Pathway Lending is proud to announce its $9 million investment of New Markets Tax Credits (NMTC) to support AAON Memphis’ manufacturing expansion in Southeast Memphis through its Community Development Entity, Pathway Lending CDE, LLC.

AAON manufactures thermal management equipment for data centers and industrial markets, including air-cooled systems, computer room air handlers, direct evaporative coolers and liquid cooling units. As part of this project, AAON is redeveloping a 787,000-square-foot manufacturing and warehousing facility to expand production capacity, plus add four production lines. The redevelopment will include high-efficiency LED lighting, updated air compressors and HVAC systems, and recycling updates.

Pathway’s $9 million investment is part of a $49 million New Markets Tax Credit investment package alongside Three Roots Capital and River Gorge Capital. Regions Bank also provided a leverage loan of approximately $35 million to complete the capital stack. The total project cost is more than $109 million.

The project is expected to create 381 full-time jobs and retain 366 full-time jobs. The average wage is projected to exceed $28 per hour. In addition, more than 200 construction jobs are expected to be supported.

“The New Markets Tax Credit Program plays a critical role in delivering quality jobs and economic opportunity in communities that need it most,” said Hank Helton, EVP and chief stakeholder officer at Pathway Lending. “Over the last four years, Pathway Lending has leveraged $124 million in allocations, helping create or retain more than 4,000 jobs across the Southeast. Our investment in AAON reflects our commitment to supporting manufacturing projects that create jobs and contribute to local economic activity.”

This is Pathway Lending’s first NMTC investment of 2026, following its fourth allocation of $65 million from the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund). Pathway plans to deploy the remaining allocation in low-income rural and urban communities across Tennessee, Alabama, Virginia, North Carolina, Kentucky, Mississippi and Georgia.

Since 2021, Pathway Lending has deployed $124 million in New Markets Tax Credits, supporting over $500 million in total project costs across Tennessee and Alabama.

Historically, more than $77 billion in NMTC investments have been deployed in low-income communities and businesses with over 30% of investments to rural areas, far exceeding statutory minimum requirements. For every $1 dollar invested by the federal government, the NMTC Program generates over $8 of private investment to create jobs, construct new or rehabilitate commercial real estate, and provide highly valuable services in low-income communities.