Governor's Response and Recovery Fund

What is the Governor’s Response and Recovery Fund? 

Established by law on February 12, 2025, the Governor’s Response and Recovery Fund was created to provide flexible financial resources for unmet disaster recovery needs during times of extraordinary circumstances. For the first application period, Governor Lee has authorized use of the fund to support government agencies, non-profit organizations, businesses, and farmers or foresters affected by Tropical Storm Helene in Northeast Tennessee.  

Do I have to pay back the funds received through the Governor’s Response and Recovery Fund? 

No, the Governor’s Response and Recovery Fund program is structured as a grant program. Funding will be awarded based on eligibility criteria provided in the application and availability of program funds. All applicants must provide supporting documentation as part of the review process. Final funding determinations will be made at the discretion of the Governor. 

Grant funds awarded through this program must be used solely for the project identified in the approved application. Any unused funds must be returned, and any funds expended on purposes not outlined in the application will be subject to full repayment by the recipient. 

Applicants will need to submit an application for each project for which they are requesting funding.  

Is this a reimbursement grant program? 

No, the Governor’s Response and Recovery Fund will provide advance payments to impacted local governments, non-profits, businesses, farmers, and forest landowners due to Tropical Storm Helene. Applicants are required to provide documentation of the cost of the project listed in the application. Should the project be completed under budget, the applicant is required to return any unused funds back to the State. Any funds expended on purposes not outlined in the application will be subject to full repayment by the recipient. Conversely, if your cost estimate is less than the final project cost, the State will not award additional funds for the project. Please be sure your cost estimates are as accurate as possible. 

How do I apply for Response and Recovery Funds? 

You will need to complete the online application that correlates with the type of eligible applicant you are and submit any documentation that supports your application.

What disasters are eligible for the Response and Recovery Fund ?

As the law currently reads, this fund is made available for disasters that are declared a State of Emergency through a Governor's Executive Order or Proclamation. 

Who is eligible to apply for a Response and Recovery Fund grant? 

Eligibility to apply for a Governor’s Response + Recovery Fund grant includes a range of entities, such as small businesses, non-profits, local government agencies, and agriculture-related organizations. However, other entities not specifically listed may also be considered for approval, depending on their alignment with the fund’s objectives and needs.

If you're unsure whether your organization qualifies, it’s recommended to contact GRRF@tn.gov for further clarification. 

What are the criteria used to determine approval of the application? 

At this time, projects must be the result of damage or disruption caused by Tropical Storm Helene and occurred in one of the federally declared counties: Carter, Claiborne, Cocke, Grainger, Greene, Hamblen, Hancock, Hawkins, Jefferson, Johnson, Sevier, Sullivan, Unicoi or Washington.  The fund may open for additional applications as a result of other disasters or emergencies at a later date.  

How does the GRRF define a government agency? 

For the purposes of the GRRF, the definition of a local government is based on TCA 9-5-102(2): "Local government" means a county, municipality, city, or other political subdivision of this state.

How does the GRRF define a non-profit organization? 

For the purpose of the GRRF, the definition of a non-profit is based on TCA 6-54-111(a)(2)(A-B): ..."nonprofit charitable organization" is one in which no part of the net earnings inures or may lawfully inure to the benefit of any private shareholder or individual and that provides year-round services benefiting the general welfare of the residents of the municipalities.  ... "nonprofit civic organization" means a civic organization exempt from taxation pursuant to § 501(c)(4) or (c)(6) of the Internal Revenue Code of 1954 (26 U.S.C. § 501(c)(4), (c)(6)), which operates primarily for the purpose of bringing about civic betterments and social improvements through efforts to maintain and increase employment opportunities in the municipality by promoting industry, trade, commerce, tourism and recreation by inducing manufacturing, industrial, governmental, educational, financial, service, commercial, recreational, and agricultural enterprises to locate in or remain in the municipality. The statement of public policy set forth in Acts 1955, ch. 209, § 3 is hereby incorporated into and made a part of this section, and it is hereby determined and declared that appropriations authorized by this section are needed to relieve the emergency created by the continuing migration from Tennessee and its municipalities of a large number of its citizens in order to find employment elsewhere, and to enable the municipalities of the state to assist nonprofit organizations in furthering the economic development, social welfare, and common good of its residents. 

How does the GRRF define a business? How does the GRRF define a small business? 

