STATE COVERAGE · TENNESSEE

Tennessee Feasibility Study Consultant

Tennessee is a four-metro-plus-broad-rural state, and its financing map reflects that cleanly. SBA 7(a) and 504 carry most owner-operated and special-purpose projects across the Nashville metro, the Memphis metro, the Knoxville metro, the Chattanooga metro, the Tri-Cities, Clarksville, Murfreesboro, Jackson, and the other principal cities and their urbanized areas, while USDA financing is broadly available across East Tennessee Appalachia, the Cumberland Plateau, the Middle Tennessee farm counties, and the West Tennessee Delta. Because the rural footprint is so large, Tennessee has one of the most useful USDA maps in the country, anchored by a major agricultural economy, the Tennessee whiskey industry, and the Great Smoky Mountains tourism economy. On top of that split sit several distinctive features, from an active but reforming Certificate of Need program to the wet and dry local-option system to a statewide commercial building code. We prepare lender-grade studies calibrated to the program and the region the project actually sits in.

Key Tennessee market indicators

7,315,076

Tennessee residents as of July 1, 2025

Source: U.S. Census Bureau Vintage 2025 (2025)

$549,709 million

Tennessee nominal GDP

Source: U.S. Bureau of Economic Analysis (2024)

2.4%

Tennessee real GDP growth

Source: U.S. Bureau of Economic Analysis (2024)

3.6%

Tennessee unemployment rate, seasonally adjusted

Source: U.S. Bureau of Labor Statistics (May 2026)

Why a Tennessee study is different

Several features set Tennessee apart. First, the financing map splits between an SBA-dominant set of four metros and a very broadly USDA-eligible rural majority, so the right program depends heavily on where the project sits. Second, Nashville is the global country-music capital and the largest concentration of healthcare-company headquarters in the country, which drives hotel, multifamily, and event demand. Third, the logistics and manufacturing base, anchored by the Memphis FedEx hub, the Ford project in West Tennessee, the Volkswagen plant in Chattanooga, and the Nissan and GM plants, drives industrial and workforce-housing demand. Fourth, the Tennessee whiskey industry and the Great Smoky Mountains, the most-visited national park in the country, drive tourism, hospitality, and event-venue demand. Fifth, the active Certificate of Need program and the wet and dry local-option system are first-order regulatory questions. Every figure in a Tennessee study has to be sourced to the region, the program, and the regulatory overlay the project actually faces.

SBA and USDA financing in Tennessee

For most owner-operated and special-purpose projects across Nashville, Memphis, Knoxville, Chattanooga, the Tri-Cities, Clarksville, and Jackson, SBA 7(a) and SBA 504 are the primary federal paths. Under SOP 50 10 8, effective June 1, 2025, the SBA may request a feasibility study based on enumerated risk factors, and a lender-grade study is normally expected for special-purpose properties and startups. The 504 program escalates the borrower equity injection to 15 percent for a special-purpose property or a startup, and to 20 percent when both apply.

USDA reaches the large majority of the state. Business and Industry, Community Facilities, and REAP financing under the OneRD framework (7 CFR Part 5001) is available in any area not within a city or town over 50,000 and not in its contiguous urbanized area, which in Tennessee means East Tennessee Appalachia, the Cumberland Plateau, the Middle Tennessee farm counties, and the West Tennessee Delta. For a new business, the over-one-million-dollar independent feasibility requirement at 7 CFR 5001.306 applies, and we prepare to that standard. We confirm rural eligibility parcel by parcel through the USDA Rural Development Tennessee office in Nashville at the start of every engagement, and because Tennessee's agricultural and whiskey economy is so deep, USDA REAP and value-added projects are a real and frequent path here.

Large market-rate multifamily and the big-box logistics industrial market in Nashville and Memphis generally run through conventional, agency, CMBS, or life-company financing rather than the SBA, and we prepare those studies for the lenders that actually fund them.

