- Initiative supports local small business financing and investment programs
NASHVILLE, Tenn. – The U.S. Department of the Treasury today announced approval of up to $116.9 million in funding through the State Small Business Credit Initiative (SSBCI) to support the growth of small businesses in Tennessee.
“Small businesses are the backbone of our economy and play a central role in building strong communities across Tennessee,” said Tennessee Governor Bill Lee. “I am pleased that this funding will help increase small business growth and encourage interested Tennesseans to use these funds to promote economic growth in our state.”
The Tennessee Department of Economic and Community Development (TNECD) will manage an initiative called Fund Tennessee, which includes a suite of programs ranging from venture capital to loan programs and technical assistance. The TNECD allocated $46.9 million for the debt program that will work with participating Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) to serve rural and urban areas of the state, including underserved communities.
“With one of the best business climates in the country, Tennessee is the ideal place to start, launch and grow a business,” said TNECD Commissioner Stuart McWhorter. “We appreciate the U.S. Department of the Treasury for approving this funding, which will support and grow Tennessee’s small business and entrepreneur ecosystem.”
TNECD, in partnership with LaunchTN, has allocated $70 million to the program, focused on direct investments in early-stage startups, as well as a fund-of-funds strategy investing in emerging venture capital fund managers.
“Accessing investment capital has been a challenge in Tennessee, so these funds will meet immediate demand and support the growth of startups ready to reach their potential,” said Lindsey Cox, CEO of LaunchTN. “We look forward to helping founders across the state access this capital so they can continue to innovate.”
TNECD and LaunchTN are hosting regional kickoff meetings to provide an overview of the new Fund Tennessee initiative. The meetings will begin today and continue through April. To learn more or register for a kickoff meeting, visit here.
The SSBCI program provides financing to enable small businesses to access the capital needed to invest in job creation opportunities.
In addition to generating private investment in states across the country, SSBCI is making historic investments in U.S. territories, with significant impacts for increasing access to credit in these markets. Through the SSBCI, the U.S. Treasury has allocated more than $300 million to support small businesses and entrepreneurs.
About the Tennessee Department of Economic and Community Development
The mission of the Tennessee Department of Economic and Community Development is to develop strategies that help make Tennessee the #1 location in the Southeast for high-quality jobs. To grow and strengthen Tennessee, the department seeks to attract new business investment to the state and works with Tennessee businesses to facilitate expansion and economic growth. Find us on the web: tnecd.com. follow us on Twitter And Instagram: @tnecd. Like us on Facebook: facebook.com/tnecd.
Media contact TNECD
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