TNInvestco: $120 Million For Entrepreneurs
Guest blogger Ben Garrison joins us with an update on the TN Investco awards of $120M in tax credits, designated for investment in Tennessee start-ups.
Today, the State of Tennessee announced 6 finalist TNInvestco’s that will invest $120 million in qualifying Tennessee small and start-up businesses. The investments can take the form of debt, equity, or a hybrid of the two. The funds will be placed with the TNInvestco’s no later than the end of this year.
So what does this mean for Entrepreneurs? If you’re an entrepreneur looking for investment capital, there is an opportunity for you to get in line for a piece of the $120 million pie.
The information below should help get you started.
Who are the six TNInvestco’s? (Milt Capps covers this well in his blog VentureNashville.)
What defines a qualifying small business or start-up?
*Must be headquartered in TN, with at least 60% of its employees in TN
*Must demonstrate high growth potential
*Must be independently owned and operated
*Must have fewer than 100 employees
*Must NOT be principally engaged in accounting, medical, legal services, banking or lending, real estate development, insurance, oil and gas exploration, or direct gambling services.
Aside from creating a buzz in the entrepreneurial community, the effects of the TNInvestco program could be substantial. A significant amount of funding will reach entrepreneurs at a time when investment capital can be tough to come by. It is also rumored that the six TNInvestcos are creating additional pools of funding for groups that are promising, but may not meet all of the qualifying criteria. Overall, the program looks promising and should create a lot of momentum for entrepreneurship in the state of Tennessee.
by Ben Garrison on 11/5/2009 in