Tennessee clawing back $3M grant from Chattanooga company

(The Center Square) – The Tennessee Department of Economic and Community Development is asking a Chattanooga company to return a $3 million FastTrack grant after the company failed to create the number of jobs it promised.

Novonix, known as PUREGraphite LL at the time of the 2021 contract, said it would create 290 new jobs as a condition of receiving the grant. The company only created 85 jobs, 29% of what it promised.

A June 11 letter to the company from Tennessee officials provided to The Center Square said the company has 45 days to repay the money. Any unpaid amount will accrue interest.

According to a template Accountability Agreement for Tennessee’s FastTrack grants provided by the Economic and Community Development Department, a company that creates less than 90% of its pledged new jobs must repay a proportional amount of the grant award. A company that creates less than 50% must repay the entire grant.

The clawback agreements are a safety net if the companies don’t hold up their end of ...