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Site Development Grant is a grant from Tennessee Department of Economic and Community Development (TNECD) that funds governmental entities to prepare industrial sites for economic development and business attraction. Eligible projects include access road construction, utility line installation, property acquisition, grading, drainage improvements, and rehabilitation of publicly-owned industrial buildings.
Awards reach up to $5,000,000 per project, with due diligence studies capped at $100,000. Sites must be publicly owned, at least 20 acres (10 acres in Tier 3-4 counties), and evaluated through Select Tennessee or affiliated certification programs. Applicants such as cities, counties, and industrial development boards must be located in counties meeting ThreeStar annual requirements.
Deadline is March 26, 2026.
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With funding approved through the legislature for the Rural Economic Opportunity Fund, TNECD is investing in site development grants. This grant opportunity will improve many of TNECD’s nationally recognized Select Tennessee certified sites and prepare other sites to achieve certification.
Applicant must be a governmental entity (City, County, Industrial Development Board, etc.) One application per governmental entity may be submitted One application per site may be submitted Site must be publicly-owned at the time of application, unless the grant request is to purchase the property or for Due Diligence Studies County where site is located must meet all ThreeStar annual requirements Sites must be at least 20 acres and have gone through at a minimum the site visit by Austin Consulting (Foote) for the Select TN certification program, the site visit and evaluation by Austin Consulting for PEP or the site visit by KPMG for the Invest Prep program.
Entities in Tier 3 and 4 counties may submit sites that are at least 10 acres and meet all other requirements.
Sites with open SDG projects are not eligible to apply Access roadways, acceleration/deceleration/turn lanes, traffic signalization, rail lines/signalization/switching, utility line construction/relocation including electricity, water, sewer, gas and telecommunications Property-Related Activities Purchase of property, right-of-way, easements, legal fees, tree/vegetation clearing, grubbing, grading, drainage improvements, detention/retention ponds, due diligence studies Due diligence grant amounts are limited to $100,000 (maximum).
Site must be under option for a minimum of three years prior to grant being awarded. Funding for site due diligence may not be awarded if there are other problems with the site that cause concern for development. Though TNECD prefers that the options be secured at no charge, if option costs are necessary, they can be used as local match.
Rehabilitation of Publicly-Owned Industrial Buildings Certification requirement would be waived if funded. Application must be accompanied by an industrial clean-up plan approved by TDEC Division of Remediation. Properties must meet normal eligibility requirements for the Site Development Grant Program.
Speculative Building Construction Site and building must be publicly owned. Site must meet eligibility requirements for the Site Development Grant Program. Minimum building size is 100,000 square feet expandable to 200,000 square feet.
Additional requirements will be included in the application. Site Development Grant Maximum: $5,000,000 Due Diligence Site Development Grant Maximum: $100,000 The community match is based on the county tier. This information is updated on an annual basis and can be found here .
If the site has received a site visit from Austin Consulting through the Select Tennessee Certified Sites Program , the community match rate will be reduced by 50%.
Application Webinar - January 15, 2026 Letter of Intent Due - February 12, 2026 Final Invoice and Close-Out for Previous Grants - February 12, 2026 Applications Due - March 26, 2026 Community Presentations - May 2026 Announcements - June 2026 Contract Start - August 2026 Projects will be scored in the following categories in order to determine short-listed projects: Sites short-listed will be asked to give a presentation.
This presentation will be evaluated and assist in determining final scoring and award.
Based on current listing details, eligibility includes: Governmental entities (cities, counties, industrial development boards) in Tennessee; sites must be publicly-owned, at least 20 acres (10 acres in Tier 3-4 counties), with required site evaluations completed. Applicants should confirm final requirements in the official notice before submission.
Current published award information indicates Up to $5,000,000 per project; Due Diligence grants up to $100,000 Always verify allowable costs, matching requirements, and funding caps directly in the sponsor documentation.
The current target date is March 26, 2026. Build your timeline backwards from this date to cover registrations, approvals, attachments, and final submission checks.
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