Tennessee recouping FastTrack grant money from two companies

(The Center Square) – Two companies that received Tennessee grant funds for job creation but failed to meet their obligations are repaying them, according to a spokesman with the Tennessee Department of Economic and Community Development.

FastTrack grants are awarded to companies as incentives. An investigation by The Center Square found that some companies failed to fulfill their contracts, prompting clawback requests by the state. The money for the grants comes from the state’s general fund budget, which is made up of a mixture of tax sources, including the state sales tax.

Clawbacks are calculated on a sliding scale based on how far a company falls short. According to a template contract provided by the department, a company that creates fewer than 90% of its pledged new jobs must repay a proportional share of the grant award, while a company that creates fewer than 50% must repay the entire grant.

In June, the Department of Economic and Community Development sent a demand letter to Novon...