Nashville healthtech, Knoxville ORNL spinouts, Chattanooga advanced manufacturing, Memphis logistics, and rural Tennessee agricultural businesses each have a distinct funding path in 2026.
Tennessee small businesses in 2026 have access to ECD FastTrack performance grants (job training up to $5,000/trainee, infrastructure grants, and discretionary economic development funds), federal SBIR Phase I grants up to $305,000-$323,090 for tech and health companies, the federal §41 R&D credit with a $500K/year payroll-tax offset for early-stage companies, IRA Section 48 Energy ITC (30% for clean energy installations), TVA EnergyRight industrial programs, and USDA Rural Development grants and loans for rural Tennessee. Tennessee has no state income tax on business income and no state R&D credit, making federal programs the primary incentive layer for most businesses.
The federal R&D credit (IRC §41) is 20% of qualifying R&D expenses above your historical base, or 14% under the Alternative Simplified Credit. For Qualified Small Businesses under $5M gross receipts and under 5 years old, you can offset up to $500,000 per year directly against employer payroll taxes. Tennessee has no state income tax on business income and no state R&D credit, making the federal §41 credit the only R&D tax incentive available to most Tennessee companies -- which makes it disproportionately important to claim.
Tennessee's healthtech, software, and advanced manufacturing sectors have broadly qualifying R&D activities. Health IT platform development for Nashville's healthcare-focused companies, Knoxville advanced manufacturing process engineering, and Chattanooga industrial automation R&D all commonly satisfy the four-part test. Internal administrative software (EHR back-office configurations) does not qualify; clinical decision support algorithm development and device firmware typically does.
| Feature | Detail |
|---|---|
| Credit rate | 20% (regular) or 14% ASC of qualifying R&D expenses |
| Pre-revenue path | QSB payroll-tax offset up to $500K/year via Form 6765 + Form 941 |
| TN state R&D credit? | No -- federal credit is the only R&D incentive for most TN companies |
| No TN income tax on business income | Most TN businesses pay no state income tax -- federal credits reduce federal liability only |
| Stacking with FastTrack? | Yes -- federal credits and state performance grants are independent |
Because Tennessee has no state R&D credit, the federal §41 credit is even more important in Tennessee than in states with state credit stacking. A Nashville health IT startup with $800K in qualifying developer wages can generate up to $112,000 in annual payroll-tax offsets (14% ASC) before reaching $5M in revenue. This is recurring and automatic -- not competitive. Most Tennessee tech founders who qualify are not claiming it.
NIH SBIR Phase I provides up to $323,090 for 6-month health and biomedical feasibility studies. Nashville's healthcare concentration -- HCA Healthcare (largest for-profit hospital operator in the US), Community Health Systems, Ardent Health Services, LifePoint Health, and Vanderbilt University Medical Center -- creates exceptional clinical partnerships for NIH SBIR applicants working on care delivery technology, clinical decision support, value-based care tools, and population health platforms.
NIH institutes relevant to Tennessee companies: AHRQ (Agency for Healthcare Research and Quality -- care delivery efficiency and safety technology, directly aligned to Nashville's payer/provider focus), NIMH (mental health technology -- Tennessee has significant rural mental health access challenges addressed by digital health startups), NCI (oncology -- Vanderbilt-Ingram Cancer Center generates spinout activity), NIBIB (medical devices and biomedical imaging). Next standard NIH SBIR receipt date: September 5, 2026.
Vanderbilt University's Office of Technology Transfer and Entrepreneurship (OTT&E) and the Wond'ry (Vanderbilt's innovation center) provide SBIR application support for Vanderbilt-affiliated companies and spinouts. Tennessee Health Venture Club in Nashville connects health IT founders with SBIR resources and investor networks.
Oak Ridge National Laboratory (ORNL) -- the US Department of Energy's largest science and energy laboratory, located in Anderson County near Knoxville -- is the anchor for East Tennessee's federal SBIR ecosystem. DOE SBIR and STTR programs directly fund technologies aligned with ORNL research priorities: advanced nuclear technology, materials science, quantum information science, supercomputing and AI, energy storage, and advanced manufacturing.
