Bond counsels will be able to advise when this option is feasible. The loan fund combines funds secured from the Economic Development Association with regional funding sources to provide new or expanding businesses with financing at below-market rates. Funding regulations vary across the state and are based on policies established by each development corporation. Generally, funding limits are based upon the number and type of jobs being created. Revolving loan funds can be used for real estate acquistion, expansion, renovation, and construction, acquisition of machinery and equipment and working capital.
Funds are available too for-profit corporations, partnerships and proprietorships.
The loan cannot be used for working capital, debt consolidation repayment, refinancing or venture capital. The TVA Special Opportunities Counties Program is designed to aid the Tennessee Valley's poorest, least developed rural areas by assisting in the creation of projects and programs which emphasize the use of local resources and assets for job creation and income enhancement by providing limited financial assistance for project implementation. Only the 50 counties in the valley with the lowest per capita income are eligible. The Tennessee Child-Care Facilities Program was created to provide new child care space in the state by assisting in the start up and expansions of child care facilities. The program provides direct issuance of loans or grants to local educational agencies and local government, and guarantees of loans from the private sector.