Rural economic development fund launched
Friday September 14, 2007
from: the Memphis Business Journal
A new public-private effort has launched the Tennessee Rural Opportunity Fund.
The joint fund was created through a partnership between the state of Tennessee, the Tennessee Bankers Association and Southeast Capital Management, a not-for-profit Community Development Financial Institution.
The fund will provide loans and technical assistance to small, disadvantaged and early-stage 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 stated 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 currently 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," said 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."
