Nashville Leaders To Extend Cash For Jobs To Small Businesses Too

Small businesses that employ fewer than 100 people and create 20 jobs can qualify for the new cash payments in Nashville. Credit: staceyjoy/flickr

Small businesses in Nashville will soon be eligible for cash payments in return for creating jobs, just like some big corporations get now. The incentive grants are set for final approval Tuesday night.

This is roughly the same deal the city cut for Dell computers – $500 per job. To qualify, firms have to employ fewer than 100 people, but it’s hardly for what might be called “mom and pop” operations. They have to be creating at least 20 positions in one year.

Councilman Charlie Tygard says he had hoped to extend the incentives to the smallest of businesses, but that proved too tricky and potentially expensive. Even with fewer eligible firms, Tygard says it could be a challenge to keep track of the money.

“You know, somebody walks in the door and says, ‘hey, I’m going to create 20 jobs.’ How are we going to make sure nine months from now that those jobs are still in creation or have they taken the money and run? So yeah, there’s some worry there.”

The city’s two-man economic development department is supposed to draft rules and mange the program. Nashville Mayor Karl Dean has set aside a million dollars for the first year.

Besides cash payments for jobs, the money also could be used for rehabbing a blighted building, up to $100,000 per project.

The legal summary of the ordinance explains that some types of businesses would be prohibited from getting the incentives, including restaurants, pawnshops and tattoo parlors.