Investing Information

as of May 1, 2007

Southeast Community Capital has four funds that it is currently raising lending capital.  Investments in each of these funds qualify for CRA investment test criteria.   

TN Rural Opportunity Fund

A first-of-its-kind public-private partnership between Governor Bredesen's Administration, the Tennessee Bankers Association and its Member Banks, and Southeast Community Capital Corporation to create a $10,000,000 perpetual revolving loan fund for small, disadvantaged, and start-up businesses in rural communities throughout Tennessee.  The Tennessee Rural Opportunity Fund (the Fund) will provide below market rate loans to targeted businesses in rural Tennessee in need of capital to facilitate business growth and job creation.  The Fund will target businesses unable to access traditional credit due to lack of collateral, poor credit scores, inconsistent earnings, and being identified as a start-up business.   

Memphis Business Opportunity Fund

The Memphis Business Opportunity Fund (MBOF) was the creation of Mayor W. W. Herenton and three Memphis-based financial institutions, First Tennessee Bank, N.A., National Bank of Commerce, N.A. now SunTrust Bank, and Union Planters Bank now Regions Bank, and the Federal Home Loan Bank of Cincinnati.  The MBOF provides financing to disadvantaged small businesses that cannot access traditional sources of capital.  The MBOF targets the Renewal Community and low- and moderate-income census tracts in Memphis.

Nashville Opportunity Fund

The Nashville Opportunity Fund (NOF) was the creation of Nashville's Metropolitan Development and Housing Agency (MDHA) and SunTrust Bank, Nashville, TN.  The NOF targets low- and moderate-income census tracts in Nashville and Davidson County with a special emphasis on the "Pocket of Poverty" area extending out from downtown Nashville. 

Knox County Technology and Jobs Fund

The Knox County Technology and Jobs Fund (KCTJF) was the creation of Knox County Mayor Mike Ragsdale, CROET, and three regional banks: American Fidelity Bank (Greene County), Tennessee State Bank (Pigeon Forge), and SunTrust Bank, N.A. (Knoxville).  This fund targets Knox County and 14 counties surrounding it: Anderson, Blount, Campbell, Claiborne, Cocke, Grainger, Jefferson, Loudon, Monroe, Morgan, Roane, Sevier, Union, and Scott.  The fund provides loan funding to technology and non-technology companies based in disadvantaged areas throughout this 15-county region.

Revolving Loan Fund

The Revolving Loan Fund (RLF) was created by an investment from AmSouth Bank, N.A. to provide access to capital for businesses across Tennessee and northern Alabama.  This fund targets low- and moderate-income census tracts throughout SCC's service areas that do not have a designated fund. 

Fund Structures

Investments in Memphis, Nashville, and Knox County fall under SCC's fund structure that includes a 15% reserve provided by the local municipality to absorb losses.  Investments in the Revolving Loan Fund (RLF) are supported by a loan loss reserve provided by SCC that is generally maintained at a minimum level of 8% based on the risk of the RLF portfolio. 

State of Tennessee - Franchise/Excise Tax Credit for financial institutions investing in CDFIs at below market rates for extended terms.  Tax credit equals 5% per year of investment.  (Consult tax advisor)

Investment Options

Rates range from 2.5% to 3.5% annual interest.

Investment Presentation                         TN F&E Tax Credit Form