Tenn. governor has plan to spur rural business

Tennessee Gov. Phil Bredesen, right, grew up in suburban Boston, but in his second term he continues to look out for rural areas of the Volunteer State. This week, he announced "a new effort to spur business growth in rural areas, including a venture loan fund to help expand businesses with potential for growth and creating new jobs," reported Richard Locker of The Commercial Appeal's Nashville bureau.

Bredesen, who came to Nashville as a health-care entrepreneur, failed in his first gubernatorial bid and became mayor, "wants to expand economic growth occurring in Tennessee's metropolitan areas to rural counties that are economically distressed," Locker wrote. "He said this year's big increase in corporate tax revenue primarily occurred in 12 urban and suburban counties, which 'underlines for me how disparate the economic development is: how much it's hitting the big counties and ring counties and how little of it is getting out in the rural areas.' As a result, Bredesen is devoting a large part of the annual Governor's Conference on Economic and Community Development here Tuesday and Wednesday to helping rural areas."

One feature of Bredesen's plan is a $13.25 million Rural Opportunity Fund, funded mostly by financial institutions. It "will lend money mostly to existing small businesses in rural counties that have demonstrated their viability but need venture capital to grow," perhaps even to startup companies, Locker wrote. (Read more)