The Tennessee regulatory layer

Several state-specific items move feasibility in Tennessee. The state runs an active Certificate of Need program through the Health Facilities Commission that still gates nursing-home beds and several other services, though it has been narrowing in recent years, while assisted living and memory care are licensed instead through the Department of Health and fall outside the Certificate of Need process. The wet and dry local-option system is a first-order question: jurisdictions are dry by default until a referendum authorizes package or by-the-drink sales, so alcohol availability has to be confirmed parcel by parcel for any restaurant, hotel, distillery, or event venue. The Tennessee commercial building code is a statewide code based on the International Building Code, so building standards are consistent across the state. The Petroleum Underground Storage Tank Fund provides cleanup coverage and financial assurance for petroleum tanks, which is a real positive for gas station projects. The Greenbelt program assesses farm, forest, and open-space land at use value, but conversion triggers a rollback tax that recaptures several years of taxes, which is a meaningful cost item. Commercial and industrial property is assessed at 40 percent of value and residential and farm at 25 percent, and there is no state income tax, a significant draw. Karst geology and sinkholes are a Middle Tennessee site-engineering issue, and steep slopes shape sites in the east. We map the binding approvals for the specific site before a single revenue assumption is made.

Tennessee feasibility studies by asset class

Gas Station Feasibility Studies in Tennessee

Fuel-and-convenience demand in Tennessee runs on the I-40, I-65, I-24, I-75, and I-81 corridors, the four metros, and the heavy tourism flows to the Great Smoky Mountains and the lakes. The binding items are the Department of Environment and Conservation storage-tank registration and the Petroleum Underground Storage Tank Fund, which provides cleanup coverage and financial assurance, the statewide commercial building code, and the 40 percent commercial assessment. Gas stations are special-purpose collateral under the SBA, which raises the equity injection and makes a lender-grade study the norm. We prepare studies for highway-corridor, suburban, and rural sites, with USDA broadly available across the rural majority of the state.

Tennessee Gas Station Feasibility Study →National Gas Station practice →

RV Park Feasibility Studies in Tennessee

Tennessee has one of the strongest outdoor-hospitality markets in the country, anchored by the Great Smoky Mountains, the most-visited national park in the country, along with Gatlinburg, Pigeon Forge, and Sevierville, the Cumberland Plateau, the Tennessee River, and the lakes. The binding items are Department of Environment and Conservation septic and subsurface sewage permitting, the state wetlands program for stream and floodplain impacts, the Greenbelt rollback tax on converted land, and local zoning where it exists. USDA Business and Industry and REAP financing reach nearly all of these rural locations, and SBA 7(a) fits smaller owner-operated parks. We prepare studies for RV parks, campgrounds, glamping, and cabin resorts across the state's tourism regions.

Tennessee RV Park Feasibility Study →National RV Park practice →

Hotel Feasibility Studies in Tennessee

Hotel demand in Tennessee is anchored by the Nashville market with its Broadway, music, and convention demand, the Smokies market in Gatlinburg, Pigeon Forge, and Sevierville, the Memphis market with Beale Street and Graceland, the Knoxville market, and the Chattanooga market. The binding items are the wet or dry status of the jurisdiction for food and beverage, the statewide commercial building code, and the local hotel and occupancy taxes. Larger full-service Nashville and Memphis hotels run through conventional, CMBS, and life-company financing, while limited-service and resort properties fit SBA, and USDA applies to rural and Smokies-adjacent projects outside the principal cities. We prepare lender-grade studies calibrated to the property and the market.

Tennessee Hotel Feasibility Study →National Hotel practice →

Self-Storage Feasibility Studies in Tennessee

Self-storage demand in Tennessee is driven by strong in-migration and household growth in the Nashville, Knoxville, and Chattanooga suburbs and the Murfreesboro and Clarksville areas, plus a strong second-home cabin, boat, and RV storage dynamic in the Smokies and the lake regions. The binding items are the statewide commercial building code, the 40 percent commercial assessment, and local zoning, which is stricter in the affluent Nashville suburbs. Self-storage is multipurpose collateral under the SBA, which keeps the equity injection lower and the financing path cleaner than special-purpose assets. We prepare studies for ground-up and conversion projects across the metros, the suburbs, and the tourism regions.

