Small Business Grants in Tennessee
Tennessee offers more than 10 active grant and incentive programs for small businesses, primarily administered by the Tennessee Department of Economic and Community Development (TNECD).
In This Article
Which Tennessee grants fit your business?
Answer 7 quick questions and we sort the 12 programs on this page into likely fits and long shots. Nothing personal is asked or stored, and final eligibility is always decided by the granting agency.
Tennessee Small Business Grant Programs
State-administered funding programs available to Tennessee small businesses. Verify deadlines directly with the granting agency before applying.
FastTrack Economic Development Fund
Tennessee Department of Economic and Community Development (TNECD)
Up to $750,000
RollingProvides reimbursable grants to local governments on behalf of companies expanding or locating in Tennessee. Covers costs such as retrofitting buildings, relocation of equipment, and capital improvements not eligible under FastTrack Infrastructure or Job Training programs.
Status check, The FastTrack Economic Development Fund is active and ongoing per TNECD's official incentives page and Tennessee Code section 4-3-717. No fixed deadline exists; it is a discretionary, project-specific, rolling program administered through local governments.
Last verified, Jul 19, 2026
IRIS Grant Program (Innovation & Research for Industry Success)
Tennessee Department of Economic and Community Development (TNECD)
$250,000 minimum
RollingStimulates industry-led R&D partnerships between Tennessee-based companies and the state's leading research institutions. Part of a $63 million innovation investment, the largest in Tennessee history. Not designed for early-stage startups.
Status check, IRIS launched July 1, 2025 and accepts applications on a rolling basis with no fixed deadline or closing date. No pause or discontinuation notices found. Pre-revenue startups are ineligible but qualifying small businesses may apply.
Last verified, Jul 22, 2026
LaunchTN SBIR/STTR Matching Fund
Launch Tennessee (LaunchTN)
$50,000 - $300,000
RollingMatches up to 50% of federal SBIR/STTR awards for Tennessee-based companies. Phase I awards are matched up to $100,000, and Phase II awards up to $300,000. The program has surpassed $1 billion in total economic impact since 2017.
Status check, The FY26 SBIR/STTR Matching Fund application is now closed. Interested companies may submit an interest form to receive updates about the FY27 program.
Last verified, Jul 23, 2026
FastTrack Infrastructure Development Program (FIDP)
Tennessee Department of Economic and Community Development (TNECD)
Up to $750,000
RollingGrants made to local governments for public infrastructure improvements benefiting companies committed to creating new jobs or making new capital investments. Eligible activities include water, sewer, rail, transportation, and site improvements.
Status check, FIDP is an active, ongoing discretionary grant program administered by TNECD with no fixed public application deadline. Grants are negotiated project-by-project via local governments, not through an open competitive application portal.
Last verified, Jul 18, 2026
Downtown Improvement Grant Program
Tennessee Department of Economic and Community Development (TNECD)
Up to $500,000
September 2026 (annual cycle)Awards grants to designated Tennessee Main Street and Tennessee Downtowns communities for facade improvements, streetscape enhancements, gateway signage, and other downtown revitalization projects. At least 50% of the grant must fund facade improvements.
Status check, Application period is July 7, 2026 to August 28, 2026. Application is now open in the Smart Simple grant management system. Grants up to $300,000 available.
Last verified, Jul 22, 2026
ThreeStar Grant Program
Tennessee Department of Economic and Community Development (TNECD)
$250,000 - $1,000,000
September 2026 (annual cycle)A strategic community development program that provides grant funding to certified counties for workforce training, health, entrepreneurship, and economic development initiatives. Distressed counties are eligible for up to $1 million.
Status check, ThreeStar is active with a program period through June 30, 2027, accepting applications on a rolling basis with quarterly awards. However, small businesses cannot apply directly; only counties, cities, and qualifying nonprofits are eligible grantees.
Last verified, Jul 17, 2026
Site Development Grant Program
Tennessee Department of Economic and Community Development (TNECD)
$100,000 - $500,000
September 2026 (annual cycle)Helps communities invest in infrastructure and engineering improvements to prepare industrial sites for economic development projects. Since 2016, TNECD has awarded over $60 million through 153 Site Development Grants statewide.
