Financing Incentives


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State / Regional

TVA Loan Fund

The Tennessee Valley Authority (TVA) loan program can be used to assist in financing industrial development projects including new industrial plants, existing industry expansions, infrastructure development and service industries. The loans require participation with another lending institution. There is a maximum loan amount of up to $3 million per project and the low interest loans are repaid over 15-20 years. For more information visit: www.tva.gov

Fast Track Economic Development Loan Fund

This discretionary grant is provided to local communities for eligible expenditures not covered by infrastructure or job training grants.  The grant can help offset expenses such as relocation, temporary office space, capital improvements, and retrofitting.  It is only used in exceptional cases where a company’s impact, such as net new full-time jobs* and capital investment, in a community is significant.  Funds are available subject to the terms of the Accountability Agreement executed by the State, community, and company.  TNECD is not able to provide incentives prior to the execution and approval of a contract.
*A net new job is defined as 37.5 hours per week, for twelve months, with health benefits offered.

TVA Performance Grant

Through the Performance Grant, TVA makes direct cash investments in major economic development projects in the Tennessee Valley.  Funding is paid directly to the company and it may be used in a variety of ways including public or private infrastructure development, the purchase of fixed assets, energy efficiency or other purposes.  Available to projects investing at least $2.5 million and creating 25 or more new jobs.

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Local

Memphis & Shelby County Industrial Revenue Bond (IRB) Program

In Memphis and Shelby County, small-issue industrial revenue bonds (IRB), also known as industrial development bonds (IDB), can be used for manufacturing purposes. The bonds are issued by public entities on behalf of private, for-profit companies. The bond buyers provide the funds needed by the company. Interest earned by the bond buyers is exempt from federal (and some state) income tax. As a result, the bond buyers are willing to accept a lower interest rate. Click here to learn more. 

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Downtown Development and Business Incentives

PILOT (Payment-In-Lieu-of Tax) or Tax-Freeze Program

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.

Development Loan Program

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 $150,000 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.

Commercial Office Grant

The Center City Revenue Finance Corporation will grant up to $195,000 to tenants relocating into or starting a business within the Downtown Memphis CBID. Grants can be used for interior space improvements.  For more information, please visit the Downtown Commission's incentives page or call 901-575-0540.

The program is administered by the Center City Development Corporation (CCDC) through an application and review process.