DOE SBIR Phase I is up to $275,000 for 6-12 months. Companies do not need a formal partnership with ORNL to apply for DOE SBIR, but ORNL Partnerships Office (partnering.ornl.gov) can establish Cooperative Research and Development Agreements (CRADAs) that strengthen DOE SBIR applications by demonstrating access to DOE facilities and expertise. The University of Tennessee's Spark Innovation Center in Knoxville specifically supports ORNL technology commercialization and SBIR applicant development.
NSF SBIR (up to $305,000) is the complementary program for Knoxville deep-tech companies without DOE-specific research focus -- advanced materials, manufacturing technology, environmental science, and computational research common in the UT/ORNL corridor all fit NSF's funding scope.
For Chattanooga-based companies, Tennessee Valley Authority (TVA) and the Electric Power Research Institute (EPRI, headquartered in Knoxville) both fund technology innovation programs that complement SBIR funding. Chattanooga's advanced manufacturing cluster (Volkswagen, Amazon, and a thick supply chain) creates DOD and NSF SBIR-relevant automation and manufacturing technology opportunities.
| Program | Best TN Fit | Award Ceiling |
|---|---|---|
| NIH SBIR | Nashville health IT, digital health, Vanderbilt spinouts, rural health tech | $323,090 Phase I |
| DOE SBIR | ORNL-adjacent energy/materials/nuclear/quantum (Knoxville, Oak Ridge) | $275,000 Phase I |
| NSF SBIR | UT spinouts, Chattanooga manufacturing tech, deep-tech broadly | $305,000 Phase I |
| DoD SBIR | Arnold AFB (Tullahoma, AEDC), defense manufacturing supply chain | $275,000 Phase I |
The IRA Section 48/48E Energy ITC covers 30% of installed cost for solar, energy storage, geothermal, fuel cells, CHP systems, and wind. Tennessee's geography creates specific ITC opportunities: coal-dependent communities in the Cumberland Plateau and historically coal-mining counties (Anderson, Campbell, Claiborne, Scott, and Morgan counties in East Tennessee) may qualify for energy community bonus adders (+10%), making effective ITC 40% in those areas. Former TVA coal plant sites undergoing redevelopment also may have census tract energy community designations.
TVA's EnergyRight program, which serves homes and businesses in the TVA service territory across Tennessee, offers additional solar and efficiency incentive programs that can stack with the federal ITC. Notably, TVA generates most of Tennessee's electricity, so businesses installing on-site solar must navigate TVA interconnection requirements -- typically simpler for commercial systems under 10 kW, more complex for larger distributed generation in the TVA service area compared to investor-owned utility territories.
Tennessee FastTrack Job Training Assistance provides grants of up to $5,000 per new or retrained employee to help Tennessee companies train their workforce in skills aligned to job requirements. Available to both new businesses locating to Tennessee and existing Tennessee businesses that are expanding with new hiring. Funding can cover: customized training programs at Tennessee community colleges or technical schools, on-the-job training costs, training equipment, and instructor costs.
FastTrack training grants are performance-based -- the company must commit to creating a specified number of new jobs and document that training occurred. Grants are paid after the training is completed and verified. Contact Tennessee ECD (tn.gov/ecd) to initiate a project discussion. The ECD regional office in your area (Memphis, Nashville, Chattanooga, Knoxville, Jackson, or Cookeville) will evaluate the project and structure the grant agreement.
Manufacturing companies in Tennessee with technical workforce needs -- Chattanooga's advanced manufacturing base, East Tennessee's aerospace and defense supply chain (UTC Aerospace Systems in Clarksville, Textron in Millington), and Middle Tennessee's expanding automotive sector (Volkswagen in Chattanooga, General Motors in Spring Hill, Ford's Blue Oval in Stanton) -- are among the strongest FastTrack training grant recipients.