Tennessee Self-Storage Feasibility Study →National Self-Storage practice →

Senior Housing Feasibility Studies in Tennessee

Senior housing demand in Tennessee is driven by an aging population and strong retiree in-migration to the Nashville suburbs, the Knoxville and Blount County area, and the Smokies foothills. The defining regulatory feature is the active Certificate of Need program through the Health Facilities Commission, which still gates nursing-home beds, while assisted living and memory care are licensed instead through the Department of Health and fall outside the Certificate of Need process, which makes the licensed assisted-living and memory-care path the most common route for new development. We prepare studies for assisted living, memory care, and skilled nursing projects statewide, calibrated to the right approval and licensure path, with USDA Community Facilities a frequent fit for rural projects.

Tennessee Senior Housing Feasibility Study →National Senior Housing practice →

Car Wash Feasibility Studies in Tennessee

Car wash demand in Tennessee follows the strong suburban household growth in the Nashville, Memphis, and Knoxville metros and the explosive Rutherford County growth around Murfreesboro and Smyrna. The binding items are Department of Environment and Conservation stormwater and reclaim-water discharge permitting, local site-plan approval, especially where karst geology is pronounced in Middle Tennessee, and the statewide commercial building code. Car washes are special-purpose collateral under the SBA, so the equity injection runs higher and a bankable study is expected. We prepare studies for express, tunnel, and in-bay projects statewide, with USDA available in smaller markets.

Tennessee Car Wash Feasibility Study →National Car Wash practice →

Restaurant Feasibility Studies in Tennessee

Restaurant feasibility in Tennessee runs on the Nashville Broadway and dining scene, the Memphis barbecue corridor, the Knoxville and Chattanooga food scenes, and the Smokies tourism markets. The defining item is the wet and dry local-option system: jurisdictions are dry by default until a referendum authorizes by-the-drink sales, and a recent wave of cities and counties has voted wet, so alcohol status is the single most important first-order question for a full-service concept. Restaurants are typically multipurpose collateral under the SBA, with 7(a) the most common path, and the lack of a state income tax is a real bottom-line advantage for operators. We prepare studies for full-service, quick-service, and destination-dining projects statewide.

Tennessee Restaurant Feasibility Study →National Restaurant practice →

Wedding & Event Venue Feasibility Studies in Tennessee

The Nashville destination-wedding market, the farm and barn venues of Williamson and Sumner counties, the Smokies destination weddings, and the Tennessee Whiskey Trail distillery-event market give Tennessee a distinctive event-venue economy. The binding items are the wet or dry status of the jurisdiction, the Greenbelt rollback tax if a working farm converts an outbuilding to event use, the statewide building code and assembly occupancy rules, and special-event permits. We prepare studies for distillery and barn venues, farm venues, and event centers statewide.

Tennessee Wedding Venue Feasibility Study →National Wedding Venue practice →

Industrial Feasibility Studies in Tennessee

Tennessee industrial demand is driven by the Memphis FedEx hub and intermodal market, one of the largest distribution markets in the country, the Nashville interstate-convergence market, the Volkswagen and battery-plant activity in Chattanooga, the Ford project in West Tennessee, and the tight Knoxville market, along with the Tennessee whiskey barrel-warehouse and cooperage demand. The binding items are Department of Environment and Conservation water and discharge permitting, the state wetlands program, the statewide commercial building code, and the 40 percent commercial assessment. Larger and speculative projects run through conventional, CMBS, and life-company financing, while owner-user light-industrial projects fit SBA 504, and USDA reaches rural manufacturing and processing. We prepare lender-grade studies calibrated to the specific submarket and current conditions.

