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Industrial

Economic Development Funds   

Offers below-market-rate financing for capital-intensive industrial and nonprofit construction and renovation projects
The maximum loan amount varies according to the type of project. In most instances, TVA funds should be used for the acquisition of fixed assets. Loans are typically below market rate, with specific rates to be determined on a case-by-case basis after consideration of the loan evaluation criteria. Program guidelines require that each TVA loan dollar leverage additional funding from other sources. The loan funds are primarily available to manufacturing companies and local nonprofit economic development entities. Loans can be used to fund the construction of new manufacturing facilities, expansion of existing facilities, and development of publicly owned industrial sites or buildings.

Established to stimulate economic development and leverage capital investment in the TVA power service area.




Foreign Trade Zone (FTZ)   
Allows businesses in designated Foreign Trade Zones to process foriegn goods prior to formal Customs entry, deffering or eliminating duties
Duty-free treatment is accorded items that are reexported and duty payment is deferred on items sold in the U.S. market, thus offsetting Customs advantages available to overseas producers who compete with producers located in the United States. The City of Memphis is the Grantee of Foreign-Trade Zone (FTZ) No. 77 that includes sites at the Port of Memphis, several sites in southeast Memphis, and the Memphis Depot Business Park.

Established under a 1934 federal act to encourage foreign trade and to create and retain American-based jobs.

 


Impact and Grow America Fund Programs   
Provides expansion loans to established businesses with an emphasis on manufacturers and distributors
Loan proceeds may be used for any legitimate business purpose, including working capital machinery and equipment, property acquisitions and construction (building renovations ore leasehold improvements). To be considered, the business must be operating for at least 18 months and be in good financial standing. EDGE Impact Fund requires, at a minimum: 2009, 2010 and 2011 tax returns; year-end and current interim 2012 financial statements; and current business debt schedule. Loan size is $150,000 ? $2 million. Interest rates are based on floating, risk-based pricing. Fixed rates are available. Repayment terms vary based on use of funds (including refinance).

Created to promote the expansion of existing businesses, particularly manufacturers and distributors.




Tax credit of up to 50% of franchise and excise tax liability for purchasing, installing, or repairing industrial machinery
The credit applies to the purchase, installation and repair of industrial machinery as defined in T.C.A. 67-6-102. The credit also applies to the purchase and installation of computer, computer software and certain peripheral devices purchased in order to meet the capital investment thresholds of the Job Tax Credit. Any unused Industrial Machinery Tax Credit may be carried forward for up to 15 years. The percentage of Industrial Machinery Credit allowed is dependent upon the investment made during the investment period, from 1% to 10%.

Created to encourage capital investments in industrial machinery.


Bonds issued by public entities to fund the construction or renovation of manufacturing facilities
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. Funds must be used to acquire land/buildings, construct facilities, renovate facilities, or acquire new or used equipment. Minimum of 70% must go to core manufacturing.

Developed to allow public entities to leverage capital to fund targeted development in the manufacturing sector.