Resources in capital provide needed boost
Monday September 24, 2007
CLINT GWIN
Clint Gwin is president of Southeast Community Capital
From: the Tennessean
Opinions, page 8A
Our state has an abundance of small business owners in rural areas that have opportunities to expand their businesses and a drive to succeed, but lack the growth capital needed to reach their full potential.
The Tennessee Rural Opportunity Fund was created to provide funds to help make the ideas and dreams of small-business owners in rural Tennessee a real possibility.
The Rural Opportunity Fund is a first-of-its-kind, public-private partnership between the State of Tennessee, the Tennessee Bankers Association and Southeast Community Capital. Our mission is to get growth capital in the hands of Tennessee's rural businesses so that they can thrive and grow.
Gov. Phil Bredesen says rural Tennessee "simply can't be left behind or ignored when it comes to talk of economic development," and is vitally important to our communities and the state's overall economic health. That's why he has included the fund as a key strategy in his focus on growing Tennessee's rural economy, and has allocated $1.25 million over the next five years to support the fund.
"The Rural Opportunity Fund is truly an innovative partnership," the governor said recently at the Governor's Conference on Economic and Community Development. "I'm excited about the opportunities that will arise from this new source of capital for small and independent business growth here in Tennessee."
Actively securing investments
The Rural Opportunity Fund will operate under the umbrella of Southeast Community Capital (SCC), a non-profit, community development financial institution that provides loans to small businesses lacking access to traditional financing.
Rural Opportunity Fund managers are actively securing $10 million in investments from Tennessee Bankers Association member banks. Institutions such as Community South Bank in Parsons are fueling this drive by making large investments that will benefit rural communities.
Over the next 10 years, it is anticipated that the fund will generate more than $25 million in loans, financing more than 350 small, minority- and women-owned businesses, and will create or sustain thousands of jobs.
SCC has been helping urban and suburban businesses reach their full potential since 2000. We've loaned more than $21 million to 225 businesses, resulting in 768 new jobs and more than 2,500 jobs retained. We currently operate funds in Knox County, Memphis and Nashville that target growth capital to small businesses in these areas. We have a proven track record. And thanks to the visionary leadership of Bredesen, the Tennessee Bankers Association and its member banks we are rolling up our sleeves to bring these same resources and results to the rural areas of Tennessee.
Helping small businesses survive and thrive is the heart of rural economic development. These businesses generate livelihoods for tens of thousands of Tennessee families. Expanding business opportunity and creating jobs is what Southeast Community Capital and the Rural Opportunity Fund is all about.
