy Wonka” in 2014, and he competed as a finalist on Food Network’s Chopped Sweets in 2020. Just months later, his chocolates appeared on Oprah's "Favorite Things" List. As Chef Philip's success grew - and with it an international following - his company needed capital to keep up with demand.

Chef Phillip Ashley established his namesake chocolatier in 2012 with the desire to create the world's finest, most unique chocolate experience.

Phillip Ashley Rix | Owner, Phillip Ashley Chocolates

Partnering with Pathway Lending has given our business the fuel it needed to sustain our growth and reach a point where we’re ready to purchase a permanent home for our business.

PHILLIP ASHLEY CHOCOLATES | MEMPHIS, TENNESSEE

SMALL BUSINESS SPOTLIGHT

Return

With another loan from Pathway, Kiefer Manufacturing stabilized the business and started growing. In 2020, the business generated its first positive net income since 2016 and continues to grow successfully today.

As a loan client, Kiefer executives could access tailored business coaching with members of Pathway's Business Advisory Services team. Senior Advisor Kathy Morrison stepped in to perform a root cause analysis and share best practices and hands-on support with inventory, purchasing and pricing. Margins and cashflow improved, and the business began to turn around but needed more capital to start purchasing more materials.

In 2017, Greene and family members approached Pathway Lending for working capital. What they didn’t know at the time is they also needed help understanding the economics of running a manufacturing company. While they benefited from a strong brand and familiarity with selling trailer products, cashflow for manufacturing operations posed a greater challenge. In 2018, the business started to experience a decline.

Dave Greene Sr. ran several successful businesses over the years, so when the Hancock County Mayor approached him to buy the Kiefer plant to prevent the county's largest employer from closing, he agreed.

David Greene | Owner, Kiefer Manufacturing

When Pathway stepped in, it couldn’t have been better timing. It’s been a blessing and got us back to rolling again… and that’s where we are today.

KIEFER MANUFACTURING | SNEEDEVILLE, TENNESSEE

SMALL BUSINESS SPOTLIGHT

Return

Crescent Socks continues to work with Pathway for its capital needs and throughout the five-year relationship has leaned on Pathway advisors for help driving growth, streamlining operations, and managing finances.

“I wasn’t sure what to expect when I heard we’d be getting hands-on support along with our loan,” said Allen. “Bob Lancaster has been a great mentor. He really makes you think.”

More than a century after opening, quality jobs remain the company’s number one priority, and Crescent Socks has sustained its role as a leading job provider in the rural community it calls home.

A longtime banking acquaintance referred Crescent to Pathway Lending. In addition to the financing they secured from Pathway Lending, the owners and managers began meeting regularly with members of Pathway's Business Advisory Services team.

Crescent Sock Company is a 116-year-old sock mill in rural Niota, Tennessee. Established to create jobs in its small community, management continues under the fourth generation of the family that founded it. Cathy Allen serves as CEO with assistance by her sister, Sandra Boyd.

Cathy Allen | CEO, Crescent Socks

Our relationships with clients, vendors, and employees mean everything. And now, Pathway is another one of our ‘family’ relationships.

CRESCENT SOCKS | NIOTA, TENNESSEE

SMALL BUSINESS SPOTLIGHT

Return

In 2018 UTHSC, a Medical District anchor institution, selected Henry Turley Company through a competitive RFP process to develop the site under a 30-year Ground Lease with two 15-year extensions. Pathway Lending provided gap financing to replace equity in the capital stack and to cover costs for general construction and energy efficiency upgrades. Truist is the senior lender financing construction.

The project, funded in partnership with Truist, First Horizon, Regions Bank, The Kresge Foundation and The Hyde Family Foundation, includes 12 three-story apartment buildings, street-level retail along Madison and streetscape improvements that will create a walkable, bikeable, livable community. As part of the Victorian Village, Orleans Station’s architecture is inspired by the scale and feel of the existing neighborhood and UTHSC’s historic campus buildings.

ORLEANS STATION | MEMPHIS, TENNESSEE

Henry Turley Company and the University of Tennessee Health Science Center (UTHSC) will reshape the Medical District by transforming a 10-acre site from a mix of obsolete institutional buildings and parking lots into a fully realized, urban, residential neighborhood.

PROJECT IN PROGRESS

Return

November 6 Investments bought the property in January 2020, and partners Bill Ganus, Susannah Herring and Gabe Velasquez closed a financing gap with a $2.25MM loan from Pathway Lending. Other capital sources include a loan from senior lender Financial Federal, Historic Tax Credits, local public incentives, and developer equity.

On the adjacent lot, construction of a new building with artist studios and self-storage units will create a way for occupants of like spaces in the former bus barn to relocate and remain in the area.

The redevelopment calls for converting the larger building into 45 loft-style apartments plus new multifamily construction for an additional 25 units. The second building will transform into a destination retail and entertainment space with a mix of retail, restaurants, and event and office space.