Status check, The most recent cycle (2026 Round 1) had an application deadline of March 26, 2026, which has passed. No new round is posted. Program is for governmental entities only, not businesses. Program itself remains active but no open window exists.
Last verified, Jul 19, 2026
Fund Tennessee (SSBCI 2.0)
Fund Tennessee / U.S. Department of the Treasury
$25,000 - $3,000,000
RollingTennessee's federally funded SSBCI program will administer $117 million over the next decade through three components: InvestTN (equity investments), LendTN (lending through CDFI partners), and AssistTN (technical assistance via TSBDC).
Status check, Fund Tennessee is actively deploying funds statewide with no single application deadline for small businesses. The program launched in 2023, is intended to run 8 to 10 years, and applications are submitted on a rolling basis through participating lenders and investors.
Last verified, Jul 19, 2026
Federal Grant Programs
These federal programs are available to small businesses in every state.
SBA 7(a) Loan Program
The SBA's primary lending program guarantees loans through participating lenders. This is a loan, not a grant. But the terms favor small businesses that may not qualify for conventional financing.
Status check, This is a loan program, not a grant. The 7(a) Loan Program provides loan guarantees to lenders for small business loans up to $5 million. Applications are accepted on an ongoing basis through participating SBA lenders.
Learn moreLast verified, Jul 23, 2026
SBA Microloan Program
Provides small, short-term loans up to $50,000 through nonprofit intermediary lenders. Funds working capital, inventory, supplies, or equipment. Interest rates typically run 8% to 13%. Repayment terms reach up to six years.
Status check, The SBA Microloan Program provides loans up to $50,000 through intermediary lenders. No application deadline specified. Program appears to be ongoing and available through SBA-approved intermediaries.
Learn moreLast verified, Jul 23, 2026
SBIR/STTR Grants
Competitive federal grants for small businesses doing research and development with commercial potential. Twelve federal agencies take part. Phase I awards fund proof of concept. Phase II supports full development.
Status check, SBIR/STTR is an ongoing rolling program. Phase I awards $50,000-$275,000 over 6-12 months. Phase II awards $750,000-$1.8 million over 24 months. No single deadline shown; applicants apply through participating agencies.
Learn moreLast verified, Jul 15, 2026
Minority Business Development Agency (MBDA) Programs
Federal programs for minority-owned businesses seeking capital, contracts, or market access. MBDA Business Centers sit across the country. They offer consulting, procurement help, and financing referrals.
Status check, MBDA operates ongoing business center services but competitive grant windows are time-limited and targeted at organizations not individual businesses. The only identified grant (WEP) closed February 2025. No currently open general MBDA small business grant found.
Learn moreLast verified, Jul 15, 2026
Get Grant-Ready
Before you apply, most Tennessee grant programs expect these basics to be in place.
Form your business entity
Most Tennessee grant programs require applicants to be a registered LLC, corporation, or nonprofit. If you haven't formed yet, that's the first step.
$39 + state fee. Includes registered agent, business address, and more.
Get your EIN
An Employer Identification Number is free from the IRS and required on nearly every grant application. You can apply online and receive it immediately.
Open a business bank account
Grant funds need to go into a dedicated business account, not your personal checking. Most agencies will ask for your banking details on the application.
Mercury is a fintech company, not an FDIC-insured bank. Banking services provided through Choice Financial Group and Column N.A., Members FDIC.
Grants by Business Type
Targeted programs for specific business owners in Tennessee.
Women-owned Business Grants
Women-owned businesses in Tennessee can pursue certification through the Governor's Office of Diversity Business Enterprise (Go-DBE) to access state procurement contracts and technical assistance. Additional resources include Pathway Women's Business Center in Nashville and WBENC certification.
- ›Go-DBE Certification
- ›Pathway Women's Business Center
Minority-owned Business Grants
Minority-owned businesses can obtain Go-DBE certification to compete for state contracts and access the Diversity Business Enterprise Directory. The City of Memphis Office of Diversity & Compliance and TDOT's DBE program also offer certification pathways.
- ›Go-DBE Certification
- ›TDOT DBE Program
Veteran-owned Business Grants
Service-disabled veteran-owned businesses can apply for Go-DBE certification in Tennessee. The program requires at least 51% ownership and control by a service-disabled veteran with at least a 20% service-connected disability.
