Pathway Lending Deploys $22 Million in New Markets Tax Credits To Expand High-Quality Facilities and Capacity In Rural And Urban Tennessee Communities
Transactions Generate $53 Million In Total Private Investment And 314 New Jobs For Manufacturers In Marion And Scott Counties And Community Health In Shelby County
NASHVILLE, Tenn. (March 31, 2022) – Pathway Lending, a Tennessee-based nonprofit community lender and Community Development Financial Institution (CDFI), announced today its Community Development Entity (CDE) has funded three projects across the state from its $30 million allocation of New Markets Tax Credits (NMTC) from the U.S. Department of Treasury’s CDFI Fund.
Since receiving its first allocation in December 2021, Pathway Lending CDE, the sole Tennessee-based awardee, has deployed $22 million in NMTC financing and attracted $53 million in total investment for three projects, including:
Rural Manufacturing – Scott and Marion Counties
Lodge Manufacturing, a family-owned company in South Pittsburg, Tennessee and the largest domestic producer of cast iron cookware, sought NMTC financing for facility upgrades. With $6.75 million in NMTC financing from Pathway Lending, Lodge Manufacturing will purchase equipment to control air temperature and quality in the facility, automate packing, eliminate the need for employees to wear respirators, and bring on more permanent employees. The manufacturer expects to retain 307 permanent jobs and create 155 more with 100 percent of these jobs offering benefits and an average hourly wage of $23.36.
Container Technologies Industries, a Helenwood-based metal fabricator of standard and specialty waste containers for nuclear and commercial utilities, will enter the stainless-steel fabrication market and construct a new 30,000 square foot facility with its $5 million in NMTC financing. Scott County’s first NMTC-financed project, the expansion will increase revenue, attract more customers, create new jobs and lift employee pay. The project has created 12 construction and predevelopment jobs, retained 39 permanent jobs and created 20 more with benefits and an average hourly wage of $16.67.
Community Health Center – Shelby County
Regional One Health, a Memphis-based 501(c)3 safety net health system that provides accessible, quality healthcare for individuals in the Mid-South, will launch a new, onsite full-service oncology program with its $5.25 million in NMTC financing. The organization seeks to modernize its facilities and equipment to provide high-quality patient care and tackle health disparities impacting Shelby County’s low-income and minority populations. The project has created 66 permanent jobs and 61 construction and predevelopment jobs at an average hourly wage of $25.96. All permanent employees will receive job training, continuing education and professional development opportunities and programs for career advancement. Regional One Health will also engage minority-, women- and veteran-owned suppliers and service providers during construction.
“Over the years, rural and urban areas have been heavily impacted by forces outside their control and now face significant economic gaps that can be challenging to overcome,” said Pathway Lending CEO Clint Gwin. “The NMTC allocation closes these gaps and helps communities recover economically and improve residents’ quality of life.”
Established in 2000 by Congress, the NMTC Program attracts private investment to distressed communities. With almost $56 billion in NMTC investments deployed in low-income communities and businesses through the end of fiscal year 2020, NMTC Program award recipients have collectively created or retained nearly 871,000 jobs and built or rehabilitated an estimated 231.5 million square feet of commercial real estate.
About Pathway Lending
Founded in 1999 and based in Nashville, Pathway Lending is a community development financial institution (CDFI) certified by the U.S. Department of the Treasury. It has grown to become a major lending institution in the Southeast, propelling meaningful economic growth in communities across the region. In 2021, Pathway Lending made more than $57.7 million in loans and delivered 16,557 hours of technical assistance and education.
Pathway Lending established its Community Development Entity in 2016 with the express purpose of attracting greater New Markets Tax Credits investments to Tennessee, a state the CDFI Fund has identified as underserved by the NMTC program for many years. Pathway CDE secured its first allocation in December 2021.
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