Mayor Freddie O’Connell has announced three initiatives aimed at helping Nashville small businesses remain in the city, improve their properties and invest in their employees.
The proposals include a new Legacy Business Program and Workforce Advancement Incentive Program, along with an expansion of Metro’s existing Property Investment Incentive Program.
O’Connell, who announced the initiatives during his State of Metro address, said the programs are part of his administration’s broader effort to ensure that local businesses can continue operating and growing as Nashville changes.
“Small and legacy businesses are the backbone of our communities,” O’Connell said. “They’re places of friendship and fellowship. They make us feel like we belong here. They’ve helped build a Nashville for Nashvillians, and they should have the opportunity to remain a part of its future.”
The new Legacy Business Program is designed specifically for small businesses that have operated in Nashville for at least 15 years and have become established parts of their neighborhoods.
The program will provide grants that businesses can use for improvements such as modernizing operational infrastructure, reducing operating expenses, strengthening long-term sustainability and resilience, and investing in marketing.
More than $300,000 will be available during the program’s first-year pilot, according to the mayor’s office. Additional contributions could increase the amount available during the year.
The initiative comes as rising property values, rents and other costs have raised concerns about whether longstanding local businesses can remain in some Nashville neighborhoods.
A second initiative, the Workforce Advancement Incentive Program, will offer grants of up to $10,000 to small businesses that invest in continuing education and training for their employees.
The money can be used toward training programs resulting in professional certifications from accredited organizations as well as qualifying programs offered by small business owners.
“When businesses invest in their employees, opportunities expand, and the whole community benefits,” O’Connell said.
Metro is also expanding its Property Investment Incentive Program, which provides financial assistance for improvements to commercial properties.
Under the changes, commercial buildings valued at up to $2 million will be eligible for the program, twice the previous property-value limit.
The program is also being expanded to cover interior building improvements. Previously, assistance was limited to exterior improvements.
Eligible businesses can receive matching grants reimbursing 50% of qualifying construction or rehabilitation expenses, up to $50,000.
“The age of a property shouldn’t be a barrier to a business’s success,” O’Connell said.
The three initiatives reflect an effort by Metro to address some of the challenges facing smaller and longstanding businesses as Nashville continues to experience population growth and redevelopment.
The administration is also attempting to connect economic development with other major initiatives involving housing and transportation.
O’Connell has described housing affordability, transportation, neighborhood quality of life and economic opportunity as interconnected issues that will influence Nashville’s ability to manage its continued growth.
The administration’s Unified Housing Strategy, for example, calls for greater coordination between government, nonprofit and private-sector organizations as Nashville confronts increasing housing costs. Metro’s strategy notes that home values have increased more than 40% since 2019 while household incomes have grown only 19%.
The strategy also specifically calls for Metro to enhance support for emerging developers and small business enterprises as part of its broader approach to neighborhood investment.
The mayor’s office said the goal of the new business initiatives is to give locally owned companies additional resources to invest in their properties, employees and long-term operations while preserving the businesses that contribute to Nashville’s neighborhood identities.