The Greyhound Complex, which includes the only surviving commercial property associated with the career of Memphis entrepreneur Frederick “Fred” Smith, Sr., will soon be home to a $33.9MM mixed-use development.

GREYHOUND COMPLEX | MEMPHIS, TENNESSEE

PROJECT IN PROGRESS

LOAN FUNDS

With over 70 partner financial, philanthropic, federal, municipal and state agencies that invest in our mission, our loan funds make it possible to finance businesses and strengthen communities across the state of Tennessee.

Learn more about our fund performance, deployment and investment opportunities in our 2021 Stakeholder Insights.

Hover over each marker to learn more about the loan funds that make our work across Tennessee possible.

MEMPHIS SMALL BUSINESS OPPORTUNITY FUND (2018)

RURAL OPPORTUNITY FUND (2007)

SMALL BUSINESS JOBS AND OPPORTUNITY FUND (2010)

TENNESSEE AFFORDABLE MULTIFAMILY HOUSING LOAN FUND (2014)

MEMPHIS MEDICAL DISTRICT INVESTMENT FUND (2021)

KNOX COUNTY TECHNOLOGY AND JOBS FUND (2004)

NASHVILLE OPPORTUNITY FUND (2000)

CHATTANOOGA SMALL BUSINESS OPPORTUNITY FUND (2021)

STRENGTHENING COMMUNITIES

Teenage Christian Camp; Hillbrook Christian Association; Tennessee Center for Performance Excellence

VP for Public Service University of Tennessee

HERB BYRD - CHAIR | 2016

Energy Efficiency & Demand Response, Tennessee Valley Authority

Habitat for Humanity, Middle TN Council; Board of Trustees for Hiwassee College (Madisonville, TN)

EVP & CAO Pinnacle Financial Partners

HUGH QUEENER | 2007

Nashville Ballet; YWCA; Metro Nashville Arts Commission; Metro Parks & Recreation Board; Metro Nashville Study & Formulating Committee; University School of Nashville

Senior VP- General Counsel Meharry Medical College

IVANETTA DAVIS-SAMUELS | 2016

HICA (Hispanic Interest Coalition of Alabama); Operation Hope - Hope Inside Advisory Board

Compliance Executive - CMS, CRA, & HMDA Regions Bank

Appalachian Regional Commission (retired)

President American Heritage Trees

JON DAVIES | 2016

TOM HUNTER | 2015

TN Automotive Manufacturer's Association; NAACP; TheCo

CEO, MIG LLC CEO, B-G Innovative Safety Systems

ANDRE GIST | 2016

Associate Professor Vanderbilt University School of Engineering

Vice President

DAVID BEREZOV | 2010

CINDY HERRON | 2014

Members of Pathway Lending's Board of Directors:

• Serve three-year terms by election, and
• Offer relevant industry experience and accountability to Qualified Target Markets.

• Chattanooga Advisory Board
• Women's Business Center Board of Advisors
• NMTC Advisory Board

2021 BOARD OF DIRECTORS

Regions Bank Reliant Bank Renasant Bank Security Bank and Trust Company Simmons Bank Synovus Bank Tennessee State Bank TriStar Bank Truist Bank Truxton Trust US Bank Wells Fargo Bank Wilson Bank & Trust

First Citizens National Bank First Community Bank of East TN First Farmers & Merchants Bank First Horizon FirstBank INSBANK Legends Bank Macon Bank and Trust Company McKenzie Banking Company Paragon Bank Peoples Bank of Alabama Pinnacle Bank PNC Bank

Appalachian Community Capital Andrew Johnson Bank BancorpSouth Bank3 CapStar Bank CB&S Bank Centennial Bank Citizens Bank (Carthage) Citizens Bank (Elizabethton) City National Bank Commercial Bank and Trust Decatur County Bank F&M Bank (Clarksville)

PRIVATE STAKEHOLDERS

Kresge Foundation Lyndhurst Foundation Metropolitan Development & Housing Agency (Nashville, TN) Metropolitan Government of Nashville & Davidson County PNC Foundation Regions Bank CDC Regions Foundation Robert (Bobby) Finley Stone Foundation Tennessee Bankers Association Tennessee Department of Economic & Community Development

Alabama Department of Economic & Community Affairs Appalachian Regional Commission Association of Women’s Business Centers Bank of America Charitable Foundation Benwood Foundation Christian Brothers University Community Development Financial Institutions Fund Epicenter Memphis Fifth Third Foundation Footprint Foundation Hyde Foundation Joe C. Davis Foundation JPMorgan Chase Foundation

FOUNDATIONS & PUBLIC STAKEHOLDERS

Tennessee Department of Environment & Conservation Tennessee Department of Revenue Tennessee Housing Development Agency Tennessee Valley Authority Truist Foundation United Way of Metropolitan Nashville University of Tennessee US Department of Agriculture US Small Business Administration US Department of Treasury Wells Fargo Foundation The Women’s Fund, Community Foundation of Middle TN

start again

download the pdf 2021 annual report

To learn more about Pathway Lending, visit our website:pathwaylending.org

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