Memphis, January 22, 2026
The Downtown Memphis Commission is introducing new policies effective February 2026 to attract small businesses and enhance the downtown retail landscape. The updated Retail Tenant Improvement Grant and Downtown Development Loan programs aim to support new and existing businesses by offering financial assistance for interior improvements and property development. These changes align with the Downtown Action Plan’s goals of boosting foot traffic, activating vacant properties, addressing blight, and improving walkability, reflecting Memphis’s commitment to economic growth and community vibrancy.
Memphis Aims to Revitalize Downtown Retail with New Policies
Memphis, Tennessee – The Downtown Memphis Commission (DMC) has announced significant policy changes aimed at attracting small businesses and revitalizing the downtown retail scene. These adjustments, effective February 1, 2026, align with the recently adopted Downtown Action Plan, which focuses on enhancing Main Street, promoting activation, infill development, and addressing blight to improve walkability.
Policy Changes and Incentives
The DMC’s Center City Development Corporation (CCDC) has updated its Retail Tenant Improvement (TI) Grant and Downtown Development Loan programs to better support small businesses. Key changes include:
- Retail Tenant Improvement (TI) Grant: This program offers financial assistance of up to $30,000 for qualified permanent improvements to the interior of a tenant’s space. The grant aims to encourage new businesses to open ground-floor locations along priority corridors and within targeted retail nodes, motivate property owners to collaborate with tenants to fill long-vacant spaces, and increase the total number of retail businesses downtown. Eligible expenses cover areas such as hazardous materials abatement, interior demolition, compliance with the Americans with Disabilities Act (ADA), and permanent equipment installations. Ineligible expenses include furniture, temporary partitions, and moving costs. The program operates as a reimbursable grant, with applicants required to submit receipts and demonstrate compliance with standard closing conditions before reimbursement.
- Downtown Development Loan: This loan program provides financial assistance to support the development and improvement of downtown properties, aiming to stimulate economic growth and attract new businesses to the area. Specific details about the loan terms and eligibility criteria are available through the DMC.
Alignment with Downtown Action Plan
The policy changes are part of the DMC’s broader strategy to implement the Downtown Action Plan, which emphasizes:
- Enhancing Main Street: Focusing resources on revitalizing Main Street to attract more foot traffic and business activity.
- Activation and Infill Development: Encouraging the development of vacant properties and activating underutilized spaces to create a vibrant urban environment.
- Blight Remediation: Addressing and redeveloping blighted areas to improve safety and aesthetics, thereby attracting more businesses and residents.
- Improving Walkability: Making downtown areas more pedestrian-friendly to enhance the overall experience for visitors and residents.
Background Context
Memphis has been actively working to revitalize its downtown area through various initiatives. The DMC’s efforts include:
- Open on Main Program: A pop-up retail business incubator launched in 2016 to fill vacant retail spaces and support small businesses by providing opportunities to test their concepts in a brick-and-mortar storefront without the burden of long-term leases.
- Retail Tenant Improvement (TI) Grant: Designed to help grow a vibrant and thriving retail climate in Downtown Memphis by supporting new retail, creative arts & entertainment, and food & beverage-based businesses that choose to locate within key corridors and retail nodes.
- MemShop Initiative: A city initiative that brings holiday shopping to Overton Square, supporting local entrepreneurs and revitalizing the area.
These combined efforts reflect Memphis’s commitment to fostering economic growth, supporting local entrepreneurs, and creating a vibrant downtown environment that attracts both residents and visitors.
Frequently Asked Questions (FAQ)
What are the new policy changes implemented by the Downtown Memphis Commission?
The DMC has updated its Retail Tenant Improvement (TI) Grant and Downtown Development Loan programs to better support small businesses. These changes aim to attract new businesses, fill long-vacant spaces, and increase the number of retail businesses downtown.
What is the Retail Tenant Improvement (TI) Grant?
The Retail TI Grant offers financial assistance of up to $30,000 for qualified permanent improvements to the interior of a tenant’s space. It is designed to encourage new businesses to open ground-floor locations along priority corridors and within targeted retail nodes, motivate property owners to collaborate with tenants to fill long-vacant spaces, and increase the total number of retail businesses downtown. Eligible expenses include hazardous materials abatement, interior demolition, compliance with the Americans with Disabilities Act (ADA), and permanent equipment installations. Ineligible expenses include furniture, temporary partitions, and moving costs. The program operates as a reimbursable grant, with applicants required to submit receipts and demonstrate compliance with standard closing conditions before reimbursement.
How do these policy changes align with the Downtown Action Plan?
The policy changes are part of the DMC’s broader strategy to implement the Downtown Action Plan, which focuses on enhancing Main Street, promoting activation and infill development, addressing blight remediation, and improving walkability in downtown Memphis.
What other initiatives has Memphis undertaken to revitalize downtown?
Memphis has launched several initiatives, including the Open on Main Program, a pop-up retail business incubator that supports small businesses by providing opportunities to test their concepts in a brick-and-mortar storefront without the burden of long-term leases. Additionally, the Retail Tenant Improvement (TI) Grant supports new retail, creative arts & entertainment, and food & beverage-based businesses that choose to locate within key corridors and retail nodes. The MemShop Initiative brings holiday shopping to Overton Square, supporting local entrepreneurs and revitalizing the area.
Key Features of the Policy Changes
| Feature | Description |
|---|---|
| Retail Tenant Improvement (TI) Grant | Offers up to $30,000 for qualified permanent improvements to the interior of a tenant’s space, aiming to attract new businesses and fill long-vacant spaces. |
| Downtown Development Loan | Provides financial assistance to support the development and improvement of downtown properties, aiming to stimulate economic growth and attract new businesses to the area. |
| Alignment with Downtown Action Plan | Focuses on enhancing Main Street, promoting activation and infill development, addressing blight remediation, and improving walkability in downtown Memphis. |
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