Thinking of starting a business in Tennessee? With no personal income tax and an educated workforce, this is a great state to establish a new company. If you’re opening a business or you already own one in the state, check out the funding options below. These grants and loans are only available to Tennessee businesses.
Department or Agency: Knoxville Chamber of Commerce, together with Pathway Lending
Loan or Grant title: 865 Opportunity Fund
The 865 Opportunity Fund provides loans to Tennessee small businesses looking to grow or expand. Small businesses, especially those led by women and underserved minorities, in designated counties, are encouraged to apply. Available uses are broad and include working capital, equipment, real estate, emergency repairs, inventory, marketing, and more. See the fund overview for details and eligibility requirements. Loan awards range from $5,000 to $50,000, but the program also considers larger amounts. The program favors businesses that have been in operation for more than one year and have at least one year of positive business revenue.
Department or Agency: InvestTN
Loan or Grant title: InvestTN Regional Seed Fund
InvestTN Regional Seed Fund supports pre-seed and seed-stage startups in Tennessee, serving all 95 counties. Investments vary in size from $25,000 at the low end to $250,000 at the upper end, with target rounds of $100,000 to $750,000.
Department or Agency: Pathway Lending
Loan or Grant title: The Propel Loan
Pathway Lending is a certified Community Development Financial Institution supporting businesses across Tennessee. The Propel Loan provides businesses with working capital ranging from $5,000 to $50,000. To qualify, companies must have been in operation for at least six months and have a minimum of $4,500 in monthly revenue.
Department or Agency: Pathway Lending
Loan or Grant title: Tennessee’s Energy Efficiency & Renewable Energy Financing
Pathway Lending’s Sustainability Loans help businesses finance up to 100% of their sustainability projects. Typical projects include lighting, solar, HVAC replacements, cool roofs, and air compressors.
Department or Agency: Tennessee Valley Authority (TVA)
Loan or Grant title: Performance Grant
The Tennessee Valley Authority Performance Grant program invests in businesses developing or expanding in the TVA region. Award monies are paid to companies, with funding amounts based on an organization’s anticipated five-year economic development impact.
Department or Agency: Tennessee Department of Economic and Community Development
Loan or Grant title: Fasttrack Job Training Assistance Program
The Fast Track Job Training Assistance Program provides grants to new and expanding companies to support the training of new full-time employees. The amount of funding is based on the number of positions a business creates, the amount of capital it invests, and the compensation it pays its new employees.
