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“We’ve
been a major supplier of steel utility poles to TVA for the past
ten years. We sell TVA thousands of poles annually, and that’s
one of the main reasons we’re building a plant in Jasper,
Tennessee. Having a plant here will give TVA and us an advantage
in reducing freight costs, improving speed and customer service,
as well as creating jobs for the local area.”
—Steve
Schmid, General Manager, Valmont Industries Inc.
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TVA’s most
important contribution to economic development is providing the region
with reliable, high-quality electric power at competitive prices. TVA
also works in partnership with communities and businesses throughout
the region to facilitate leadership development, stimulate capital investment
and promote the creation and retention of jobs.
Economic Development
Loan Fund
In 1995, at the request of distributors of TVA power, TVA established
the Economic Development
Loan Fund. Since then TVA has loaned over $90 million to Valley
businesses and industries, which has helped create or retain more than
30,000 jobs through the fund. These investments have helped leverage
more than $1 billion of funding from other sources—an average of
$32 for every $1 that TVA invests.
Industrial Development
In partnership with the distributors of TVA power, Regional Industrial
Development Associations (RIDAs) and state economic development agencies,
TVA provides industrial prospects with integrated economic information.
- Two examples
of TVA’s comprehensive assistance in locating new manufacturing
facilities in the Valley include Valmont Industries in Jasper, Tenn.,
and Cormetech in Cleveland, Tenn. Both firms worked with TVA’s
Procurement organization, Economic Development staff and Transmission/Power
Supply Group and state and local officials to select new sites. Valmont’s
new steel-pole production facility (see photo) will employ 150 workers,
while Cormetech’s environmental catalyst manufacturing and regenerating
plant has hired 105 people.
- The Tennessee
Valley Industrial Development Association, a partnership between
TVA and eight RIDAs, was recognized by Site Selection magazine as
one of the nation’s Top 10 utility-based industrial development
organizations.
- TVA and its
RIDA partners assisted firms across the Valley in adding or retaining
47,300 jobs during fiscal year 2000. These projects leveraged $770
million of new capital investment in the Valley and helped add or
retain 145 megawatts of electrical demand for distributors of TVA
power.
Minority and
Small Business Support
TVA’s commitment to economic development includes investments in
minority and small business development.
- TVA’s Minority
Business Development Loan Fund (MBDLF) promotes job creation and advances
the economic well-being of socially and economically disadvantaged
individuals and minority businesses in the Valley.
- MBDLF is helping
create 200 jobs in Lexington, Tenn., by financing an expansion of
the Manufacturers Industrial Group. Another 49 jobs are being created
in Jellico, Tenn., with MBDLF financing machinery and equipment to
expand Jamie’s Decor Inc., a small, woman-owned business.
- TVA provides
financial support and technical assistance for business
incubators across the Tennessee Valley to help businesses minimize
costs while providing on-site technical support. TVA’s incubator
loan fund helps some tenants meet short-term needs for capital and
cash flow. To date TVA and other Federal and state agencies have invested
in 21 small business incubators. These incubators have helped launch
more than 700 businesses and create 5,200 jobs.
- One example
of TVA’s investment in business incubators is the Memphis Incubator
System Inc. (MISI), created in 1999. In its temporary location MISI
houses eight businesses including Byte Size Networking Services, which
recently became the incubator’s first tenant to obtain a loan
guaranteed by the U.S. Small Business Administration.
- Since 1989,
178 Tennessee Valley communities have partnered with TVA to host Business
Development Weeks that offer technical training and support to
emerging companies in small towns and rural communities. Each year
more than 2,500 people visit the Mobile Business Center, attend seminars
and receive business counseling.
Community Development
TVA helps communities improve their competitiveness through strategic
planning processes, leadership development and grants administration.
- In 1999 more
than 1,400 people participated in TVA’s planning processes or
workshops. In Jefferson County, Tenn., 200 community leaders and citizens
helped prepare a strategic agenda that outlined a vision, goals and
strategies for the future.
- TVA administered
41 Appalachian Regional Commission (ARC) projects over the past year,
with a grant value of $9.5 million. Six projects were completed, which
created more than 1,300 new jobs and nearly $90 million in public
and private investment for Valley communities.
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