USDA Feasibility Studies in Tennessee

    Independent third-party feasibility studies for USDA B&I, REAP, and Community Facilities projects across rural Tennessee, prepared to 7 CFR Part 5001 standards for lenders and USDA state office review.

    $3.45B
    Tennessee whiskey economic impact, 2022
    30,000
    Whiskey industry jobs supported
    #1
    Most-visited US national park, Great Smoky Mountains
    $89M
    USDA RD investment, 13 projects, August 2025
    16
    Rural hospitals at risk of closure, CHQPR late 2025
    14
    Rural hospitals at immediate risk, CHQPR late 2025
    $441.1M
    Whiskey industry tax revenue, 2022
    85%
    Guarantee on sub-$5M B&I loans, FY2026

    USDA Lending in Tennessee

    Tennessee pairs a globally recognized distilling signature with a deep manufacturing and tourism base, and USDA lending concentrates in the rural counties around them. Tennessee whiskey anchors Middle Tennessee, the Great Smoky Mountains anchor the east, and West Tennessee's farm counties and the new automotive corridor anchor the west. The Business and Industry program, the Rural Energy for America Program, and Community Facilities financing run heaviest across these rural counties, outside the major metro cores, where processing, hospitality, energy, and healthcare needs are most acute.

    Program activity spans the asset classes. In August 2025, USDA announced nearly 89 million dollars in Congressionally directed investments for 13 rural development projects across Tennessee, and named evidence reaches across uses: an office solar and storage project in Oak Ridge received a 50 percent USDA Rural Energy for America Program grant, and a Distance Learning and Telemedicine grant supported Claiborne County Schools. Sixteen rural Tennessee hospitals are at risk of closure, fourteen at immediate risk, per late 2025 CHQPR data, one of the highest immediate-risk shares in the country, sustaining Community Facilities demand.

    B&I applications require an independent feasibility study prepared by a qualified feasibility study consultant with no financial interest in the loan outcome. USDA Rural Development's Tennessee state office in Nashville reviews studies as part of the Conditional Commitment process, supported by field offices across the state.

    The Whiskey Economy

    Tennessee whiskey is the state's defining rural signature and a globally recognized product. The Tennessee Whiskey Trail, founded in 2017 by the Tennessee Distillers Guild, links more than 30 distilleries, and the industry generated a 3.45 billion dollar economic impact in 2022, drew 8 million visits, supported 30,000 jobs, and produced 441.1 million dollars in tax revenue. Tennessee whiskey is defined by the Lincoln County Process, the charcoal mellowing step codified in state law in 2013. The anchors are rural: Jack Daniel's in Lynchburg in Moore County, George Dickel at Cascade Hollow near Tullahoma in Coffee County, and Uncle Nearest in Shelbyville in Bedford County.

    For feasibility work the distilling economy connects directly to the programs: the Business and Industry program finances distillery construction, barrel warehousing, bottling, and visitor center capacity, while the Rural Energy for America Program funds the energy systems that production facilities rely on. The same tourism the whiskey trail drives supports lodging, dining, and event venues across the rural counties of Middle Tennessee, and B&I is an established path for that hospitality buildout.

    8M
    Annual distillery visits
    $2.05B
    Distillery visitor spending, 2022
    30+
    Distilleries on the Tennessee Whiskey Trail
    #1
    Jack Daniel's, best-selling American whiskey

    Project Types We Study

    Hotels and Resorts

    Hotel and resort projects in rural Tennessee serve the Great Smoky Mountains, the most-visited national park, along with Pigeon Forge and Gatlinburg, the Tennessee Whiskey Trail towns, and the TVA lakes. Outside the metro cores, these markets sit on eligible rural ground where the Business and Industry program is an established financing path for lodging.

    RV Parks and Campgrounds

    RV park and campground projects in rural Tennessee draw on the Great Smoky Mountains, the Cumberland Plateau, the Cherokee National Forest, and the TVA lake system. These outdoor hospitality assets occupy eligible rural counties and pair naturally with the Business and Industry program.

    Restaurants and Food Service

    Rural restaurant and food service projects in Tennessee anchor county seats and tourism towns across the whiskey trail counties, the Smokies gateway, and the river towns. As an established Business and Industry asset class, they support the workforce and visitor demand generated by the state's distilling and tourism economies across eligible rural counties.

    Event Venues and Agritourism

    Event venue and agritourism projects in rural Tennessee combine wedding and corporate event demand with farm tourism, distillery tourism along the Tennessee Whiskey Trail, and heritage tourism across Middle Tennessee. These projects occupy eligible rural counties and fit the Business and Industry program.

    General and Advanced Manufacturing

    Rural manufacturing projects in Tennessee span automotive and supplier plants tied to a deep base, including Nissan at Smyrna, GM at Spring Hill, Volkswagen at Chattanooga, and Ford's BlueOval City at Stanton in rural Haywood County. The Business and Industry program finances plant construction, expansion, and equipment across eligible rural counties outside the metro cores.

    Food and Beverage Processing

    Food and beverage processing projects in rural Tennessee span value added processing from West Tennessee row crops to Middle Tennessee livestock, alongside the beverage pipeline anchored by the distilling sector. The Business and Industry program is an established path for processing capacity across eligible rural counties.

    Meat and Poultry Processing

    Meat and poultry processing projects in rural Tennessee address cattle and poultry processing capacity across eligible counties. Projects can pair the Business and Industry program with the Meat and Poultry Processing Expansion Program to add capacity.

