Downtown Improvement Grant Program

The Downtown Improvement Grant Program is administered by the Tennessee Department of Economic and Community Development in partnership with Tennessee Main Street, with local governments such as the City of Paris serving as grant administrators for community-level implementation. The program was originally launched in 2010 as a commercial facade improvement initiative and has evolved into a broader downtown revitalization effort aimed at preserving historic commercial districts while stimulating economic growth. The funding is awarded to eligible Tennessee Main Street communities or certified downtown programs, which then distribute funds to local property and business owners for approved improvement projects. The primary purpose of the grant is to preserve and maintain historic buildings that are at least fifty years old while fostering new economic opportunities in downtown areas. The program emphasizes adherence to the Secretary of the Interior standards for historic preservation and requires that improvements maintain or restore the architectural integrity of buildings. Projects must align with local historic overlay guidelines or state design standards, ensuring that renovations enhance rather than detract from the historic character of the district. The program also supports broader downtown improvements such as streetscape enhancements, wayfinding signage, and public space activation. Funding can be used for a variety of eligible activities, with a strong emphasis on facade improvements. Approved uses include exterior renovations such as signage, painting, awnings, lighting, window and door restoration, brick repair, and removal of inappropriate materials. At least fifty percent of total project costs must be dedicated to facade improvements, while additional eligible activities may include public infrastructure upgrades like gateways, courtyards, and streetscape features. The grant operates on a reimbursement basis, meaning recipients must incur costs upfront and submit documentation for repayment within the grant period. A mandatory matching requirement applies to all funded projects, requiring a minimum of twenty five percent cost share. For facade improvements, this match is typically provided by property owners, while municipalities or sponsoring organizations may cover matching funds for public improvement components. Grantees must demonstrate financial capacity to manage reimbursement processes and comply with reporting requirements. Additionally, recipients are required to hire a qualified grant administrator with demonstrated experience in managing state or federal grants, and up to five percent of the grant may be allocated toward administrative costs. Eligibility is limited to designated Tennessee Main Street communities and Tennessee Downtowns alumni that have met specific program requirements, including submission of a letter of intent for certification. Applications must be submitted by a local government, nonprofit organization, or Main Street entity, rather than individual property owners. However, local property and business owners within the designated downtown area participate as subgrantees and must meet program guidelines for their individual projects. Certain entities, such as active churches and municipal buildings, are excluded from specific funding categories. The application process is conducted through the state grant portal and requires comprehensive documentation, including project descriptions, community support letters, design plans, photographs, and a detailed budget. Applications are evaluated based on criteria such as project need, economic impact, feasibility, and community support. Awards are reviewed by the Rural Development division and a grant committee, with contracts issued upon selection. Recipients must comply with procurement policies, submit regular reports, and maintain documentation for auditing purposes throughout the grant lifecycle. The application timeline for the 2026 cycle includes an open application period with a deadline of August 28, 2026, followed by award announcements on October 20, 2026. The performance period spans approximately twenty four months, beginning in early 2027 and concluding in early 2029. The program is recurring and typically offered annually, providing ongoing opportunities for eligible communities to apply for funding to support downtown revitalization efforts.

Focus on strong documentation of project need include clear photos and demonstrate community support and economic impact Ensure compliance with historic design guidelines and show ability to meet matching requirements