Source: Tennessee ECD, tn.gov/ecd/financial-incentives/fasttrack-programs
FastTrack Infrastructure Program grants flow to local governments (not directly to businesses) for public infrastructure improvements -- road construction, water and sewer extensions, rail spur construction, broadband -- that enable a specific business to locate or expand. If your Tennessee business is negotiating a site location or expansion with a local industrial development board or city government, the local government can pursue a FastTrack Infrastructure grant to fund the enabling public infrastructure at no cost to the business.
The practical impact: if your manufacturing facility in Jackson, Tennessee requires a new access road or sewer line extension, the city or Madison County industrial development board can apply for FastTrack Infrastructure funding to cover those costs, removing a barrier to your expansion. Engage your local county economic development office or Tennessee SITE Selector program to identify whether infrastructure grants are appropriate for your project.
Source: Tennessee ECD, tn.gov/ecd
The Tennessee Valley Authority (TVA), as the federally-chartered regional electric utility serving most of Tennessee plus parts of Alabama, Mississippi, Georgia, Kentucky, North Carolina, and Virginia, operates economic development programs specifically for businesses in its service territory. TVA's Economic Development team provides direct business site selection assistance, including identifying power rates, shovel-ready sites, and workforce data.
TVA's industrial power rates are competitive -- the TVA service area has historically had below-average industrial electricity rates compared to the national average. For energy-intensive businesses (data centers, manufacturing, chemical processing), TVA's rate structure is itself an economic incentive. TVA's EnergyRight program provides efficiency incentives including demand response programs and building efficiency assessments. TVA's industrial program team also assists businesses navigating Tennessee ECD incentive programs and can provide letters of support for federal grant applications that cite Tennessee's energy infrastructure.
For businesses siting data centers -- a growing sector given Tennessee's TVA power rates, central US geography, and low natural disaster risk -- TVA's large power customer programs and EPAD (Economic Power Assurance and Development) agreements can provide rate certainty that is central to data center underwriting.
Source: Tennessee Valley Authority, tva.com/economic-development
Nashville is the country's largest health services management center -- more healthcare companies are headquartered in Nashville per capita than any US city, including HCA Healthcare, Community Health Systems, LifePoint Health, Ardent Health Services, and Vaco (health staffing). The city's ecosystem is oriented toward healthcare operations, health IT, value-based care, revenue cycle management, and payer-provider technology rather than bench biotech or medical devices. This profile aligns well with AHRQ and NIMH at NIH for SBIR funding.
AHRQ (Agency for Healthcare Research and Quality) is the NIH institute most directly aligned to Nashville's operational health IT focus: care coordination platforms, clinical workflow efficiency tools, patient safety technology, and quality reporting systems all fall within AHRQ SBIR scope. AHRQ SBIR Phase I is up to $323,090. NIMH funds mental health technology that addresses access challenges -- particularly relevant in Tennessee given the state's significant rural mental health access gaps. Nashville companies building telehealth platforms, crisis intervention tools, or behavioral health workflow systems should evaluate NIMH SBIR alongside AHRQ.
The federal §41 R&D credit is directly applicable to clinical algorithm development, health data interoperability R&D, and platform engineering wages. For a Nashville health IT startup with $1M in qualifying developer wages, the annual QSB payroll-tax offset is up to $140,000 before reaching $5M in revenue. Since Tennessee has no state income tax, the federal credit is the only R&D tax incentive -- making it more valuable on a relative basis than in states where it is one of two stacked credits.
Vanderbilt University Medical Center's Wond'ry and OTT&E in Nashville provide SBIR application resources for Vanderbilt-affiliated spinouts. Nashville Health Care Council connects health IT founders to policy, investment, and federal grant navigation resources. The Launch Tennessee SBDC and Nashville Entrepreneur Center have specific health IT programming.
Oak Ridge National Laboratory is the anchor of East Tennessee's technology ecosystem -- the largest DOE national laboratory by research output, home to the Frontier supercomputer (the world's first exascale computer), and the center of US research in nuclear technology, advanced materials, neutron science, and quantum information. For companies commercializing technologies adjacent to ORNL research, DOE SBIR/STTR is the primary federal grant program.