    Wineries, Distilleries and Breweries

    Winery, distillery, and brewery projects in rural Tennessee are the heart of the state's signature sector, anchored by the Tennessee Whiskey Trail and the Lincoln County Process. Named anchors include Jack Daniel's in Lynchburg, George Dickel near Tullahoma, and Uncle Nearest in Shelbyville. The Business and Industry program finances distillery and barrel warehouse capacity, and the Rural Energy for America Program funds energy systems.

    Sawmills and Wood Products

    Sawmill and wood products projects in rural Tennessee draw on East Tennessee's Appalachian hardwood forests and the Cherokee National Forest, which support a significant wood products base. The Business and Industry program finances mills, and the Rural Energy for America Program funds kilns and mill energy systems across eligible counties.

    Assisted Living and Senior Care

    Assisted living and senior care projects in rural Tennessee address measurable demand across aging Appalachian and rural Middle and West Tennessee counties. These facilities are a significant share of Business and Industry healthcare lending and can also draw on Community Facilities financing in eligible rural communities.

    Rural Medical and Dental Clinics

    Rural medical and dental clinic projects in Tennessee address acute access pressure, with sixteen rural hospitals at risk of closure and fourteen at immediate risk per late 2025 CHQPR data, one of the highest immediate-risk shares in the country. Clinics qualify for both Community Facilities and Business and Industry pathways across eligible rural counties.

    Childcare Centers

    Childcare center projects in rural Tennessee meet workforce enabling demand in automotive, distilling, and tourism labor sheds where care capacity is thin. These facilities qualify for both Community Facilities and Business and Industry pathways across eligible rural counties.

    Gas Stations and C-Stores

    Gas station and convenience store projects in rural Tennessee leverage corridor traffic on I-40, I-24, I-75, and I-81 across eligible counties and are an established Business and Industry asset class. Rural fuel and retail sites have also drawn Rural Energy for America Program energy investment.

    Self-Storage Facilities

    Self-storage projects in rural Tennessee serve growing exurban counties along the I-40 and I-24 corridors and the recreation markets around the Smokies and the TVA lakes. As a stabilized asset class, self-storage is a recognized Business and Industry use across eligible rural counties.

    Solar and Renewable Energy (REAP)

    Solar and renewable energy projects in rural Tennessee are primarily funded through the Rural Energy for America Program, with in-state evidence including an office solar and storage project in Oak Ridge that received a 50 percent USDA REAP grant. Note the August 2025 changes that narrowed eligibility for certain solar configurations.

    Car Washes

    Express and tunnel car wash projects in rural Tennessee address corridor and county seat traffic across eligible counties and have established Business and Industry program evidence as a recognized commercial asset class.

    Cold Storage and Warehousing

    Cold storage and refrigerated warehousing projects in rural Tennessee address first mile and distribution capacity demand along the state's interstate logistics corridors, including the Mid-South distribution hub's rural edge and the Middle Tennessee freight corridors. The Business and Industry program finances cold chain capacity across eligible counties.

    Marinas

    Marina projects in rural Tennessee anchor recreational marine demand on the Tennessee River and the TVA lake system, including Norris, Watts Bar, Chickamauga, Center Hill, Dale Hollow, and Kentucky Lake. These assets occupy eligible rural counties and fit the Business and Industry program.

    What Changed in 2026

    Effective for loans obligated in fiscal year 2026, beginning October 1, 2025, B&I loans under 5 million dollars receive an 85 percent guarantee, up from 80 percent, with loans of 5 million dollars or more at 80 percent. The upfront guarantee fee is 3.0 percent of the guaranteed amount with a 1 percent reduced fee path for projects in persistent poverty counties, distressed communities, areas of long term population decline, or presidential disaster designations, and the annual retention fee is 0.55 percent. Tennessee specific factors: the state enacted Commercial PACE and Resiliency, C-PACER, enabling legislation in 2021, adopted locally by participating cities and counties, which carries energy components now excluded from B&I under the August 2025 wind and solar policy; Appalachian Regional Commission co-funding stacks across the distressed counties of East and Middle Tennessee and Delta Regional Authority co-funding reaches West Tennessee counties; and USDA's April 2, 2026 extended pause on biodigester loan note guarantees constrains guarantee financed digesters while Rural Energy for America Program grant funding for digester upgrades remains a documented path.

    USDA Rural Development in Tennessee

    USDA Rural Development Tennessee State Office, 441 Donelson Pike, Suite 310, Nashville, TN 37214, led by State Director Patrick Jaynes, with field offices in Greeneville, Knoxville, Chattanooga, Cookeville, Nashville, Lawrenceburg, Jackson, and Union City.

    B&I eligibility covers areas outside cities and towns above 50,000 population. Excluded cores: Nashville, Memphis, Knoxville, Chattanooga, Clarksville, Murfreesboro, Johnson City, Jackson, and Kingsport. Eligible territory includes the Tennessee Whiskey Trail counties of Middle Tennessee, the Cumberland Plateau, the East Tennessee Appalachian counties, and the West Tennessee farm counties, and distressed designations under the Appalachian Regional Commission and the Delta Regional Authority qualify many projects for the program's 1 percent reduced fee path.

    Lender Landscape

    USDA's OneRD Guaranteed Lending Program operates through approved lenders, and that roster changed in 2026. On May 12, 2026, USDA removed ten lenders from the program, including several nationally and regionally active rural business originators such as Celtic Bank, ReadyCap Commercial, North Avenue Capital, and BOM Bank, after a portfolio review of delinquent loans. Because the approved roster can change, sponsors should confirm any originator's current Lender's Agreement and OneRD approved status through USDA's Lender Lens before relying on it in an application.

    Frequently Asked Questions

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