- ›Go-DBE Certification
- ›SBA Veterans Business Outreach Center
Rural Business Grants
Tennessee's rural communities benefit from multiple TNECD programs including ThreeStar Grants (up to $1 million for distressed counties), Site Development Grants, Downtown Improvement Grants, and USDA Rural Business Development Grants. Counties classified as at-risk or distressed by the Appalachian Regional Commission may receive premium funding levels.
- ›TNECD Rural Development Division
- ›ThreeStar Program
- ›USDA Rural Development
Technology/Innovation Business Grants
Technology startups and innovation-focused companies have access to the LaunchTN SBIR/STTR Matching Fund and the new IRIS Grant Program. InvestTN through Fund Tennessee also provides equity investments from $25,000 to $3 million for early-stage startups at Pre-Seed through Series B stages.
- ›Launch Tennessee
- ›IRIS Grant Program
- ›InvestTN
Tips for Applying in Tennessee
Increase your chances of approval with these state-specific tips.
- 1Register your business with the Tennessee Secretary of State and ensure good standing with the Tennessee Department of Revenue before applying for any TNECD grant.
- 2If you are a minority-owned, women-owned, or veteran-owned business, get certified through the Governor's Office of Diversity Business Enterprise (Go-DBE) to unlock state procurement opportunities and additional support.
- 3Connect with your local Tennessee Small Business Development Center (TSBDC) office for free consulting on grant applications, business plans, and financial projections. Call the lead center at 877-898-3900.
- 4For IRIS grants, submit the required IRIS Intake Form before accessing the formal application. You must identify a research institution partner, and TNECD can help if needed at [email protected].
- 5Many TNECD community development grants (ThreeStar, Site Development, Downtown Improvement) require your county to maintain active ThreeStar certification. Check with your local Joint Economic and Community Development Board.
State Economic Development Agency
Tennessee Department of Economic and Community Development (TNECD)
TNECD is Tennessee's primary agency committed to fostering economic growth through job creation, attracting corporate investment, and providing grants to communities statewide.
Funding While You Wait
Grant applications in Tennessee can take weeks or months to process. These options can bridge the gap.
Frequently Asked Questions
Yes, Tennessee offers several grant programs that do not require repayment. The LaunchTN SBIR/STTR Matching Fund provides $50,000 to $300,000 in matching grants to tech companies that win federal SBIR/STTR awards. The IRIS Grant Program offers a minimum of $250,000 for industry-research partnerships. However, many TNECD programs like FastTrack are structured as grants to local governments on behalf of businesses, so the funds flow through your community rather than directly to your business.
The FastTrack program is Tennessee's most widely used incentive, providing grants up to $750,000 for infrastructure, job training, and economic development. For technology startups, the LaunchTN SBIR/STTR Matching Fund is one of the most accessible programs, having deployed over $9 million in a recent funding year to 40 Tennessee companies. Fund Tennessee (SSBCI 2.0) is also a major resource, administering $117 million in federal funding through lending, equity investments, and technical assistance.
No, most Tennessee grant programs do not require diversity certification. However, getting certified through the Governor's Office of Diversity Business Enterprise (Go-DBE) can open doors to state procurement contracts and technical assistance for minority-owned, women-owned, and service-disabled veteran-owned businesses. Certification is completed electronically through the Go-DBE system and is free to apply.
Timelines vary by program. TNECD community grants like ThreeStar and Downtown Improvement follow annual application cycles with deadlines typically in September, and awards are announced within a few months. The IRIS Grant Program and FastTrack grants operate on a rolling basis, but require intake forms, review by advisory committees, and contract execution before funds are disbursed. LaunchTN's SBIR/STTR Matching Fund typically announces recipients within 2 to 3 months of the application deadline.
About the Author
Senior Finance & Banking Editor
Richard is the veteran anchor of the site's financial content. Raised in the Midwest and starting his career in Chicago's commercial banking sector, he spent over a decade underwriting small business loans before moving into financial journalism. He doesn't get swept up in startup hype; he cares about unit economics, APYs, and fee structures.
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Grant programs change frequently. Deadlines, eligibility requirements, and funding amounts listed here may be outdated. Always verify information directly with the granting agency before applying. This page is for informational purposes only and does not constitute financial or legal advice.
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