Financing Incentives
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State / Regional
Economic Development Loan Fund
The Tennessee Valley Authority (TVA) Economic Development Loan Fund is a multimillion-dollar revolving loan program that assists in financing industrial development projects including new industrial plants, existing industry expansions, infrastructure development and service industries. Depending on job creation and capital investment, loans are made for up to $2 million. Special emphasis and consideration are given to minority- and woman-owned companies and to companies within targeted industrial sectors. For more information, visit: www.tvaed.com/loans.htm.
Small Business Energy Loan Program
The Tennessee Small Business Energy Loan Program provides low-interest loans of up to $300,000 to qualified Tennessee-based businesses to help upgrade the level of energy efficiency in their buildings, plants and to improve manufacturing processes. Companies with fewer than 300 employees or less than $3.5 million in annual gross sales or receipts are eligible to apply for loans to install insulation, double pane windows, energy efficient heating, cooling and ventilation equipment and energy efficient lighting. Other measures shown to save energy or decrease demand are also eligible for funding. Free energy audits are available to help interested companies identify potential sources of energy efficiency. For more information, visit: http://www.state.tn.us/ecd/energy_sbel.htm.
Tennessee Clean Energy Technology Grant Program (TN-CET)
Tennessee offers grants to offset the cost of businesses installing clean energy technology such as solar systems, solar electric generating equipment, wind energy systems, solar thermal systems, hydrogen fuel cell and hybrid solar lighting. The maximum available grant amount is 40% of the installed system cost up to $75,000. Grant dollars are allocated on a “reimbursement basis” only and a contractor’s design and installation proposal must be submitted with the application. For more information, contact the TN Department of Economic & Community Development- Energy Division at 1-800-342-1340.
Tennessee Biodiesel Manufacturer Grant
Manufacturers of biodiesel fuel in Tennessee can receive a $.20/per gallon incentive for every gallon produced and sold to Tennessee companies beginning September 1, 2007. For more information, visit: www.tnecd.gov/energy_biodiesel_manufact_grant.htm.
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Local
Memphis Business Opportunity Fund
This $50-million loan fund is a partnership between the City of Memphis and a consortium of local banks. This fund is designed to provide direct access to capital for the purpose of business expansion, start-up, and operating capital for small businesses in Memphis. For more information visit: http://www.cityofmemphis.org/framework.aspx?page=446.
Memphis & Shelby County Industrial Revenue Bond (IRB) Program
The Memphis and Shelby County Industrial Development Board is authorized to issue bonds for financing industrial facilities. Industrial development bonds at the 10 percent minimum tax are available for manufacturing operations. Taxable bonds can be issued for distribution facilities or other projects that are ineligible for the minimum tax financing. To find out more, visit: http://www.dobizinmemphis.com/incentives/irbprogram.cfm.
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Downtown Development and Business Incentives
The PILOT program is a financial incentive that is designed to encourage commercial real estate development in and around the Central Business Improvement District by "freezing" property taxes at the pre-development level for a predetermined period of time. To be eligible for a PILOT, the value of the building renovations, site improvements or new construction must be equal to or greater than sixty percent (60%) of the total project cost.
The program is administered by the Center City Revenue Finance Corporation through an application and review process.
The Development Loan program is a financial incentive designed to encourage commercial real estate improvements within the Central Business Improvement District. This low-interest loan program offers up to $90,000 for building renovations based on established project evaluation criteria. The loan is amortized over a 20 year period at a three percent (3%) interest rate with a balloon payment due at the end of the tenth (10th) year.
The program is administered by the Center City Development Corporation (CCDC) through an application and review process.
The Center City Revenue Finance Corporation and the Downtown Parking Authority are empowered to issue tax-exempt bonds for public development projects or taxable bonds for the construction of private development projects that may serve a public purpose. Bond issues have been utilized for the construction of public parking garages, housing projects that include an affordable income component, and publicly owned sports or entertainment complexes.
Incentives for New and Existing Downtown Retailers
The Retail Forgivable Loan program provides financial and practical assistance to new and additional retail business operations in targeted areas of Downtown Memphis. The Program will offer subordinated direct loans from the Center City Development Corporation (CCDC), which can be forgiven with no principal or interest due if the business remains in operation for at least five (5) years. For details and more information download the full application.
Designed to assist eligible businesses that are in serious jeopardy of closing due solely to the recent economic downturn. A thorough review of both the financial history and the current financial condition of the business will be used to determine need and eligibility.
The Program will provide financial assistance to existing, locally-owned, eligible businesses operating continuously within the CBID since January 1, 2006, by offering subordinated, direct loans from the Center City Development Corporation (CCDC), which can be forgiven with no principal or interest due if the business remains in operation for at least three (3) years after the loan closes. A business may be eligible for a loan of up to the lesser of $30,000 or 5% of its average yearly gross sales. Download the full application for details and more information.
The Façade Improvement Grant program provides financial assistance to new Downtown retailers in improving storefronts and signage in targeted retail areas. Matching grants are available from the Center City Development Corporation (CCDC) for up to 50% of the cost of façade improvements for eligible improvements.
For details and more information please contact the CCC Development Department at 901.575.0540.
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