About this programme
Pathway Lending is a Community Development Financial Institution (CDFI) that provides financing to Tennessee small businesses, with a particular focus on rural and low-income area borrowers, veterans, and women entrepreneurs. It has regional lending teams covering Middle Tennessee (Nashville), East Tennessee (Knoxville and Chattanooga), and West Tennessee (Memphis), with offices in Nashville, Chattanooga, Knoxville and Memphis.
Rather than requiring applicants to pick a loan product themselves, Pathway Lending assesses a business's goals and matches it to the right product from its lineup, ranging from small emerging-business loans to multi-million-dollar commercial real estate and equipment financing. It also runs LendTN, allocating nearly $47 million through Fund Tennessee for underserved communities.
How it works
Loan sizes run from $10,000 for Emerging Small Business Lending up to $5,000,000 for larger-revenue businesses, typically repaid over 3 to 5 years with monthly payments. Interest rates run 12-15% for small business loans, and commercial real estate loans start at 8%.
Loan products include Accounts Receivable Financing (to unlock cash from receivables), Commercial Real Estate Loans (purchase, refinance, or owner-occupied), Equipment Loans (up to 100% project financing), the Propel Loan (up to $100,000, with expedited decisions within days, built for first-time or credit-building borrowers), Revolving Lines of Credit (starting at $100,000, useful for seasonal businesses), and Term Loans (starting at $5,000, for growth and sustainability).
Eligible uses include working capital, equipment, real estate, business acquisition, debt consolidation, inventory, marketing, accounts receivable, sustainability initiatives, and revenue growth, across industries such as B2B and professional services, manufacturing, wholesale, hospitality, retail, healthcare, and childcare.
Who can apply
Business must be operating at least one year and located in Tennessee, seeking growth or expansion capital.
Pathway Lending specializes in serving rural and low-income area borrowers, veterans, and women entrepreneurs.
A credit score of 600 or above is preferred but not required; underwriting focuses more on the business opportunity and repayment capacity than on credit score alone.
How to apply
- Complete a free business assessment at Navigator (navigator.pathwaylending.org) to get a personalized health report and funding-readiness evaluation.
- Submit the online loan application; Pathway Lending determines the appropriate loan product based on your stated goals.
- Submit the required documentation based on your loan size.
- After approval, use Pathway Navigator's tools, events, peer groups and expert support for ongoing help.
Documents you’ll typically need
- For loans under $100,000: most recent full-year business and personal tax returns, year-to-date business financial statements, business debt schedule, personal financial statement, and a credit bureau report.
- For loans of $100,000 or more: 2 to 3 years of business and personal tax returns, year-to-date business financial statements, business debt schedule, personal financial statement, credit bureau report, and supporting documentation specific to the request (such as equipment invoices, accounts receivable reports, or payoff statements).
Frequently asked
What loan sizes does Pathway Lending offer?
From $10,000 for Emerging Small Business Lending up to $5,000,000 for larger-revenue businesses; the Propel Loan for first-time borrowers goes up to $100,000.
What interest rates should I expect?
12-15% for small business loans, and commercial real estate loans start at 8%.
Do I need good credit to qualify?
A 600+ credit score is preferred but not required. Underwriting focuses more on business opportunity and capacity to repay than on credit score alone.
How long has my business needed to be operating?
At least one year, and it must be located in Tennessee.
What documents will I need?
For loans under $100,000: recent tax returns, year-to-date financials, a debt schedule, a personal financial statement, and a credit bureau report. Loans of $100,000 or more need 2-3 years of tax returns plus supporting documentation specific to the request.
Is there a fast option for first-time borrowers?
Yes, the Propel Loan, up to $100,000, is built for first-time or credit-building borrowers and offers expedited decisions within days.
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All 8 programmes in Tennessee →
Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.