Tennessee Valley Authority Economic Development
Special Opportunities Counties Fund
Which counties are eligible for loans?
The Special Opportunities Counties Fund (SOC) targets a list of specifically designated counties in the Tennessee Valley. Only counties with the lowest per capita personal income, the highest percentage of residents below the poverty level, and the highest annual average unemployment rates are eligible for this program. This list of eligible counties is updated annually. View a map of SOC Fund counties (PDF, 120 kb).
What can SOC loans be used for?
SOC loans are made for buildings, plant equipment, infrastructure, or real estate based on the capital investment leveraged and the number of jobs created by a venture. SOC loans can also be made to local economic development entities for capacity-building projects such as sites or buildings.
What is the maximum loan amount?
The maximum loan amount varies according to the type of project, but no SOC loan can exceed $500,000. TVA’s participation ordinarily does not exceed 25 percent of total project costs. All loans are subject to the availability of funds. Generally, a minimum of one job should be created or retained for every $10,000 invested by TVA.
What can be used as collateral?
All loans need to be secured with fixed assets. Real estate and equipment are acceptable collateral, for example. The value of the collateral should be demonstrated by means of a recent appraisal that indicates fair market value.
What are the terms?
Loans are generally made for a period of five to seven years for equipment and up to 10 years for real estate and buildings. Repayment typically takes place in monthly installments according to an amortization schedule drawn up by TVA.
What factors are considered in the loan application?
General information
- Type of project: industrial expansion, relocation, retention, infrastructure development
- Contractual relationship: successful track record, availability of funds
- Impact on the local economy: unemployment, per capita income, etc.
Projects involving private-sector companies
- Health of the industry, regionally and nationwide
- Number of jobs created or retained
- Other capital investment leveraged (at least $3 for every $1 of TVA funding)
- Financial strength of the company
- Collateral: appraised value, holdings in real estate and equipment, collateral position
Projects involving speculative industrial buildings or infrastructure improvement
- Demonstrated need: documented benefit, shortage of marketable properties
- Demonstrated competency: successful track record in marketing industrial buildings, design competency of location and layout, proper sizing of buildings, written marketing strategy
- Quality of collateral: appraised value, collateral position
- Repayment capacity: partial repayment during marketing period, alternatives if marketing not successful.
Read a fact sheet on the SOC Fund (PDF format, 120 kb).