DOE SBIR Phase I (up to $275,000) funds technologies aligned with DOE's mission areas: advanced nuclear energy (including small modular reactors -- a domain where Tennessee has significant commercial development activity through USNC and NuScale partnerships), energy storage, advanced manufacturing processes, quantum computing, grid modernization, and materials characterization. ORNL's Partnerships Office (partnering.ornl.gov) facilitates CRADA agreements that can strengthen DOE SBIR applications by demonstrating access to ORNL's neutron scattering facilities, supercomputing resources, and subject matter experts.
The University of Tennessee's Research Foundation and Spark Innovation Center in Knoxville directly support SBIR applicants -- particularly UT spinouts and companies licensing ORNL technology. The Tennessee Advanced Energy Business Council (TAEBC) represents Tennessee's growing advanced energy sector and can connect Knoxville-area energy companies to state-level advocacy, investor networks, and federal grant resources.
IRA Section 45X Advanced Manufacturing Production Credit is directly applicable to Tennessee companies manufacturing qualifying clean energy components. A Knoxville-area manufacturer producing nuclear fuel components, advanced battery materials, or critical mineral processing for clean energy applications should evaluate 45X eligibility. The Oak Ridge Corridor (Anderson County, Roane County) has significant industrial capacity that could be directed toward 45X-eligible component manufacturing.
Energy community bonus adders under IRA rules apply in parts of Anderson County and Morgan County given historical coal employment -- making clean energy installations in those areas eligible for 40% ITC rather than 30%. The Kingston Fossil Plant coal ash spill site (Roane County) is also an area with significant brownfield redevelopment activity and potential IRA energy community site-specific designations.
Chattanooga has transformed from a Rust Belt city into one of the South's most innovative manufacturing and technology communities. Volkswagen's $2B+ plant in Chattanooga (the only VW plant in the US that builds electric vehicles) anchors an advanced manufacturing ecosystem that includes hundreds of Tier 1 and Tier 2 automotive supply chain companies. The city's gigabit fiber network (EPB Fiber Optics -- the first community-wide gigabit network in the US) has attracted technology companies to the region. The Chattanooga corridor also has Amazon's air hub at Chattanooga Metropolitan Airport and a growing logistics technology cluster.
FastTrack Job Training Assistance is the most accessible Tennessee ECD grant for Chattanooga manufacturers. A new Tier 1 supplier to Volkswagen's Hamilton County plant training 50 new employees in robotics, welding, or EV component assembly can receive up to $250,000 in training grants (50 employees x $5,000/trainee). Contact Tennessee ECD's Chattanooga regional office early -- training grants must be approved before training begins.
For technology-oriented manufacturing companies doing process R&D, the federal §41 credit applies. NSF SBIR (up to $305,000) is relevant for Chattanooga companies developing advanced manufacturing technology, automation systems, or logistics optimization platforms. NSF's Manufacturing sector includes smart factory systems, robotics, and industrial AI -- domains where Chattanooga's manufacturing base creates real commercial customers for SBIR-funded technology.
EPB (Electric Power Board) in Chattanooga has become a significant economic development asset -- its Smart Grid and gigabit fiber are reference implementations that technology companies use as pilots. EPB also participates in TVA demand response and grid resilience programs. IRA Section 48 Energy ITC (30%) applies to industrial solar installations, combined heat-and-power, and energy storage -- Hamilton County is not an energy community zone, so the standard 30% rate applies.
Memphis is the US's second-busiest cargo airport (FedEx World Hub, Memphis International Airport), a top-5 inland waterway port (Memphis Harbor on the Mississippi River), and a critical railroad junction (BNSF, CSX, Norfolk Southern, Union Pacific all have major Memphis facilities). This makes Memphis one of the most strategically important logistics nodes in the country -- and a natural hub for logistics technology, supply chain management, and distribution businesses.
