Bredesen unveils new economic plan
Friday September 14, 2007
Efforts will help boost struggling rural areas
RICHARD LOCKER
from: CommercialAppeal.com
Memphis, Online
NASHVILLE -- Gov. Phil Bredesen shifted the state's economic development focus Thursday toward rural areas hard hit by plant closures and job losses.
Acknowledging that spurring job growth in rural counties is more of a challenge than in metropolitan areas, the governor listed several new state efforts to help -- including two new loan funds to help small businesses grow and farmers diversify.
"Tennessee is enjoying economic growth. We've had revenue surpluses fueled largely by the franchise and excise tax, due mostly to the success we've had in attracting new companies, as well as helping Tennessee companies expand," he told several hundred local business-development officials at the annual Governor's Conference on Economic and Community Development.
"But the reality is that this growth is limited. ... I'll cut right to the chase -- what can we do to spur economic growth in rural communities?"
His administration's response includes:
A new $13 million Rural Development Fund that will lend money to existing small businesses needing need capital to grow but which don't qualify for traditional bank loans.
An expanded $26 million Agriculture Enhancement Program that will lend money to farmers to expand, diversify and to open or expand farmer's markets.
An effort to help expand broadband Internet service into smaller towns and rural areas.
Restructuring the Tennessee Technology Development Corp., which has a $5 million seed-capital fund to assist innovative new businesses and help state universities and laboratories move new ideas into the commercial marketplace.
Opening Tennessee's first trade center in China.
Broadening the range of local projects that can qualify for state grants to extend utility lines and other infrastructure to new industrial sites, including speculative projects.
State-run "Orange Carpet Tours" of smaller communities and rural areas for site-selection consultants who help businesses looking for places to expand their operations.
