Grant Opportunity Fund

The Grant Opportunity Fund (“GO Fund”) is a grant opportunity matching fund for eligible distressed and at-risk rural communities.  This matching grant provides communities with a secondary source of capital to help them meet the local match requirements of larger grant programs. This mechanism allows communities to unlock significant federal or state funding that would otherwise be inaccessible due to a lack of available local resources. The GO Fund was funded by the General Assembly of the State of Tennessee, and the funding was appropriated to the Tennessee Department of Economic and Community Development (TNECD) in the Fiscal Year 2026 Budget. 

How the Process Works:

Applicants must apply to TNECD for consideration prior to submission of the actual grant application. If approved, TNECD will provide a letter of support stating the availability of match funds if the community application is ultimately funded by the applicable state or federal entity. If the application is successful, TNECD will then make an official award from the state match GO fund and move to the grant contracting phase.

The grant matching fund essentially acts as a financial bridge. Here are the suggested steps for leveraging the GO Fund:

1. Identify the Primary Grant Opportunity: A community identifies a major grant opportunity (e.g., a federal grant for infrastructure projects) that requires a local match (e.g., the federal grant covers 80% of costs, but the community must fund the remaining 20%).
2. Lack of Local Funds: The community determines it does not have the local funds readily available in its budget.
3. Application to Matching Fund: The community applies to the GO Fund program designed to help communities meet these match requirements.
4. Award and Leverage: TNECD determines if the community proposal is eligible.  If approved, TNECD submits a support letter detailing its commitment of the matching fund which will provide the necessary local share. This commitment is then used as proof of ability to pay when applying for the primary grant.
5. Project Funding: The community successfully secures the large primary grant and, with the help of the matching fund, can move forward with a project that would have otherwise been impossible. 

Match funding is flexible and will be based on the total award amount from the primary funding agency.  Should the amount in the initial GO Fund application vary, TNECD will work with the grantee to ensure the match is funded in full.

The TNECD Community and Rural Development staff will also provide general letters of support for applications to state and federal grant programs. These letters will not provide funding commitments, but can provide in-kind support, depending on the specific request, as well as other non-funding-related support. Each request for a letter of support will be evaluated for approval by the team. Request for letters of support should be emailed to Rachel.Powers@tn.gov. For other questions please contact Brooxie.Carlton@tn.gov