Logistics technology companies doing qualifying R&D -- route optimization algorithms, warehouse automation, predictive supply chain systems -- benefit from the federal §41 R&D credit. FedEx Institute of Technology at the University of Memphis conducts logistics and supply chain technology research and supports SBIR applications from affiliated companies. NSF SBIR covers logistics optimization, transportation systems, and supply chain AI under its Engineering and Technology topical areas.
Memphis also has a growing agricultural technology sector connected to Tennessee's row crop production (western Tennessee is one of the most productive cotton and soybean regions in the US). USDA SBIR/STTR (administered through the National Institute of Food and Agriculture, NIFA) funds agricultural technology R&D including precision agriculture, crop monitoring, soil health, and pest management systems. USDA NIFA SBIR Phase I awards up to $165,000 for agricultural technology R&D feasibility -- smaller than NIH or NSF but with lower competition and specific focus on agricultural relevance.
Mid-South region businesses in Shelby, Fayette, Tipton, and Lauderdale counties can access USDA Rural Development programs for businesses in unincorporated or smaller-city areas. Shelby County's urban core (Memphis city) is not rural-eligible for USDA, but the surrounding agricultural county businesses have access to USDA B&I loan guarantees and VAPG. FastTrack Job Training Assistance is accessible for Memphis manufacturers and logistics companies adding jobs.
Rural Tennessee spans from the Mississippi Delta cotton and soybean country in the west through the Tennessee heartland of tobacco, cattle, and grain farming in the center to the Appalachian communities of the Cumberland Plateau and Smoky Mountains in the east. USDA Rural Development programs are the primary funding source for rural Tennessee businesses outside the urban clusters.
USDA Value-Added Producer Grants (VAPG, up to $250,000) are directly applicable to Tennessee agricultural producers adding value to their products: a Robertson County tobacco farmer diversifying into artisanal tobacco products, a Wilson County cattle rancher developing a direct-to-consumer beef program, or a Jefferson County apple operation building a cider brand. VAPG is competitive and requires a business plan demonstrating the market for the value-added product. Annual solicitations on grants.gov typically open in summer with fall deadlines.
USDA Business and Industry Guaranteed Loans (B&I) provide loan guarantees up to $25M for businesses in rural Tennessee (cities under 50,000 population for most categories, or up to 100,000 for some programs). The B&I guarantee allows rural Tennessee businesses to access commercial credit they might not otherwise qualify for, with USDA sharing the lender's risk.
USDA Rural Energy for America Program (REAP) provides grants (up to 25-50% of project cost) and loan guarantees for renewable energy systems and energy efficiency improvements at farms and rural businesses. A Maury County cattle farm installing a biogas digester, a Lawrence County grain elevator adding solar-powered aeration, or a Polk County rural business installing a solar array all qualify for REAP. REAP stacks with IRA Section 48 Energy ITC (30-40% depending on energy community status) for substantial total project cost reduction.
Tennessee's rural counties -- particularly in the Cumberland Plateau and Southern Appalachians -- have extensive Opportunity Zone coverage, making them potentially attractive to investors deploying capital gains into Qualified Opportunity Funds through 2033 (OBBBA 2024 permanent extension). Rural Tennessee business owners raising capital should understand the QOZ investor incentive as a potential tool for attracting investment in regions where traditional venture capital is scarce.
Tennessee's funding landscape is shaped by its five major metro areas and the distinct character of its rural regions. ECD resources are concentrated in the major metros while USDA and TVA programs extend statewide including rural communities.
Nashville is Tennessee's largest city and economic hub, dominated by healthcare (HCA, VUMC, many healthcare services companies), music industry technology, real estate, and a rapidly growing tech sector. ECD's Nashville regional office manages FastTrack applications for the central Tennessee market. Williamson County (Franklin, Brentwood) has the state's highest median household income and hosts significant healthcare corporate headquarters. Rutherford County (Murfreesboro) has a growing logistics and manufacturing base including Nissan's Tennessee plant in Smyrna. The Nashville Technology Council, Launch Tennessee, and Nashville Entrepreneur Center are primary ecosystem resources. NIH SBIR is the dominant federal grant for Nashville health tech. NSF SBIR covers music technology, fintech R&D, and enterprise software with genuine technical novelty.
