FIDP | CDBG | SIA | TVA | SBA | Bonds

The Loudon County Economic Development Agency Serves as a Liaison Between New or Expanding Businesses and Local and State Governments to Assist in Obtaining Eligible Funding for Development

Tennessee FastTrack Infrastructure Development Program (FIDP)

• Administered by the Tennessee Department of Economic and Community Development
• Grant and/or loans available to local communities to assist with infrastructure improvements
  • Water systems - source development, intake structures, treatment plants, storage tanks, transmission lines, and other improvements normally associated with the provision of public water service
  • Wastewater systems - collector lines, treatment plants, and other improvements normally associated with the provision of public wastewater service
  • Transportation systems - access roads, rail sidings, port facilities, airport improvements, and other improvements normally associated with the provision of public transportation systems
  • Site improvements - limited to extraordinary situations where physical conditions of the site must be altered before construction can occur, site improvements will normally not involve improvements to land owned or to be purchased by the company
  • Other improvements to physical structure may be eligible if it can be demonstrated that the improvements are required for the location or expansion of private business. No infrastructure improvements, however, will be allowed on land owned or to be purchased by the company
• Grant or loan amount based on jobs created, capital investment, and ability to pay
• Eligibility limited to manufacturing new investment and job creation, manufacturing expansion, or job retention
• Maximum grant or loan amount is $750,000 (combination of training, site preparation, and all infrastructure cannot exceed this amount)
• Loan terms are variable, but are generally 7-15 years

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Community Development Block Grant (CDBG)

• Administered by the Tennessee Department of Economic and Community Development
• Two programs included in the CDBG program are available to local communities
  
  • Economic development program - grants for industrial infrastructure or loans for industrial buildings and equipment
  • Community development program - grants for water and wastewater, housing rehabilitation, and community livability
• Grant or Loan must meet one of three national objectives
  • principally benefit low and moderate income persons
  • eliminate or prevent slums and blight
  • address imminent health and safety problems
• Maximum grant or loan amount is $500,000 (local match required)
• Interest rates
  • Years 1-5 - 3 points below prime
  • Years 6-10 - 2 points below prime
  • Years 11-20 - 1 points below prime

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State Industrial Access Funds Program

• Administered by the Tennessee Department of Transportation
• Funds available to local communities for the development of access to industrial areas

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Tennessee Valley Authority Economic Development Loan Fund

• Administered by the Tennessee Valley Authority (TVA)
  
• Revolving loan program designed to stimulate investment and job creation in the TVA region
• Loudon County Economic Development Agency, through a cooperative agreement with TVA, serves as the co-sponsor on loan applications
• Loans are available to new or expanding industrial companies for fixed assets such as buildings, machinery, and equipment
• Loan applications are evaluated based on project's financial viability, its local economic impact, the amount of funds leveraged, and the expected increase in power sales
• Maximum loan amount varies according to type of project, but no project can exceed $2 million
• A minimum of one job should be created or retained for every $5,000 invested by TVA
• Interest rates are below prime and are considered on a case-by-case basis
  
• Loan terms vary depending on project
  • 10 year term for new plant, plant expansions, and plant retention loans
  • 7 year term for loans secured by machinery and equipment
  • 5 year term for infrastructure loans

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Small Business Administration Loans

• Provides financial, technical, and management assistance to help small business owners to run and grow their businesses
• Provides business loans, loan guarantees, and disaster loans worth more than $45 billion
• Nation's largest financial backer of small businesses
• Service Corp of Retired Executives (S.C.O.R.E.) counseling offered through the Loudon County Chamber or Commerce. Some of the subjects S.C.O.R.E. volunteers can help you with are:
  • stages of forming a business including start up requirement for all Tennessee businesses and obtaining business licenses and taxes
  • how to prepare a business plan
  • insurance for the small business
  • how to secure financing
  • selecting the legal structure for your business
  • what business records to keep
• East Tennessee Development District assists with Small Business Administration loan applications

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Industrial Development Bonds

• Active industrial development bond boards exist in Loudon County, City of Loudon, and Lenoir City
• Responsible for the issuance of bonds for industrial development
• Tax-free bonds are available for new projects with investment up to $10 million
• Investment in real and/or personal property cannot exceed $10 million within a 3-year period or the bond will become a taxable issue
• Rates normally are 70% of prime plus handling
• The Loudon County Economic Development Agency will assist businesses with the process
  

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