COVID-19 Small Business Relief Neighborhood Reinvestment Fund - Phase II

COVID-19 Small Business Relief Neighborhood Reinvestment Fund - Phase II

On Wednesday, January 6, 2021, at the request of the Berke Administration, the Chattanooga City Council approved an additional $300,000 for small business assistance. This funding will be administered by the Southeast Tennessee Development District (SETD). This funding is only available to small businesses that were impacted by COVID-19 restrictions mandated by last year’s executive orders. Here is a list of those business types:

  • Restaurants and Bars
  • Barbershops, hair salons, nail salons, waxing salons, threading salons, spas, spas providing body treatments;
  • Child care centers and senior care centers;
  • Body-art facilities and tattoo services;
  • Tanning salons
  • Retail
  • Massage-therapy establishments or massage services
  • Night clubs (excluding adult entertainment venues)
  • Live performance venues and concert venues
  • Sporting event venues
  • Theaters, auditoriums, performing arts centers, and similar facilities;
  • amusement parks
  • Senior centers or equivalent facilities
  • Roller or ice skating rinks
  • Gyms; fitness centers; exercise facilities; yoga studios
  • Bowling alleys, arcades, climbing gyms, water sports activities, golf driving ranges and mini-golf facilities; shooting ranges; dance classes.


These funds will be disbursed through the City of Chattanooga’s Neighborhood Reinvestment Fund, which was originally created to provide capital to businesses that were struggling to access capital via traditional lenders. In order to apply for funds, applicants must be referred to SETD by a technical assistance provider. A referral must be made by a technical assistance provider to apply for funding. Here’s a list of recognized technical assistance providers:



  • Must have fewer than 50 employees
  • Assistance is available in the form of a partially forgivable loan.
  • Eligible businesses must be located within the Chattanooga city limits. 
  • Maximum loan amounts are $15,000
  • Businesses must be located in a commercial space.
  • Businesses must have been located in a commercial space for at least a year. (Exception: Small businesses that are primarily engaged in childcare or senior care services are allowed to be located within homes.)
  • Loans will not be available to businesses that are franchised.
  • Loans will not be available to businesses that are affiliated with national or regional brands.
  • Funding is available to for-profit businesses only.
  • Businesses must not be involved in any pending or current litigation.
  • Businesses must be operating with all required permits and licenses in accordance with all applicable laws. 
  • Businesses must be able to demonstrate they are unable to access capital from traditional lenders.
  • Funds may be used for the following: working capital, inventory, rent, minor interior/exterior building improvements, grease traps, lighting projects, signage, equipment & work vehicles, training & certification programs, marketing & professional services, business liability insurance, consulting and management services related to project implementation, and payroll.


If you have any questions, please contact Jermaine Freeman with the City of Chattanooga at 423-643-7821.