Knoxville and the Oak Ridge corridor have the highest concentration of DOE and NSF SBIR activity in Tennessee. ORNL, UT, and the manufacturing supply chain in Blount County (ALCOA Tennessee, multiple aerospace suppliers) create a rich federal grant environment. UT Research Park and the Spark Innovation Center house SBIR-ready startups. Tennessee Valley Corridor (TVC) is a nonprofit specifically focused on East Tennessee technology commercialization and SBIR navigation. Energy community bonus adders may apply in parts of Anderson and Morgan counties given historical coal employment. Roane County (Kingston area) has brownfield redevelopment activity following the 2008 fly ash spill.
Chattanooga is Tennessee's innovation manufacturing hub with Volkswagen's EV plant, EPB's gigabit fiber grid, and a growing tech startup community. The Chattanooga Chamber of Commerce and Enterprise South Industrial Park (site of VW plant) work with ECD on FastTrack applications for manufacturing companies. Bradley County (Cleveland) and McMinn County (Athens) have Tier 2-3 automotive and industrial supply chain companies with FastTrack training grant eligibility. Tennessee River at Chattanooga creates USDA Rural Development access for businesses just outside city boundaries.
Memphis dominates West Tennessee economically. FedEx World Hub, Memphis International Airport cargo operations, and the Mississippi River port create a logistics backbone. The University of Memphis and Christian Brothers University provide SBIR-adjacent research. Surrounding West Tennessee counties (Fayette, Tipton, Haywood, Hardeman) are rural and agricultural with extensive USDA program access. Hardeman County and Haywood County have Opportunity Zone census tracts with investor tax incentive potential through 2033. West Tennessee counties growing catfish, cotton, and soybeans are primary USDA VAPG candidates. Memphis' international trade expertise via the International Port of Memphis creates export financing opportunities through SBA's Export Express and Export Working Capital programs.
Middle Tennessee outside the Nashville metro has significant agricultural production, military presence (Fort Campbell, Montgomery County), and growing manufacturing. Fort Campbell creates defense SBIR opportunities for Clarksville-based companies -- AFWERX and Army SBIR programs are accessible. Robertson County has significant tobacco production with VAPG potential. Maury County (Columbia) has a growing automotive parts manufacturing sector. Lawrence County (Lawrenceburg) and Wayne County (Waynesboro) are rural with strong USDA program access. The Tennessee Highlands Economic Partnership serves south-central Tennessee counties with regional economic development support. Putnam County (Cookeville) is anchored by Tennessee Tech University, which generates NSF SBIR applicants in engineering and materials science.
1. Does your business do qualifying R&D (technical development, product engineering, clinical algorithm work)?
Yes and under $5M revenue, under 5 years old:
Yes and health technology or clinical platform (Nashville):
Yes and energy, materials, or nuclear technology (Knoxville/Oak Ridge):
2. Are you creating new jobs in Tennessee with significant investment?
Yes and hiring new employees who need training:
Yes and your expansion requires public infrastructure (roads, utilities):
3. Are you installing clean energy or manufacturing clean energy components?
Installing solar, storage, or CHP:
Manufacturing solar, battery, or wind components:
4. Are you a rural Tennessee or agricultural business?
Yes:
Tennessee's strongest funding paths: Nashville health tech companies lead with NIH SBIR (up to $323,090) stacked with the federal R&D credit. Knoxville and Oak Ridge-adjacent energy and materials companies lead with DOE SBIR. Manufacturing companies statewide lead with FastTrack Job Training (up to $5,000/trainee) for expansion headcount. Rural and agricultural businesses lead with USDA VAPG and REAP. Tennessee's zero business income tax is an inherent structural advantage, but it means no state tax to reduce with credits -- the federal programs are your only credit layer. This makes SBIR and the federal §41 credit more strategically important for Tennessee companies than in states with state credit stacking.
