WHO WE ARESCTD is a partnership between South Central TN Development District (SCTDD) and South Central TN Business Development Corp. (SCTBDC)
HOW WE DO ITSCTD funds are sourced through SBA, USDA, EDA, State of Tennessee, and SCTBDC. Many of our financing programs may be used together and with other sources of capital and some may be used independently. Uses of funds include Business Real Estate, Machinery and Equipment, or Supplies, Inventory, and Working Capital.
WHERE WE DO ITSCTD offers financing through the SBA 504 program across the state of Tennessee and offers all of the other loan programs sourced through various other agencies, to businesses located inside the 13-county territory served by SCTDD.
WHY WE DO ITOur Non-Conventional loan programs are designed to encourage business growth and private investment while stimulating job creation and furthering several other economic and community development goals. SCTD is focused on improving access to capital in rural areas of Tennessee and supporting the continuing growth by enhancing competition in the urban areas of the State.
THE 504 PROGRAMWhen publicly traded firms need capital, they can go to a public market and sell bonds to investors to raise the amount of money they need to leverage their capital outlay. Large privately owned companies may opt for conventional financing to fund a portion of their project. Through SCTD, small businesses also have access to large capital markets like large publicly traded firms, and with a small investment or equity contribution, can fund the remaining portion conventionally through a bank. The 504 Program can only be accessed through a Certified Development Company (CDC), which is licensed to sell the aforementioned bond. Once authorized by the Small Business Administration (SBA) it will be backed by the full faith and credit of the Federal government. Participation in the program enables your bank, also known as (AKA) the "Third Party Lender" or TPL to conceivably retain a portion of the project as a conventional loan with a 50% Loan to Value ratio (LTV) after all the dust settles. LEARN MORE →
USDA Intermediary Relending Program (IRP)
Eligible businesses will be located in the thirteen county territory served by SCTDD. The eligible business may be either a start-up or a logical expansion of an existing operation. Loan applications will fall into one of four purpose categories: Start-up; Expansion; Acquisition; or Working Capital. Terms may be up to twenty (20) years, but will be based on the purpose of the loan or the life of the asset securing the loan. Rates will have a floor of 5% and may not exceed Prime plus 4%. Loan amounts may not exceed $250M or 75% of project costs. Funds are subject to availability. LEARN MORE →
Loan Fund Program (RLF)
Loan Fund Program (RLF)
Eligible businesses will be located in the thirteen county territory served by SCTDD. Funds may be used to fund a start-up, expansion, or retention project. Eligible types of companies include industrial, commercial, or service organizations and may be for working capital or fixed assets. Terms may be for up to twenty (20) years, but will be based on the purpose of the loan or the life of the asset securing the loan. Rates will have a floor of 4% and may not exceed 10%. Loan amounts should not exceed $250M or 1/3 of project costs. Funds are subject to availability. LEARN MORE →
Small or Minority-Owned Business Program (SMOB)
Eligible businesses will be located in the thirteen county territory served by SCTDD. Funds can be used for acquisition of machinery and equipment, working capital, inventory, supplies and materials, and other business-related activities. Loan funds cannot be used to acquire real estate. Terms may be for up to five (5) years. Rates will have a floor of 4% and may not exceed 10%. Loan amounts may not exceed $125M. Funds are subject to availability. LEARN MORE →