Governor sets new focus on rural development
Friday September 14, 2007
Associated Press
from: the Knoxville News Sentinel
NASHVILLE - Gov. Phil Bredesen on Thursday said rural development will be a major focus of the remainder of his second term in office.
Bredesen, a Democrat, said the state has launched a tax credit program targeting areas like the Cumberland Plateau and the Tennessee River Valley.
The governor said rural areas make up "large stretches of our state that simply can't be left behind or ignored when it comes to talk of economic development."
In addition to tax incentives, the state is working with private lenders to create a venture capital pool to spur business expansion and job creation.
Banks are encouraged to participate in the Rural Opportunity Fund through state tax credits. The state initially put $1 million into the fund, which is projected to total $10 million.
The program will target small businesses that are generally not eligible for commercial bank loans, Bredesen said.
"We're looking for businesses that are not cold startups, they're ones that have been able to get themselves going a little bit," he said.
"This is about trying to find businesses that are on the cusp of becoming successful, or are already successful and need to expand."
While industrial projects tend to draw the most attention among economic development initiations, the governor said the state shouldn't lose sight of the 84,000 farms in Tennessee, the fourth most in the nation. Farm income totals $2.5 billion a year in Tennessee, Bredesen said.
"Small farmers are truly small businessmen, and we are providing incentives for them to diversify and maximize their potential," he said.
The Legislature this year approved $26 million in grants to encourage agricultural diversification. One early success story from that program is a Macon County tobacco farm that has converted to a vineyard, winery and tourist destination, Bredesen said.