Answer a few questions about your business -- industry, stage, location within Tennessee, and R&D activity -- and see which state and federal programs match your profile, ranked by likelihood and effort.
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What small business grants are available in Tennessee in 2026?
Tennessee small businesses can access ECD FastTrack grants (job training up to $5,000 per trainee, infrastructure grants through local government, and discretionary economic development funds for major projects), federal SBIR Phase I from NIH (up to $323,090 for health tech), DOE (up to $275,000 for energy/materials tech near ORNL), and NSF (up to $305,000 for deep-tech), the federal §41 R&D credit with a $500K/year payroll-tax offset for early-stage companies, IRA Section 48 Energy ITC (30%, or 40% in energy community counties), and USDA Rural Development programs for rural Tennessee. Tennessee has no state income tax on business income and no state R&D credit.
Does Tennessee have a state income tax for businesses?
Tennessee phased out its Hall Income Tax (which taxed investment income) and does not impose a traditional state income tax on wages or most business income. Tennessee has no personal income tax and no corporate income tax on income from business operations (franchise and excise taxes do apply -- the Tennessee excise tax is 6.5% of net income, and the franchise tax is 0.25% of net worth or property). For small businesses, the zero personal income tax is a significant advantage for owner-operated pass-through entities. However, the absence of a state income tax also means there is no state tax against which an R&D credit could be applied -- Tennessee has no state R&D credit, making the federal §41 credit the only R&D tax incentive available.
Are there DOE SBIR grants for companies near Oak Ridge National Laboratory?
Yes. DOE SBIR and STTR programs are the primary federal grants for companies commercializing technologies adjacent to ORNL research. DOE SBIR Phase I is up to $275,000 for 6-12 months. Relevant research domains at ORNL include advanced nuclear energy, energy storage, quantum information science, materials characterization (spallation neutron source), supercomputing and AI, and advanced manufacturing. Companies do not need a formal ORNL partnership to apply for DOE SBIR, but a Cooperative Research and Development Agreement (CRADA) with ORNL strengthens an application by demonstrating access to DOE facilities. The ORNL Partnerships Office (partnering.ornl.gov) manages CRADA applications. UT Spark Innovation Center in Knoxville provides SBIR application support for UT and ORNL spinouts.
What is the Tennessee FastTrack program and who qualifies?
Tennessee FastTrack is a suite of performance-based business incentive programs administered by ECD. The most accessible component for small businesses is the Job Training Assistance grant (up to $5,000 per new or retrained employee) for businesses creating new jobs in Tennessee. Other FastTrack components include Infrastructure grants (to local governments for enabling public infrastructure) and the Economic Development Fund (discretionary grants for major economic development projects). FastTrack is performance-based -- grants are approved based on job creation and investment commitments and paid after milestones are verified. Applications must be submitted to ECD before qualifying expenditures or training begin. Contact tn.gov/ecd or your regional ECD office to initiate a project discussion.
What funding is available for rural Tennessee and agricultural businesses?
Rural Tennessee businesses have access to USDA Value-Added Producer Grants (VAPG, up to $250,000 for agricultural operations adding value to their products), USDA Business and Industry Guaranteed Loans (B&I, up to $25M loan guarantees for rural businesses), USDA Rural Energy for America Program (REAP, grants up to 25-50% of cost for farm and rural business energy installations), and IRA Section 48 Energy ITC (30-40% depending on energy community status) for on-site clean energy. West Tennessee row crop producers, Middle Tennessee tobacco and cattle farmers, and East Tennessee Appalachian community businesses all have USDA Rural Development access. Contact USDA Rural Development Tennessee State Office in Nashville for program navigation.
Program details verified May 2026. Program availability, funding levels, and eligibility change with legislative and administrative cycles. Always confirm current requirements directly with Tennessee ECD (tn.gov/ecd), USDA Rural Development Tennessee, the relevant federal agency, or a qualified advisor before filing or committing to a project. GrantCompass is an independent research platform and is not affiliated with any government agency.