Southeast Community Capital Secures More Than $5 Million in Investments for the Rural Opportunity

NASHVILLE, Tenn. - Since the Rural Opportunity Fund was announced in September, Southeast Community Capital (SCC) has raised more than half of the $10 million goal set to generate loans for businesses lacking traditional financing in rural areas across the state. Sixteen community banks have already committed funds, and SCC expects to complete the commitments to the fund by year-end.

“Rural Opportunity Fund dollars will be used to aggressively loan money to businesses in rural areas of our state to help small businesses grow and create more jobs for Tennesseans,” said Bredesen. “I appreciate the partnership of Southeast Community Capitol and the Tennessee Bankers Association in working with us to create these opportunities for the rural business owners of Tennessee.”

In order to assist financial institutions interested in investing in the Rural Opportunity Fund, the Department of Revenue has added a new form to its Web site that allows participating financial institutions to receive a tax credit annually over 10 years towards their Tennessee Franchise and Excise taxes.

“This fund is a vital key in growing Tennessee’s rural economy and I am excited that Southeast Community Capital has managed to get the resources for small businesses so promptly,” said Revenue Commissioner Reagan Farr. “Tennessee’s small and independent businesses deserve the chance to prosper.

The Rural Opportunity Fund is a public-private partnership between the State of Tennessee, the Tennessee Bankers Association (TBA) and SCC. The fund will provide loans to rural businesses that do not have access to traditional financing. Through this $10 million loan fund, SCC will provide financing to help companies grow, create new jobs for Tennesseans, provide better wages and help communities economies expand.

Tennessee community banks currently participating in the funds include FirstBank (Lexington), Pinnacle Bank (Nashville), Tennessee Commerce Bank (Franklin), GreenBank (Greeneville), Community South (Parsons), Commercial Bank and Trust (Paris), Citizens Bank (Elizabethton), Reliant Bank (Franklin), Citizens Bank (Carthage), Decatur County Bank (Decaturville), Wayne County Bank (Waynesboro), Citizens National Bank (Athens), People’s Bank (Clifton), Farmers and Merchants (Trezevant), F&M Bank (Clarksville) and Community Bank and Trust (Ashland City).

Over the next ten years, the Rural Opportunity Fund is expected to generate over $25 million in loans, financing more than 350 small businesses and minority- and women-owned businesses, and creating over 600 new jobs.

SCC is a not-for-profit Community Development Financial Institution that provides loans to small businesses lacking access to traditional financing. Interested business owners or those thinking about starting a new business, please visit www.sccapital.org or call Clint Gwin or Hank Helton at (615) 254-6113.