The TNInvestco economic program has doled out more than $17 million, created 110 jobs throughout the state and caused multiple companies to relocate to Tennessee, according to the agency’s just-released first annual report.
But so far, no new jobs have been created in Southeast Tennessee. Supporters say it’s too early to judge the program, which they say is complicated but effective.
Financiers such as Chattanooga-based FourBridges Capital Advisors helped insurers like Unum Corp. to shed themselves of millions in future tax liability by paying into TNInvestco with cash. The cash was then distributed to in-state venture capital firms, which were directed to invest it in early-stage companies.
“The goal of this is to create jobs,” said Charlie Brock, partner at FourBridges Capital, which sold about $60 million in tax credits to insurance companies.
The program has helped provide seed funds for nearly 40 Tennessee businesses judged to offer the greatest growth potential. TNInvestco, started under the administration of former Gov. Phil Bredesen, is being reviewed by the new administration of Gov. Bill Haslam as part of a streamlining effort of most state agencies.