For the purpose of the GRRF, the definition of a business is based on TCA 61-1-101(1): "Business" means every trade, occupation, and profession and any other activity, including the holding or ownership of property, entered into for profit. A small business is defined per TCA 12-3-1102(9): "Small business" means a business that is a continuing, independent, for profit business which performs a commercially useful function with residence in this state and has total gross receipts of not more than ten million dollars ($10,000,000) averaged over a three-year period or employs no more than ninety-nine (99) persons on a full-time basis.

How does the GRRF define a forest?

For the purposes of the GRRF, a farm or forest is based on the definitions defined in TCA 67-5-1004(3): "Forest land" means land constituting a forest unit engaged in the growing of trees under a sound program of sustained yield management that has tree growth in such quantity and quality and is so managed as to constitute a forest; To be eligible as forest land, property must meet one (1) of the following minimum size requirements by consisting of: A single tract of at least fifteen (15) acres; or Two (2) noncontiguous tracts within the same county totaling at least fifteen (15) acres that are separated only by a road, body of water, or public or private easement and together constitute a forest unit.

How does the GRRF define a farm? 

For the purposes of the GRRF, a farm or forest is based on the definitions defined in TCA 2-2-122(c)(2)* and TCA 67-5-1004(1) et seq: farm" means a tract of land of at least fifteen (15) acres constituting a farm unit engaged in the production of growing crops, plants, animals, nursery or floral products. Such farm shall produce gross agricultural income averaging at least one thousand five hundred dollars ($1,500) per year over a three-year period.  "Agricultural land" means land that meets the minimum size requirements specified in subdivision (1)(B) and that either: Constitutes a farm unit engaged in the production or growing of agricultural products; or Has been farmed by the owner or the owner's parent or spouse for at least twenty-five (25) years and is used as the residence of the owner and not used for any purpose inconsistent with an agricultural use; To be eligible as agricultural land, property must meet one (1) of the following minimum size requirements by consisting of: A single tract of at least fifteen (15) acres, including woodlands and wastelands; Two (2) noncontiguous tracts within the same county, including woodlands and wastelands, one (1) of which is at least fifteen (15) acres and the other being at least ten (10) acres and together constituting a farm unit; or Two (2) noncontiguous tracts within the same county totaling at least fifteen (15) acres, including woodlands and wastelands, that are separated only by a road, body of water, or public or private easement and together constituting a farm unit.

*If your farm is less than 15 acres you may still submit an application for funding, but it will be reviewed on a case-by-case basis. 

What documents are required to complete the application? 

As part of your application, you will need to show proof of Tennessee residency and ownership of property and/or assets located in one or more of the following counties: Carter, Claiborne, Cocke, Grainger, Greene, Hamblen, Hancock, Hawkins, Jefferson, Johnson, Sevier, Sullivan, Unicoi or Washington. You will also need to provide documentation of storm damage to the project/need for which you are requesting funding. This could be insurance claims, pictures, quotes for repairs, or additional documentation you deem necessary.  

What types of projects are eligible for the Governor’s Response and Recovery Funds? 

Eligible projects must show how damages, losses, or disruptions to operations or resources were caused by Tropical Storm Helene. The impacted address must be in Carter, Claiborne, Cocke, Grainger, Greene, Hamblen, Hancock, Hawkins, Jefferson, Johnson, Sevier, Sullivan, Unicoi or Washington Counties. The address listed above must be the legal responsibility of the applicant and be undertaken at a reasonable cost. 

Is there anything these funds cannot be used for? 

The Governor’s Response + Recovery Fund is not for individual assistance.

Will I receive the total amount of funds requested at one time? 

You may receive full or partial amount of the funds requested. Funding amounts will be decided based on availability of funds and number of eligible applicants. Any funds awarded from the Governor’s Response and Recovery Fund will be disbursed as one lump payment. In order to receive payment, you must become a vendor with the state in order to receive payment. If your project is expected to be completed in phases, you may receive funding at the beginning of each phase. You will need to show completion of a phase before additional funds are disbursed for subsequent phases.  

How will the funds be disbursed? 

All selected awardees will need to create a supplier account in Edison, the state’s payment portal. Once an account has been established, payments will be in the form of an ACH deposit to the checking account you provide.    

How long will it take to receive a decision after the application has been submitted? 

It is expected that the applications that are selected will be notified on July 2, 2025.