Small Business Growth and Empowerment Act

Small Business Growth and Empowerment Act is sponsored by Tennessee General Assembly. Authorizes business tax credits for small businesses hiring locally or providing workforce training; creates grants for minority-owned and women-owned businesses in underserved areas.

Bill Information - Tennessee General Assembly 114th General Assembly (2025-2026) AN ACT to amend Tennessee Code Annotated, Title 4, Chapter 3, Part 7 and Title 67, Chapter 4, relative to the "Small Business Growth and Empowerment Act."

Economic and Community Development - As introduced, enacts the "Small Business Growth and Empowerment Act"; authorizes business tax credits for small businesses hiring locally or providing workforce training; creates grants for minority-owned and women-owned businesses in underserved areas. - Amends TCA Title 4, Chapter 3, Part 7 and Title 67, Chapter 4. Def.

to Summer Study in Business & Utilities Subcommittee 03/18/2026 Placed on s/c cal Business & Utilities Subcommittee for 3/18/2026 03/11/2026 Action Def. in s/c Business and Utilities Subcommittee to 3/18/2026 03/11/2026 Placed on s/c cal Business & Utilities Subcommittee for 3/11/2026 03/04/2026 Assigned to s/c Business & Utilities Subcommittee 02/11/2025 P2C, ref. to Commerce Committee 02/10/2025 Intro.

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02/06/2025 Filed for introduction 02/04/2025 Assigned to General Subcommittee of Senate Commerce and Labor Committee 04/07/2026 Placed on Senate Commerce and Labor Committee calendar for 4/7/2026 04/01/2026 Action deferred in Senate Commerce & Labor Committee to 3/17/2026 03/10/2026 Placed on Senate Commerce and Labor Committee calendar for 3/10/2026 03/04/2026 Action deferred in Senate Commerce and Labor Committee to 3/10/2026 03/03/2026 Placed on Senate Commerce and Labor Committee calendar for 3/3/2026 02/24/2026 Assigned to General Subcommittee of Senate Commerce and Labor Committee 03/18/2025 Placed on Senate Commerce and Labor Committee calendar for 3/18/2025 03/13/2025 Placed on Senate Commerce and Labor Committee calendar for 3/18/2025 03/11/2025 Passed on Second Consideration, refer to Senate Commerce and Labor Committee 02/12/2025 Introduced, Passed on First Consideration 02/10/2025 Filed for introduction 02/06/2025 No amendments for HB0952.

No amendments for SB1185. Videos containing keyword: HB0952 FY25-26 & Subsequent Years FY25-26 & Subsequent Years The extent of any expenditures from the General Fund, corresponding revenue to the Small Business Growth and Empowerment Fund, and subsequent expenditures from the Fund, beginning in FY25-26, cannot be estimated with reasonable certainty.

This bill enacts the "Small Business Growth and Empowerment Act , " which (i) establishes t he small business growth and empowerment fund ("fund") as a separate account in the general fund to be used by the department of economic and community development ("department") to be used to facilitate economic development activities for minority-owned and women-owned businesses in underserved areas or in a manner that directly impacts minority-owned a nd women-owned businesses in underserved areas , and (ii) establishes a business tax credit for small businesses.

This bill provides that t he fund is to be composed of ( i ) f unds appropriated by the general assembly and ( ii ) g ifts, grants, and other donations received by the department for the fund. New commitments made by the commissioner of economic and community developmen t for grants from the fund must not exceed the appropriations made for the purposes of the program.

Additio nally, expenses for administration, marketing, and program evaluation must not exceed 5% of appropriations in a fiscal year for the fund. In each fiscal year, the fund must be managed so that actual expenditures and obligations to be recognized at the end of the fiscal year do not exceed any available reserves and appropriations of the programs.

At least quarterly, this bill requires the commissioner of economic and community development to report to the commissioner of finance and administrat ion the status of the commitments from the fund.

The report must include , at a minimum, (i) t he amount of each commitment accepted since the previous report , ( ii ) t he applicant receiving the benefit of each commitment , ( iii ) t he total outstanding commitme nts , and ( iv ) t he total unobligated balance.

A copy of the report must be transmitted to the chief clerks of the senate and the house of representatives, the state treasurer, the state comptroller, the office of legislative budget analysis, and the secret ary of state.

Additionally, the department must post on its website , at least quarterly , t he name of each small business growth and empowerment fund grant recipient , t he amount of each fund grant , and a description of the project to be funded by each fund grant.

This bill authorizes g rants from the fund to be made in all counties where the commissioner of economic and community development determines that the grants will have a direct impact on employment and investment opportunit ies for minority-owned and women-owned businesses in underserved areas. However, t o the extent practicable, moneys from the fund must be spent in all three grand divisions of the state.

Grants from the fund may only be made to local governments or their economic development organizations, other political subdivisions of the state, any subdivision of state government, or to not-for-profit organizations.

This bill requires g rants from the fund to be used to facilitate economic developme nt activities for minority-owned and women-owned businesses in underserved areas or in a manner that directly impacts minority-owned and women-owned businesses in underserved areas.

These activities include s ite development activities , i nfrastructure acti vities , t ourism-related activities , p lanning activities , t raining and mentoring activities , e ntrepreneurship activities , s ignificant technological improvements , or o ther economic development activities determined by the commissioner of economic and communi ty development to have a beneficial impact on the economy of this state.

Present law authorizes the commissioner of revenue to collect business taxes. As of January 1, 2026, this bill authorizes a qualifying small business that files and pays the business tax to take a credit equal to 50% of the taxpayer's liability for such tax .

A small business qualifies for the credit if the business meets all of the following criteria:  The business either (i) c omplies with a local and targeted hiring policy that the business develops and implements in which at least 50% of the persons employed reside in the community, municipality, or county in which the business operates; or (ii) p rovides workforce training approved by the department of economic and community development to its employees .

 The business applies for and receives certification from the department of economic and community development that the business meets the qualifications described in this bill for each year in which the credit is sought.  The business submits proof of its certification from the department of economic and community development to the department of revenue when it files and pays the business tax.

As used in this bill, a "small business" means a business t hat is a continuing, independent, for-profit business that performs a commercially useful function with residence in this state and has total gross receipts of not more than $1,500,000 averaged over a three-year period or employs no more than 15 persons on a full-time basis.

FiscalNote for HB0952/SB1185 filed under House Floor and Committee Votes Votes for Bill HB0952 by the House are not available. Senate Floor and Committee Votes Votes for Bill SB1185 by the Senate are not available.