Initiative Capital and First Tennessee Bank announced last week that First Tennessee has made a $3 million investment in Initiative Capital. These funds will be used by Initiative Capital to provide investment capital to the North Carolina organizations and communities that need it most.
Tara Kenchen, Initiative Capital President and CEO, described the importance of this investment, sharing that “First Tennessee’s long-term commitment will enable us to accelerate the high-impact community development lending and investing that are critical to achieving our shared goal of equitable economic development in all of North Carolina’s communities. We are delighted to have the Bank as a new partner in our work.”
First Tennessee Bank President and Chief Operating Officer David Popwell echoed Kenchen’s enthusiasm for the new partnership, “We are honored to partner with Initiative Capital and appreciate the chance to support the important work it does for underserved communities in North Carolina. As our Bank expands its presence in the state, we are committed to meeting the needs of the communities we serve through partnerships like this.”
As lending arm of the NC Community Development Initiative, Initiative Capital has nearly $27 million in assets and a portfolio that includes 3,500 units of affordable housing. For 20 years, the certified community development financial institution has provided strategic lending and investments that create jobs, promote economic growth, and facilitate the development of affordable housing, particularly in low-resource areas of the state.
Memphis-based First Tennessee Bank is rapidly growing throughout the Southeast. Its presence in the Carolinas has expanded in 2017 through a merger with Capital Bank. The combined bank, which will operate as First Tennessee, will see particular growth in the Triangle, Triad, and Charlotte regions. First Tennessee Bank’s investment in Initiative Capital is an equity equivalent investment, a deeply subordinated loan with features that make it function like equity.
The North Carolina Community Development Initiative, Initiative Capital and their strategic partner the NC Housing Coalition are working to create thriving communities with opportunities for all through smart policy, sector leadership and strategic investment.