Technical assistance and funding resources for small businesses through Fund Tennessee
- Paula Anderson
- Nov 3, 2024
- 3 min read
by Paula Anderson
Access to capital is one of the challenges that Black entrepreneurs and small business owners face when trying to scale and grow.
According to a news release, “The Tennessee Department of Economic and Community Development (TNECD) will operate an initiative called Fund Tennessee, which is made up of a suite of programs from venture capital to loan programs and technical assistance. 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 to urban areas of the state, including underserved communities.”
“With one of the top business climates in the country, Tennessee is the ideal location to create, launch and grow a business,” said TNECD Commissioner Stuart McWhorter. “We appreciate the U.S. Department of Treasury for approving this funding, which will support and expand Tennessee’s small business and entrepreneurial ecosystem.”
The American Rescue Plan Act of 2021 (ARPA) allocated funding for technical assistance and funding to the state to help entrepreneurs and small businesses. This is the second round under the Small Business Job Act of 2010, created under the Obama-Biden administration.
The U.S. Department of Treasury has allocated $116.9M for entrepreneurs and small business owners to become capital ready over a 10-year period.
On March 2, representatives from the Tennessee Department of Economic and Community Development and Launch Tennessee presented the Fund Tennessee initiative. This is a program under the umbrella of the State Small Business Credit Initiative (SSBCI) | U.S. Department of the Treasury. The program overview was presented to entrepreneurs, small business owners and community supporters in Jackson, Tenn. at the Southwest Tennessee Development District and in Memphis, Tenn. at the University of Memphis - Michael D. Rose theater and online as well.
Fund Tennessee is designed for small businesses who need technical assistance such as legal services, accounting and fiscal advisory along with direct loans and seed funding.
Community Development Financial Institutions (CDFIs) and Minority Depository Initiatives (MDIs) will be the lending arm for the capital and all products will be underwritten by them according to representatives at the Fund Tennessee meetings. CFDIs and MDIs primarily serve underserved communities who may not qualify for lending through a traditional bank.
In Memphis, there is a CDFI network - Hope Credit Union, Communities Unlimited, River City Capital and Pathway Lending.
Small businesses defined as socially and economically disadvantaged individuals (SEDI) will receive preference for the program.
Launch Tennessee, a public-private partnership based in Nashville, Tenn., will work with its network entrepreneur centers throughout the state to administer and educate entrepreneurs. This initiative covers 95 counties. Launch Tennessee was allocated $70M for the program to help with “direct investments in early-stage startups, along with a fund-of-funds strategy investing in emerging venture capital fund managers.”
“Access to investment capital has been a challenge in Tennessee, so these funds will fill an immediate demand and support growth in startups that are primed to reach their potential,” said LaunchTN CEO Lindsey Cox. “We are eager to help founders across the state access this capital so they can continue innovating.”
Small Business Development Centers (SBDCs) will provide technical assistance for entrepreneurs and small business owners throughout Tennessee.
In Memphis, Dr. NaShawn Branch, executive director, heads the Memphis SBDC located at Southwest Tennessee Community College - Maxine Smith campus and a satellite office located in the Entrepreneur’s Network Center (ENC) at 480 Dr. Martin Luther King, Jr. Drive near the FedEx Forum.
“It is great to see Fund TN invested here in Memphis, TN. We are looking forward to working with small businesses to provide technical experience that directly impacts the economy of the State of Tennessee,” said Dr. Branch.
To learn more about SBDCs in the state of Tennessee, click here.
To learn more about Fund Tennessee, click here.
To learn more about the State Small Business Credit Initiative (SSBCI), download the fact sheets below.
To contact Writing by Design Media, Inc., send email to editor@wbdmedia.com.
This article was originally published March 6, 2023.
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