Tennessee Industrial Feasibility Study →National Industrial practice →

Multifamily Feasibility Studies in Tennessee

Tennessee's strongest rental markets are Nashville, Knoxville, and Chattanooga, with Memphis and Clarksville rounding out the metros, all supported by strong in-migration and the no-state-income-tax draw, though Nashville has worked through a large wave of new supply. The binding items are the 40 percent commercial assessment, the statewide building code, careful geotechnical work in the Middle Tennessee karst, and local zoning. Because the SBA does not finance market-rate multifamily, these projects run through conventional, agency, CMBS, and life-company channels, with Tennessee Housing Development Agency programs and Low-Income Housing Tax Credits for affordable projects and USDA rural rental housing in the eligible footprint. We prepare market-rate, affordable, and workforce studies for the lenders that fund them.

Tennessee Multifamily Feasibility Study →National Multifamily practice →

Tennessee markets we cover

We prepare studies across the entire state: the Nashville metro including Davidson, Williamson, Rutherford, Sumner, Wilson, Maury, and Montgomery counties, the Memphis metro including Shelby, Tipton, and Fayette counties, the Knoxville metro including Knox, Blount, Anderson, Sevier, and Loudon counties, the Chattanooga metro and Hamilton County, the Tri-Cities of Johnson City, Kingsport, and Bristol, Clarksville and Fort Campbell, Murfreesboro, Jackson and the West Tennessee Delta, the Cumberland Plateau, the Great Smoky Mountains and Gatlinburg and Pigeon Forge, and the lakes and the Tennessee River.

Built to the lender's standard

Every study is prepared as an independent, third-party document built to satisfy the party that actually approves the loan, whether that is an SBA reviewer, a USDA state office, or a conventional, agency, or CMBS credit committee. We document the market, the demand, the competitive supply, the regulatory path, and the financial projections to a standard that holds up under lender scrutiny. The analysis is calibrated to the program and the region, and the conclusions are defensible.

Start a Tennessee feasibility study →

Frequently asked questions

The large majority of the state is. USDA rural eligibility excludes cities and towns over 50,000 and their contiguous urbanized areas, but because so much of Tennessee is rural, East Tennessee Appalachia, the Cumberland Plateau, the Middle Tennessee farm counties, and the West Tennessee Delta are broadly eligible. We confirm eligibility parcel by parcel through the USDA Rural Development Tennessee office in Nashville at the start of every engagement.

Under SOP 50 10 8, effective June 1, 2025, the SBA may request a feasibility study based on enumerated risk factors, and a lender-grade study is normally expected for special-purpose properties and startups. Special-purpose assets such as gas stations, car washes, hotels, and assisted living carry a higher equity injection and almost always warrant a study.

It is a first-order question in Tennessee. Jurisdictions are dry by default and must pass a referendum to authorize package or by-the-drink sales, so some counties and cities allow full alcohol service and others do not. Because alcohol service can be central to a restaurant, hotel, distillery, or event-venue pro forma, we confirm the wet or dry status of the specific location before building revenue assumptions.

It depends on the product. Tennessee runs an active Certificate of Need program that still gates nursing-home beds and several other services, though it has been narrowing in recent years. Assisted living and memory care are licensed instead through the Department of Health and fall outside the Certificate of Need process, which makes the licensed assisted-living and memory-care path the most common route for new development. We calibrate each senior-housing study to the correct approval and licensure path.

The heaviest items are the active Certificate of Need program for nursing beds, the wet and dry local-option system for any project that serves alcohol, the statewide commercial building code, the Petroleum Underground Storage Tank Fund for gas stations, the Greenbelt rollback tax on converted farm and forest land, the 40 percent commercial assessment, and karst geology in Middle Tennessee. We map the binding approvals for the specific site before making revenue assumptions.

Timelines depend on asset class, program, and how much regulatory diligence the site requires. We scope each engagement individually and give a clear delivery schedule at the start. Reach out through our contact page to discuss your project and timing.