Tennessee FastTrack Economic Development Fund
Tennessee Department of Economic and Community Development (TNECD)
Negotiated; $250K–$5M typical
Tennessee's competitive infrastructure grant
Tennessee's discretionary economic development grant — used in exceptional competitive situations to reimburse companies or local communities for eligible capital expenditures such as real property acquisition, new construction, and building retrofit. Grants are reserved for high-impact projects where TN is competing against other states. A companion component — the FastTrack Job Training Assistance grant — provides $1,000–$5,000 per new qualifying job to cover training costs (instructor fees, curriculum, tuition, e-learning, equipment operation training). Both components are negotiated during site selection. Payments may be made to local governments, utilities, or directly to companies.
- Funding type
- Grant
- Level
- State
- Amount range
- $250,000 – $5,000,000
- Realistic amount
- Most FastTrack EDF awards for mid-size projects (50–200 new jobs, $10M–$50M investment) range from $500,000 to $2,000,00…
- Deadline
- Rolling — no annual cycle. Grants are negotiated during active site selection. TNECD reserves the right to approve or deny based on facts and circumstances of each project.
- Status
- active
- States
- TN
- Payment model
- milestone
Who qualifies
- Project must be in active site selection competition against at least one other state or international location
- TNECD reserves the right to approve or deny based on facts and circumstances — no automatic eligibility
- Eligible project types: new facility construction, building retrofit/renovation, real property acquisition for qualifying operations
- Project must create significant net new employment with above-average wages (quantity and wages are key evaluation factors)
- Company must execute an Accountability Agreement with TNECD before project commences
- Accountability Agreement establishes job and investment commitments with milestone-tied disbursement and clawback provisions
- FastTrack EDF may be paid to local governments or utilities on behalf of the company (for infrastructure improvements) or directly to the company
Hard requirements
- Must be incorporated
What it covers
Eligible expenses
- Real property acquisition for new or expanded qualifying operations
- New facility construction costs (site preparation, building construction, tenant improvements)
- Building retrofit and renovation for qualifying manufacturing, distribution, or technology operations
- Infrastructure improvements (roads, water/sewer, utilities) when paid through local government on behalf of qualifying project
- Job Training Assistance component: instructor fees and trainer costs for new-hire training
- Job Training Assistance component: training materials and curriculum development
- Job Training Assistance component: tuition paid to community colleges or technical schools for new-hire training
- Job Training Assistance component: e-learning platform fees for job-specific onboarding
- Job Training Assistance component: equipment operation training tied to new facility or production line
Ineligible expenses
- Equipment and machinery (separate programs cover these — see Industrial Machinery Tax Credit)
- Working capital or operational costs
- Routine maintenance of existing facilities
- Retrofits for retail, food service, or entertainment operations
- Projects already announced, broken ground, or site committed before TNECD approval
- Transfers of existing TN operations within the state
- Job Training component: employee wages during training
- Job Training component: training for existing Tennessee employees not in newly created positions
- Job Training component: generic coursework not tied to the new hire's specific job duties
How to apply
-
1
Contact TNECD during site selection — before any announcement
Engage TNECD's Business Development team during active site evaluation. The fund cannot be approved retroactively. Bring evidence of a genuine competing location (another state's offer or site selection consultant report).
~12 hrs
-
2
Submit project details for TNECD evaluation
Provide job projections, average wages, capital investment plan, proposed site, and competing location evidence. TNECD evaluates project significance, competitive necessity, and impact on Tennessee's economic priorities.
~12 hrs
-
3
TNECD structures the grant offer
TNECD determines eligible costs (real property, construction, retrofit) and negotiates grant amount, payment schedule, and accountability conditions. Large awards may require Commissioner or Governor approval.
~12 hrs
-
4
Execute Accountability Agreement
Sign the Accountability Agreement with TNECD establishing job commitments, wage floors, investment milestones, grant disbursement schedule, and clawback provisions (recapture if commitments not met).
~12 hrs
-
5
Receive grant disbursements as milestones are verified
TNECD disburses FastTrack EDF payments as verified capital expenditures and job creation milestones are achieved. Payments may go directly to company, local government, or utility as agreed.
~12 hrs
FastTrack EDF is TNECD's discretionary closer — it's used when the deal is genuinely at risk of going elsewhere. TNECD has used it for headline projects like Amazon, FedEx, Volkswagen, Oracle. SMBs need a credible competing offer and strong job/wage metrics to qualify.
Deadline & timing
Must be approved before project is announced or ground-breaking begins. TNECD engages companies during active site selection. Grant terms are set in an Accountability Agreement signed before project commencement.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.