Rural economic development fund launched
Monday September 17, 2007
from: the Nashville Business Journal
A new public-private partnership has launched the Tennessee Rural Opportunity Fund to benefit rural economic development.
The joint fund was created through a partnership by the state of Tennessee, the Tennessee Bankers Association and Southeast Capital Management, a nonprofit community development financial Institution.
The fund will provide loans and technical assistance to small, disadvantaged and early-state businesses in rural Tennessee.
Gov. Phil Bredesen announced the fund during his keynote address at the Governor's Conference on Economic and Community Development Thursday.
"The Rural Opportunity Fund is truly an innovative partnership," Bredesen says in a release. "I'm excited about the opportunities that will arise from this new source of capital for small and independent business growth here in Tennessee."
Fund managers are working to secure $10 million in investments from Tennessee Banker Association members.
It is estimated the fund could generate more than $25 million in loans for more than 350 businesses and create over 600 new jobs.
Southeast Community Capital provides loans to small businesses that lack access to traditional financing. It operates similar funds in Knoxville, Memphis and Nashville.
"There is an overwhelming need for small business capital in rural Tennessee and we are focused on getting our resources in the hands of those who need it most," says Southeast Community Capital president Clint Gwin in a statement. "Banks can't meet the needs of all business, which is why our focused financial and mentoring resources are so important to rural economic growth."
