LINDSEY COX MBA, CEO of Tennessee Technology Development Corporation dba Launch Tennessee, said today that contracts previously executed between the State of Tennessee and the U.S. Treasury to provide the Volunteer State roughly $117MM in federal State Small Business Credit Initiative "2.0" are not currently viewed as imperiled by the impending shift from Biden to Trump Administrations.

CEO Lindsey Cox

"It's our understanding that since SSBCI funds have been contracted with the States, we should not anticipate changes, but we will, of course, remain in touch with our Treasury representatives regarding any updates," said Cox, responding to a VNC query.

VNC also asked for comment regarding any potentially looming threats to SSBCI or other federal grants that might be considered within the Tennessee Department of Economic and Community Development (ECD), which is the parent of Launch Tennessee, which is, in turn, chaired by ECD Commissioner Stuart McWhorter.

ECD Director of Communications Lindsey Tipton promptly replied, "We don't have a comment on this one."

Given that prominent members of the Trump transition team -- including Elon Musk -- are vowing to sharply reduce the federal budget and deficit, vigilance among current and prospective future grantees remains in order.

US Sen. Bill Hagerty

While Trump Administration Cabinet appointments remain in-process, it's worth noting that Former U.S. Ambassador to Japan and current U.S. Senator Bill Hagerty of Tennessee is currently being mentioned among possible candidates for Secretary of the U.S. Treasury.

Hagerty was drawn from a career in merchant banking and private equity to serve 2011-2015 as both commissioner of Tennessee's Department of Economic and Community Development and as chairman of LaunchTN.

Hagerty held several roles tied to the institution of The White House, dating back to 1991. In 2016, he was director of presidential appointments for the Trump Presidential Transition Team. He earned his law degree and his bachelor's in economics at Vanderbilt University.

VNC notes that SSBCI "1.0" was created during the Administrations of then Tennessee Gov. Bill Haslam and President Barack Obama.

VNC research suggests that while some grassroots SSBCI advocates tried to surface the option of further SSBCI funding early in President Donald Trump's inaugural term, 2017-2021, the idea did not gain traction.

In March 2021, $10BN in SSBCI 2.0 funding -- propelled in part by COVID-19 and related recessionary pressures -- was approved as part of $1.9TN economic stimulus bill titled The American Rescue Plan Act (ARPA).

In accepting its share of SSBCI funding, Tennessee and other States vowed to aim for 10X investment leverage across their portfolio companies.

Fortunately, whether the next few years bring fair winds or foul, two months ago TTDC-LaunchTN received an important nod from a Joint Committee of the Tennessee General Assembly, which, in-line with legislative sunset provisions, reviewed TTDC-LaunchTN performance and extended the nonprofit's authorized lifespan.

TTDC received a six-year extension of its charter, spanning FY 2026-2031. TTDC was created by law in 1997, and became operational in 1998.

The nonprofit's team often cites 2012, the year it adopted the LaunchTN brand, as a transformative pivot point. VNC

. last edited 1715 20 November 2024